Chances and risks of instant feedback: consequences for leadership and performance management

Businesses all over the world are facing drastic changes in the working environment. The way in which employees and their performance are managed must be adapted to these new circumstances. The number of new approaches to employee leadership and performance management is therefore increasing steadily, including new feedback formats, ranging from 360-degree feedback to pulse surveys and Instant Feedback. The goal of the presented bachelor thesis is to explore the chances and risks of Instant Feedback and what potentials it has for key processes of Human Resources Management. Therefore the following research question is asked: How does Instant Feedback influence the processes of employee leadership and performance management? To answer this question, existing literature from the fields of human resources management and psychology was used and evaluated. Based on this evaluation, the theoretical part of this thesis gives a detailed overview about the concept of Instant Feedback, and its advantages and disadvantages followed by a detailed analysis of the influence the tool has on employee leadership and performance management. The findings show that Instant Feedback has a strong influence on employee leadership, as it can increase employee participation and therefore results in a shift of power. The influence on performance management however cannot be clarified by this thesis. Based on the results, it is recommended to use Instant Feedback to expand employee participation in order to satisfy the expectations of new generations and to react more effectively to rapidly changing circumstances with a broader decision-making basis. Further research should deal more intensively with the question of how Instant Feedback affects performance management and whether it can actually improve performance.:List of Figures . . . III List of Tables . . . IV List of Abbreviations . . . V Introduction . . . 1 1 The Basics of Instant Feedback . . . 2 1.1 Definition . . . 2 1.2 Organisational Implementation . . . 3 1.3 Interim Conclusion . . . 5 2 The Impact of Instant Feedback on Leadership . . . 5 2.1 Definition of Leadership . . . 6 2.1.1 Different Leadership Styles . . . 8 2.2 The Future of Leadership - Challenges and Trends . . . 10 2.2.1 Current Trends and Further Developments . . . 10 2.2.2 Leading Generations Y and Z . . . 11 2.3 Employee Voice and its Consequences for Leadership . . . 12 2.3.1 Basics of Employee Voice . . . 12 2.3.1.1 Basics of Employee Participation . . . 14 2.3.1.2 Organisational Implementation . . . 17 2.3.1.3 Consequences for Leadership . . . 18 2.4 Interim Conclusion . . . 19 3 The Impact of Instant Feedback on Performance Management . . . 20 3.1 Basics of Performance Management . . . 21 3.2 The Future of Performance Management - Challenges and Trends . . . 23 3.2.1 Rethinking the Performance Management Process . . . 23 3.2.2 Basics of a Performance Feedback Culture . . . 25 3.2.3 Organisational Implementation . . . 26 3.2.4 Consequences for Performance Management . . . 27 3.3 Interim Conclusion . . . 28 4 Final Conclusion . . . 29 Reference List . . . 31 Declaration of Honour . . . 3

Chances and risks of instant feedback: consequences for leadership and performance management

Businesses all over the world are facing drastic changes in the working environment. The way in which employees and their performance are managed must be adapted to these new circumstances. The number of new approaches to employee leadership and performance management is therefore increasing steadily, including new feedback formats, ranging from 360-degree feedback to pulse surveys and Instant Feedback. The goal of the presented bachelor thesis is to explore the chances and risks of Instant Feedback and what potentials it has for key processes of Human Resources Management. Therefore the following research question is asked: How does Instant Feedback influence the processes of employee leadership and performance management? To answer this question, existing literature from the fields of human resources management and psychology was used and evaluated. Based on this evaluation, the theoretical part of this thesis gives a detailed overview about the concept of Instant Feedback, and its advantages and disadvantages followed by a detailed analysis of the influence the tool has on employee leadership and performance management. The findings show that Instant Feedback has a strong influence on employee leadership, as it can increase employee participation and therefore results in a shift of power. The influence on performance management however cannot be clarified by this thesis. Based on the results, it is recommended to use Instant Feedback to expand employee participation in order to satisfy the expectations of new generations and to react more effectively to rapidly changing circumstances with a broader decision-making basis. Further research should deal more intensively with the question of how Instant Feedback affects performance management and whether it can actually improve performance.:List of Figures . . . III List of Tables . . . IV List of Abbreviations . . . V Introduction . . . 1 1 The Basics of Instant Feedback . . . 2 1.1 Definition . . . 2 1.2 Organisational Implementation . . . 3 1.3 Interim Conclusion . . . 5 2 The Impact of Instant Feedback on Leadership . . . 5 2.1 Definition of Leadership . . . 6 2.1.1 Different Leadership Styles . . . 8 2.2 The Future of Leadership - Challenges and Trends . . . 10 2.2.1 Current Trends and Further Developments . . . 10 2.2.2 Leading Generations Y and Z . . . 11 2.3 Employee Voice and its Consequences for Leadership . . . 12 2.3.1 Basics of Employee Voice . . . 12 2.3.1.1 Basics of Employee Participation . . . 14 2.3.1.2 Organisational Implementation . . . 17 2.3.1.3 Consequences for Leadership . . . 18 2.4 Interim Conclusion . . . 19 3 The Impact of Instant Feedback on Performance Management . . . 20 3.1 Basics of Performance Management . . . 21 3.2 The Future of Performance Management - Challenges and Trends . . . 23 3.2.1 Rethinking the Performance Management Process . . . 23 3.2.2 Basics of a Performance Feedback Culture . . . 25 3.2.3 Organisational Implementation . . . 26 3.2.4 Consequences for Performance Management . . . 27 3.3 Interim Conclusion . . . 28 4 Final Conclusion . . . 29 Reference List . . . 31 Declaration of Honour . . . 3

Black Forest, the woods of my dreams Black Forest, your hills [first line of chorus]

Performance Medium: Piano, Voice and Chord