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Using 360-Degree Feedback in Different Applications

1. What are the most common applications of 360-degree feedback?
2. How is 360-degree feedback used to develop leadership skills?
3. How is 360-degree feedback used in executive coaching?
4. How is 360-degree feedback used to develop teams?
5. How is 360-degree feedback used to develop administrative support personnel?
6. How is 360-degree feedback used for individual development?
7. How is 360-degree feedback used to accelerate the development of core competencies?
8. How is 360-degree feedback used to assess training needs?
9. How is 360-degree feedback used to measure the impact of training?
10. How is 360-degree feedback used to survey team effectiveness?
11. How is 360-degree feedback used to survey customer satisfaction?
12. How is 360-degree feedback used to survey organizational climate?
13. How is 360-degree feedback used in educational institutions?
14. Should 360-degree feedback be used for compensation, downsizing, succession planning and other selection decisions?


1. What are the most common applications of 360-degree feedback?

360-degree feedback technology is still evolving. The software and web services that help organizations administer 360 feedback continues to advance in capability. The increased flexibility of these systems lets people use 360 in new ways. The most common applications ten years ago aren’t the most common applications today.

360-degree feedback was developed to collect and report information about aspects of performance that are otherwise hard to measure. Twenty years ago, the most common application was executive coaching. That's because most of the surveys then addressed executive-level management and leadership. They were expensive, because they were paper-based and had to be scored by an external service. Today, programs like 20/20 Insight GOLD is so easy-to-use, flexible and affordable that it can be used by any organization with all employees. The most common applications today are probably team leader development and team member development. If, like 20/20 Insight, the system is a customizable survey platform, a variety of uses are possible.

• Executive coaching
• Team leader development
• Team member development
• Instructor development
• Administrative staff development
• Competency development
• Skill assessment
• Performance management

Flexible 360-degree feedback systems may be used for individual feedback or organizational surveys. Here are some common organizational applications:

• Needs assessment
• Evaluation of training
• Team effectiveness surveys
• Customer satisfaction surveys
• Organizational climate surveys

Perhaps the most exciting future application is getting a variety of input from many sources. There's a lot more to feedback in the workplace than getting a standard set of ratings every year or so. A highly customizable multi-source feedback platform can coordinate nearly any kind of text-based feedback. If the program makes it is easy for individuals to ask for input, people can get information about a wide variety of things that help support solutions and decisions:

• Facts
• Opinions
• Suggestions
• Ideas

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

2. How is 360-degree feedback used to develop leadership skills?

A critical component of leadership development is feedback about leadership competencies. Just as the most meaningful measure of good customer service is feedback from the customer, feedback to a leader can show how to be a better leader. There are seven key steps in this process.

1. Identify competencies
Determining the key behaviors related to leadership. Competencies for leaders include such abilities as influencing others, modeling organizational values and creating a vision. Some key behavior areas that support these competencies include giving feedback, establishing performance objectives and resolving conflict. The 20/20 Insight Survey Library has comprehensive sets of standard leadership behaviors.

2. Design an assessment
Many off-the-shelf surveys measure key leadership behaviors. Some of these permit on-site customization. Using comprehensive skills sets as a start point, compile a brief questionnaire that will diagnose the developing leader’s skills. Valid these survey items through a review of managers familiar with the position.

3. Conduct the survey
Brief the individuals to be rated as well as those who will be doing the rating. Manage issues involving confidentiality and attribution, and coordinate the logistics of the process.

4. Interpret feedback
Decide whether one-on-one or group sessions would be more effective. Help participants work through denial towards recognition and acceptance, and help them discuss the feedback with their raters.

5. Create development plans
Have leaders create their own follow-up development plans based on the results of the 360-degree feedback process.

6. Coordinate development programs
A variety of media, assignments, coaches and other resources may be needed to support participants' individualized development plans. Participants should be told about available learning resources, including courses, if necessary. The best teacher is experience. Leaders should have opportunities to discuss success and frustrations with mentors or coaches.

