Skip to content

ACCA Applied Knowledge · Business and Technology · Review and appraisal of individual performance

A company introduces 360-degree appraisal for its team leaders. Which of the following is the most significant potential disadvantage of this approach compared with traditional top-down appraisal?

The main disadvantage is that feedback from peers and subordinates may be biased, inconsistent or harmful to working relationships if poorly managed. 360-degree appraisal uses multiple sources and does help identify development needs, but it demands rater training, confidentiality and time, which makes it harder to run than top-down appraisal.

  1. AFeedback from peers and subordinates may be biased or damage working relationships if handled badlyCorrect
  2. BIt gathers feedback from only one source, the line manager
  3. CIt cannot be used to identify development needs
  4. DIt removes any need for confidentiality or training of raters

Explanation

360-degree appraisal collects views from managers, peers, subordinates and sometimes customers, giving broad feedback. Its drawbacks include bias, rater inexperience, time cost and possible friction. The other options contradict its nature: it uses multiple sources, it does help identify development needs, and it needs careful confidentiality.

Did you get it right without looking?

One question tells you little. A timed set on Review and appraisal of individual performance shows your real accuracy, how long you take and where you lose marks.

Practise Review and appraisal of individual performanceFree diagnostic mock

More Review and appraisal of individual performance questions