Absolutely! Before you begin the assessment process, rated individuals and their respondents need to be clear about the purpose and use of the information. The best use of 360-degree feedback is to diagnose skills for development. The data produced by the assessment make it easy to identify individual strengths and areas for improvement.
You are advised to separate completely the process of skill assessment and development from performance appraisal, compensation, incentives or other personnel action. Assessment of skills probably should occur at a different time, for a different reason, using different procedures and mechanisms than review of results.
The appropriate follow-up action of skill assessment should be skill development, not rewards or personnel action. If actions such as firing, promotion or salary increases are linked to skill ratings, you can expect people to worry, complain and maneuver politically instead of focusing on developmental opportunities. Also, expect most respondents to be reluctant to give honest ratings when they know the results will be linked to a person’s pay or job status.
You are encouraged to use 360-degree feedback strictly for developmental purposes. The standard surveys used by in most 360s describe behaviors involved in the process of work and were designed to competence. Typically, they aren’t valid evaluations of performance results and shouldn’t be linked to compensation.
