Planning & Reflecting at Postgraduate Level

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HOW DO 360 DEGREE PERFORMANCE REVIEWS AFFECT EMPLOYEE ATTITUDES, EFFECTIVENESS AND PERFORMANCE?
DIANE M. ALEXANDER

University of Rhode Island

Organizational leaders clearly have many choices when selecting performance evaluation and development tools. One tool that has gained popularity and has become a growing trend in Corporate America in recent years is the 360 degree performance review. This popularity is based on the perceptions of organizational leader’s that 360 degree reviews establish a culture for continuous learning and provide more global feedback for employees, which leads to improved performance. According to Human Resource Consultant, William M. Mercer, forty percent of American companies used 360 degree feedback in1995; by 2000 this number had jumped to sixty-five percent. In 2002, 90% of Fortune 500 companies were using a 360 degree performance review process. (Linman, 2006) Conducting performance reviews in general, provides a number of valuable functions for organizations. They allow an organization to: • Translate department/organization’s mission into specific achievable goals • Manage performance rather than react to it • Reduce overlap of job duties and ineffective, inefficient use of employee skills • Provide written acknowledgment of completed work • Gain new information and ideas from staff • Discuss skill and career development • Protect organization from unfounded charges of discrimination • Reduce stress for the supervisor -managing rather than reacting • Reduce stress for the employee -- what is expected is made clear

Critical analysis raises the question of the relative effectiveness of the 360 degree performance review, compared to other forms of feedback, in bringing about performance improvement through individual behavioral change. RESEARCH QUESTION How do 360 degree performance reviews affect employee attitudes,…...

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