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360 Degree Appraisal

360 Degree Appraisal is a modern method of performance appraisal.  This appraisal system is very popular among modern organizations and most companies

360 Degree Appraisal

360 Degree Appraisal

use the 360 degree method of appraisal.  360 degree method of appraisal was developed first at General Electric, US in 1992.  But what exactly is 360 Degree Appraisal?


When appraisal of a manager is made by superiors, peers, subordinates and clients, it is called the 360 degree system of performance appraisal.  It is defined a ” the systematic collection and feedback of performance data on an individual or group derived from number of stakeholders in their performance.”

In the 360 degree method, not only the performance of an employee is assessed but also other attributes like talents, behavioral traits etc.  The assessment is through questionnaire and interview.  This method is broad and comprehensive and the results are fairly accurate.

Advantages Of 360 Degree Appraisal:

  • Use Of Multiple Raters:360 degree appraisal involves multiple raters, hence it is more reliable and free from bias.  Also, the raters involved are people with whom the employees interact with on day-to-day basis.  So, their findings are more likely to be objective.
  • Systematic Data Collection:This method of performance appraisal ensures systematic data collection.  The information about employee is collected from his immediate supervisors and colleagues.
  • Potentiality Of Self-Development:360 degree appraisal provides broader perspective about an employee’s performance.  The employee can compare the feedback received with his perception about self.
  • Formal Communication:Employee feels more accountable as only formal communication is allowed in 360 degree appraisal.
  • Identifying Special Traits:360 degree appraisal is found to be highly effective to identify and measure team building skills and interpersonal skills.


Limitations Of 360 Degree Appraisal

  • Creates Sense Of Insecurity:Many employees are not comfortable with the fact that the feedback is collected from multiple sources.
  • Time-Consuming:360 degree appraisal method is very time consuming.  It takes a lot of time to prepare questionnaire and analyze the data.

Uses Of 360 Degree Appraisal

  • Self Development and Individual Counselling
  • Training & Management Development
  • Organizational Development
  • Team Building
  • Career Development

To conclude, 360 degree appraisal is a modern method of performance appraisal and is more factual.





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