360 Degree Feedback - Multisource Feedback

360 degree feedback is also known as multi-rate feedback, multisource assessment or multisource feedback. In this, a group of eight to twelve people fill out a confidential online feedback form that consists of questions covering a broad range of workplace competencies. The questions are measured on a rating scale and the form may also ask raters to give written comments. The employee receiving the feedback will also fill a self-rating survey that comprises of the same survey questions that others receive in their forms. In rare cases, feedback from external sources like customers, suppliers or even stakeholders is also considered.

There are mainly three ways of obtaining 360 degree feedback:

• Taking the help of an outside consultant and understating any personal friction within the organization.
• Introducing an in-house comprehensive program to get feedback about key people.
• Forming a comprehensive program to bring out not just individual flaws but systemic and organizational faults too.

The results from the 360 degree feedback are used by the organizations in planing administrative decisions like salary or promotion and sometimes for the employees training and development. Hence, when it is used for evaluation purposes, it is also known as 360 degree review. Managers and seniors of an organization often use the feedback to have a better understanding of their employees competences and create a development plan accordingly. Individual reactions are always combined with reactions from other people in the same category, in order to maintain anonymity and give the employee a clear idea about their strengths and weaknesses. However, it does not measures the employee performance objectives (MBOs) and is not focused on the basic, technical or job-specific skills.

Use of 360 Degree Feedback System as a Performance Appraisal Tool

Use of 360 degree feedback for performance appraisal is quite common. But is not always a good idea, as using evaluations of all the organization related people to measure the performance of an employee may not create an atmosphere of trust. Since it focuses more on the employees behavior than on the basic skills, job requirements and performance objectives, it may not give a clear and true picture of the employee. However, it can be beneficial to incorporate the 360 degree feedback system into a larger performance based management organizations, provided there is clear communication on how the feedback will be used. It is also recommended to employ the process after every 12 months, so that the employees get sufficient time and opportunity to implement their development plans before the next appraisal becomes due.

The 360 degree feedback system acquaints the employees of their actions that might be creating problems for others, and what behavioral changes are necessary to enhance working relationships, team synergy, performance outputs and customer service. Use of 360 degree feedback exclusively for development or appraisal purposes, is an arguable issue. Whether it improves the employee performance is still questionable as it might decrease the share value and hence, shouldn't be used to evaluate objective things like attendance, sales quotes, etc.