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In most organizations, the employee appraisal process causes more tension than any other aspect of personnel management. Despite the good intentions behind it, a 360° Feedback system does little to quell the fear that performance evaluation tends to instill. But is it possible to design a 360° Feedback system that is both comfortable and constructive for employees? This technical note discusses the challenges of and opportunities for creating a system that improves performance effectiveness and enhances career success.