360 Degrees Feedback

360 DEGREE FEEDBACK
“A Key to Developing Employees”

360-DEGREE FEEDBACK – A Key to Developing Employees
CONTENTS
EXECUTIVE SUMMARY ............................................................................................................ 4

1. INTRODUCTION................................................................................................................... 1
2. OBJECTIVES ........................................................................................................................ 3
3. METHODOLOGY ................................................................................................................. 4
Brief description of sample ...................................................................................................... 5
Method (brief description of questionnaire used) ................................................................ 6
Holistic Performance recognition: .......................................................................................... 6
Consciousness Catalyst: ......................................................................................................... 7
Organizational and team dynamics: ...................................................................................... 7
Administration: .......................................................................................................................... 8
4. RESULTS............................................................................................................................... 9
The four dimensions................................................................................................................. 9
i) Holistic Performance recognition ........................................................................... 9
ii) Consciousness Catalyst.......................................................................................... 12
iii) Organizational and team dynamics .................................................................. 14
iv) Administration ........................................................................................................ 17
Nutshell .................................................................................................................................... 19
5. RECOMMENDATIONS ..................................................................................................... 20
6. REFERENCES .................................................................................................................... 22
APPENDIX .................................................................................................................................. 23
ACKNOWLEDGEMENT
We are thankful to everyone who devoted their valuable time in filling the online survey
created by our group and thereby enabling us to judge a process.
We are equally grateful to our professor Dr. Bindu Gupta (HR Department, IMT-
Ghaziabad). She guided us in different aspects related to the project. She has been
very kind and patient while suggesting the outline of this project and correcting the
group’s doubts. The group would like to thank her for the overall support and guidance.
EXECUTIVE SUMMARY
A buzzword these days in many organizations is 360 degrees feedback. A concept
started by German military to evaluate performance during World war II, it has become
a flavor in many Multi National Organizations, not only for the purpose of performance
appraisal but also for continual learning.
Implemented with care and training to enable people to better serve customers and
develop their own careers, 360 degrees feedback is a positive addition to an
organization’s performance management system. But on the contrary, there have been
evidences when this same process has gone haphazardly wrong, as some employees
don’t find it comfortable to be evaluated by their fierce challengers i.e. their peers with
whom they are competing to get the coveted designations in their careers.
Through this project, the group aims at analyzing the various dimensions attached to
this process. The focus areas would be the structure of 360 degrees feedback, the
participants in this process, its accuracy and advantages as well as disadvantages. A
noteworthy analysis would be of the modalities to use this process in Indian
organizations, where it is a relatively new entrant.

