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Performance Reviews: Is 360-degree feedback a good idea?

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Question: 
In this month’s Wired magazine, they mention “360-Degree Feedback” and say that it is a new trend in job performance reviews in which employees get critiques from peers, subordinates and clients, as well as their superiors. Do you think this is a more fair way to evaluate employees? Are there any downsides to it? What if we use this feedback to determine whether a raise or promotion should be granted? How do we guard against unreliable feedback from someone who might have an ax to grind?
Answer: 

I think the "360-Degree Feedback" is probably a good idea. The idea being you want the employees to feel a sense of "ownership" in the organization, what better way than to allow them some input in the employee evaluation process? However, I would weigh the evaluations carefully, and weigh them differently than evaluations from supervisors. I would also rely on measured performance when it came to raises or promotions.

First published on BankersOnline.com 8/6/01

First published on 08/06/2001

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