Article 5 - 360-Degree Feedback: Positive and Negative impacts


360 Degree feedback is a widely used performance assessment methodology to gather evaluation and feedback from multiple sources, those are from the immediate reporting managers to colleagues, subordinate and the clients. This expanded evaluation provides wider insights into performance, commitment and leadership qualities. By having the exact assessment feedback, which will ultimately help to navigate the path, and the process required for the fruitful long run of the person as well as the organization.

Like the two sides of the coin, 360-degree feedback assessment methodology also having the positive and negative impacts. Therefor to get robust insights from the evaluation, it’s vital to evaluate the positive and negative impacts strategically to optimize the effectiveness of the assessment process and the outcome.

The process


As shown in the image the feedback is collected from the endorsement of the various parties.

  • Managers
  • Top Management
  • Peers
  • Subordinates
  • Self-assessment
  • External stakeholders (e.g., clients or customers)

By gathering diverse perspectives, this method provides a holistic evaluation of an individual’s strengths, weaknesses, and overall effectiveness. The feedback is generally anonymous and is often used for performance reviews, leadership development, and team-building initiatives (London & Smither, 1995).

Positive Impact of 360-Degree Feedback

·       Comprehensive Performance Assessment

One of the main benefits of 360-degree feedback is that it offers a well-rounded assessment of an employee’s performance. Unlike traditional evaluations that rely solely on a manager’s perspective—which may be limited or biased—this method gathers input from various sources, ensuring a more objective and complete evaluation (Bracken, Timmreck & Church, 2001).

·       Enhancing Self-Awareness

By comparing self-assessments with feedback from others, employees can gain valuable insights into how they are perceived. This process can help individuals identify discrepancies between their self-perception and actual behavior, fostering personal growth and improving interpersonal relationships (London & Smither, 1995).

·       Identifying Development Areas

360-degree feedback often highlights areas for improvement that might not be recognized in traditional reviews. Employees can uncover blind spots and take proactive steps to develop essential skills, making it a powerful tool for leadership development (Ward, 2004).

·       Promoting Open Communication and a Feedback Culture

This feedback mechanism fosters a culture of continuous improvement and transparency. Encouraging employees to provide and receive constructive feedback helps create a work environment where feedback is seen as a tool for growth rather than criticism (Lepsinger & Lucia, 2009).

·       Reducing Managerial Bias

Traditional performance evaluations can be subject to managerial bias, either positive or negative. By incorporating feedback from multiple sources, 360-degree feedback reduces the likelihood of unfair assessments and provides a more balanced evaluation of an employee’s contributions (Atwater & Yammarino, 1997).

Negative Impact of 360-Degree Feedback

* Risk of Feedback Overload

Receiving feedback from multiple sources can be overwhelming. Employees may struggle to process large amounts of feedback and determine which areas to prioritize for development, leading to confusion and inaction (Klein, Spector & O'Driscoll, 2006).

* Potential for Inaccurate or Inconsistent Feedback

Not all feedback collected in a 360-degree review is accurate or relevant. Differences in individual perspectives and varying levels of understanding of an employee’s role can result in inconsistent or subjective feedback. Additionally, if not properly structured, feedback may be influenced by personal biases rather than objective evaluation criteria (Murphy & Cleveland, 1995).

* Fear of Retaliation and Workplace Conflict

In some work environments, employees may hesitate to provide honest feedback due to fear of damaging relationships or potential retaliation. This fear can undermine the effectiveness of the process and reduce the authenticity of feedback (Fletcher, 2001).

* Time-Intensive and Resource-Heavy

The process of collecting, analyzing, and implementing 360-degree feedback requires significant time and effort, especially in larger organizations. Coordinating multiple feedback sources and translating results into actionable development plans can be resource-intensive (Bracken, Timmreck & Church, 2001).

* Lack of Follow-Up and Accountability

For 360-degree feedback to be effective, organizations must ensure that employees act on the insights gained. Without proper follow-up and structured development plans, feedback may not lead to meaningful improvements (Lepsinger & Lucia, 2009).

