Using 360 Degree Feedback

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ncreasingly, 360 degree feedback system, has dominated the HR system either as a developmental tool or a performance appraisal system. Gaining perspective on suitable models and best practices in implementing the process aids in improved individual efficiency and superior organizational effectiveness.

Concept
Simply, 360 degree feedback is a behavioral and performance review tool, where an individual gets feedback from different sources, including supervisors, colleagues, subordinates, clients, suppliers, and self. The feedback received for the individual is utilized to identify his/her strengths and development needs.

Evolution

Application

The birth of 360 degree Depending upon the organization's feedback can be tracked to 1950s and 1960s during the nature of performance appraisals/ human relations movement reviews, 360 degree feedback is either when companies tried to performed annually or any time during enhance their processes and the year, for example, on completion of communication through a specific project or by corresponding it different forms towards organizational development. with a particular event through Previously, a survey/feedback questionnaires or interviews or checklists was limited to the supervisor having dimensions of work performance, and employee. However, behaviour and skills that are to be statistics on the use of 360assessed. The basic objective of these degree method reveal that it went from almost being questionnaires or interviews is to target unheard of in the 1980s to feedback apt to the individual's working, getting utilized extensively in goals, priorities, other work areas that 2000. the individual may be involved in, Historically and convenprofessional aspirations, projected career tionally, 360 degree was a tool exercised to provide changes and the specific level of skill Models executives, and afterward, needed for the present job and for any In mid eighties, a model for managers, feedback, upcoming new roles. top and senior management nevertheless, this has changed was developed for required now. In different industries companies have a different managerial and leadership competencies, which is, approach to 360 degree feedback. For instance, some RSDQ (roles, styles, delegation and qualities) model for think 360 degree feedback is a developmental tool that effectual management and leadership. employees are expected to utilize to further develop their Usually, there are several roles a manager plays in personal, interpersonal and work-related skills. Some order to be effectual. They include transformation roles others utilize multi-rater or peer feedback as one part of (leadership roles) and transactional roles (managerial) their performance appraisal system. like vision and values, strategic orientation, inspiring, Also, in current times companies are more teamdeveloping and empowering employees, internal and

oriented, thus, 360 degree feedback has gained more value for each individual in a company. Imagine an employee being evaluated as holding a compass; this particular employee’s peers are answering to the survey from 90 degrees, his/her direct reports from 180 degrees, internal customers from 270 degrees, and supervisor/s or bosses from 360 degrees; thereby expanding the canvas radically. Literally, the name of the method comes from its process. Generally, 360 degree feedback is associated to many positive outcomes such as enhanced performance, superior interpersonal communication, better work relationships, and so on, however, in recent years it has become the most utilized interventions for leadership development. Moreover, the method has not only enriched human resources and organization development, but, has also become an important part of consulting and coaching.

By Arva Shikari

Going full circle
Using 360 degree feedback gets people empowered and bolsters the overall impact of the method.
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external customer orientation and focus, communication, innovation and learning, result orientation, technology and systems management, leadership, team work, decision making, delegation, etc. The transformational activity in each of these roles, for example, is communicating the vision and values for the company’ and the transactional activity is ‘supervising to make certain that the values are followed’. Also, styles determine the effectiveness of the way in which the roles are played. The leadership styles are categorized into three, viz. benevolent or paternalistic leadership style in which the top level manager plays the role of a parent. The second, critical leadership style, which is like the Theory X belief pattern where a manager believes that employees need to be constantly monitored, directed, and prompted for performing their jobs, has little or no tolerance for errors/conflicts, is highly discipline oriented and so on. The third style is the developmental leadership style which is an empowering style where a manager believes in developing the competencies of his/her team, treats them as mature adults, etc. This is the most desired style in organization building. Delegation is also an important variable of leadership as it gives time to execute higher-level responsibilities thereby improving executives and manager’s leadership qualities and managerial effectiveness. To become world-class managers qualities like pro-action, listening, communication, positive approach, participative nature, quality orientation etc. ensure effectiveness with which top-level managers execute their several roles and also have an impact on the leadership style, thus, qualities becoming critical. Different companies have different models of 360 degree feedback. Organizations customize the method based on their organizational and business needs. For example, GlobalLogic follows a bi-annual survey cycle for its managers and executives. For each individual who is getting assessed, a minimum of five respondents for the survey are contacted, of which, maximum two are managers, and up to 10 are peers and reportees. “We have an online automated system which allows managers to use their login credentials to choose the respondents. Respondents get intimation via the online system to fill the feedback. The feedback is sought from managers, peers, subordinates and others on nine different dimensions to judge the effectiveness of the managers,” describes, Iti Kumar, the vice president - people development of the company. Further, the feedback forms include questions that are measured on a rating scale and also ask raters to provide written subjective comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms. Upon completion of the survey, managers view their reports since the objective is for self-development. Managers are expected to work out action planning based on feedback they receive in a form of 360 degree report. All managers have access to view the reports of all their reportees. However, the feedback is sought in an anonymous way. Further, says, Kumar, since GlobalLogic considers 360 degree to be a self development tool and because of this reason we don’t interfere in the action planning of the 360 degree results. We have a defined standard template which is used by managers in identifying their improvement areas and also work on action planning. We work closely with the managers to close on action planning; respective managers need to implement action plans for the next six months. All these employees work with their respective managers in defining action planning and the same is reviewed in the next 360 degree results. There are many other models of 360 degree questionnaire available. As a consultant, says, Indira Parikh, president of Foundation of Liberal and Management Education (Flame), “I have used 360 degree feedback questionnaire which focuses on leadership, strategic choices and decision making. This is more so when the assessment is being done for CEO, COO, CFO and senior management position.”

