In a 360-degree performance appraisal system, which source of information could provide biased ratings due to personal relationships?

In a 360-degree performance appraisal system, peers can indeed provide biased ratings due to personal relationships. This bias can arise from various dynamics, such as friendships or rivalries, which can influence how peers evaluate each other's performance. When individuals work closely together, their personal feelings toward one another, whether positive or negative, can cloud their judgment regarding an individual's professional capabilities.

This relationship can lead to assessments that are not fully reflective of an employee's actual performance but rather a reflection of interpersonal dynamics. In contrast, supervisors and customers typically assess performance based on more objective criteria related to job performance and outcomes, which may mitigate the influence of personal relationships. Direct reports might still have some bias, but their evaluations are often guided by the perceived performance impact on their work.

As such, while all sources in a 360-degree system can face varying levels of bias, the ratings provided by peers are uniquely susceptible to personal relationship influences, which is why peers are recognized as a source of potentially biased information in this context.