7. Reassess
A pre-determined period of time after the initial assessment, administer the 360 feedback survey again with the same raters. Do a gap analysis on the difference between the first and second ratings. Facilitate a discussion around the gaps and revise the individual learning plans to focus on needs going forward.

Building leadership development around 360-degree feedback gives precise, credible information about strengths and areas needing further development. It typically triggers extra motivation within the learner. It gives the developing leader a sense of control over his or her own destiny.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

3. How is 360-degree feedback used in executive coaching?

Executive coaching is only as good as what is known about the effectiveness of the executive. Most coaching in the executive suite aims to enhance two things:

• Effective action in the present
• The executive's ability to learn from feedback and experience

Because most aspects of an executive's leadership and learning are hard to measure, 360-degree feedback is a powerful method for collecting and analyzing information. Other methods include direct observation, interviews with the executive and written transcripts of actual conversations or events. Gaps between an executive's self-perception and the perceptions of others, often called blind spots, are among the most important and difficult feedback to accept. Good 360 data help the learning process by giving a quantitative comparison between an executive's own perceptions and those of others. Using this kind of data can dramatically enhance executive coaching.

Like everyone, executives are often unaware of the impact their actions have on others. Yet more than most, what they do and say on a regular basis drives organizational performance. Good 360 feedback gives executives a clear snapshot of the consequences of their actions, which helps them think about how to change behavior.

Using 360 to coach executives can go beyond giving individual feedback. Here are four situations:

Helping the top executive get better results
The focus is on better business results, the executive’s own development or relations with the executive team. When it's lonely at the top, a coach often helps the executive get valid data to address specific issues. 360 feedback is a versatile tool:

• Assessing needs for leadership development
• Obtaining data about customer service and customer satisfaction
• Organization climate surveys before, during and after change

Responding to pressure to improve
The focus is to improve the executive’s effectiveness in a current role. When there's pressure to improve, a coach helps an executive become more effective quickly:

• Assessment—to discover strengths, weaknesses, blind spots and problems
• Coaching—to show priority areas for improvement and motivate improvement
• Competency development—to help them understand expectations and plan for their development

Grooming people for advancement
The focus is to prepare the executive for a future leadership role. The coach helps prepare gifted people for these roles and to enhance their learning agility:

• Assessment—to determine which growth areas will assure success in the future
• Coaching—to show priority areas for improvement and motivate improvement
• Competency development—to define future roles and make a plan to improve skills and prepare

Sharpening executive skills
The focus for this coaching is to sharpen an executive’s skills for a current project or task:

• Assessment—to determine which areas to focus on
• Coaching—to how to sharpen particular skills
• Competency development—to show the standard and define how to improve

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

4. How is 360-degree feedback used to develop teams?

360-degree feedback is a powerful way to measure team performance. It can help team members identify areas to improve the team. Consolidated individual scores can say a lot about team skills, abilities and job competencies. 360 can also give feedback about the team itself, based on impressions collected from team members, peers, supervisors and customers.

Team process
Organizations typically put more emphasis on group results than group process. Rewards should be based on results. But results are influenced by many factors, and one of these is team process—how a team gets work done. Team process includes workflow, participation level, interpersonal communication, mutual influence, trust and commitment. Team members need to examine how all of these elements are working and how to improve them. There’s no better way to get objective data about these factors than 360-degree feedback.

Creating cross-functional project teams
A multi-source feedback system can help integrate cross-functional teams. It's possible to define a team's key skills and behaviors and then select people from different areas, obtaining information about candidates from supervisors, peers and subordinates. Or if nobody can satisfy certain skill requirements, team members can focus on developing these areas. People selected for the team will have a set of skills and behaviors that can be used for future performance benchmarks, gathered from the points of view of stakeholders who interact with them during the project.

