Training Performance Evaluation Using the 360-Degree Feedback Method Nihat Kaya a , Samet Aydin b , Savas Durgut c a Gebze Technical University, Kocaeli, 41400, Turkey b Maltepe University, Istanbul, 34857, Turkey c Albaraka Turk Katilim Bankasi, Istanbul, 34768, Turkey Abstract In an era of economic and technological change, organizations are increasing their efforts to develop their employees by providing them several training opportunities. Due to the need for making employees get the most out of these trainings and using budgets more efficiently, training evaluations have become extremely important. Training evaluation is a systematic process of comparing the level of performance of attendants before and after the training activity and assessing the results of the program by linking the outputs obtained to the targets of the organization. This study discusses the use of 360-degree feedback method for evaluating training performance and suggests that this method may yield more objective and participative results by taking not only the supervisor’s but also the other parts’ (customers, colleagues, and subordinates) views into consideration. The study was carried out with the cooperation of a private bank during one of their training organizations in which 50 employees from different branches participated. As the 360-degree feedback method requires direct feedback from an employee’s subordinates, peers, supervisors, and customers as well as a self -evaluation, participants’ supervisors were contacted before the training and requested to state who would take place in this process. For each employee, the contact lists included the first-line manager, the second-line manager, one of the peers, and five direct customers. The review of these parts were received before the training and one month after the training by survey method. A total of 900 surveys were obtained at the end of these two steps. The obtained data were subjected to one-sample t-test and Kolmogorov-Smirnov test using SPSS software. According to the analyses, it was found out that the results of the 360-degree feedback method was positive and, in turn, significant. As a result, the method has been found suitable for evaluating training performance. Although, receiving feedback from many different parts requires relatively more time and effort than conventional ways of training evaluation, the method can be used as a valuable tool in organizations and help employee development. Keywords: 360-degree feedback, training evaluation, training performance. JEL Codes: M12, M53, J24 1. Introduction Employees are expected to develop themselves continuously in order to adapt to changes in the business environment. To maintain this development, companies often provide training opportunities to their employees, and promote education processes in the organization. Training is a process that involves not only transferring knowledge to employees, but also trying to make employees more familiar with such knowledge and skills so they can use them constantly in their daily tasks. In addition, training is one of the most important and expensive investments of an organization. Companies want to get the most out of their employees with minimum time and cost. Motivating employees, building their self-trust, and linking their individual targets with those of the organization are expected outcomes of training facilities (Goldstein, 1980). In order to achieve these targets, companies spend significant budgets on training. Evaluating training performance helps in determining training needs, setting up training programmes, and planning subsequent training (Holton, Bates, & Naquin, 2000). The main reasons for using training evaluation methods are finding out the extent to which employees benefit from various training modules and how the outcomes of the training serve organizational targets. In order to achieve these results, several methods are used to evaluate training performance and measure the success of activities. Current training evaluation methods used in various companies include the test-retest method, pre-post performance method, and control group method (Day, Blair, Daniels, Kligyte, & Mumford, 2006). In the test-retest method, a test is applied to the participants before the training, and repeated after the training. The difficulty of this method is in assessing whether developments are caused by training and whether these outcomes are applied in real life to generate positive outcomes. On the contrary, the pre-post performance method focuses directly on task-related attitudes and behaviours. In this method, the development in knowledge 19th EBES CONFERENCE - ISTANBUL PROCEEDINGS CD - Volume 1 May 26-28, 2016, Istanbul, TURKEY 623