360 Degree Appraisal

History
 360 degree feedback is a management tool and performance
appraisal method that gives employees the opportunity to
receive feedback from multiple sources.

 It is called 360-degree feedback because the feedback comes

from subordinates, peers, supervisors, customers, suppliers
and even self-evaluations.

 The feedback is only as valuable as the employee decides to

make it; the feedback should highlight both strengths and
weaknesses of the employee and give insight to aid in his/her
professional development.
Early History
 The first known use of a multiple-source feedback method
was during World War II, by the German military.

 Although it lacked the flashy name, the concept was exactly

the same. Soldiers were evaluated by peers, supervisors and
subordinates to provide insight and recommendations on how
to improve performance.

 The U.S. military used a similar performance appraisal

concept during World War I, but the feedback lacked the
appraisals of subordinates that the Germans incorporated;
however, both tied the merit ratings directly to compensation
and promotions.
Documented History
 The first documented use of surveys to accomplish 360-
degree feedback was in the 1950s, by the Esso Research and
Engineering Company.

 With the increased efficiency and financial success gained

from the anonymous surveys, Esso Research and Engineering
was bought out, and is now under the Exxon Mobil umbrella.
Growth in Popularity
 The concept of 360-degree feedback grew in popularity due
to the invention of the typewriter; before typewriters and
computers, feedback was handwritten and complete
anonymity was impossible to achieve, undercutting the entire
value of the method.

 Furthermore, many companies began adopting the idea of

360-degree feedback after multiple famous, multinational
companies had great success after the implementation of this
method.
Growth in Popularity

 The most notable success story was General Electric CEO

Jack Welch's use of 360-degree feedback. Jack Welch
increased shareholder value every year at GE by using 360-
degree feedback, along with a six sigma quality program, as
the merit ratings used to decide the firing of the bottom 10
percent of employees each year.
Today's Use
 The popularity of 360-degree feedback has grown quickly in
the new millennium; according to Fortune magazine, it is
estimated that 90 percent of all Fortune 500 companies use
some sort of multi-rater feedback.
 A recent survey, HR managers said that 360-degree feedback
is being used for management and organizational
development (58 percent), performance appraisal (25
percent), supporting strategic implementation and culture
change (20 percent), and team development (19 percent)
Key Success Factors
 Improved Feedback From More Sources
 Team Development
 Personal and Organizational Performance Development
 Responsibility for Career Development
 Reduced Discrimination Risk
 Improved Customer Service
 Training Needs Assessment
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