360-DEGREE FEEDBACK – A Key to developing employees
1. INTRODUCTION
In today’s competitive market, companies must recruit and retain the very best people.
In order to maximize an employee’s potential, organizations need a cost effective timely
and efficient way to measure employee performance and identify the developmental
needs of employees.
Using a 360-degree feedback process provides a more comprehensive and realistic
assessment of an individual’s performance than the traditional process of receiving
feedback only from one’s manager or supervisor. Gathering information from many
sources enables individuals to develop a more balanced view of their performance.
360-degree feedback, also known as multi-level, multi-source feedback, is a very
powerful and sensitive process. It can increase the individual's awareness of how their
colleagues view their performance and indeed how it compares with their own view of
their performance. It can serve as a strong spur for development and behavior change.
What is 360 Degree Feedback?
360-degree feedback is a process whereby an individual (the recipient), is rated on his
or her performance by people who know something about his or her work (the raters).
This can include direct reports, peers and managers and in some cases customers or
clients, in fact anybody who is credible to the individual and is familiar with his or her
Page 1
work can be included in the feedback process. This is usually in addition to completing a
self-assessment on performance.
The resulting information is presented to the individual with the aim of helping them to
gain a better understanding of his or her skills and development areas. Each source can
provide a different perspective on the individual's skills, attributes and other job relevant
characteristics and thus help to build up a richer, and more complete and accurate
picture than could be obtained from any one source. 360-degree feedback builds on the
principles of: -
• Structured and rigorous assessment against competencies
• Regular feedback from a wide range of people
• Increasing self-awareness
Introducing a 360 Degree Feedback Process in
Organizations:
The culture of an organization needs to be considered prior to the introduction of a
360-degree feedback process. It will be more easily introduced where openness,
mutual trust and honesty are part of the organizational or departmental culture and
there is a genuine interest in and desire for performance improvement.
360-degree processes with a clear purpose and objective are likely to be more
effective, particularly when they are aligned with organizational strategies and goals
and can be linked to existing processes within the organization.
Page 2
2. OBJECTIVES
Objectives of the 360 degree feedback process
The objective of our study is to analyze the impact of 360 degrees process in identifying
the areas for both organizational and individual improvement .This would be done by
assessing individual responses based on different parameters which would be
instrumental in judging their perception of 360 degree process and hence assisting in
reaching a conclusion on the overall implementation of the process in evaluating the
performance of an employee given the environment at work and his interaction with the
external factors.
 Why use 360 degree feedback process?
 How accurate is the 360 degree feedback process?
 Is the 360 degree feedback process really effective as a parameter for judging
performance?
 How effective is the process in promoting open communication related to
performance of an individual?
 How effective is the process in reinforcing organizational values?
 Does the 360 degree feedback process actually help in individual development?
Page 3
3. METHODOLOGY
3.1 Brief profile of the Organization(s)
I. KPIT Cummins, the leading global IT Consulting organization. Employee
Strength around 5000.
II. Ericsson, the world leader in telecommunications. Employee Strength in India
501-1000
III. Tata Consultancy Services (TCS) is one of the world’s leading information
technology companies. TCS is one of the largest private sector employers in
India with core strength in excess of 165,000 individuals.
IV. International Business Machines (IBM) is a multinational computer, technology
and IT consulting corporation with employee strength around 4000000
Page 4
Brief description of sample
Size: 92
Demographic characteristics:
Sl. No. Demographic Characters Percentage
Qualification Professionally Qualified 92 100
Service length Less than 5 years 43 47
Between 5 and 8 years 45 49
Between 8 and 12 years 2 2
12 years and above 2 2
Table 1: demographic characteristics of sample
Page 5
Method (brief description of questionnaire used)
The sample was selected from various organizations (brief profile given in section 3.1).
The sample was selected using non-random judgmental as well as random sampling.
For collection of data structured, on-line questionnaire was administered to the sample.
The questionnaire was in five scale Agree/Disagree model with rank 1 assigned to
‘Highly Disagree’ and rank 5 assigned to ‘Highly Agree’ response.
Following are the questions asked in the survey to measure effectiveness of 360 degree
feedback process on various factors:
(Note: Responses were in the form of ranking from ‘Highly Disagree’ to ‘Highly Agree’)
Holistic Performance recognition:
The following question has been identified as the measure of this dimension
a. “360 degrees feedback process takes in account all aspects of your
performance'”
Page 6
Consciousness Catalyst:
The 360 degrees process’ effect on an individual’s consciousness is a notable
measure. The study observed the role of the process as a consciousness
catalyst by asking the following questions
a. 360 degrees feedback process increases an employee’s self awareness
b. 360 degrees feedback process has a strong impact on employee behavior
and performance
c. 360 degrees feedback process acts as an effective behavior modification
tool
Organizational and team dynamics:
An important aspect of the 360 degrees process is its impact on the
organizational and team dynamics. The study measured this aspect by asking
the following questions
a. 360 degrees feedback process increases employee involvement and
responsibility.
b. 360 degrees feedback process results in better working relations with the
peers.
c. Organizational politics have reduced as a result of the 360 degrees
feedback process
Page 7
Administration:
A process is as good as its governance. Considering this fact in account, the
administration of the 360 degrees process has been adjudged. Following
questions have been asked for this purpose.
d. Expectations are communicated more clearly in the 360 degrees feedback
process.
e. 360 degrees feedback process should be moderated by a third party
f. As a point of fact, 360 degrees feedback process sniffs out the excellent
and the poor performers
For analysis and interpretation of data graphs and pie charts were used.
Page 8
4. RESULTS
As a result of the survey on the impact of the 360 degrees performance review process,
four dimensions of the process have been identified. The results have been collected
and cumulated as per these dimensions. The overall response for every dimension
has been graphically demonstrated in the trailing sections. It has been noticed that with
the career progression, a professional becomes further sensitive of organizational
processes. He is able to soundly judge the effect of a process. An adage says, “You
see a lot over years and you try to be professional and responsible. A lot of the
processes you go through can be very haunting as well as torch bearers”. Hence, the
results for each dimension have been supplemented by the responsiveness of the
professionals across different experience bands. The three experience bands have
been identified as below
 Entry level/ Junior Executives (Less than 5 years of experience)
 Middle Managers (between 5 and 8 years of experience)
 Senior Managers (8 years and above of experience)
The four dimensions

i) Holistic Performance recognition
The categorization of responses for measuring the effectiveness of this
dimension has been done as given below:
Agree (Responses with rating of 4 and 5)
Neutral (Responses with rating of 3)
Page 9
Disagree (Responses with rating of 1 and 2)
Below is the pictorial depiction of the results that came out as a
measurement of this attribute.
Holistic Performance Recognition
17% 8%
Disagree
Agree
Neutral
75%
Cumulative response
As is shown by the graph three-fourth of the employees surveyed are of
the opinion that 360 degree feedback process actually enables as well as
promotes the recognition of an individual’s effort in an organization. This
goes on to show the general popularity and inclination towards this
process on the whole, of individuals spread across different industries and
companies.
Page 10
Holistic Performance Recognition

