Despite the fact that 360 degree appraisals are being widely used throughout the world for appraising the performance of the employees at all levels, many HR experts and professionals argument against using the technique of 360 degree appraisals. The main arguments are:
360 performance rating system is not a validated or corroborated technique for Performance appraisal.
With the increase in the number of raters from one to five (commonly), it become difficult to separate, calculate and eliminate personal biasness and differences.
- It is often time consuming and difficult to analyze the information gathered.
- The results can be manipulated by the employees towards their desired ratings with the help of the raters.
- The 360 degree appraisal mechanism can have a adversely effect the motivation and the performance of the employees.
- 360 degree feedback – as a process requires commitment of top management and the HR, resources(time, financial resources etc), planned implementation and follow up.
- 360 degree feedback can be adversely affected by the customers perception of the organisation and their incomplete knowledge about the process and the clarity of the process.
Often, the process suffers because of the lack of knowledge on the part of the participants or the raters