Evolving leadership roles
Empowered teams eventually take on many of the responsibilities traditionally reserved for managers or supervisors. These include assigning tasks, scheduling work, ensuring quality and reviewing performance. As a team assumes more activities, the leaders role changes. One of the major changes is his or her responsibility to coach and advise team members. This means new skills to provide appropriate support and guidance for the team. Multi-source feedback can help the leader grow into new roles and responsibilities.

Self-development for high-performing teams
Team leaders typically find it hard to assess team member performance, because they have a wide span of control. How can one person assess so many? 360 is an effective answer. The members of a team can assess each other based on their perceptions. This supports the leader’s ongoing evaluations.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

5. How is 360-degree feedback used to develop administrative support personnel?

Unless they ask for it, most administrative support personnel receive performance evaluation from one person—their direct supervisor—once a year. 360-degree (multi-source) feedback can be given any time. It's ideal for administrative personnel because they often support many people, and they perform a diversity of tasks. 360 can be used several ways to develop administrative personnel.

Performance feedback
360-degree feedback gives administrative personnel a snapshot of their current work habits. The feedback data clearly identifies strengths and areas for growth. This tool is particularly suited to administrative staff because they can get input from everyone they support, instead of receiving just their manager. Information about strengths and areas of growth can inform improvement plans and determine training needs.

Competencies
Establishing competencies for administrative personnel is a challenging task. Administrative staff perform a wide variety of tasks using multiple skills to perform each task. A standard survey, such as the Administrative Skill survey used by 20/20® Insight GOLD, can help you define key performance elements.

Needs assessment
When administered to secretaries and administrative staff before training programs are designed, consolidated individual data will highlight areas with the lowest scores, showing where training programs are needed.

Pre-training assessment
360 feedback can be administered to secretaries and administrative staff before training. Individual feedback reports can show where they need to improve most. Individuals can put emphasis on those areas during training and development.

Post-training evaluation
Training attendees who get a second round of feedback several months after training can gauge how much they’ve improved. Make sure they are rated in the same areas before and after training. Comparing the scores will indicate the value of the training and where more training is needed.

Professional Development Plans
Writing and monitoring professional development plans is new to many administrative staff. The feedback they receive will help them set professional development goals.

Career Development
Based on the strengths identified from 360 feedback, administrative personnel may want to pursue a position that would provide the best opportunity to use their talents.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

6. How is 360-degree feedback used for individual development?

The term “360-degree feedback” comes from the analogy to a compass: a circle with 360 points of reference used to monitor direction. Like a compass, 360-degree feedback gets information from many sources; it's a navigational tool that lets you know when you’re on course. Its purpose is to hold up a mirror to individual performance, which provides a road map for individual development. It's best used to get objective data about aspects of work that are otherwise hard to quantify. Typically, these areas involve interpersonal skills, a huge dimension of performance. When used appropriately, the feedback can accelerate learning and empower people to self-directed learning.

Providing current performance data
The strength of 360-degree feedback is its ability to answer the question, "How am I doing?" Whether for a stock clerk or a CEO, 360 feedback identifies both current strengths and where people are off course. The feedback can come from many perspectives: boss, coworkers, direct reports and customers. People need to know:

• Are they competent to achieve the results for which they are accountable?
• Are they facilitating rather than obstructing the achievement of these results?
• Can they adapt to a continuously changing environment?

Indicating where improvement is needed
A good 360 system will quickly sort and display highest and lowest scores. Even better systems give specific recommendations on how to improve in these areas. The best systems, such as 20/20 Insight GOLD, not only allow you to create the competencies to fit your organization's needs but also tailor developmental recommendations to include cross referencing of in-house or preferred training events. Some 360 systems help an individual create a clear, specific developmental plan.

Staying current
360 can be used to identify and measure competencies people need in order to stay current in their jobs and industries. Flexible 360 systems allow you to continually survey customers and other stakeholders about their needs. This information can be used to refine business strategies, which in turn can indicate new skills and competencies needed by employees. Measuring against these new competencies keeps skills relevant and sharp, increasing their value to the organization.

