360 Degree Performance Management

By:
K. M. Siddiqi 
B.Com(Hons), M.Com(pb),FCIS(Pak), ACEA,APFM(UK),MIFC(Canada).

Mr. K. M. Siddiqi is a free lance Management Consultant. [km.siddiqui@yahoo.com] 

Man is the best Creature not only on earth but also in the whole Universe, created by the GOD, as mentioned in the Quran.

This is the man he who has made the World worth living by all his capabilities, knowledge and latent qualities, bestowed by Al-mighty ALLAH to him.

A man can best perform if he is provided best education, training, know-how and knowledge, pertaining to his discipline of expertise.

With the passage of time, man has progressed gradually from the stone-stage to present atomic age or rather more, as far as, technological developments in Human Sciences are concerned. The most significant area of present era is a study of human behavior which leads to optimize the human-output or performance. In a broad sense, it is termed Performance Management.

Since the evolution of the study of Personnel Management, various techniques have been carried out to manage the performance of the human beings employed at different cadres, in an organization to optimize their output.

The latest technique to manage the performance of an employee or a group of employees is 360-Degree Feedback. The study area covers its meaning, usage rationale, operation, merits, demerits and introduction methodology.

360-Degree Feedback Defined

A systematic collection and feedback of performance data on an individual or group, derived from a number of the stake holders on their performance.

The data is usually fed-back in the form of ratings against various performance dimensions. It is also termed as a multi-source assessment or multi-rater feedback.

Performance data in a 360-Degree feedback process can be generated for individuals (as shown in figure-1) from the person to whom they report, their direct reports, their peers (who could be team members or colleagues in other parts of the entity) and their external and internal customers.

 

	Managers
Peers	Individual	Internal Customers
	Direct Reports

Fig.1. 360-Degree Feedback Model

The range of feedback could be extended to include other stake holders - external customers, clients or suppliers (this is sometimes known as 540- Degree Feedback). A self-assessment process may also be incorporated using for comparison purposes the same criteria as the other generators of feedback.

Feedback can be initiated entirely by peers (in a team setting) or by both peers and team leaders. It can also take the form of 180-Degree or upward feedback where this is given by subordinates to their Managers. Feedback may be presented direct to Individuals, or to their Managers or both. Expert counseling and coaching for Individuals as a result of the feedback may be provided by a Member of the HR department or by an outside Consultant.

Use of 360-Degree Feedback

It is used for a number of purposes. A research showed that it forms part of a self development or Management development program. A survey of 45 users gives following results:

· 71 % used it solely to support learning and development,

· 23% to support a number of HR processes, appraisal, resourcing and succession planning,

· 6% to support pay decisions

Another survey made during the last few years, of 22 organizations using 360-Degree Feedback found that:

· 77 % disagreed with the statement that it is a personal development tool and should not be used for wider HR or organizational purposes,

· 81% disagreed that the natural use of 360-Degree Feedback is to provide a basis for reward

A IDP survey made in 1998, also found that 51 organizations covered by the research predominantly used 360-Degree Feedback to help in assessing development needs, and as a basis for performance coaching. Only 1/5 of the respondents used it to determine a performance grade or pay award.

Rationale for 360-Degree feedback

360-Degree activities are usually based on two key assumptions which are as under:

· That awareness of any discrepancy between how we see ourselves and how others see us, increases self awareness, and

· That enhanced self-awareness is a key to maximum performance as a leader, and thus becomes a foundation block for Management and leadership development programs

London and Batty, the authors on HRM, have suggested that the rationale for 360-Degree Feedback is as follows:

· It can become a powerful organizational intervention to increase awareness of the importance of aligning leader behavior, work unit results and customer expectations, as well as increasing employee participation in leadership development and work unit effectiveness.

· It recognizes the complexity of Management and the value of input from various sources – it is axiomatic that Managers should not be assessing behaviors they cannot observe, and the leadership behaviors of subordinates may not be known to their Mangers.

· It calls attention to important performance dimensions which may hitherto have been neglected by the organization.

360-Degree Feedback Methodology

Questionnaire

The processes usually obtain data from questionnaires, which measure from different perspectives the behaviors of individuals against a list of competencies. Actually they ask for an evaluation: how well does… do…? The competency model may be developed with in the organization or be provided by the supplier of a questionnaire.

The dimensions broadly refer to Leadership, Management and approaches to work. The headings used in the Performance Management Group’s Orbit 360-Degree questionnaire are:

· Leadership

· Team Player/Manage People

· Self Management

· Communication

· Vision

• Organizational Skills
• Decision Making
• Expertise
• Drive
• Adaptability

The Leadership heading, for example, is defined as Shares a clear vision and focuses on achieving it. Demonstrates commitment to the Organization’s Mission. Provides coherent sense of purpose and direction, both internally and externally, harnessing energy and enthusiasm of Staff.

