History
The German military first began gathering feedback from multiple sources in order to evaluate performance during World War II. Others also explored the use of multi-rater feedback during this time period via the concept of T-groups.
One of the earliest recorded uses of surveys to gather information about employees occurred in the 1950s at Esso Research and Engineering Company. From there, the idea of 360-degree feedback gained momentum, and by the 1990s most human resources and organizational development professionals understood the concept. The problem was that collecting and collating the feedback demanded a paper-based effort including either complex manual calculations or lengthy delays. The first led to despair on the part of practitioners; the second to a gradual erosion of commitment by recipients.
However, due to the rise of the Internet and the ability to conduct evaluations online with surveys, Multi-rater feedback use steadily increased in popularity. Today, studies suggest that over one-third of U.S. companies use some type of multi-source feedback. Others claim that this estimate is closer to 90% of all Fortune 500 firms. In recent years, Internet-based services have become standard in corporate development, with a growing menu of useful features (e.g., multi languages, comparative reporting, and aggregate reporting).
Read more about this topic: 360-degree Feedback
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