Since the Industrial Revolution, organizations typically communicated in a top-down fashion. The flow of feedback was in a similar direction where upper management gave feedback to middle-level managers and middle-level managers relayed feedback to subordinates. However, managers did not get enough feedback on how they were interacting with subordinates. The interactions between a manager and a subordinate impact many aspects of the workplace and employee experience at work, for example morale, commitment, job satisfaction, and even absenteeism. It is estimated that 60% of people quit their job due to reasons dealing with the supervisor. 360-degree feedback was developed in order to improve the manager/employee relationship. In present day, organizations 360-degree feedback is used mostly for leadership development. It is important to consider the impact that 360-degree feedback may have in your specific organization before implementing it. Critical aspects to consider are the reactions that leader may have, effectiveness of the feedback, and why to implement it.
360-degree feedback is a novel concept. This type of feedback involves a manager rating himself/herself and his/her subordinates, peers, superiors, and customers rating the manager as well on a several different leadership qualities. In some cases stockholders also may provide input. 360-degree feedback highlights the advantage of different perspectives, which can help the manager grow in his/her leadership style to become more effective. 360-degree feedback has been used for different objectives such as development, appraisal, and evaluation of managers and the organization’s development processes as well. However, several psychologists urge that 360-degree feedback should be used for the process of development only and should not be used as an evaluation technique. (Tyson and Ward, 2004)
Carlson (1998) has suggested that there are three main assumptions that go along with 360-degree feedback. The first assumption has been to have feedback from multiple sources is more helpful and accurate then feedback from only one source. This has been based on criticism that managers do not always have an accurate perception of a subordinate and may have only have seen them work a couple times in a few situations. The second assumption has been that self-perception in comparison to other’s perceptions may increase self-awareness. Self-awareness is the degree to which one is aware of his/her own strengths and weakness. Increased self-awareness is considered to be positive based on the increased ability to adapt to more situations. Finally, Carson has indicated that effective leaders will view themselves in the same way that others see them. A leader is considered more effective at his/her job in 360-degree feedback when alternative sources of feedback (i.e. supervisor, peer, and subordinate) are in agreement. Discrepancies in ratings are viewed as self-misperception and used to create an action plan for the individual to begin to develop his/her weaknesses and continue to utilize his/her strengths. Individuals are typically rated again approximately six months to a year later to measure and assess development.
Reaction to Feedback
Facteau and Facteau (1998) collected information from subjects at three different times using a pretest, performance rating, and posttest design. Employees were asked to take part in rating superiors and peers as well. The study looked separately at leaders’ acceptance of feedback as well as the perceived usefulness of feedback. It was hypothesized that overall ratings, organizational support, and perceived ability of the rater would be positively related to the four reactions (peer and subordinate). As the overall rating decreased, the leader was less likely to accept the feedback as true and might have denied the bad ratings. The study concluded that overall ratings play a key role when understanding if a leader accepts the feedback from peers and/or subordinates. Feedback discussion sessions with individual managers may prevent resistance to negative ratings and help managers to be more receptive to the feedback.
Smither and Walker (2004) studied the relationship of narrative comments and improvements over time. Many researchers have not concentrated on narrative feedback, however, it seems important to use all types of feedback whether rating or narrative. Over one year, Smith and Walker investigated a manager’s improvement in upward feedback ratings. The number of narrative comments a manager received, in relation to whether those comments were favorable or unfavorable, and whether the comments were behavior-task or trait oriented. The results showed that managers who received a small number of unfavorable narrative comments that were behavior-task oriented tended to improve more than other managers. For this reason, it is important for 360-degree assessments to be based on the raters’ observation of the managers’ behavior. This can provide the manager with concrete behaviors to develop instead of ambiguous constructs such as “integrity” or “people skills”. Although, the study also suggested that managers who received a large amount of the negative narrative feedback tended to improve less than managers who received a small quantity. Therefore, when feedback is provided to a manager, despite the amount of comments, it is important to focus in on two to three goals at the most to prevent overload and negative reactions. Overall, Rowson (1998) reported that “there is a greater acceptance of feedback in countries where there is more familiarity with assessment in general” (p 47).
Effectiveness of Feedback
When examining effectiveness of 360-degree feedback it is important to look at three different aspects. It is important to consider the validity of technique and assessment from different perspectives. Many researchers believe that it is important that self-rating and others ratings should agree. However, the question arises, “Does this really matter if the feedback still has an affect on the leader?”(Atwater and Ostroff, 1998). In addition, it is important to consider how the feedback affects the leader and what outcomes it will affect.
