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

Which of the following is a recognised limitation of a 360-degree appraisal system?

A recognised limitation is that multiple raters may be affected by friendships, rivalries or fear of reprisal, and collecting and analysing their feedback takes time and cost. Relying only on the line manager's view is the weakness of traditional top-down appraisal, which 360-degree feedback is designed to address.

  1. AFeedback from multiple raters may be influenced by personal relationships or a fear of reprisal, and it can be time-consuming to collectCorrect
  2. BIt relies solely on the line manager's view, which may be biased
  3. CIt cannot provide any information on interpersonal skills
  4. DIt is only suitable for employees with no managerial responsibilities

Explanation

360-degree appraisal collects views from peers, subordinates, managers and sometimes customers. Raters can be biased or fear consequences, and gathering the data is costly and slow. The sole-manager criticism applies to traditional top-down appraisal, not 360-degree.

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