In today’s more team-oriented business world, 360 degree feedback has value for every person in the organisation. Traditionally and historically, it was a tool used to give executives, and later, managers, feedback, but this has changed since the 360 feedback process was introduced in Australia in the early 1990’s.

Organisations differ in their approach to 360 degree feedback. For some, 360 degree feedback is a developmental tool that employees are expected to use to further develop their personal and interpersonal skills. Other organisations use the multirater or peer feedback as one component of their performance appraisal process.

The foundation for using an effective 360 feedback process is the business needs to first develop a performance management system. As the organisation becomes more comfortable with and has fully integrated this overall performance management system, 360 degree feedback can be effectively introduced.

Participation in a 360 Degree Feedback Process

I participated in a 360 degree feedback process in the early -1990s at Caltex Australia. Looking back, it was a fairly open process, although it was aimed at management development, in particular people management. Staff members, my direct reports, my peers and my manager provided anonymous feedback about my management skills, style and support or adherence to the company’s values via the company’s human resources department.

The results of the 360 degree feedback were compiled and given to my manager. Then, my manager and I sat down and discussed the results of my 360 degree feedback, followed by a debrief presentation by myself to my staff. I then met with my manager in a 1 on 1 meeting to design action plans to move both my managerial style and our team performance forward. The process was comfortable and effective.

Concern about the Impact of 360 Degree Feedback

In working with businesses small, medium or large, one of the biggest fears people have about 360 degree feedback is that a group of anonymous people will determine their raises, promotions, and standing. If this is the process, of course results are untrustworthy; people want to provide feedback, but for the most part, co-workers do not want responsibility for "bad things" happening to their colleagues.

I am a strong proponent of introducing 360 degree feedback as a developmental tool for individuals. To ensure the process is a positive experience for the survey respondents and the manager/s, training when introducing the process, across the organisation around giving and receiving feedback is strongly recommended. Additionally, I am not a proponent of the feedback impacting salary or compensation.

In a performance development environment, the question of whether 360 degree feedback should impact performance appraisal becomes irrelevant. The performance appraisal has transformed into the performance development planning process that uses this performance development tool.

The measurements or key performance indicators used to determine salary or compensation in such a system include meeting measurable goals, attendance, and contribution to the department and organisation.

When the 360 degree feedback is used for development and carried out effectively, using the internet, people begin to trust that the goals of the 360 degree feedback process are truly developmental. Consequently, employees become more comfortable providing legitimate and useful feedback to each other.