Areas to Improve the Process More Productive

·       Define Clear Objectives - Organization should have a clear goal and understanding of the mission over the process

·       Train Participants and Provide Guidelines - All parties involved in the assessment should gone through the proper training to ensure the clarity of the guidelines

·       Protect Anonymity and Confidentiality - It’s proven that to get exact and genuine feedback ensuring anonymity and confidentiality is important.

·       Implement Follow-Up Strategies - To make the process and feedback valuable, it’s important to schedule and navigate the coaching and training at the right time for the right employee.

Summary

360 Degree feedback is a one of the prime and highly productive assessments methodology to evaluate and position the employees to schedule and navigate the coaching and mentoring programs to ensure a successful succession planning process. As the evaluation outcome is a complied insights of multiple sources which gives a clear and solid unbiased understanding of current stands and the areas for improvement. Through the adoption of having a clear objective, training the participants, protecting the confidentiality and regularly following it’s assured that 360-degree evaluation can easily mitigate and overcome from the negative impacts of the assessment.

References

  • Atwater, L.E. & Yammarino, F.J. (1997) 'Self-other agreement: Does it matter?', Personnel Psychology, 50(2), pp. 373-396.
  • Bracken, D.W., Timmreck, C.W. & Church, A.H. (2001) The Handbook of Multisource Feedback. San Francisco: Jossey-Bass.
  • Fletcher, C. (2001) 'Performance appraisal and feedback: Making sense of the feedback process', International Review of Industrial and Organizational Psychology, 16, pp. 121-144.
  • Klein, J.E., Spector, P.E. & O'Driscoll, M.P. (2006) 'The nature of 360-degree feedback: Insights from research on feedback and self-assessment', Journal of Organizational Behavior, 27(2), pp. 97-113.
  • Lepsinger, R. & Lucia, A.D. (2009) The Art and Science of 360-Degree Feedback. San Francisco: Pfeiffer.
  • London, M. & Smither, J.W. (1995) 'Can multirater feedback improve managerial effectiveness?', Personnel Psychology, 48(4), pp. 803-839.
  • Murphy, K.R. & Cleveland, J.N. (1995) Understanding Performance Appraisal: Social, Organizational, and Goal-Based Perspectives. Thousand Oaks, CA: Sage.
  • Ward, P. (2004) The Feedback Revolution: How to Use 360-Degree Feedback to Improve Performance. Boston: Harvard Business Press.

 

Comments

  1. Samith Clarence GeorgeMarch 30, 2025 at 6:57 AM

    You're right Manojkumar,
    Thank you so much for your really thorough and balanced look at 360-degree feedback. You did a great job explaining both the good and the bad sides of it, which gave me a really clear picture.
    I especially appreciated how you walked us through the process and explained the benefits, like getting a well-rounded view of performance and helping people understand themselves better. Your discussion of the potential problems, like getting overwhelmed with feedback or dealing with bias, was also really insightful and showed you really understand the topic. Your practical advice on how to make the process better, like setting clear goals and keeping things confidential, is super helpful for any company thinking about using this. This was a really well-written and informative article.

    ReplyDelete
  2. Wasana MadhushaniApril 2, 2025 at 2:47 AM

    While it's a useful instrument for measuring performance, do you think its effectiveness depends more on organizational culture or the way feedback is implemented? How can companies ensure that employees implement the feedback and not just listen to it?

    ReplyDelete
    Replies
    1. A.ManojkumarApril 2, 2025 at 11:00 AM

      Hi
      I strongly believe that having greater organizational culture and the way it'll implement are two essential cores to ensure the active engagement of the employee. And its organizations responsible to evaluate the feedback and systematically feed the outcome and clearly elaborate the action plan by emphasizing the fruitfulness of the outcome by implementing proper monitoring mechanism to encourage and elevate the process until reach the desired outcome.

      Delete
  3. Asanga GalgamuwaApril 5, 2025 at 3:47 AM

    It's nice how you have highlighted the benefits and limitations of 360-degree feedback, pointing out how it can improve performance and growth when used with organized strategies and follow-up.

    ReplyDelete

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