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Does 360 Degree Feedback Negatively Effect company performance: Feedback Varies With Your Point of View
Multi-rater feedback can raise more questions than it answers. How is an employee to react, for example, when his manager gives him negative ratings, while feedback from his direct reports and peers is laudatory? Research suggests that disagreement between rater groups is common—and that the resulting confusion creates challenges for employee development.
The strength of 360-degree feedback is that it reflects the varying perspectives of different rater groups. That’s also part of the problem. What one group views as effective behavior, another group may see as problematic.
And, each rater group brings natural biases to the table. For example, studies conducted by Organizational Performance Dimensions find that supervisor feedback tends to be based on bottom-line results (are tasks completed on time and well?), technical competence and whether an employee’s behavior draws complaints from colleagues or clients.
By contrast, direct reports base their reviews on factors such as willingness to involve the direct report in decisions, interest in a direct report’s professional development and trustworthiness.
Peers, who lack perspective on their colleagues' day-to-day performance, tend to focus on leadership potential. Their remarks often reflect opinions on whether the participant has the "right stuff" to motivate and create a compelling vision for others to follow.
None of these perspectives is wrong, and all of these insights can be valuable in creating a 360-degree view of performance. However, it’s important that the person being reviewed—and his supervisors—understand how the "filters" used by different groups affect how they rate performance.
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