A positive feedback system is a management approach used in business and economics. A feedback system is positive when the results of the feedback go with the conditions that triggered it. This concept is used by management to evaluate everything from business success to employee performance to make better business decisions.

Exploding Positive Feedback

In exploding positive feedback systems, all factors are positive and create positive results. For example, if all employees are on time and on task, more products are produced and sold, so more income is generated and the business becomes more successful. When appraising an employee’s performance, exploding positive feedback lets the employee know the positive areas of his performance.

Imploding Positive Feedback

In imploding positive feedback systems, all factors are negative and create negative results. For example, if all employees are not on time and on task, fewer products are produced and sold, so less income is generated and the business success declines. When appraising an employee’s performance, imploding positive feedback informs the employee of areas where her performance can improve.

Advantages

A positive feedback system lets employees know where they need to build upon their skills and motivates them. It also helps build a rapport between business owners and employees since they often don’t have time to engage in extended conversations with one another. It helps employers to discover their employees’ specific skills, and to assign them to the departments in which they'll excel the most.

Disadvantages

One disadvantage of a positive feedback system is that providing employees with such feedback uses valuable time. The employer must prepare, conduct and share the feedback with employees, which can lower productivity. Also, feedback might not always be accurate if you don't keep accurate notes and documentation, so you can end up evaluating your employees unfairly. Plus, positive feedback that points out areas where an employee can improve might be misconstrued by the employee as a reprimand, which might reduce his morale and motivation.