Ten reasons you should be using 360-degree feedback

HR Magazine, April, 1995 by Robert Hoffman

4. Creates a high-involvement workforce. In a highly involved work-force, front-line associates are given responsibility for taking initiative, making decisions, questioning historical routines and developing plans. Although many organizations support greater participation at all employee levels, the move to a high-involvement culture induces many changes.

Shifting accountability to employees expedites their "buy-in" to company initiatives. Including employees from multiple layers in the feedback process is concrete evidence that their opinions, observations and evaluations are valued by the organization. Creating an atmosphere that accents involvement can foster voluntary collaboration, an element sometimes sacrificed in traditional, striated cultures.

5. Decreases hierarchies, promotes streamlining. Corporations continue to use downsizing as a method for becoming more competitive. The flattening and decentralization of organizations is an outgrowth of corporate streamlining. After downsizing, supervisors and team leaders may see their roles evolve, leading to positions with broader responsibility and expanded jurisdiction. It is not unusual for a supervisor who in the past had six to eight direct reports to have 12 to 15 reports, or more, today. Moving rating responsibilities to a mixed group of employees reinforces the new corporate structure that shifts accountability to many. Consequently, multi-level feedback promotes the streamlining initiative.

6. Detects barriers to success. The concept of 360 [degrees] feedback can be threatening to even the most progressive managers. The idea that direct reports and peers will have significant impact on a supervisor's overall evaluation and organizational future can be truly intimidating. As William McKiernan of Colgate-Palmolive explains, "We think we know how we are viewed by colleagues and subordinates; however, when we receive the results, many of us are shocked."

Feedback sometimes indicates that a manager perceived as a hurdle by his or her reports is stalling strategic growth. Success can be limited by such restrictive behaviors as inflexibility, refusing to give information, lack of initiative and inappropriate leadership style. McKiernan added, "Three hundred sixty-degree feedback on a departmental basis is an effective method that determines how we can be better as individuals and as an organization. We use the results to plan departmental training needs. How can we expect people to meet our objectives if the necessary skills are underdeveloped?"

7. Assesses developmental needs. Many 360 [degrees] feedback programs emphasize employee development. Some organizations use the mechanism as a needs-assessment device. Steve Craig of Mobil Oil explained his company's use of 360 [degrees] feedback as a developmental tool, "The primary focus of our process is identifying areas where the employee can be more effective in the long run. To be successful in the Mobil organization you need to prepare yourself for future challenges, in addition to attaining consistent performance on an ongoing basis."