(Across experience bands)
Number of respondents
35
30
25
20
15
Neutral
10
Disagree
5
Agree
0
5 to 8 <5 8 and above
Agree 31 22 2
Disagree 2 2 2
Neutral 6 6 0
Work experience (number of years)
Response across experience bands
This chart pertains to holistic view spread across different sections of
employees segmented on the basis of their experience. As is visible,
majority of people from every band are optimistic and have faith in 360
degree process’ potential to recognize the effort and zeal in their
performance, which is missed out by other famous feedback methods.
Page 11
ii) Consciousness Catalyst
dimension has been done as given below
Agree (Responses with rating of 4 and 5)
Disagree (Responses with rating of 1 and 2)
Consciousness Catalyst
20%
10%
Agree
Disagree
70%
Neutral
Page 12
Cumulative response
The data collected for this degree of measurement reflects that 7 out of 10
persons agree and accept the effectiveness of 360 degree process in
encouraging employee consciousness towards their self-set goals and
thereby modifying their behavior accordingly. The individuals feel that
such a feedback process makes employees feel more responsible and
enriches them with a feeling of self awareness and belongingness towards
their own as well as the organizational goals.
Consciousness Catalyst
30
25
20
15
10
0
<5 5 to 8 8 and above
Agree 23 30 3
Disagree 1 4 1
Neutral 6 5 0
Work experience (in number of years)
Page 13
Similar to the conclusion derived earlier by general responses received,
the band results also convey the same i.e. the number of people; favoring
the prospect of 360 degree affecting employee behavior for organizational
goals, form the majority. Though there are professionals in the middle
band who think the other way, the reason for their thought could be the
self-actualization achieved as a result of their substantial industrial
experience.
iii) Organizational and team dynamics
Improved (Responses with rating of 4 and 5)
Not improved (Responses with rating of 1 and 2)
Page 14
Organizational and team dynamics
19%
Improved
21%
60% Neutral
Not improved
Cumulative response
This time around the result are more diversified and though majority is still
in the favor, yet almost one-fifth of the sample set is of the view that the
360 degrees process does not improve the working relations in a team
and does not reduce the political biases. Also, equal number of
respondents have opted the neutral grounds on this matter thereby laying
stress on the fact that they do not view this process as a betterment
solution for team dynamics and group relations.
Page 15
Organizational and team dynamics

30
25
20
15
10
0
Improved 27 22 2
Not improved 1 12 2
Neutral 2 5 0
Work experince (number of years)
The disagreement or the negative response in terms of team spirit comes
from the middle band which has spent a considerable time working and
they suggest that this process can’t be used as a tool for solving the
problem of team politics. Maximum number of professionals who remained
neutral also belongs to the same band thereby referring that employees
having worked for around 6-7 years look for a specific and proven method
to improve the team bonding and removal of biases as such.

Page 16
iv) Administration
Trustworthy (Responses with rating of 4 and 5)
Not satisfied (Responses with rating of 1 and 2)
Trust in administration
14%
19%
Trustworthy
Neutral
67%
Not satisfied
Cumulative response
Despite the fact that almost one-seventh of the employees believe that
360 degree does not generate their trust in administration and nearly one-
fifth have remained silent on this feature yet it can be concluded that 360
degrees process actually creates and generates employees trust in

