Ten reasons you should be using 360-degree feedback

HR Magazine, April, 1995 by Robert Hoffman

Feedback received during the process allows for easy assessment of current effectiveness and the need to develop critical skills. Unlike traditional development tools, the process focuses on skills across organizational boundaries. Identifying a realistic developmental plan can make the difference between an employee that merely survives within the company and one that prospers. Once a developmental plan is created, improvement can be measured during subsequent feedback evaluations.

8. Avoids discrimination and bias. Historically, performance assessments have been fertile grounds for legal scrutiny. Appraisals may be the centerpiece of a complaint alleging discrimination, wrongful termination or unfair treatment. Unskilled evaluators tend to evaluate factors that may be inappropriate, unrelated to the position or not representative of job success. Failure to eliminate evaluation errors may raise employee concerns and increase the probability that a dissatisfied worker will go outside the company for relief.

In 360 [degrees] feedback, the role of evaluator is shared. Shifting this responsibility from one individual reduces the severity of any one person's shortcomings as an evaluator, including errors of leniency, personal bias and subjectivity. Using multi-rater feedback reduces the potential for personal bias and thus legal exposure.

9. Identifies performance thresholds. The behaviors measured during the assessment process allow individuals to understand their strengths and weaknesses. Profiles of both high-potential employees and those needing corrective action are developed during the feedback cycle. When the link between organizational values and current behavior is explained, employees can focus on developing approaches that lead to career growth. The predictive ability of the 360 [degrees] feedback process highlights long-term success factors.

Potential defects and high-potential attributes are used as baseline performance measures. Through the identification process, linkages are formed creating action plans. The final analysis identifies behaviors connected with high growth potential and those associated with career derailment.

10. Easy to implement. Introducing a 360 [degrees] feedback program to an organization can be accomplished with relative administrative ease. Completing the feedback instrument, evaluating and communicating results, forming developmental plans and following-up can all be done by the human resource staff or an outside consultant.

To maximize the potential benefits of 360 [degrees] feedback, a well-formulated plan should be devised. Some issues to consider include the following:

* How will the new process be communicated to team leaders, managers and employees?

* Should only 360 [degrees] feedback be used or should the process be combined with other appraisal systems?

* How will staff be trained to use the instrument effectively?

* Should an outside consultant be used?

* Can a program be purchased off-the-shelf or should the process be customized for the organization?