As an organization seeks to improve its performance, feedback helps it to make required adjustments. Feedback serves as motivation for many people in the work place. When one receives either negative or positive feedback, they decide how they will apply it to his or her job. Joseph Folkman says that to find the greatest level of success in an organization, working with other people, a person should learn how to accept any kind of feedback, analyze it in the most positive manner possible, and use it to further impact future decision making.
Sterman (2000, p 14) makes the point that the use of the term feedback in organizations can sometimes be misleading.
- In common parlance the term "feedback" has come to serve as a euphemism for criticizing others, as in "the boss gave me feedback on my presentation." This use of feedback is not what we mean in system dynamics. Further, "positive feedback" does not mean "praise" and "negative feedback" does not mean "criticism". Positive feedback denotes a self-reinforcing process, and negative feedback denotes a self-correcting one. ... Telling someone your opinion does not constitute feedback unless they act on your suggestions and thus lead you to revise your view.
Examples of feedback in organizations:
- Financial audit
- Performance appraisal
- Shareholders' meeting
- Marketing research
- 360-degree feedback
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