The Pros and Cons of Multi Source Performance Appraisal

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In an organization employees are the important asset and play a significant role in the progress of an organization. Nowadays firms usually focus on the human capital in the form of the employees by giving them training, assisting them in career development and also work on performance management in order to keep the employees motivated and dedicated by giving them feedback through performance appraisals. Through these performance appraisals the employees are informed about their strengths that they can enhance and about their weaknesses that they can improve in the future.

Multi-source performance appraisal or 360-degree evaluation is basically a process in which the feedback is collected from different people that interacts with employee like his supervisors, coworkers, bosses, can be stakeholders etc. It is an important tool for Human Resource Management as the feedback is collected through the questionnaires in which the employees are asked to rate the particular employee in his performance and behavior. Its main purpose is to provide a healthy feedback to the employee that can highlight his strong and weak points and also helps in the development and the training of the employee. The feedback that is collected from different people is discussed between the manager and the particular employee. In this performance appraisal method the identity of a person who is filling the survey form is not shared with that particular employee. It also gives an impression to the employee that what other people think of him as in traditional appraisal method only the supervisor of particular employee gives the feedback about his performance but now due to involvement of people from different departments and different levels make the assessment less subjective and may be more accurate and honest. If one person says something about the employee then their can be chances of biasness but if many people says the same thing and without the influence of someone then we can say that their might be something wrong or something good about that particular person. As nothing is perfect in this world, which means that there are some pros and cons of 360 degree evaluation method.

This paper highlights the advantages and disadvantages of multi-source performance appraisal and also mentions some recommendation that can be used while implementing this performance appraisal method. The main importance is given on the pros and cons of this method that can help the organization to decide whether to continue with the traditional appraisal method or to go with 360-degree evaluation method.


The multi-source performance appraisal method plays a vital role for employees. It makes the employees to think about their attitude and behavior and about others perception about them. It also identifies the areas in which a particular employee performed well and also where he could not come up to the expectations. There are a lot of advantages and disadvantages of multi-source performance appraisal which are as follows:

Advantages of Multi-Source Performance Appraisal Method:

The main advantage of this method is that it provides feedback from different levels of organization and it is not restricted to supervisor or the manager as in the traditional performance appraisal method, as shown in the Appendix-I. In this method the employee is the centre of attention of all the people and the main goal of this method is to make the performance of that employee better than before as shown in Appendix-II. Due to the use of rating from different people, 360 degree evaluation method enhances the quality of the performance procedures and gives a detailed view. This method is useful to the supervisor as it can provide more authentic assessment of the performance of the employee and can help to eradicate the chances of biasness due to which it...
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