Research done by Atkins and Wood (2002) has provided evidence for the validity of 360-degree feedback when using it for leadership development. They tested this by assessing how well the ratings predicted assessment-centered ratings. Atkins and Wood also examined which source of ratings was the most accurate when predicting competency. Overall, these researchers were interested in better understanding the discrepancies between self and observer ratings. Results showed that the average of the ratings between subordinates, peers, supervisors, and self predicted job performance. Supervisors alone predicted performance; however this is not found across all studies. Supervisors were shown to differentiate between over-estimators, but not as well for under-estimators. As for peer ratings, they tended to overestimate performance for low performers. Furthermore, high self-raters tended to perform the worst on assessment test. Overall, the study showed strong validation evidence by the high correlations between the assessment scores and observer rating scores.
In contrast, a study conducted by Fletcher, Baldry, and Cunningham-Snell (1998) has provided an alternative view. These researchers believed that the 360-degree feedback technique faces some of the same challenges that traditional top-down evaluations have in the past. They studied 360-degree feedback beginning with a pilot study for validation, which was followed by administration of the redesigned questionnaire, which had improved psychometric properties. They concluded overall that if 360-degree feedback is constructed around the lines of a psychometric test, then the information derived from the feedback can potentially and likely be misleading.
One of the most influential studies was conducted over a five-year period from 1991 to 1995. This study was two times as long as any previous research in the field. Smither and Walker (1999) hypothesized that managers who were originally rated poorly would improve more than other managers by using 360-degree and direct reports to discuss feedback. Researchers also suggested that managers who discussed present feedback, as well as, went over the previous year’s feedback would improve more than when they did not. The results confirmed all hypotheses and demonstrated that 360-degree feedback can have many benefits to leadership development if used consistently over time.
What 360-degree feedback could affect?
Brutus and London (1999) looked at 360-degree feedback and its affect on goal setting. They hypothesized that feedback would be negatively related to goal setting and development. It was also theorized that supervisors’ ratings would have a greater impact on the development goals the manager would select. It is important to note that direct feedback by itself affected the selection of developmental goals. Results showed that the two areas of performance rating and goal selection had a stronger impact for lower level managers in comparison to other managers. Furthermore, low performance ratings themselves increased managers to goal selection. In contrast to the hypothesis, subordinates ratings had a greater influence than supervisors on a manager’s goal selection. These results are important to consider because the development goals that a manager has reaches to achieve determines in many ways what type of manager they will become. This study also showed that it is important to obtain feedback from subordinates because of the impact they have on a manager’s goal setting.
360-degree feedback is a technique used to assess a manager’s performance from many perspectives (i.e. supervisors, peers, and subordinates/direct reports) within the organization. Much of the research has supported the integration of this type of feedback into organizations to help leaders to develop leadership skills and reach their potential. Leaders need direction in realizing what their strengths and weaknesses are and how to develop them. 360-feedback does just that.
360-degree feedback is a novel concept. This type of feedback involves a manager rating himself/herself and his/her subordinates, peers, superiors, and customers rating the manager as well on a several different leadership qualities. In some cases stockholders also may provide input. 360-degree feedback highlights the advantage of different perspectives, which can help the manager grow in his/her leadership style to become more effective. 360-degree feedback has been used for different objectives such as development, appraisal, and evaluation of managers and the organization’s development processes as well. However, several psychologists urge that 360-degree feedback should be used for the process of development only and should not be used as an evaluation technique. (Tyson and Ward, 2004)
Carlson (1998) has suggested that there are three main assumptions that go along with 360-degree feedback. The first assumption has been to have feedback from multiple sources is more helpful and accurate then feedback from only one source. This has been based on criticism that managers do not always have an accurate perception of a subordinate and may have only have seen them work a couple times in a few situations. The second assumption has been that self-perception in comparison to other’s perceptions may increase self-awareness. Self-awareness is the degree to which one is aware of his/her own strengths and weakness. Increased self-awareness is considered to be positive based on the increased ability to adapt to more situations. Finally, Carson has indicated that effective leaders will view themselves in the same way that others see them. A leader is considered more effective at his/her job in 360-degree feedback when alternative sources of feedback (i.e. supervisor, peer, and subordinate) are in agreement. Discrepancies in ratings are viewed as self-misperception and used to create an action plan for the individual to begin to develop his/her weaknesses and continue to utilize his/her strengths. Individuals are typically rated again approximately six months to a year later to measure and assess development.
Reaction to Feedback
Facteau and Facteau (1998) collected information from subjects at three different times using a pretest, performance rating, and posttest design. Employees were asked to take part in rating superiors and peers as well. The study looked separately at leaders’ acceptance of feedback as well as the perceived usefulness of feedback. It was hypothesized that overall ratings, organizational support, and perceived ability of the rater would be positively related to the four reactions (peer and subordinate). As the overall rating decreased, the leader was less likely to accept the feedback as true and might have denied the bad ratings. The study concluded that overall ratings play a key role when understanding if a leader accepts the feedback from peers and/or subordinates. Feedback discussion sessions with individual managers may prevent resistance to negative ratings and help managers to be more receptive to the feedback.