Page 17
organization. This represents better communication and transparency on
the part of the employer.
Trust in administration
Number of Respondents
25
20
15
10
0
Trustworthy 24 21 2
Neutral 5 8 0
Not satisfied 1 10 2
Work experience (Number of years)
Across bands, majority has displayed its faith in the 360 degree process
as a step towards trust building and transparent system of working
between the management and work force.
Page 18
Nutshell
The overall effectiveness of the 360 degree process has been derived by asking the
following question
Given a chance to go again through this process, what would be your take?
The results have been obtained by giving the following 3 options as part of the expected
responses
Love it (Satisfied)
Romance with it (Not yet decided – neutral)
Leave it (Not satisfied)
In a nutshell
14%
8%
Love it
Romance with it
78% Leave it
All in all, majority has given thumbs up to this process or should be said, is
game for it. They feel satisfied that the process caters to their needs and
wants from the organizational systems. A small proportion thinks that this
process is not meant for them and wants to stay off.
Page 19
5. RECOMMENDATIONS
In totality, the survey on the impact of the 360 degrees performance review process has
given phenomenal insights to the group. Whereas, the process has an overall
constructive effect in the organizations/ project teams where it has been carried out,
there are certain add-ons that may just add glitters to it.
The group would like to recommend certain valuable points as facilitators to religiously
incorporate the 360 degrees process in the organizational review activities.
1. The administrators (managers) should convert the qualitative work into
measurable quantitative factors so that clear standards can be set for
performance measurement.
2. MBO techniques should be applied to check performance of those employees
who are having work assignments which can be quantified accurately.
3. 360 degree appraisal system should be applied in a way so that appraisal
biasness can be reduced to the minimum level and thus the measurement
accuracy can be maximized.
4. For the application of 360 degree appraisal system, it requires cultural change in
whole organization. 360 degree appraisal system should be used where
investigation is required.
Page 20
5. 360 degree approach can measure the performance of an employee more
effectively because this approach involves getting feedback about an employee
from a wide variety of sources in addition to his or her manger.
6. For evaluation accuracy, skilled personnel should be appointed, for the
evaluation of measured performance, who have greater knowledge of
descriptions of those jobs.
7. Post appraisal interviews should be conducted to give opportunity to employees
for their justification and to create motivation in them.
Page 21
6. REFERENCES
Organizational Behavior by Robbins, Judge and Sanghi
http://hrd.sagepub.com/
http://www.ccl.org
http://en.wikipedia.org/wiki/360_degree_feedback
http://humanresources.about.com
Page 22
APPENDIX
Questionnaire
Page 23
Page 24
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360 DEGREE FEEDBACK

“A Key to Developing Employees”

EXECUTIVE SUMMARY ............................................................................................................ 4

created by our group and thereby enabling us to judge a process.

A buzzword these days in many organizations is 360 degrees feedback. A concept

appraisal but also for continual learning.

develop their own careers, 360 degrees feedback is a positive addition to an

participants in this process, its accuracy and advantages as well as disadvantages. A

noteworthy analysis would be of the modalities to use this process in Indian

organizations, where it is a relatively new entrant.

In order to maximize an employee’s potential, organizations need a cost effective timely

Using a 360-degree feedback process provides a more comprehensive and realistic

assessment of an individual’s performance than the traditional process of receiving

sources enables individuals to develop a more balanced view of their performance.

360-degree feedback, also known as multi-level, multi-source feedback, is a very

What is 360 Degree Feedback?

360-degree feedback is a process whereby an individual (the recipient), is rated on his

• Structured and rigorous assessment against competencies

• Regular feedback from a wide range of people

Introducing a 360 Degree Feedback Process in

The culture of an organization needs to be considered prior to the introduction of a

360-degree feedback process. It will be more easily introduced where openness,

there is a genuine interest in and desire for performance improvement.

and can be linked to existing processes within the organization.

Objectives of the 360 degree feedback process

assessing individual responses based on different parameters which would be

reaching a conclusion on the overall implementation of the process in evaluating the

 Why use 360 degree feedback process?

 How accurate is the 360 degree feedback process?

 How effective is the process in promoting open communication related to

 How effective is the process in reinforcing organizational values?

3.1 Brief profile of the Organization(s)

I. KPIT Cummins, the leading global IT Consulting organization. Employee

Strength around 5000.

II. Ericsson, the world leader in telecommunications. Employee Strength in India

technology companies. TCS is one of the largest private sector employers in

India with core strength in excess of 165,000 individuals.

IV. International Business Machines (IBM) is a multinational computer, technology

and IT consulting corporation with employee strength around 4000000

Brief description of sample

Sl. No. Demographic Characters Percentage

Qualification Professionally Qualified 92 100

Service length Less than 5 years 43 47

Between 5 and 8 years 45 49

Between 8 and 12 years 2 2

12 years and above 2 2

Table 1: demographic characteristics of sample

Method (brief description of questionnaire used)

‘Highly Disagree’ and rank 5 assigned to ‘Highly Agree’ response.

feedback process on various factors:

Holistic Performance recognition:

a. “360 degrees feedback process takes in account all aspects of your

The 360 degrees process’ effect on an individual’s consciousness is a notable

measure. The study observed the role of the process as a consciousness

catalyst by asking the following questions

a. 360 degrees feedback process increases an employee’s self awareness

b. 360 degrees feedback process has a strong impact on employee behavior

c. 360 degrees feedback process acts as an effective behavior modification

Organizational and team dynamics:

An important aspect of the 360 degrees process is its impact on the

the following questions

a. 360 degrees feedback process increases employee involvement and

c. Organizational politics have reduced as a result of the 360 degrees