How do 360-degree annual reviews influence employee motivation in organizations in the UK?

Abstract

This research explores the impact of 360-degree feedback on the motivation, performance, and work engagement of employees within organizations in the United Kingdom. With conventional forms of performance appraisals often failing to enhance the growth and engagement of employees, 360-degree feedback is a more comprehensive approach as it gathers feedback from an employee’s colleagues, subordinates, and superiors. In this study, the effects of such feedback on employee motivation are examined with reference to motivational theories, including Self-Determination Theory (SDT) and Job Demands-Resources (JD-R) theory. The two frameworks propose that addressing psychological needs and regulating resources should promote motivation at the place of work. The study also highlights the growing use of 360-degree feedback in various sectors in the United Kingdom, including the financial, health, and information technology sectors, which currently experience significant challenges due to changes in the working environments, such as remote and blended working models. This study employs Systematic Literature Review (SLR), which can be best described as a systematic approach to reviewing literature. The SLR offers a comprehensive insight into prior literature on a topic by extracting data from articles, case studies, and reports. Specifically, this review examines the literature regarding the impact of 360-degree feedback on employee motivation in the context of the UK and identifies any research gaps. In doing so, it also assesses the comparative suitability of 360-degree feedback with other performance management approaches. The resource of the study is 360-degree feedback, which aims at supporting self-organizing, competency, and peer recognition, as supported by the authors of both SDT and JD-R theories. Therefore, this research seeks to present findings that can support organisations in the United Kingdom seeking to upgrade their performance management tools for the use of 360-degree feedback to motivate and improve the performance of their employees. The results could help enhance the implemented human resource practices as well as fill the gaps in the literature.