As we know, 360-degree performance feedback is an evaluation method that incorporates feedback from a large cross section of workers including peers, subordinates, customers and supervisors. This technique seems perfect for most business professionals in this era of cross functional teams and multidimensional relationships in the supply chain.
Not so fast. This method should not be used or tied to pay or merit pay especially for high stress areas. It is fine for giving feedback to an individual on the impressions that they convey to people, but all too often it has become a popularity contest. Any business professional who is worth their salt, knows that business is not a place where one becomes very well-liked. Difficult and controversial decisions are the norm not the exception.
In many departments the pace is frenetic; fire-fighting is prevalent and quick decisions are needed to prevent major shutdowns. Fast direct decisions are the norm rather than slow diplomatic ones. Often business professionals are forced to be executers or quick problem solvers. They have little time for being corporate relators or engaging in “water cooler” social exercises. Working from home also hinders social engagement. The emphasis is on solving the latest crises, not social networking. Although generation M is enamored with relationships via social networking, business is often driven by multiple crises and has little time for such digital schmoozing. Their focus on solving the crisis is often misinterpreted by peers as being cold, harried, non-relating and impersonal. Thus feedback from a 360-degree evaluation must be tempered by this business reality.
In summary, a 360-degree evaluation for a business professional has some use in providing relevant feedback on how the professional is viewed by peers and does give some first impression detail. This feedback must be tempered however by the crisis reality of the business. It should never be used for performance or merit pay. In addition, realize that there is no empirical evidence that the 360-degree approach is superior or more effective than other approaches.