Page 167 - Psychological Management of Individual Performance

150 performance appraisal
360-DEGREE FEEDBACK

In the previous sections, we have concentrated on illustrating the success factors of a per-
formance appraisal system and on introducing specific methods. The question remains,
though, of how far those success factors and methods are taken into account in practical
applications. Based on this question, we will present an innovative appraisal system
which aims particularly at the inclusion of as many levels of a company as possible: the
360-degree feedback.
A 360-degree feedback is the formalized feedback system for personnel management.
The results derive from the social process of perception in the daily work routine. The
feedback ideally comes simultaneously from persons associated with the relevant inter-
nal (rarely external) customer segments (superiors, coworkers, colleagues). Thus, the
evaluated person can be appraised by coworkers, colleagues, superiors and customers
at the same time. The goal of such a system is to give the evaluated persons the chance
for self-development. When feedback from all the named sources is presented within
a framework that gives people the chance to practise key behaviours and plan for im-
provement, it can serve as a lever to bring about real, measurable changes in people’s
behaviour (McCall, Lombardo, & Morrison, 1988).
This section provides a requirement analysis from a practitioners’ point of view for the
intoduction of 360-degree feedback. Therefore, we will first introduce the advantages and
disadvantages of this system then illustrate the relevant success factors of the 360-degree
feedback system.

ADVANTAGES AND DISADVANTAGES

What advantages does the 360-degree feedback hold in comparison to the “classical”
(person-oriented, dyadic, strictly structured top-bottom) system?

Intensification of internal communication by means of follow-up workshops, discus-

sions, etc.
Strengthening of feelings of responsibility (both within the appraised and the apprais-

ing person). The involvement in the appraisal system is a first step against a resigned
attitude (“That’s just the way it is ...”).
Open presentation of appraisal criteria. All those involved can relate to a certain

appraisal result.
Reason and basis for the development or implementation of management methods,

business missions, etc. Those should usually present the base for a 360-degree feedback
system.
Basis for a specifically tailored and exact personal development.

Increase of customer satisfaction, since customers are often found among the group

of appraisers.
Practice of courage: the appraised persons have to confront the task of dealing with

unexpected negative feedback.
The appraised persons are likely to feel disciplined because of the expectation of

continuous all-around evaluation and their own resulting justification.
Implementation of actions.

Those advantages should not unjustly overshadow the fact that a non-reflected ac-
ceptance of a 360-degree feedback system can lead to severe problems. Two of these