Differentiating Between 360 Feedback and Performance Appraisal 

In 360 feedback, the leader obtains important developmental information enabling him/her to develop action plans and subsequently monitor improvements over time. Performance appraisal is quite different in that it is a process of evaluating job performance and is often associated with the provision of a performance rating as well as a plan for career development. Furthermore, performance appraisal is often used as an input to a job promotion or remuneration decision whereas 360 feedback is utilized for feedback, learning and developmental purposes.

The inclusion of a 360 feedback component as an input to performance appraisal is problematical as any promotion of remuneration outcome could be compromised if 360 raters saw the opportunity an opportunity to reward their friends or 'get even' with those less popular. Clients need to be made aware of how the objectives of 360 feedback and performance appraisal differ. Such programs should ideally be undertaken at distinctly different times so that there is no confusion between them. More importantly, appropriate links to the outcomes of each activity (performance rating, promotion and remuneration in the case of performance appraisal and feedback, learning and development for 360 feedback) should be separately identified and communicated throughout the organisation.

Roland Nagel
Executive Coach, Hanover Executive