Pitfalls of 360 Degree Performance Evaluations

• Companies must manage 360-degree performance evaluations to avoid potential pitfalls. performance review image by Christopher Hall from Fotolia.com

  Businesses that use 360-degree performance evaluations replace the traditional evaluation process with one that solicits views on an employee's performance from supervisors, peers and direct reports. It attempts to collect a wider range of feedback to create a more accurate portrayal of the worker's performance. Companies mostly use this for managers, though some organizations implement it for everyone.

Confidentiality

• Confidentiality can lead to abuse, but without it, it is impossible to gather accurate feedback. white folder (confidential) image by William Berry from Fotolia.com

  Confidentiality is a key factor for 360-degree performance evaluation systems. When an employee evaluates his supervisor, he must be reasonably certain the supervisor will not retaliate for any negative comments. If the responses are not confidential, an employee might withhold views for reasons of personal gain. On the other hand, because the feedback is confidential, an employee is unable to respond directly to the evaluation.

Time Consuming

• The collection and compilation process takes a great deal of time. Time image by Victor M. from Fotolia.com

  The 360-degree evaluation process takes much more time than the traditional performance evaluation. Rather than just having a single supervisor and the employee prepare an evaluation, multiple people enter the process and all must devote substantial time evaluating all of their peers and supervisors.

Costly

• The 360-degree evaluation system is one of the most expensive forms of performance evaluation. time of the incomes, time of the expenses. image by firsov from Fotolia.com

  The time involved makes the labor cost of 360-degree performance evaluations expensive. Other expenses include the initial creation of the system and its administration. Many companies purchase software to confidentially collect feedback, compile it, and store the data.

Political or Cultural Distortion

• A major pitfall of 360-degree evaluations can be the political or cultural climate of the organization. In an unhealthy environment, or one with strained teamwork, some would use this form of feedback to get revenge on a supervisor, hold back a peer for competitive purposes, or discourage a direct report in an anonymous fashion.

Competency of Employees Providing Feedback

• The delivery of an effective performance evaluation is a developed skill. The system falls apart if employees cannot deliver unbiased feedback directly related to performance, leaving out personal feelings about the person they evaluate.

Creation of Suspicious Environment

• If the employer does not manage the system openly, with employees understanding the collection of data, its use, and the purpose of the system, it can create an environment of suspicion detrimental to team building.