Developing skills for future roles
What happens when people have mastered the skills of their current position? Again, a flexible 360 system will allow you to create a new set of skills and competencies based on potential future positions. Individuals can then assess their level of proficiency in these new areas. The results will let them create a plan to guide them in developing desired competencies. For example, people who are coming close to mastery in their technical area may be considered for supervisory or project team leadership. 360 can be used to assess and develop they need before they are put into the job.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

7. How is 360-degree feedback used to accelerate the development of core competencies?

Why it’s important to develop of core competencies as quickly as possible
Improving the quality of performance may be a matter of competition and survival. An organization needs to attract and keep people who can provide leadership and create high levels of performance. Identifying core competencies is the first step to assessing and developing them. It sends a message that your organization is thinking strategically, because initially it has to articulate corporate goals and objectives.

Also, it's important to use the most efficient processes possible. Competencies should not be developed in isolation. In order to develop competencies that are aligned with employee requirements, customer values, supplier capabilities, and stakeholder expectations, the process should involve these constituencies.

How to identify mission-critical competencies
Align competencies with the business strategy. Create measurable skill areas to be assessed for each specific job classification, to include job skills, abilities, observable behaviors, habits and practices. Establish benchmarks by matching these competencies to your high-potential employees. Confirm fits and identify gaps with all employees. Competencies that match strategy and are ranked high on the benchmark are competencies central to your firm's success and growth.

Managing the process
Once this is achieved, measure the right things. Create well-written, locally validated survey items. Make sure people are skilled at giving constructive feedback. Be ready to support development planning and training solutions. Link the outcomes to corporate strategies. Get professional assistance from an external consultant if you need it.

The best tools to assess core competencies
360-degree feedback is the best tool to establish the baseline dimensions which represent the overall core competencies at a corporate level, as well as within each job classification. It greatly compresses the time involved because it uses computer programs to collect and organize input from all constituencies. After you determine the competencies and their importance, use a customizable program such as 20/20 Insight, which can assess multiple scales simultaneously, i.e. scales that rank agreement, frequency and importance.

Using 360-degree feedback to assess core competencies

• Assess corporate competencies
• Assess individual competencies
• Determine the required competencies for competing in the future
• Design the competency criteria
• Develop competency benchmarks
• Complete a gap analysis
• Identify solutions, resource requirements and implementation steps for closing these gaps
• Create individual development plans that focus on developing core competencies.

Expected results using 360

• Identified areas of strength and opportunities for development
• Action plans
• Increased organizational capability, commitment, and performance
• Sustainable competitive advantage

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

8. How is 360-degree feedback used to assess training needs?

One of the critical functions of training and development professionals, especially instructional designers, is to determine what training an organization needs. The information obtained from organizational analysis (strategy, goals, climate, interrelationships, work processes and systems), task analysis (knowledge, skills and abilities required in a job), and person analysis (knowledge, skills and abilities people currently have), is collectively known as "front-end" analysis or needs assessment. It takes a lot of data to find out what instruction is needed. Today's 360 tools can make data collection and analysis quicker, more accurate and more reliable. The goal is to focus training resources on correcting low levels of performance.

Best practices typically follow this process:

1. Begin with 360-degree feedback. Use interviews with key managers to identify core competencies. Focus on where the organization is headed and the competencies needed by people to help the organization get there. Give a draft list of behaviors to selected managers to identify the key competencies, which will serve as a base list for review by the full management team.

2. Once competencies are identified, enter them into a customizable 360-degree feedback platform such 20/20 Insight to create a survey with a scale to measure the degree of importance of each of the competencies. Be sure to include at least four or five competencies that are crucial to performing a job successfully.

3. Create and distribute the survey to the management team. Their responses will identify the most important of these competencies.

