360 degree feedback system as a performance evaluation tool as long as the understanding of its intent is understood. “There are three key steps in the successful implementation of 360 degree feedback systems in an organization. The three steps are that it must fit the organizations culture, make it psychometrically sound, and used with care” (“Best Practices”, 2012). It is also important to train the feedback providers to be sensitive, respectful and polite. Treating employees in a friendly and respectful manner and offering constructive advice will make them more open to accepting the performance appraisal system.
Major advantage to the 360 feedback system is that it provides an opportunity for all the employees associated with the project to offer feedback. All members of the project are to be evaluated on a scale that is defined by the organization to insure fairness and accuracy. Another advantage of the 360 feedback system is that it is designed with customer focus in mind. The customers can be internal or external. Employees may not understand the impact their daily activities have on other individuals or departments within the company. This provides essential feedback to the employees which may have a positive effect on his/her performance for future projects. The "360" evaluation is particularly strong when coupled with an action plan developed by the person receiving feedback and shared with those who provided the feedback.
The main disadvantage to using the 360 feedback system is that management and employees may not be trained correctly on how to effectively use the process. Another problem that occurs with this type of system is with its consistency in using this process. Companies sometimes get overwhelmed with other important issue and forget or do not have time to conduct this evaluation in a proper time
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