Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 7

In 360-degree performance review programs, personnel evaluations are collected anonymously from employees knowing the manager being evaluated (superiors, subordinates, and coworkers). These are tabulated and a consensus summary is provided to the manager. Each manager being evaluated also does a self-evaluation, and this is used to benchmark how closely the manager and the coworkers' assessments match. About one-third of the managers match their coworkers, one-third have an inflated view, and one-third rate themselves lower. Those who overrate themselves tend to be judged "least effective" as perceived by their coemployees. However, these overraters are more common higher up in the organization.[1]