360 Degree Feedback and Its Effect on Employee Development

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360 Degree Feedback and its Effect on Employee Development

Illana N.Freeman

Spring 2010, Session A

Troy University

HRM 6623 – Training and Development of Human Resources

Dr. R. Voss

The 360 degree feedback performance appraisal systematically gives employees the opportunity to receive confidential, anonymous feedback from the people who work around them. This typically includes the employee’s manager, peers, and direct reports. The feedback forms include questions which measures on a rating scale and also ask raters to provide written comments. The person receiving feedback also completes a self-rating survey that includes the same survey questions that others receive in their forms. If implemented properly, 360 degree feedback’s effectiveness act as a tool for employee’s development. Feedback recipients gain insight into how others perceive them and have a chance to adjust behaviors and develop skills that will enable them to excel at their jobs. The popularity of 360 degree feedback undeniably benefits any organization if employees willingly accept the feedback of others. The perceived benefits will help the personal development of workers only in the right organizational climate. The utilization of this method in wrong climate may result in a detrimental outcome. However, the decision to employ this tool requires close consideration and evaluation of the environment.

The corporate world typically performs annual performance appraisals. Although, the form and appraisal systems vary greatly, all designs of standard appraisals seek to help meet organizational goals. The appraisals help in improving performance, promotional opportunities, and furthering career development of employees involved. The traditional once a year performance suffers from the burden of several drawbacks. For examples, a single person, manager or supervisor, usually conducts the appraisals. The traditional annual appraisal lends to compromised effectiveness due to the fact that recent events tend to overshadow the appraisers overall evaluation of an employee. Also, managers tend to be either too strict or too lenient in their review of an employee. Managers may inaccurately review an employee, so as, for example, to keep deficiencies in the employee’s performance from reflecting badly on the manager. Furthermore, appraisals generally occur yearly, thus, limiting feedback provided to employees that could lead to better performance throughout the year increasing overall production for the company on a continual basis.

Three dimensional performance appraisals bring forth one possible resolution to performance appraisal’s problems and limitations. 360-degree feedback performance system achieves this. With the 360-degree feedback method, each employee receives performance feedback from several sources. These sources include but are not limited to: supervisors, peers, executives, reporting staff members, coworkers, customers, and clients. Raters remain anonymous providing better opportunity for open and honest feedback about an employee, coworker, or staff member. Individuals respond with a self-assessment in most 360-degree feedback forums. Self-assessments help to identify discrepancies between how an individual views them and how their employee, coworker, manager view the individual’s performance. Closing this gap better identifies areas of opportunity for improvement across the board. Managerial pressure becomes minimized and more accurate in the employee review process with this type of review system. 360-degree feedback highlights the advantage of different perspectives, which helps employees improve in his/her leadership style to become more effective. In doing so, 360-degree improves communication, teamwork, and management style/behavior. 360-degree feedback performance appraisals eliminate typical drawbacks of other performance appraisal systems.

Ongoing performance management resulting in increased...
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