Smither and Walker (2004) studied the relationship of narrative comments and improvements over time. Many researchers have not concentrated on narrative feedback, however, it seems important to use all types of feedback whether rating or narrative. Over one year, Smith and Walker investigated a manager’s improvement in upward feedback ratings. The number of narrative comments a manager received, in relation to whether those comments were favorable or unfavorable, and whether the comments were behavior-task or trait oriented. The results showed that managers who received a small number of unfavorable narrative comments that were behavior-task oriented tended to improve more than other managers. For this reason, it is important for 360-degree assessments to be based on the raters’ observation of the managers’ behavior. This can provide the manager with concrete behaviors to develop instead of ambiguous constructs such as “integrity” or “people skills”. Although, the study also suggested that managers who received a large amount of the negative narrative feedback tended to improve less than managers who received a small quantity. Therefore, when feedback is provided to a manager, despite the amount of comments, it is important to focus in on two to three goals at the most to prevent overload and negative reactions. Overall, Rowson (1998) reported that “there is a greater acceptance of feedback in countries where there is more familiarity with assessment in general” (p 47).
Effectiveness of Feedback
When examining effectiveness of 360-degree feedback it is important to look at three different aspects. It is important to consider the validity of technique and assessment from different perspectives. Many researchers believe that it is important that self-rating and others ratings should agree. However, the question arises, “Does this really matter if the feedback still has an affect on the leader?”(Atwater and Ostroff, 1998). In addition, it is important to consider how the feedback affects the leader and what outcomes it will affect.
Research done by Atkins and Wood (2002) has provided evidence for the validity of 360-degree feedback when using it for leadership development. They tested this by assessing how well the ratings predicted assessment-centered ratings. Atkins and Wood also examined which source of ratings was the most accurate when predicting competency. Overall, these researchers were interested in better understanding the discrepancies between self and observer ratings. Results showed that the average of the ratings between subordinates, peers, supervisors, and self predicted job performance. Supervisors alone predicted performance; however this is not found across all studies. Supervisors were shown to differentiate between over-estimators, but not as well for under-estimators. As for peer ratings, they tended to overestimate performance for low performers. Furthermore, high self-raters tended to perform the worst on assessment test. Overall, the study showed strong validation evidence by the high correlations between the assessment scores and observer rating scores.
In contrast, a study conducted by Fletcher, Baldry, and Cunningham-Snell (1998) has provided an alternative view. These researchers believed that the 360-degree feedback technique faces some of the same challenges that traditional top-down evaluations have in the past. They studied 360-degree feedback beginning with a pilot study for validation, which was followed by administration of the redesigned questionnaire, which had improved psychometric properties. They concluded overall that if 360-degree feedback is constructed around the lines of a psychometric test, then the information derived from the feedback can potentially and likely be misleading.
One of the most influential studies was conducted over a five-year period from 1991 to 1995. This study was two times as long as any previous research in the field. Smither and Walker (1999) hypothesized that managers who were originally rated poorly would improve more than other managers by using 360-degree and direct reports to discuss feedback. Researchers also suggested that managers who discussed present feedback, as well as, went over the previous year’s feedback would improve more than when they did not. The results confirmed all hypotheses and demonstrated that 360-degree feedback can have many benefits to leadership development if used consistently over time.
What 360-degree feedback could affect?
Brutus and London (1999) looked at 360-degree feedback and its affect on goal setting. They hypothesized that feedback would be negatively related to goal setting and development. It was also theorized that supervisors’ ratings would have a greater impact on the development goals the manager would select. It is important to note that direct feedback by itself affected the selection of developmental goals. Results showed that the two areas of performance rating and goal selection had a stronger impact for lower level managers in comparison to other managers. Furthermore, low performance ratings themselves increased managers to goal selection. In contrast to the hypothesis, subordinates ratings had a greater influence than supervisors on a manager’s goal selection. These results are important to consider because the development goals that a manager has reaches to achieve determines in many ways what type of manager they will become. This study also showed that it is important to obtain feedback from subordinates because of the impact they have on a manager’s goal setting.
360-degree feedback is a technique used to assess a manager’s performance from many perspectives (i.e. supervisors, peers, and subordinates/direct reports) within the organization. Much of the research has supported the integration of this type of feedback into organizations to help leaders to develop leadership skills and reach their potential. Leaders need direction in realizing what their strengths and weaknesses are and how to develop them. 360-feedback does just that.
360 degree feedback is multi-source feedback and linked to Performance Review, Coaching and Leadership Development of an organization, 360 degree feedback system.
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