The value of subjectivity: problems and prospects for 360-degree appraisal systems

This paper focuses on the problems and prospects of 360-degree feedback methods. The rationale behind these appraisal systems is that different evaluation perspectives add objectivity and incremental validity to the assessment of individual performance. This assumption is challenged in this paper. Our research shows that there is a consistent difference in self- and supervisor ratings especially. This implies that, as long as these differences are understood as the result of several effects in measuring one's performance, the multi-source assessments will lead to a false sense of security and objectivity. Instead, when the differences are understood as subjective evaluations with a value in themselves, then different perceptions can be used for a better understanding between supervisors and employees of the working relations, personal performance and underlying motives for career development. Several recommendations are made for human resource management practices and future research.