FREE online courses on the 360 Degree Feedback - 360 Degree Feedback as an Intervention
Genesis of
360-degree feedback in GE
Jack Welsh implemented 360-degree
feedback in GE when he became the CEO. When he took over from the previous CEO
in the early 1980s, GE had numerous problems such as:
v
Over-staffing,
v
Loss in its market presence in US,
v
No presence outside and
v
Declining margins.
Jack Welsh, being groomed inside the system, knew the
internal politics, code of conduct and the financial irregularities happening.
He used some available literature and theories based on understanding
organizations and large-scale emphasis on culture building. Leadership began to
get redefined in GE. What began to be talked about, as a credo inside GE was
that leadership had to start focusing on growth and investment and start
defocusing from managing people.
Need to have 360-degree feedback
The thinking behind extending
360-degree to performance and leadership style reviews is that most senior
employees today work with a wide range of people and it is becoming difficult
and complex for a single superior to accurately assess individual contribution.
But this view of employee behavior is a waste of money and effort if it does not
lead to improved outcomes.
Consequently, companies have
begun to link individual behavior to company goals. This is where 360-degree
feedback is very relevant. If there is a premium on teamwork or customer
responsiveness, 360-degree feedback allows team members to comment directly on
an employee's success in meeting these goals.
The GE success factor
If one looks at GE, the reasons
for which it has been perceived as the most admired company three years in a row
are two of its outstanding traits:
v
Ability to innovate
v
Ability to manage sustained growth year after year
almost to the tune of 13%-15% growth every year, with the large amount of cash
profit
GE has been able to sustain this
because of the leadership values that exist inside the company.
