Glossary Term: Negative Feedback

Definition

Negative feedback occurs when some function of the output of a system, process, or mechanism is fed back in a manner that tends to reduce the fluctuations in the output, whether caused by a change in the input or other disturbances.

What is negative feedback in business?

Businesses use negative feedback loops most often to improve a product or service by responding to customer complaints and concerns. Using negative feedback can lead to making changes to the workplace environment in response to employee dissatisfaction.

Why is negative feedback important?

Negative feedback can be valuable because it allows you to track performance and alerts you to important changes you need to make.

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