360-degree feedback: a holistic approach to personnel development and corporate culture
360-degree feedback: active personnel development
In an increasingly dynamic and globalized working world, in which cultural diversity and innovation are key factors for corporate success, employee development is becoming one of the central strategic tasks of organizations. One method that is becoming increasingly important is 360-degree feedback.
Originally designed as an instrument for management development, 360-degree feedback is now increasingly being used at all employee levels. The traditional performance appraisal is replaced by a comprehensive, multi-layered perspective that includes line managers, colleagues, employees and self-perception (Scherm & Kaufel, 2018).
This comprehensive approach not only promotes individual development, but also the establishment of a strong, positive corporate culture. The need to strengthen an open feedback culture and thus a positive corporate culture is also reflected in studies. For example, only 10.2% of respondents in a study from 2022 describe their feedback culture as open (Statista, 2022).
For the sake of readability, organizational members with and without management responsibility are referred to equally as “employees” below.
Advantages of 360-degree feedback
Promoting self-reflection
Employees receive a complete picture of their strengths and areas for development through feedback from various sources. This enables deeper self-reflection, which allows them to develop further in a targeted manner. It is not just about the “what”, but about the “how” – how employees carry out their tasks, communicate with others and behave within the team.Strengthening the feedback culture
360-degree feedback makes a decisive contribution to creating an open and constructive feedback culture. Regular, varied feedback promotes a culture of learning and continuous improvement. Employees learn to see feedback as an opportunity for growth and at the same time to give constructive criticism themselves, which strengthens trust and cooperation within the corporates.More objective assessments
Obtaining feedback from multiple sources makes the assessment of employees more objective and less susceptible to individual bias or prejudice. This increases fairness in decisions about promotions, salary adjustments and development measures (e.g. development plans)Improved teamwork
As the feedback also comes from colleagues and team members, the team dynamics are given greater consideration. Employees recognize how their behaviour influences collaboration and can thus improve their social and communication skills in a targeted manner. This leads to better teamwork and more harmonious working relationships.Promoting intercultural competence
In international and intercultural teams, 360-degree feedback helps to recognize and take into account cultural differences in management style and cooperation. This is particularly important in global corporates in order to avoid misunderstandings and improve cooperation between teams from different countries.
(cf. Scherm & Kaufel, 2018)
Challenges of 360-degree feedback
Despite the many benefits, implementing 360-degree feedback is not without its challenges. To introduce this method successfully, you need to take a few stumbling blocks into account:
Anonymity and honesty
Although anonymous feedback can encourage honest feedback, there is a risk that some comments may become unobjective or destructive. It is important to set clear rules for the type of feedback and to train employees on how to give and accept constructive feedback ( Obermann, 2018).Overwhelm due to too much feedback
Especially when employees receive such a comprehensive assessment for the first time, it can seem overwhelming, especially if the amount of information is not handled correctly. Therefore, make sure that the feedback is clearly structured and focused on the key points (Stock-Homburg & Groß, 2019).Continuous adaptation and training
The introduction of 360-degree feedback is not a one-off process, but requires regular training and adaptation. Leaders and their employees must learn how to interpret the feedback effectively and use it for their further development. Without regular training, feedback can stagnate or lose its value (Becker et al., 2018).
The Lumturo digital Services take all these components into account. Lumturo’s 360-degree instruments are ready for immediate use and completely anonymous.
Steps to the successful introduction of 360-degree feedback
Clear objectives
Before introducing 360-degree feedback, you should clearly define the objectives you are pursuing with it. Should it primarily support personal development, improve teamwork or provide a basis for decisions on promotions (Scherm & Sarges, 2019)?Creating a feedback culture
Before introducing 360-degree feedback, it is crucial to establish a culture of openness and trust within the corporates. Employees need to understand that feedback is a valuable tool for their personal growth and not an evaluation in a negative sense (Scherm & Sarges, 2019).Training and workshops
Both Leaders and employees should receive regular training on how to give and receive feedback. These training sessions help to avoid misunderstandings and ensure that feedback is constructive and solution-oriented (Wegenberger & Wegenberger, 2021).Ensure anonymity and confidentiality
It is important that feedback remains anonymous in order to encourage honest and open feedback. At the same time, the confidentiality of the process must be maintained to ensure employee trust (Brenner, 2014).Regular feedback cycles
360-degree feedback should not be seen as a one-off process, but as part of a continuous cycle of employee development. Regular feedback rounds (e.g. once a year) enable employees to continuously work on their skills and improve in the long term (Scherm & Kaufel, 2018).
360-degree feedback as a lever for cultural development
A 360-degree feedback program for all employees not only promotes individual development, but is also a powerful tool for cultural development in a corporates. A culture based on openness, continuous learning and mutual respect is critical to the long-term success of your organization. By involving all employees – and not just Leaders – in the feedback process, the entire workforce becomes part of a shared growth process.
This form of collaboration and continuous dialog contributes significantly to strengthening the corporate culture. A positive culture not only increases employee satisfaction and motivation, but also leads to higher productivity and better customer loyalty. Corporates that invest in such a culture benefit in the long term from a committed and high-performing workforce (Blum & Zaug, 2008)
External support for cultural development
The introduction and successful implementation of 360-degree feedback requires expertise and sensitivity. Many corporates turn to external consulting or specialized service providers to shape and accompany this process. External experts such as those from Lumturo Transformation & Coaching can bring in independent perspectives, develop customized solutions and help to identify and overcome cultural hurdles.
For corporates that want to build a strong, positive and sustainable corporate culture, it can make sense to call in external support. These experts not only help with the introduction of 360-degree feedback, but also with the establishment of a sustainable feedback culture that promotes the long-term success of the company.
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