1. Exercise 8 1 Making the case for a Top-Notch Multisource Feedback System Demo

You are in charge of selecting a multisource feedback system that will be purchased by the organization for which you work for or have most recently worked for. First, you need to make sure the system has as many of the ideal characteristics as possible as described in this chapter. Second, you need to select a system that will be particularly suitable to your organizations culture and goals, industry context, as well as resource constraints.

a. As a first step, do a Google search for 360-degree and multisource feedback system demos.

b. Second, critically review a few of the demos, taking into account their positive and less positive features.

c. Third, select a good system and prepare a 510 minute PowerPoint presentation, describing the reasons you selected the system you did. Keep in mind that you need to describe, at a minimum, what the good features of the system are and why this system is appropriate for your particular organization.

References

Aguinis, H. (2019). Performance Management, 4/E. Chicago, IL: Chicago Business Press.

8.3 360-DEGREE FEEDBACK SYSTEMS

The 360-degree feedback system has become a preferred tool for helping employees, particularly those in supervisory roles, improve performance by gathering information on their performance from different groups.11 These systems are called 360-degree systems because information is gathered from individuals all around the employee. Specifically, information on what performance dimensions could be improved is gathered from superiors, peers, customers, and subordinates. This information is usually collected anonymously to minimize rating inflation. Employees also rate themselves on the various performance dimensions and compare self-perceptions with the information provided by others. A gap analysis is conducted to examine the areas for which there are large discrepancies between self-perceptions and the perceptions of others. A 360-degree feedback system report usually includes information on dimensions for which there is agreement that further development is needed. This information is used to create a developmental plan as described earlier in the chapter. For example, a study including over 2,000 managers demonstrated that the objectives included in personal developmental plans were driven by performance dimensions that received low scores in 360-degree feedback systems.12 The 360-degree feedback system is most helpful when it is used for developmental purposes only and not for administrative purposes.13 This is because people are more likely to be honest if they know the information will be used to help the individual improve and not to punish or to reward him or her. However, it is possible to implement such systems successfully for administrative purposes after they have been in place for some timeusually two years or so.14 The 360-degree feedback system is usually implemented for individuals who have supervisory roles, but these systems can be used for all positions within the organization. Many organizations take advantage of technology to minimize the amount of paperwork and time involved in collecting such data. The Internet is becoming a pervasive medium by which to administer 360-degree feedback systems. The service provider, usually an outside consulting firm, sends an e-mail message with instructions and time frames for assessment to each employee to be rated. Then, employees can access a secure Web site and, after entering their personal IDs and passwords, create individual lists of raters who will be asked to provide feedback about their performance. To make things easier, the employee can even select names from a drop-down menu that includes company managers and employees. Allowing employees to select the raters who will provide information on their performance is likely to increase acceptance of the results.15 The raters selected are asked to visit the Web site and to provide performance feedback within a certain time period. After the data have been collected electronically, it is fairly easy to compile the results and e-mail a report to the employee who has been evaluated. Some Internet-based systems also provide online training for raters on how to complete the feedback forms in helpful and constructive ways. Some systems even include features that allow for the detection of rating errors. For example, a window may pop up if a rater gives the maximum score to an employee on all dimensions. Raters may even see a graph on the screen that shows the extent to which the ratings they have provided agree with the ratings provided by other people rating the same employee. Some systems even include an online virtual feedback coach to help create developmental plans. The final plan, however, must be consensually decided upon in a meeting between the employee and his supervisor. Unless the developmental plan has an employees complete acceptance, it is likely to become another inconsequential HR-mandated task Feedback reports can include graphs showing the areas in which employees perceptions differ the most from the perceptions of other raters. They can also show average scores across sources of information so that the areas that need improvement are readily identified. The resulting report can be e-mailed automatically to the employee and his supervisor so that both have an opportunity to review the results before meeting to create a developmental plan. A trend adopted by software companies that offer Internet-based 360-degree systems is to offer a bundle of systems including 360-degree feedback together with learning management, compensation, and even recruiting and succession planning. These integrative applications, usually called talent management systems, allow organizations to manage data about employees in a systematic and coordinated way.17 Such integrative software applications allow organizations to create an inventory of their human capital and better understand their strengths and weaknesses at the organizational level. For example, an organization that uses such applications is quickly able to deploy project teams with the appropriate mix of skills and experience after doing a quick search in the database. Another important advantage of these integrative applications is that performance management can be more easily linked to recruiting, compensation, training, and succession planning. In other words, the system can keep track of an employees developmental needs and how these needs have been addressed (e.g., via training) over time. Table 8.3 includes a nonexhaustive list of vendors that offer Internet-based 360-degree feedback systems and a brief description of their products. This table also includes information on whether a demonstration of it is available online. As can be seen by the information included in this table, many such systems are available.

Examples of Vendors Offering 360-Degree Feedback Systems

Panoramic Feedback http://www.panoramicfeedback. com (demo available online)

Halogen Software http://www.halogensoftware. com/products/e360open.php (demo available online)

The Booth Company http://www.boothco.com/home. html (demo available online)

Personnel Decisions International http://www.personneldecisions. com/offerings/multitrater.asp

Development Dimensions International http://www.ddiworld.com/ default.asp

IRI Consultants to Management http://www.irisolutions.com/ default.asp

Center for Creative Leadership http://www.ccl.org/leadership/ assessments/design360Overview. aspx?pageId=47