Impact of 360 degree feedback
Impact of 360-degree feedback is pretty diverse. If the method is used for performance appraisal people fear as a group of anonymous people determine their increases, promotions, and standing, especially, peer feedback stymies executives. Sometimes, results are unreliable as while giving feedback people take care that nothing untoward happens to their co-workers. Some people are opposed to 360 degree feedback being a developmental tool as the feedback can impact compensation. Some others even believe it aggravates bureaucracy, intensifies tensions, and takes a lot of time. A study on about 17 organizations varying in size— from new ones to fortune 500 companies across industries on the practice of using 360 degree feedback and the impact of peer appraisal on people revealed some discomforting conclusion: peer appraisal is difficult. Around four unavoidable paradoxes were found to be set in in the procedure: the paradox of roles as one can’t be a peer and a judge; the paradox of group performance as concentrating on individuals puts the whole team at risk; the measurement paradox involves, it may be easy to give feedback, but, difficult to exercise; and the paradox of rewards, where peer appraisal may be important, but, it may not help at all. However, if the measurements utilized to determine compensation in this method have quantifiable goals, attendance, and contribution and is implemented effectively, people do trust that it is truly effective. In due course, employees become more comfortable giving genuine and constructive feedback to one another. Also, it augments the overall impact of 360degree feedback. Concurring, Parikh says, “The overall impact includes clarity of strengths and limitations of the individual and the innovativeness and entrenchments as well as potentials.” Like GlobalLogic’s 360 degree process helps its managers to test their perception about their competencies with what other people, who work closely with them, perceive about

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them. The reports help them understand their positioning against each dimension separately and also help them to see their ratings based on all levels - peer, manager, subordinates and others. This certainly helps them to plan and improve their efficiency and performance as a manager. Sometimes, managers may be found to be effective in all of parameters and sometimes not. In the dimensions where they are rated low and if their average score is less than other people at their peer level in these dimensions all these mangers work closely with their supervisors and people partner in necessary facilitation. There are few cases in GlobalLogic where managers have nominated themselves for various training programs including coaching program for their development. Moreover, in GlobalLogic, 360 degree feedback provides a lot of data on developmental aspects of managers. “This base data has helped us in organizing management development program (MDP) in the organization. The MDP comprises of topics like understanding different personalities, leadership skill development, trust building, delegation, feedback etc. All existing managers and fresh promotions to managerial positions are considered in this program. Coaching sessions for a few identified managers has also begun. These are the managers who needed coaching and guidance on people development aspects. Apart from this, constant feedback and mentoring by their managers’ help them to develop their skill sets,” explains Kumar. There are some common areas where participants of 360 degree feedback are able to observe change in their performance and some common areas where participants are not able to observe change in their performance. Parikh observes, “Once the feedback is given the changes are observed in areas: interface with people, as the person acquires the ability to differentiate in relating in managing individuals and groups; interface across levels around tasks and functions; difference between action, behavior and the person; and facilitates decision making process, strategic thinking and managerial and leadership effectiveness.” On the other hand, the areas where individuals find it difficult to observe changes are says, Parikh, is the management of residue and reactive feelings vis-à-vis authority, hierarchy and organizational structure. In some instances, changes are required in the job and role profile after restructuring. 360 degree feedback also impacts the organizational culture. It is critical that the culture within a company is favorable for open and honest communication. Employees need to trust that the company is utilizing the method for positive development and to feel at ease about communicating their views openly. Thus, 360 degree feedback has to be built upon some form of a previously established, regular development/ performance appraisal or internal communication. Positively, says Parikh, “The organizational culture tends to be goal and objective driven, task and result driven and the interface profile across roles and functions geared towards performance. Cumulatively, all this leads to efficiency and effectiveness in the organization.