4. Use the refined competency lists to create new surveys to assess current skill levels of individuals within the organization.

5. Collect and aggregate the survey data from the individual assessments.

6. Compare trends. You may notice that only a small group of individuals need help on a particular competency, or you may notice that most of the target audience needs to improve a particular competency.

7. Recommend training initiatives to improve skill levels of the appropriate target audiences. For example, if you focus on supervisors, when you combine individual scores, you might see low scores in the category "Resolving Conflict," a critical category. Depending on the number of supervisors with low scores in this category (and other trends), you might recommend a seminar on conflict resolution.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

9. How is 360-degree feedback used to measure the impact of training?

In training and development there are four levels of evaluation. They measure these things:

1. How the participants felt about the training experience
2. Knowledge gained from the course materials
3. Performance improvement as the result of training
4. Business results

A 1996 industry study by Training Magazine reported that the number of organizations that do “level four” evaluations ranges from 30% to 59%. According to a 1996 study of industries with 100 or more employees, 65% use level three methods to evaluate training for half of their courses.

360-degree feedback is best used with level three evaluation. 360 is the most straightforward way to get these measurements, and it can actually simplify the process.

How do you do it?
The way to measure changes in behavior is to administer a behavior-based 360-degree feedback survey before and after the training. Assess behavior, conduct the training, and after a reasonable period of time measure the same behaviors again. Construct the survey to match key components of the anticipated training. The survey needs to measure what the training will teach, and the training should be linked to business results. The second survey will let you compare behavior assessed in the initial survey with the same departments and groups.

If you aren't sure about what training to give, first construct the survey to identify training needs. The largest gaps will indicate opportunities for development; create training around those needs. Study aggregate group feedback to determine high-priority needs. Look at department needs rather than individual needs.

When should the post-assessment be scheduled?
Allow enough time for participants to put their newly learned skills to work on the job. Waiting too long can allow other factors in the environment to contribute to behavior change. Three to six months may be adequate, although each situation is unique. Frequency of skill use contributes to the time between 360 surveys; for skills used more frequently, the time before the next survey may be shorter.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

10. How is 360-degree feedback used to survey team effectiveness?

360-degree feedback is used primarily for individual assessment. Just as an individual exhibits observable behaviors, so does a team. Essentially the same process is used to give feedback to a team. In this case, a collection of individuals will be rated by its members and others.

Appropriateness
A team should have substantial history in the workplace. Less mature teams may benefit more from visioning, role definition and "get-to-know-you" interventions. Here are some considerations:

• How long has the team worked together? Do team members know each other well?
• Have there been recent changes in team environment, goals, tasks or processes?
• Are members willing to share honest opinions in a forum such as a focus group, or do they need an anonymous format like 360-degree feedback?
• Are the team and organization willing to address issues revealed in the results?
• Do you have access to an easily customizable, automated survey administration program, such as 20/20 Insight?

Participants
In addition to team members and the team leader, the teams "customers" can provide valuable perspectives. "Customer" can mean any individual or group that is regularly impacted by the team’s performance. Upper-level managers can also be included.

Survey considerations
Identify important team behaviors and construct a focused survey that is ideally between 20 and 25 items in length. Although you may want to assess every facet of team effectiveness, long surveys tire respondents, reducing the quality of responses.

Keys to success
Involve team members in survey development to get their buy-in. Avoid especially busy periods when conducting the assessment.

Sharing the results
To promote honesty, respondents should know before the survey how the results will be used and who will see their ratings and comments.

Using the data
Multi-source feedback to the team can be used to:

• Identify training needs
• Identify the stage of a team’s development
• Measure team growth with a follow-up survey months later
• Aid in development planning
• Assess teamwork and other aspects of team culture

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

11. How is 360-degree feedback used to survey customer satisfaction?

If the 360-degree feedback program is a flexible platform for assessment, such as 20/20 Insight GOLD, it can collect feedback from customers of a supplier as easily as it can collect feedback from coworkers about an individual performer. It can produce reliable data easier and faster than questionnaires and face-to-face interviews.

