Peer and upward appraisals - A comparison of their benefits and problems

This study reports on the positive and negative outcomes that a broad cross section of employees associate with peer and upward appraisals used solely for administrative or developmental purposes. Appraisals used for development were believed more likely to produce positive and less likely to produce negative outcomes than appraisals used for administration. Upward appraisals were believed to produce more positive outcomes and fewer negative outcomes than peer appraisals, mainly because of participants' lower expectations of positive outcomes and higher expectations of negative outcomes for peer appraisal used for administrative purposes. Good coworker relations were also positively related to positive outcomes and negatively related to negative outcomes, but supervisor relations had no effect on participants' opinions. Experience giving and receiving peer and/or upward reviews had little effect on participants' opinions, except that those with experience generally believed negative outcomes were even less likely to occur when appraisals were used for development than those without experience. Results are discussed in terms of their implications for future empirical work and for the design of 360-degree performance appraisal systems.