Can Crowdsourcing Improve Employee Performance?

This recent item from CBS News considers how looking to co-workers for feedback might be an improvement on the traditional linear boss-worker performance reviewer-reviewee relationship. According to a study it cites, 45 percent of HR leaders don’t believe that employees’ annual performance reviews accurately reflect the quality of their work. As an employee, I certainly never believed that (unless it equaled or exceeded my own expectations.)
The article doesn’t go into the practicalities of how it could or should be done but they stipulate 3 benefits:

1. Capture feedback continuously
2. Widen the circle
3. Feedback is genuine

For all its downsides, the traditional one-on-one approach is simple. (But is that sufficient reason to keep it alive?) Probably all the benefits of a peer-to-peer feedback system could be incorporated into a traditional approach – if the manager could be bothered getting out and seeking and aggregating the feedback. Which is, of course, where it falls down.
The aggregation is important to keep it honest and timely so it’s not just all warm and fuzzy cuddle feedback but open and honest corrective feedback too. As grand as crowdsourced feedback would be if it could be practically done, there definitely needs to be a means of keeping a practical ratio of positive and negative.

Psychologist Marcial Losada’s 1999 study looked at communication in teams, particularly the ratio of positive to negative statements. Various teams were tagged as being high, medium or low performing teams based on profitability, customer satisfaction and evaluations from management. The lowest high performing teams has a ratio of positive to negative statements of 2.9013:1. (For us non-academics, let’s round that to 3:1.) The highest performing teams averaged around 6:1. But there were diminishing returns and eventually a negative effect. Some of the worst performing teams had an 11:1 ratio so everyone must have been so busy hugging and bestowing warm fuzzies on everyone else, that no one ever did any actual productive work. That level of positivity is over-the-top, unrealistic and evidently not productive.

What’s so special about this magical zone of positivity? Losada says a highly connected team balances internal and external focus while also balancing enquiry and advocacy. If you’ve ever been in a highly negative workplace, you’ll know what he’s talking about. If you do something and make a mistake and you get slapped with blame and negativity, that drives the behaviours of avoidance and defensiveness.

Isn’t that right, you moron?