About customer satisfaction
Perceptions can be collected from internal and external customers of groups such as procurement, engineering, accounting and shipping. Information about customer satisfaction can focus on products or services. The information can address interaction skills, technical knowledge and customer service attitudes.

Getting information from customers
Obtaining information about customer preferences and expectations has never been easy. 360 can simplify it. First, develop an inventory about customer expectations of products and services. Next, identify customers who interact with service providers. These individuals can be asked for their impressions about response time, shipping accuracy, complaints, guarantees, and a variety of customer issues. 360 can also be used to gather information from focus groups, using the same process.

Internal customer-supplier chain
Excellent service to external customers usually depends on a web of internal customer-supplier relationships. Each area must understand what its customers want. These expectations can be defined and observable behaviors can be included in a multi-source feedback inventory. Using 360 this way can do much to promote an internal customer service attitude.

Developing suppliers
Another application of 360 is measuring the service performance of suppliers. As indicated above, expected performance is defined and included in a multi-source inventory. The supplier receives feedback from customers and identifies areas to improve. This application is gaining a lot of interest in procurement, where suppliers interact with a variety of users.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

12. How is 360-degree feedback used to survey organizational climate?

Employee attitude surveys and opinion surveys were the first forms of multi-rater feedback. The obvious difference between these assessments and what we call 360-degre feedback is that 360 typically assesses a single individual, while climate surveys assess an organization. Here are some typical applications:

• Internal customer. A group gets feedback about how it serves other departments.
• Team check-up. Members rate the team on issues such as meeting effectiveness, support, recognition, goals, role clarity, ground rules, and team interaction.
• Attitude survey. Employees indicate how they perceive their environment.
• 360 readiness. Stakeholders give opinions about the organization’s readiness to use 360 feedback.
• Corporate values. People rate how well the organization lives up to its values.

What tool to use?
Most 360-degree feedback programs aren’t designed to assess organizational climate. If an organization needs complex data breakouts, demographic correlations and descriptive statistics, there are programs designed to do this. For example, if you need to know how women under age 35 with more than 5 years of service rated certain aspects of the organization, your need is complex. However, when requirements for organizational feedback aren’t complex, a flexible 360-feedback platform such as 20/20 Insight GOLD may be used at much less expense.

Surveying the organization
A flexible 360 program can asses an organization as easily as assessing an individual. Administrators simply set up the desired items, scales, types of feedback providers and report formats. Instead of observable behaviors, survey items related to organizational culture and climate (e.g., the benefits package) are entered. Instead of an individual, the organization or part of the organization is the subject of the assessment.

Surveying elements within an organization
A 360 program can assess departments or groups within the organization, then aggregate the data to give a picture of the organization. If you want to know the opinions of significant groups of people, such as first-line supervisors, simply identify these people as a rater group. Using 20/20 Insight or comparable state-of-the art program, a wealth of data can be obtained for a remarkably small investment.

Multiple 360 as an organizational climate assessment
Yet another approach is to have employees rate levels of management, then aggregate the data. For example, an organization may want to create an environment built on shared values. If these values can be defined through specific behaviors, often called "walking the talk," a 360-degree feedback process can identify specific leadership groups as subjects. A summary or roll-up report from various departments will give a picture of how the climate is perceived.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

13. How is 360-degree feedback used in educational institutions?

There are two main ways to use 360-degree feedback in educational institutions:

• Performance feedback to faculty and administrative staff
• Evaluating educational content or curriculum

360 may be used in all types of educational institutions: pre-school, elementary, high school and university. The competencies for success at the various levels are different. For example, the competencies needed by teachers in middle schools are different from those needed by college professors. To illustrate, this article will focus on the use of 360 tools at the college level. Colleges and universities seek ways to assess the effectiveness of deans, department chairs, administrative staff, faculty, counselors, and courses.

