As pointed out in Part 1 of the 360 degree (also known as a multi-rater assessment or feedback) blog, these assessments have rightfully gained popularity. The increase in their use has been especially significant during the past years. Numerous studies point to their effectiveness in:
- Improving performance of assessed individuals
- Boosting employee satisfaction – on the part of individuals assessed and as well as those in their work circle
- Decreasing turnover among the subordinates of managers who have undergone assessment
Why and How Does 360 Degree Feedback Work? Psychologists point out that goal achievement is central to our positive self-concept and to our level of self-esteem. In general, 360s work because individuals see a gap between their feedback ratings and the desired goal. As a result, they are generally motivated to work to reduce the gap as a way of maintaining a positive sense of self-esteem. Clearly, not to all individuals will improve their performance simply because they have received feedback, and certainly not all feedback is effective in improving performance. The reality is that some employees are more predisposed to performance improvement than others. Improvements in performance are most likely to occur when the following occurs:
1. The feedback given clearly indicates that change is necessary. 2. The person receiving the feedback has receptivity and thus recognizes the need for change. 3. The organization and the person create an appropriate action plan for behavioral change. 4. The assessed person believes the action plan is achievable and she/he has the support of the organization. 5. The organization regularly provides constructive feedback, which should include both identification of areas of improvement and of areas still needing improvement. 6. The organization consistently demonstrates its support—often by engaging an experienced coach from outside the organization. There are several attributes of the feedback that have the impact on the degree to which individuals listen to and act upon the feedback they receive. I refer to these attributes by the acronym “C-STAR”:
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- Clarity—the data is presented in an easy to understand manner and format (typically, in text and graphical form)
- Specificity—the data is specific enough to be acted upon
- Timeliness—the data is provided within a reasonable time frame after it was collected
- Authenticity—the data is perceived as being an authentic and this accurate set of perceptions by others
- → Authenticity can be greatly enhanced when the assessment is performed by and the results presented an independent party from outside the organization.
- Relevancy—the data is tied to behavioral factors that are important to the individual’s success in their role