Business organizations depend on feedback to make alterations that will generate profits. Both positive and negative feedback from employees, business associates, customers and management serve as sources for change. Feedback provides a call of action to a small company that the staff can use to achieve personal and private objectives.

Motivating Staff

Providing others with a critique of their work is motivation. Assessments of strengths and weaknesses help propel employees to perform at a higher level. For example, if you tell a staff member that he did an excellent job as a project leader, he will strive to take on the role again and will work to produce even better results. Likewise, if you relate to an associate that his efforts on a work task were sloppy, he is motivated to sharpen his skills and give better output in the future.

Targeting Specific Behaviors

Feedback works best in small businesses when it is specific and direct. When you critique the performances of an employee, give her concrete examples of she does well and what needs improvement. For instance, tell an employee you know her customer service skills are strong because of her sales rate but that she needs to work on her punctuality and her tendency to leave work early. This demonstrates that you value her work but need her to be an even better employee.

Promotes Involvement

When you provide your employees with your perception of their work efforts, you encourage participation. Your feedback encourages good workers to involve themselves more, because they know you are interested in their professional development and ambitions. They also know that management watches and responds to both positive and negative work actions. Use the critiquing process in a helpful manner even when you must give a negative appraisal. You can do this by offering to help the worker improve and developing a plan together to help him achieve.

Increases Communication

When you take time to talk with your employees about their work, behaviors and goals, you promote positive interactions. Communicating with your staff is a way of engaging, energizing and serving their needs. For instance, when you tell an employee you noticed that he is spending more time away from his work station, you open the door to allow him to express concerns that take him away from his job. He might have a problem with another employee harassing or bullying him. Now that your feedback has opened the door to discussion, you can work together to solve issues.