Customizable feedback technology such as 20/20 Insight GOLD can let a college or university create and distribute surveys over a network or in kiosks located around the campus directly to students, staff, and faculty.

To evaluate content, surveys can be customized and targeted: e.g., giving students majoring in "International Finance and Banking" access to survey questions related to "International Finance and Banking."

Timely and confidential assessment of staff, faculty, and counselor performance use the same technology. This can include feedback from students, graduate assistants, peers, department chairs, and the dean. It’s important to adapt the 360 process to the internal political climate of the institution. The dean or department chair can assemble stakeholders in a meeting to identify core competencies.

Assessment areas may include teaching skills, contribution to department, research activities, outside activities, service to the school or profession, and peer or department chair observation. Competencies are then presented to the faculty for review and comment. This could be done in a meeting where professors can react to the list and reach consensus on the competencies needed to be successful.

Desired competencies and scales are then entered into the 360 software. A customizable system such as 20/20 Insight GOLD will be needed. If subjects are professors, include at least four or five competencies related to effective instruction. Next, distribute surveys to respondents: staff, faculty or students who interact with professors, using the computer network or kiosks. Once completed, retrieve the data from the surveys, print reports and deliver them to feedback recipients, who can analyze the feedback and discuss development priorities with their supervisors.

This objective and confidential process can be adjusted to the needs of any department. Competencies can be reviewed periodically to ensure they are current. With this kind of tool, peer reviews and student evaluations can easily be administered annually.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

14. Should 360-degree feedback be used for compensation, downsizing, succession planning and other selection decisions?

360-degree feedback should not be used to inform compensation or selection decisions. There are several reasons why feedback for development must be kept separate from performance appraisal for administrative decisions regarding pay, promotion or lay-off.

The information from 360-degree feedback is uniquely useful for self-development and not suited for administrative decisions.
The subjective nature of 360-degree feedback is what makes it valuable for development. It shows feedback recipients how their work practices affect different groups of observers. Understanding others' perceptions helps recipients become more effective with different groups of co-workers. What this information doesn’t provide is objective data about actual work outcomes and results. It ‘s not the fact-based, verifiable data required for compensation and selection decisions.

Performance appraisal raters need to be accountable; 360 respondents need to be anonymous.
Performance appraisals linked to compensation or selection must be legally defensible. This means that the organizations must be able to show that ratings were derived from concrete, objective, verifiable performance data. This in turn requires that the raters can be identified with the ratings they provide. Supervisors and team leaders are traditionally accountable for how well they determine performance ratings for administrative purposes. The value of 360 feedback, on the other hand, depends respondents being anonymous. If respondents can be sure that their feedback can’t be traced back to them individually, they’re more likely to provide the candid feedback that is essential for the recipients' self-development.

Feedback for development must be confidential; data for administrative decisions cannot be.
There are two basic reasons for keeping 360 feedback data in the hands of the recipient. First, people who receive feedback are more able to consider it objectively if they don’t have to worry about how it makes them look to others. Also, co-workers are more likely to provide candid feedback to the individual if they don't have to worry that the information will affect that person's standing in the organization.

Logistics may make the use of 360 feedback impractical for compensation decisions.
Annual salary adjustments are often made for all employees at the same time. Organizations that have tried to use 360 feedback as the basis for compensation have found that productivity grinds to a halt while people are busy filling out multiple questionnaires about their co-workers to meet a common salary review deadline.

Using a 360 assessment for personnel or compensation decisions can render the system unusable for development.
When a 360 process are connected to personnel or compensation decisions, it inevitably becomes emotional, political and disruptive. If management tries to 360 feedback for development after using a 360 feedback process for administrative decisions, people are unlikely to trust that the data from one process will be kept confidential when the data from the previous process was not.

Copyright © 2004 Performance Support Systems, Inc. All rights reserved.

 

 

 

 

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