Best practices for better impact
Mostly the aim and objective of an effective 360-degree feedback execution usually for organizations remains positive, measurable, and focus on long-term growth and development. To achieve this, research proposes that 360-degree interventions be utilized in combination with organizational support, which should be in the form of laying down the context, feedback meetings, action planning, and follow-up. To ensure an effective 360 degree intervention, clarify the purpose for each individual in the organization; clarify rater anonymity, responsibility, and choice; train participants; analyze and explain the feedback results; develop an action plan; and lastly have a thorough follow-up. Clarifying the purpose and the expectations of 360degree feedback prior to the process is pertinent for the managers and their assessors. Also, they should be aware of the organizational support available to them. Keeping a check of attitudes of 360-degree users is vital to the system’s effectiveness. Erroneous feedback system or the perception of incorrect feedback process may lead to disciplinary feedback, unsuitable developmental goals, emotional distress, organizational distrust, and abstention. Thus, explaining the possible outcomes of the 360-degree feedback process is an investment and is significant for everyone involved as it aligns performance expectations between managers and others, and enhances informal communication and feedback. Under best practices, people who are nominated for giving feedback or ratings should know whose ratings will be anonymous and whose will not be. Research studies show that anonymous raters give sincere, objective feedback than the ones who are not. The best way to have correct feedback from raters is to discuss their accountability for giving frank and significant answers to questions. Also, if managers are permitted to select their raters, it increases managers’ sense of ownership and they select raters who are familiar with the process, who know the managers’ work performance, and who are willing to give feedback. Even training the raters and ratee of 360 degree process is important as giving them an understanding on the objectives of the method, knowledge on the entire administration of it, the outline of reference, and how to stay clear of rating errors helps in successfully completing the process. To review and interpret the feedback results it is proposed that a qualified feedback giver who has experience with the assessment should give feedback as it aids managers in understanding the information by stressing topics and aiding in choosing areas for development. Many managers usually know how to set clear, specific goals, action steps and timeframes in which they can be achieved. However, the key is to ensure that they take the time to follow through. May be every few months managers could be held accountable for

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their progress toward achieving their action plans through follow-up meetings with the work group that gave feedback, follow-up with the supervisor that helped set development goals, or follow up with coaches. A study showed that managers who follow up on their formal feedback show significant improvement in their effectiveness as a leader. It also found a link between the regularity of follow-up and perceived positive change. GlobalLogic follows the best practices in the 360 degree process. It believes 360 degree appraisals review behaviors, actions and not outcomes; its appraisers remain anonymous; its questionnaire is designed keeping in mind all the developmental aspects to be covered and is not too lengthy, just takes maximum of 10 to 15 minutes to complete; individual results remain and are shared confidentially only with the respective managers; and the feedback report is effective and captures results visually in a table form that help people find answers and also to think and draw attention to key issues. In fact, employees of GlobalLogic appreciate 360 degree process a lot particularly at senior management level where the company doesn’t have a formal appraisal process. “At that level, 360 degree along with BSC and KPG goals helps us assess their technical, functional and behavioral competencies,” says, Kumar. For Parikh, when 360 is used to align the total organization to a shared vision, translated into a shared mission and aligning the business and people strategy to create a health work culture in the organization is the best practice in executing 360 degree model.

Pros and cons
360 degree feedback may deliver valuable feedback, although, it has grave problems concerning privacy, validity and efficacy. In fact, there is no factual data showing that 360-degree feedback enhances productivity, boosts retention, reduces grievances or is better to compulsory ranking and regular performance appraisal systems. Providing effective feedback is a tough job, unless everyone participating in a 360-degree process is trained in giving and receiving feedback. Also, sometimes, there are gaps in companies business objectives and what 360-degree feedback measure. Another problem cited is that reviewers and those being reviewed are unsuccessful in following up after feedback. Despite drawbacks, the process has a way of deepening employees’ understanding of performance and aids organizations in creating value by properly aligning job performance with their business strategies. In fact, “Individuals have achieved clarity of job, tasks, linkages, inter-functional linkages and professionalism in performance. They have also become sensitive to diversity, to social skills, assertiveness and tolerance and accountability,” vouches Parikh. Experiences with 360 degree as a development tool seem fine; but, experiences as an appraisal tool are varied. HC

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