Ratings

Ratings are given by the generators of the feedback on a scale against each heading. It refers to both importance and performance, as in the PILAT questionnaire which asks those completing it to rate the importance of each item on a scale of 1 (not important) to 6 (essential), and performance on a scale of 1 (weak in this area) to 6 (outstanding).

Data Processing

Questionnaires are normally processed with the help of software developed with-in the organization or, most commonly, provided by external suppliers. This enables the data collection and analysis to be completed swiftly, with the minimum of effort and in a way that facilitates graphical as well as numerical presentation.

Graphical presentation is preferable as a means of easing the process of assimilating the data. The simplest method is to produce a profile as illustrated in fig.2.

Fig.2. 360-Degree Feedback Profile

Some of the proprietary software presents feedback data in a much more elaborate form.

Feedback

The feedback is often anonymous and may be presented to the individual (most commonly), to the individual’s Manager (less common) or to both the individual and the Manager. Some organizations do not arrange for a feedback to be anonymous. Whether or not feedback is anonymous depends on the organization’s culture – the more the culture, the more likely is the source of feedback to be revealed.

Action

The action generated by the feedback will depend on the purposes of the process, i.e. development, appraisal or pay. If the purpose is basically developmental, the action may be left to Individuals as part of their personal development plans, but the planning process may be shared between Individuals and their Managers if they both have access to the information. Even if the data only goes to the Individual, it can be discussed in a performance review meeting so that joint plans can be made, and there is much to be said for adopting this approach.

Development and Implementation

To develop and implement 360-Degree Feedback system, the following steps are to be taken:

Objectives Define exactly what 360-Degree feedback is expected to achieve. It must spell out the extent to which it is concerned with personal development, appraisal or pay Recipient Who is to be end user of Feedback. It is an indication of having eventually been covered after a pilot scheme Feedback Anyone of the elements may be responsible. There exists a coordination among the said elements or outside consultants – usually anonymous Area of work & Beh. The area should be determined. The model should suit the culture, values and type of work carried out in the entity Data Collection Questionnaire should be designed in-house or by a Consultant Analysis & Presentation The decision based on developing the software in-house or using a package should be realistic, while installing 360-Degree feedback program Initial Implementation Program It should be processed at Top level, preferably or with all the Managers in a function or Department. The pilot scheme should relate to the concerned personnel Result Analysis Reactions of those involved in pilot scheme should be analyzed and necessary changes made with training Full program Implementation It includes communicating, training and support from HR and, possibly, the external Consultants Monitoring and Evaluation The program should be closely watched at initial implementation of feedback, monitoring should continue, although it is a difficult process

360-Degree Feedback- Merits & Demerits

The survey conducted by the Performance Management Group, revealed that respondents believed on the following benefits:

· Individuals get a broader perspective of how they are perceived by the others than previously possible.

· Increased awareness of and relevance of competencies.

· Increased awareness by Senior Management that they, too, have development needs.

· More reliable feedback to Senior Managers about their performance.

· Gaining acceptance of the principle of multiple stakeholders as a measure of performance.

· Encouraging more open feedback i.e. new insights.

· Clarified to employees critical performance aspects.

· Opens up feedback and gives people a more rounded view of performance than they had previously.

· Identifying key development areas for the individual, a department and the organization as a whole.

· Identify strengths that can be used to the best advantage of the Business.

· A rounded view of an individual’s/team’s/the organization’s performance and what its strengths and weaknesses are.

· It has raised the self-awareness of people Managers of how they personally impact upon others- positively and negatively.

· It is supporting a climate of continuous improvement.

· It is starting to improve the climate/morale, as measured through our employee opinion survey.

· Focused agenda for development. Forced Line Managers to discuss development issues.

· Perception of feedback as more valid and objective, leading to acceptance of results and actions required.

But there may be problems. These include:

· People not giving frank or honest feedback

· People being put under stress in receiving or giving feedback

· Lack of action following feedback

· Over-reliance on technology

· Too much bureaucracy

These can all be minimized if not avoided completely by careful design, communication, training and follow-up.

Criteria for Success

360-Degree Feedback is most likely to be successful when:

· It has the active support of Top Management who themselves take part in giving and receiving feedback and encourage everyone else to do the same.

· There is commitment everywhere else to the process based on briefing, training and understanding of the benefits to individuals as well as the organization.

· There is real determination by all concerned to use feedback data as the basis for development.

· Questionnaire items fit or reflect typical and significant aspects of behavior.

· Items covered in the questionnaire can be related to actual events experienced by the individuals.

· Comprehensive and well-delivered communication and training programs are followed.

· No one feels threatened by the process – this is usually often achieved by making feedback anonymous and /or getting a third-party facilitator to deliver the feedback.

· Feedback questionnaires are relatively easy to complete (not unduly complex or lengthy, with clear instructions).

· Bureaucracy is minimized.

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