Final answer:
The performance appraisal system referred to is Management by Objectives (MBO), which involves collaborative goal setting and annual evaluations based on achievement of those goals, different from the more feedback-focused 360-degree system.
Step-by-step explanation:
The type of performance appraisal that involves setting goals collaboratively for the organization, various departments, and each individual member is known as Management by Objectives (MBO). In this system, employees are evaluated based on how well they achieve predetermined goals, which can be assessed through annual appraisals.
This method not only focuses on the end results but also emphasizes the importance of outlining clear objectives and understanding the employee's role in achieving the organizational goals.
It is distinct from 360-degree feedback, where individuals receive feedback from a variety of sources including superiors, peers, and subordinates.
The MBO approach to performance appraisal is more strategic and alignment-focused, ensuring that each individual's efforts contribute towards the larger goals of the organization.
Conducting effective performance evaluations can lead to better motivation, clearer communication of expectations, and overall organizational success when aligned with the company's culture and values.