Hello Mehwish. Using a 360-degree feedback system has risks and benefits that need to be carefully considered. Especially so if this is the first kind of appraisal system you are implementing in the company. 360-degree systems, to work well, require a high-level of trust between employees and managers and a high level of executive support. The results for some individuals can be very confronting and the debrief needs to be handled very professionally.
An added risk is that where 360 scores are used to decide bonuses, salary rises, etc, employees may collude to raise the score in a particular department. Yes, you can use 360-degree feedback for execs and managers and a manager only appraisal for all other employees. You will need to decide your company's objectives for the appraisal system and how the appraisal system you select will satisfy those objectives.
Some companies are using 360-degree feedback for employee development planning only, as this takes the emotional pressure off employees and managers. Remember, 360-degree feedback gives feedback about behaviors and so are not objectively validated as with objective performance measures. Consider the benefits and disbenefits of the various appraisal systems very carefully. Yes, 360-degree feedback is more believable, however, the downside is that it is more time consuming and costly to conduct. There are now a number of online systems that you can use to cut down on the administrative load.
Lastly, it is not a case of either-or. Many companies are using a mix of performance-based measures and behavior measures (such as 360). Consider your options carefully.
Vicki Heath
Director
Business Performance Pty Ltd
http://www.businessperform.com