If a single e-mail can send the pulse racing, it’s the one from human resources announcing that it’s time for another round of 360-degree feedback. In and of itself, this type of appraisal isn’t bad. Indeed, many businesspeople would argue that over the past decade, it has revolutionized performance management—for the better. But one aspect of 360-degree feedback consistently stymies executives: peer appraisal. More times than not, it exacerbates bureaucracy, heightens political tensions, and consumes enormous numbers of hours. No wonder so many executives wonder if peer appraisal is worth the effort.
A version of this article appeared in the January 2001 issue of Harvard Business Review.
