Today, in some large enterprises in our country, especially in high-tech enterprises, the 360-degree performance appraisal system has also begun to be used and achieved certain results, such as Digital China, Kingdee Software, and Li-Ning Company. However, most domestic enterprises have seen little effect after using the 360-degree performance appraisal method; some have even encountered counterproductive results, leading to certain negative consequences.
From the perspective of the enterprise life cycle, a prerequisite for the 360-degree performance appraisal is the "three stabilities," meaning that the company's strategy remains relatively stable, the organizational structure remains absolutely stable, and personnel remain relatively stable, as indicated by websites like Xilingol Talent Network. Start-up companies have incomplete staffing, unclear hierarchical working relationships, and smaller scales, making them unsuitable for the 360-degree performance appraisal. Companies in the growth phase face the primary task of expanding business to achieve rapid development, as seen on Tongliao Talent Network. In this stage, both internal and external environments change quickly, and with unstable personnel, it’s difficult to implement the 360-degree performance appraisal based on long-term performance improvement. On the other hand, companies in the maturity phase, with their relatively stable strategies, goals, organizational structures, and personnel arrangements, are more suitable for applying the 360-degree performance appraisal.
The misuse of the 360-degree performance appraisal by domestic enterprises mainly manifests in the following aspects:
The 360-degree performance appraisal method was first proposed and implemented by Intel. Over the past few decades, with the rise of "people-oriented" management philosophy as the dominant management concept in Western management science and the promotion of network information technology, the performance management system centered around the 360-degree performance appraisal has swept across the globe. A survey conducted in 2010 showed that among the top 1000 enterprises ranked by Fortune Magazine, nearly 90% had applied some parts of the 360-degree feedback system in career development and performance evaluations. These enterprises include well-known companies like IBM, Motorola, Nokia, Ford, and Disney.
A survey result involving over 600 domestic enterprises revealed: only one-third of the enterprises believed they had achieved performance improvements through the application of the 360-degree performance feedback system; another one-third believed there was no significant improvement in performance; the remaining one-third thought this new method caused some negative impacts. Some scholars pointed out, "The 360-degree performance appraisal is a beautiful trap, a real lie." Clearly, issues exist during the implementation of this method domestically.
Misuse: Ignoring Enterprise Scale
The 360-degree performance appraisal, also known as the all-around assessment method or 360-degree performance feedback, refers to collecting information from multiple parties who interact with the appraisee in work-related contexts to conduct an all-around, multi-dimensional performance evaluation process, as noted by Bayannur Talent Network. The results of the appraisal are then fed back to employees to help them understand which performance dimensions need improvement, thereby achieving the goal of enhancing work performance. The starting point of this type of performance evaluation is collecting evaluation information from different levels of personnel, allowing comprehensive assessments of employees from multiple angles. It features comprehensive appraisal, anonymity in evaluation, and minimal errors.
As mentioned earlier, small start-ups and growth-phase companies are not suitable for the 360-degree performance appraisal, while mature-phase companies typically have larger scales. For example, in a large enterprise with tens of thousands of employees, if every employee undergoes a 360-degree performance appraisal, it would involve superiors, subordinates, colleagues, and customers simultaneously.
Abuse: Ignoring the Enterprise Development Stage
Currently, some enterprises see the success of the 360-degree performance appraisal in certain companies and rush to experiment without considering their own developmental stages. Regardless of whether the company is in its start-up, growth, or maturity phase, these enterprises attempt to use the 360-degree performance appraisal, resulting in the inability to achieve expected outcomes in performance evaluations.