Traditionally, performance appraisals were conducted by the managers and their assistance. This method was very bureaucratic and often marred by discrimination and manipulated feedback. For instance, a personal relationship of a worker and supervisor would reflect a positive assessment results despite the incompetence of that particular employee.
However, due the contemporary dynamics in the business world, a more advanced method is adopted by the HR department that rates above 80 percent effectiveness (Kavanagh 1995). The 360 degree appraisal method also called multi-rater or multisource feedback employed by company B, involves getting responses from peers, subordinate staff, team leaders, a self assessment, and from customers inter alia.
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