What might prompt an organization to adopt a 360 degree appraisal system?

Adopting a 360 degree appraisal system is primarily motivated by the desire to gain a well-rounded perspective on employee performance. This method involves gathering feedback from various sources, including peers, subordinates, and supervisors, as well as self-assessment. The comprehensive nature of this feedback provides a more holistic view of an employee’s performance, strengths, and areas for improvement, which can lead to better personal development and enhanced overall performance.

The richness of insights obtained from multiple stakeholders helps to mitigate biases that may arise when feedback is solely based on a single viewpoint, typically from management. This multifaceted feedback approach not only fosters a more inclusive evaluation process but also encourages communication and a culture of openness within the organization. Such a system can be particularly effective in identifying competencies, understanding team dynamics, and aligning individual performance with organizational goals.

The other options do not align with the intended purpose of a 360 degree appraisal system. Limiting feedback to management would be contrary to the inclusive nature of the system, simplifying the evaluation process does not capture the depth and breadth of performance insights, and increasing hierarchical control contradicts the collaborative feedback mechanism that the 360 degree approach fosters.