Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 20

Some firms have recently adopted 360-degree performance evaluations. Under this evaluation system the employee is evaluated not only by supervisors and peers but also by employees who report to the employee being evaluated. Discuss why a firm might want to adopt 360-degree reviews. What are the likely problems with this type of performance evaluation