In the Eye of the Beholder: How Leadership Relates to 360-Degree Performance Ratings

This longitudinal field study examined how leader behavior influences performance ratings of leaders, and the extent to which this relationship depends on the person rating the leader. The study was not a direct probe of 360-degree performance evaluation, yet the results are especially informative with regard to this relatively new approach to evaluating performance. Results indicate differences in the way leader behavior correlated with subsequent performance ratings, depending on who completed the rating. Leaders who were seen as challenging the status quo and encouraging subordinates' independent action were rated lower by their superior managers, but rated higher by their subordinates. Discussion speculates about the possible reasons underlying these findings, especially the role of the person doing the rating. The authors conclude that lack of convergence of ratings from different sources is not necessarily rater "error" but can stem from legitimate differences in the structural role of the person rating the leader.