360 Degree Feedback has become popular recently because of changes in what organisations expect of their employees, increasing emphasis on performance management, changing management concepts and more receptive attitudes.
What is 360 Degree Feedback?
One can define 360 Degree feedback as ‘The systematic collection and feedback of performance data on an individual or group derived from a number of stakeholders in their performance.”
In order for an organization to be ready for effective 360 degree feedback, a number of questions need to be answered. The effectiveness of the feedback is directly linked to the integrity of the process, and the integrity of the process is measured in terms of commitment, clarity of purpose, and follow-up. A 360 degree feedback team is recommended for accomplishing a detailed plan to address these issues prior to implementation.
The Balanced Scorecard
Utilizing the four perspectives of the balanced scorecard as a framework for examining organizational readiness, the team would involve themselves in creating a plan which addresses the following:
I. Internal Business Process Perspective
- Is 360 degree feedback needed to support the implementation of a corporate strategy or the accomplishment of a corporate goal?
- What is HR’s and top management’s role in the process?
- How will employee development plans be created utilizing the feedback?
- How will these development plans be utilized to align behaviours/expectations needed to successfully implement the corporate strategy or goal identified?
II. Financial Perspective
- Are sufficient resources available to insure a high integrity 360 degree feedback process?
- Have funds been budgeted for follow-up activities, such as staff training?
- How does the corporate strategy or goal driving the process affect the bottom line?
III. Customer Perspective
- What will be the level of customer involvement and representation in the 360 degree feedback process?
- How will the corporate strategy or goal driving the process affect customers’ perceptions of the organization and its products?
IV. Learning Perspective
- How will individual development needs identified in the process be addressed?
- Will supervisors require training in order to address the identified needs of subordinates?
- Will HR utilize aggregate data on employee needs to create an organization-wide development plan?
Should You Consider 360 Degree Feedback for Your Organization?
"To decide whether 360 degree feedback could be useful in your organization, ask yourself the following questions:
- Can your company meet the challenges represented by developments like consolidation, increased competition, global expansion...using the same skills and behaviours as in the past?
- If people need to change their behaviours
to ensure the organizations future success, are they
clear about exactly what they need to do differently, and
do they feel equipped to make those changes?
- Is the behaviour of people in the organization sufficiently consistent with the vision, mission, and espoused values of the company?
- Is there a formal system in place through which people receive information on how others perceive their behaviour and their performance?
- Do selection and development systems accurately reflect the current and future requirements of the jobs being done?"
CONCLUSION
"360 degree feedback can promote individual development and improve individual performance if the feedback is linked to developmental planning, goal setting, and organizational support. The four conditions that will maximize the value of the 360 degree feedback process:
- the intervention is business-driven
- the organization clearly needs the measured behaviours to support a corporate strategy or goal
- the survey instrument and administration process are reliable and valid
- conditions for learning new skills exist
Successful implementation of a 360 degree feedback process depends on whether it truly addresses, and is perceived to address, an important performance strategy or goal in the company. In addition to the benefits of exchanging feedback, it’s also a way to get people accustomed to living in a feedback-rich environment. When done well, 360 degree feedback systems can lead to positive change and enhanced effectiveness at the individual, team, and organizational levels.
