360-degree feedback analysis

Gone are the days when managers had the sole right to justify an employee’s performance. The
stereotypical one way communication trend was prevalent in many industries across the globe. This
180-degree feedback, as it was known, was not only flawed but also unfair because a single entity was
responsible for evaluating an employee’s performance and contribution to the organization. The
rejection of 180-degree feedback made way for the acceptance of 360-degree approach. In this process,
not only the manager, but peers, subordinates and even customers contribute to give feedback for
individual’s performance.

In current scenario, this 360-degree approach is targeted to be a performance appraisal tool and a
useful mechanism for the holistic development of the employees. According to Aon Hewitt Top
Companies for Leaders Study, 83% of the top companies use 360° feedback to assess their leaders for
development. This is done by giving the same questionnaire survey to rater group (manager, peers,
subordinates and customers) and the ratee (individual being rated). After the evaluation, employees are
able to figure and gauge the expectations from them, their strength and areas of improvements, plus
the appropriate retrospective actions to help bridge this gap.

Some of the companies using 360-degree feedback to maintain transparency and employee friendly
processes are:

HCL: According to HCL spokesperson, this approach not only breaks the traditional mold but also
inverses the organizational pyramid ensuring reverse accountability.

PepsiCo: Up to 88% of PepsiCo’s executives reported that using 360-feedback as a developmental tool
was better than most previous developmental experiences.

The companies have seen, trusted and used this method the same way we trust many infomercials
claiming how their use can “change our life”. But a few flaws like biasness, ineffective design of
questions etc. could end up causing more harm to the employee than the good it serves. The companies
have now started to modify the periodic 360-degree approach to a real time 360-degree approach
commonly recognized as 540 and 720-degree approaches, the results of which are yet to be seen.