Job effects of 360-degree feedback mechanism on the workforce of Chennai-based BPO companies: Structural analysis

Performance appraisal is an essential tool employed by organizations to measure the performance of the workforce. Among a range of performance appraisal tools, BPO (Business Process Outsourcing) companies often employ the 360-degree feedback mechanism to evaluate employees' performance. This performance appraisal compares the target with actual performance. When the actual performance is higher than the target, companies provide various growth factors like training, promotion, compensation, and motivation to their employees. In general, BPO companies use performance appraisal tool to provide promotion and better compensation to their employees, which ultimately results in job satisfaction. This study considers 360-degree feedback mechanism as the autonomous variable (cause) and training, promotion, compensation, motivation, and job satisfaction as dependent variables (effects). A total of 300 samples of primary data were collected using the convenience sampling method. This data was gathered from 30 employees each, across 10 different BPO companies operating in Chennai. The results showed that 360-degree feedback mechanism has a positive association with training, promotion, compensation, motivation which led to job satisfactions. In the current business landscape, BPO companies need to adopt effective strategies to ensure employee satisfaction. By doing so, companies can increase employee retention rates, boost productivity levels, and ultimately achieve greater success in their operations.