360 Degree Feedback on the Internet
As developmental tools, 360-degree feedback interventions have received a lot of attention in human resource management during recent years. Developmental feedback provided by these interventions is maximally useful if feedback recipients not only react to the interventions with favorable attitudes, but also if they respond to the feedback by pursuing constructive developmental activities designed to enhance their skills. London and Smither (1995) have discussed how feedback can lead to subsequent skill development and how variables such as individual differences and situational conditions can moderate this relationship. However, relatively little research has examined the linkages between 360-degree feedback and subsequent developmental responses by participants, therefore little is known about which feedback recipients will respond most constructively to and about which types of work contexts are likely to foster constructive responses.
One purpose of 360-degree feedback is to heighten the manager’s serf-awareness of his/her skills. This is partially accomplished by allowing the manager to compare his/her own self-ratings to those of other raters. Thus, the discrepancy between self and others might be an important aspect of the 360-degree feedback intervention. Managers who rate themselves highly but who receive low ratings from others might become distressed by the negative discrepancy between their rating and the feedback (Taylor, 1991). As a result, individuals presented with negative feedback from others tend to rate the feedback less favorably (Albright & Levy, 1995). Furthermore, the distress motivates individuals to reduce the negative discrepancy (Johnson & Ferstl, 1999; Kluger & DeNisi, 1996).
In the traditional performance appraisal process, supervisors and subordinates develop a work plan at the beginning of performance cycle, the subordinates carries out the work plan, the supervisor provides a midcycle review, and, at the end of the cycle, the supervisor provides feedback indicating how well the subordinate has fulfilled his or her work plan. However, with this process it may not have all of the information needed to provide complete and accurate feedback to the subordinate. If the individual is a manager who supervises others, these subordinates may be the best source of information on delegation, communication, and leadership skills. Peers may be in the best position to provide feedback on skills such as working with others, decision-making and technical capability. Finally, customers may be the best source of input on quality of work and service orientation.
An Internet-based 360 degrees feedback system can also produce the information needed for coaching and individual developmental plans much faster than the typical paper-and-pencil evaluation. The speed gives added time for coaching and the fresh data adds the employee motivation. In addition, the data from 360-degree feedback can lead to improved leadership when combined with effective coaching that yields solid individual development plan.
However, once the internet-based 360 degrees feedback system is implemented, there are some problems realize by Otis Elevator. These involve intranet firewall, browser, old and new versions of software, the computer sophistication of appraisers and customers and the ability of employees to process feedback.
Like some other corporate computers, Otis was protected by an elaborate firewall and in order to get access this requires the work of Technical Computer services to eventually permit network access to all appropriate parties.
Another problem involved several appraisers who experienced problems with the internet/intranet browser compatibility. They needed to use common browser software. Rapid development of new software makes compatibility an ongoing issue.
In addition, some appraisers could not access and complete surveys. Another is that appraisers had overstated their skills. All appraisers who were not very familiar with computers had to buddy up with other knowledgeable employees to help them catch up. Another problem involved customers who were invited to do rating but were completely unfamiliar with accessing the internet using their computers.
Moreover, another key issue arose when employees received their feedback profiles. Many had trouble understanding their feedback and many lacked the skills needed to produce a solid individual development plan (IDP) using their feedback.
In conclusion, this case demonstrates that Internet-based 360-degree feedback provides clear advantages to assess the leadership skills of managers. Advantages include minimizing paperwork, saving employees’ time, preserving employee anonymity and providing timely, informative feedback that facilitates development. Implementing 360-degree feedback via the Internet breaks down the barriers imposed by traditional assessment systems. However, it presents its own obstacles, especially related to the interaction between people and technology, or in other words, the “human factor.”
Internet-based implementation of 360-degree feedback is definitely worth pursuing if the organization is prepared to deal with the human factor and ready to follow up with coaching and development.
How can the management of diversity affect a company’s performance? Explain.
Managing diversity is a long-run investment, and an organization faces a level of adaptation and transformation equivalent to that encountered during deregulation or a major technological change (McEnrue, 1993). However, despite these trends, research related to diversity practice’s impact on organizational performance remains lacking. Workforce diversity has been depicted as a field absent a theoretical foundation (Ragins, 1995).Milliken and Martins (1996) point out that the word diversity means “variety” and the degree that things differ. Thus, diversity management implies the ability to manage heterogeneous groups.
Diversity becomes a significant organizational objective and diversity management becomes particularly salient because of the natural tendency toward homogeneity in organizations. Schneider’s (1987) Attraction-Selection-Attrition hypothesis (ASA) suggests that organizations tend to attract, hire, and retain similar types of people. The model then suggests that diversity affects firm effectiveness depending upon business and human resource strategy, as well as the environment. Diversity represents bringing different backgrounds, cultures, and generations into the same organization. This variety of perspectives can foster creativity. On the other hand, this variety of perspectives generates inefficiencies in that diverse groups lack a shared understanding, potentially making communication slow and laborious.
Milliken and Martins (1996) reviewed the diversity literature and drew several important conclusions. Racial and gender diversity can have negative effects on individual and group outcomes. For example, group members who differ from the majority tend to have lower levels of psychological commitment, higher levels of turnover intent and absenteeism than do majority members. Also, group coordination costs, such as increased communication time, appear to increase with diversity. However, evidence exists that these effects diminish with time (Watson et al., 1993).
There are number of studies that have found out that diversity negatively affects organizational processes and performance. Group heterogeneity, for example, has been associated with stereotyping, in-group/out-group effects, affective conflict, and turnover (Jehn et al., 2000; Pelled, 1996; Tsui et al., 1992). In addition, empirical research shows that in-group demographic preference exists in organizations (Allen and Wilder, 1975; Brewer, 1979; Tajfel, 1982). In-group preference involves favoring interaction with in-group over the out-group. Tsui et al.’s (1992) findings reveal that diversity leads to organizational detachment among white male employees. Thomas and Ely (1996) suggest that increasing demographic variation within firms did not in itself increase organizational performance. Williams and O’Reilly (1998) conclude that mismanaged diversity initiatives can negatively affect both process and outcomes
However, in contrary, more diverse groups appear to make higher quality decisions (Milliken and Martins, 1996). Creativity, consistent counter arguments, and the introduction of new perspectives enhance the decision-making process. Milliken and Martins (1996) also suggest that more diverse groups mirror environmental complexity and respond to its demands.
Cox and Blake (1991) noted that effective diversity management enhances organizational flexibility. More diverse groups consider a wider variety of perspectives. As diversity policies and practices become instituted, increased fluidity and flexibility result in an organizational culture that can react to environmental changes. Thus, a diversity orientation has more positive implications for performance under conditions of environmental uncertainty than under states of environmental certainty, which suggests an interaction effect between diversity and the environment.
In sum, diversity appears to create additional coordination and control costs. However, these negative effects may diminish with time and are offset by better quality and more creative decisions. Thus, to effectively model the diversity orientation-performance relationship, the role of contingent or moderating variables deserves consideration. A diversity orientation may yield positive performance effects through the genuine integration and acceptance of diverse employee perspectives which leads to a reduction in turnover and absenteeism.
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