What is 360-degree feedback?
360-degree feedback, also known as multi-rater feedback, is a powerful performance management tool that has revolutionised performance management for the better.
Unlike those anxiety filled conversations held with managers at the end of a performance review, the purpose of the 360-degree feedback is to assist each individual to understand how they are perceived based on their behaviour or application of skills that other employees can see.
The 360-degree feedback process provides an opportunity to receive performance feedback from superiors or line managers and between four to eight peers, colleagues and reporting staff members. This feedback encompasses both a quantitative and qualitative analysis of how the individual perceives themself and how others perceive their strengths and weaknesses within the work environment.
360-degree feedback today, is used for two distinct organisational practices. Firstly, as part of the performance management process for the identification of talent, for promotions and or job enrichment. Secondly, 360-degree feedback is practiced to provide developmental insights for individuals into aspects of their behaviour at work. In this way 360-degree feedback clearly identifies what individuals can focus on from a start, stop or continue perspective.
Where was it first used?
The refined approach to 360-degree feedback that we know today, was first practiced more than 100 years ago in World War One by the American Army. Multisource feedback and opinions were obtained but excluded input from subordinates. World War Two saw Germany introduce 360-degree feedback as a way of assessing their soldier’s performance based on the opinions of supervisors, peers and subordinates. This information was then used to determine payment and promotions.
360-degree feedback was introduced into the business world in the 1950’s when ExxonMobil became the first company to use multisource or multi-rater surveys to evaluate their employees. Business chronicles credit this performance review methodology with an increase in ExxonMobil productivity and resultant organisational effectiveness.
Since then, many organisations have switched their focus to use 360-degree feedback to identify and develop strengths of their workers rather than penalise people for perceived weaknesses.
With digitisation, technological improvements are facilitating the provision of 360-degree feedback, making it more accessible, intuitive and thorough with growing support from employees.
What are the Benefits for the individual, team and organisation?
Individuals
- Individuals are more supportive of 360-degree feedback process because it enhances their perception of fairness and accuracy of evaluations
- Offers constructive feedback that improves employee outputs
- Helps people understand how other employees view their work and provides excellent information to an individual about what they will need to do to enhance their career
- Self-assessment significantly increases employees’ perception of fairness because they have an active voice in the process and this contributes to increased job satisfaction
Teams
- Develops and strengthens teamwork and accountability as team members learn to work more effectively together
- Builds higher levels of trust in teams
Organisation
- Increases commitment to the organisation
- Provides a method for understanding personal and organisational developmental needs
- Uncovers policy and procedural issues that hinder employee delivery
What are the drawbacks for the individual, team and organisation
Individual
- Individuals have no recourse if they want to further understand the feedback if the process is anonymous
- People struggle to process due to insufficient training on receiving feedback
- Can focus more on weaknesses than strengths
Team
- Provides feedback from inexperienced raters, and teams can “game” the process
- Team members are seldom encouraged to provide feedforward – on how their fellow team member can improve or act differently in the future
- When feedback comes from a number of individuals in various job functions, the possibility of discrimination because of race, age, gender, and so forth is reduced.
Organisation
- 360-degree feedback is only a part of the feedback and development that the performance management system offers
- Could create confusion if it is an add-on rather than a supporter of the organisational direction and requirements – connected with the overall strategic aims of your organization.
With rapid change and transitions occurring, organisations no longer take on the responsibility for developing the careers of their employees; rather turning their attention to providing an environment that fosters growth and where employees are encouraged to develop. In this environment, employees feel that 360-degree feedback is more accurate and more reflective of their performance and use the insights gleaned for both career and personal development.