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How Can 360-Degree Feedback Appraisal System Work For Your Company?

Companies have an important role to play in today’s world. They are a source of employment, and therefore it is necessary for companies to develop such tools that can have a view of each employee’s task. It helps to decide whether the task is being carried out correctly and whether the employee in question is an asset or a liability for the company. It also provides a basis for promotion and recruitment.

The all-encompassing performance appraisal system, 360-degree feedback, provides employees with feedback from people around them within the organisational hierarchy: Subordinates, supervisors and employees all offer their contribution to the behaviour and performance of the employee. Many healthy benefits can be derived from this type of measurement, and this system has become very popular in small companies.

If it is carried out accurately, there are few pitfalls in a 360-degree assessment. Nevertheless, human error can be the difference between a successful and an unsuccessful 360-degree feedback process.

Managers who intend to replace their traditional performance appraisal process face a difficult choice. There is a lot of evidence from large companies that were the first to implement Agile Performance Management, showing that such processes can be very effective, with great positive results.

A number of organisations have joined the 360-degree feedback process with the aim that it will solve all their performance assessment problems all by itself. Although the 360-degree feedback process, if carried out effectively, can have an important impact on the professional development and commitment of employees, it is this misinterpretation that is responsible for the failure of the 360-degree process. This article discusses the potential benefits of implementing 360-degree feedback and the common disadvantages that companies face when implementing it.

How 360-Degree Feedback Appraisal System To Work For Your Company

Benefits of the 360-Degree Feedback Appraisal System

1. Brings People Together

360-degree feedback is one of the most valuable facets of agile performance management. As the name suggests, it provides feedback from all sides, i.e. from subordinates to peers and managers. As this information comes from a variety of different sources, it will contain a wide range of different views and perspectives, which is very important when seeking feedback. In this way, it can be considered very objective and valid as it comes from a mixed audience.

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2. Explores Development Possibilities

Although the feedback received by an individual may be very broad, it offers a special opportunity to identify areas in need of development or to reveal gaps in know-how that may be priceless. This feedback can then be integrated into personal development plans. It can be seen as very helpful information that the person may never have imagined.

3. Sticks to Core Capabilities

When an organisation introduces a 360-degree feedback process as a necessary element of its performance system, they are able to do so in a way that is proportionate to the organisation’s core competencies. Such competencies are an indication of the organisation’s benchmark for interactions and behaviour. If they are highlighted very often, they can have an impact on determining the culture of your organisation.

Making them an essential element of the performance management system means that employees are able to receive feedback on their performance and symbolise the company’s competencies in their daily performance, motivating each person to live and breathe these standards in all their activities.

How 360-Degree Feedback Appraisal System To Work For Your Company

Shortcomings of 360-degree feedback

1. Not enough feedback

This point is called “not enough” because 360-degree feedback can prove insufficient in several ways. As with all reviews, there is a high probability that the feedback has been edited or filtered in one way or another and is therefore not sincere.

This can happen frequently as managers may ask to receive or access all feedback, even if it is not intended for them. This can lead to people being less honest because they know their manager could go through it. In addition, the goal of 360-degree feedback processes is often misunderstood. The intention behind 360-degree feedback is to be constructive, not to be taken as a personal attack.

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2. Poor Leadership

If an executive is not willing to engage in this or is not interested in this 360-degree feedback system, it is unlikely to be successfully implemented.

360-degree feedback is useful if it is applied and followed. A major cause of the failure of the 360-degree feedback assessment system is that feedback is given but then forgotten very hastily. If no plan is drawn up to implement 360-degree feedback, there is no change in behaviour and 360-degree feedback tends to be redundant.

Managers must therefore be trusted and involved in the initial interviews and appointed as ambassadors of the 360-degree feedback process in the teams. Raising awareness of the need for follow-up meetings with individual and effective goal setting, which considers feedback to be crucial.

3. Main Concerns

Very often the main concern of managers using the 360-degree process is to expose the shortcomings of their team. While this should be an end result of the application, you need to give more emphasis to constructive feedback and praise.

If 360 Degree Systems are only used to highlight negative aspects of a team member’s work, you will find that they are likely to take a negative attitude towards the 360 Degree Process culture and eventually distance themselves from it. The final drawback is that you will encounter a situation where there will not be enough participants in the 360-degree assessment system.

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