A 360 degree appraisal also known as a 360-degree feedback, multi-rater feedback, multisource feedback, or multisource assessment, is employee development feedback that comes from all around the employee (subordinates, peers, managers and may also include a self assessment). The results from 360 degree appraisals are often used by the person receiving the feedback to plan their training and development. The results can also be used for making promotional or pay decisions.

There are numerous benefits to this particular method of appraisal:

  • A study on 360-degree feedback to leaders conducted by Arizona State University has supported the hypothesis that improvement in a leader’s consideration and employee development behaviours will lead to positive changes in employees’ job satisfaction and engagement, and reduce their intent to leave.
  • Individuals get a broader perspective of how they are perceived by others than previously possible.
  • Increased awareness by senior management that they too have development needs.
  • Encouraging more open feedback — new insights.
  • Reinforcing the desired competencies of the business.
  • Clarified to employees critical performance aspects.
  • Identifying key development areas for the individual, a department and the organization as a whole.
  • Identifying strengths that can be used to the best advantage of the business.
  • Supporting a climate of continuous improvement.
  • Starting to improve the climate/ morale, as measured through the survey.
  • Focused agenda for development. Forced line managers to discuss development issues.
  • Perception of feedback as more valid and objective, leading to acceptance of results and actions required.
  • Gaps are identified in one’s self-perception versus the perception of the manager, peer or direct reports.
  • Customizing the questions to one’s organizational competencies.

    • So in summary there are alot of benefits to this method of appraisal but there is one notable criticism:

    A Watson Wyatt’s Human Capital Index tudy found that 360-degree feedback programs were associated with a 10.6% decrease in shareholder value.

    If you decide to adopt this method of appraisal there are numerous sites that offer a framework for setting up 360 degree appraisals one particularly good site is www.medicology360.co.uk. I can guarantee should you decide to adopt this method it will provide valuable information that will ultimately enhance performance.