Traditional top-down performance-review processes limit feedback to a direct supervisor. While efficient, this runs the risk of individual bias. Expanding the annual performance review to include feedback from others--such as team members or direct reports--minimizes the risk of individual bias and also. However, 360 feedback reviews have a lengthier set-up time and requires careful management. Because the performance review is often tied to compensation, without proper communication and training, the feedback process may devolve into personal criticisms and/or active sabotage.
To avoid these problems, it is important to