Human Assets

 

Multisource (360-degree) feedback is a popular tool of people management and one that's use is increasing. However, like many human resource initiatives that appear reasonably commonsense and face valid, it does not pass unscathed the scrutiny of detailed validation. For it to work properly requires careful design and implementation. 

 

This month we summarise three articles. The first cautions against trying to 'kill too many birds' with the 360 degree feedback stone. The other two suggest that giving more resources to the 360 process will result in greater performance improvements. 

 

 

An interesting article by a team of academic psychologists (from the US) led by Gary Greguras came up with the intriguing result that could be summarised as More can be Less. Organisations generally introduce multisource feedback to help people develop. They then are tempted to get greater value out of the feedback by using it also for administrative purposes such as helping decide on promotion or pay. The attempt to get more from the feedback might perversely lower the validity of the ratings, thereby making them less useful for development as well as a dubious basis for administrative decisions. 

 

The team led by Greguras worked with a large telecommunications company and found that upward feedback by subordinates was particularly prone to distortion when the use of the feedback went beyond pure development. On the other hand, feedback by peers was unaffected by the use to which the feedback would be put. 

 

The study emphasises the importance of considering very carefully the uses that are to be made of multisource feedback. It also suggests that organisations should think long and hard about whose opinions they canvas if the feedback is to be used for administrative decisions. 

 

 

Organisations also need to weigh up the resources they are prepared to commit to support the feedback process. A study in two US regional savings banks showed that more is more when it comes to resourcing a 360 process. The study, led by Charles Seifert from a New York college compared the change in influence behaviour by managers who received 360 degree feedback at a one day facilitated workshop with those receiving the feedback without the workshop. They found that the influence behaviour of managers changed only for the group that attended the facilitated workshop. The message is obvious: If you want to get the benefits from it, you have to put in the resources for a 360-degree feedback programme. 

 

Broadly the same message comes from a third article jointly written by a team (led by James Smither) of academics and HR staff from JP Morgan Chase. They found that 360-degree feedback followed by a series of executive coaching sessions yielded greater improvements in ratings by supervisors and direct reports a year later than was the case if executives managed their development without the aid of a coach. Furthermore, people working with a coach set themselves more specific goals than those working alone and they were also more likely to share their feedback with and solicit ideas for improvement from their supervisors. 

 

However, the study also found that ratings by peers only improved with coaching for people who started out as low performers. Indeed, people who started as high performers actually saw their ratings by peers decrease a little after the coaching. 

 

 

All these three studies suggest that 360-degree feedback is neither a quick fix nor a panacea. It should only be installed by experts. If you have a 360-degree programme, you would be strongly advised to check that it is operating to yield real improvements in performance and does more than pass the cursory glance of face validity. 

 

 

We have the expertise to design and implement 360-degree programmes that will work to maximum effect. Apart from designing the 360 instrument itself and running the programme for you (normally electronically), we can facilitate feedback and provide executive coaches who are matched for seniority to suit your staff. 

 

We can also examine your existing 360 process and draw to your attention its strengths and development needs - a thoroughly worthwhile investment. 

 

 

Greguras, G.J., Robie, C., Schleicher, D.J. & Maynard Goff III. (2003) A field study of the effects of rating purpose on the quality of multisource ratings, Personnel Psychology, 56, 1, 1-21. 

 

Seifert, C.F., Yukl, G. & McDonald, R.A. (2003) Effects of multisource feedback and a feedback facilitator on the influence behaviour of managers toward subordinates, Journal of Applied Psychology, 88, 3, 561-569. 

 

Smither, J.W., London, M., Flautt, R., Vargas, Y. & Kucine, I. (2003) Can working with an executive coach improve multisource feedback ratings over time? A quasi-experimental field study. Personnel Psychology, 56, 1, 23-44.

 

Newsletter: 2003