360 Degree Appraisal

customers. suppliers and even self-evaluations.History 360 degree feedback is a management tool and performance appraisal method that gives employees the opportunity to receive feedback from multiple sources. The feedback is only as valuable as the employee decides to make it. It is called 360-degree feedback because the feedback comes from subordinates. . peers. the feedback should highlight both strengths and weaknesses of the employee and give insight to aid in his/her professional development. supervisors.

Early History The first known use of a multiple-source feedback method was during World War II. however. supervisors and subordinates to provide insight and recommendations on how to improve performance. but the feedback lacked the appraisals of subordinates that the Germans incorporated.S. both tied the merit ratings directly to compensation and promotions. military used a similar performance appraisal concept during World War I. Soldiers were evaluated by peers. The U. by the German military. Although it lacked the flashy name. the concept was exactly the same. .

Documented History The first documented use of surveys to accomplish 360-degree feedback was in the 1950s. . Esso Research and Engineering was bought out. With the increased efficiency and financial success gained from the anonymous surveys. by the Esso Research and Engineering Company. and is now under the Exxon Mobil umbrella.

feedback was handwritten and complete anonymity was impossible to achieve. . undercutting the entire value of the method. multinational companies had great success after the implementation of this method.Growth in Popularity The concept of 360-degree feedback grew in popularity due to the invention of the typewriter. Furthermore. many companies began adopting the idea of 360degree feedback after multiple famous. before typewriters and computers.

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. Jack Welch increased shareholder value every year at GE by using 360-degree feedback.Growth in Popularity The most notable success story was General Electric CEO Jack Welch's use of 360-degree feedback.

and team development (19 percent) . A recent survey. according to Fortune magazine. supporting strategic implementation and culture change (20 percent).Today's Use The popularity of 360-degree feedback has grown quickly in the new millennium. performance appraisal (25 percent). HR managers said that 360-degree feedback is being used for management and organizational development (58 percent). it is estimated that 90 percent of all Fortune 500 companies use some sort of multi-rater feedback.

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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