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Performance appraisal is system of evaluation of the performance given by employees in an organization.

The 360 Degree performance appraisal is process of evaluating the performance by employees of all levels working in the organization along with other stakeholders if needed.

This process is relied on because of its multi-dimensional evaluation as the evaluation is done by different members of the organization.

The people usually involved in the process are top management, supervisors, subordinates, peers and customers.

The obtained feedback and the analysis done during the process help to find solutions to problems, and to develop individuals and groups for better performance of the organization (Anand et al, 2018).

Why companies adopt 360 Degree Performance Appraisal?

Feedback in an organization plays a vital role in enhancing the performance of the organization when it is done right. Every employees needs to know their strengths and weaknesses in order to work on them and enhance the performance. The reasons for

Why Organizations Have Adopted This Process May Include:

  • It gives a detailed and comprehensive view of the employee performance.
  • The performance appraisal is process becomes more credible.
  • Peer appraisal or feedback helps in better individual development.
  • Employees put in more effort to satisfy the customers.
  • Mixed feedback and analysis makes the assessment process more clear and precise.
  • The assessment and appraisal process is more comprehensive and multi-dimensional involving employees of all levels.


Under-Confident Employees Are Motivated By The Positive Feedback Of Others.

Involvement of more and more staff member in the performance appraisal process makes the organizational culture more pure, honest and productive (Sujith, 2017).

Problems in Using 360 Degree Performance Appraisal:

Despite multiple benefits and attracting organizations to adopt it, 360 Degree process may also cause mistrust, conflicts and lower the morale and confidence of individuals or groups when not done properly.

The Problems With the Process May Include:

  • The boss may get less involved in the process, carried out by the HR, and make it less effective.
  • Most of the questionnaires are too vague and focus on the popular personality profiles instead of specific individuals or groups.
  • Mostly the feedback and comments made are personal and the criticism is not constructive because not everyone understands the process.
  • Majority of the programs make no plans to acts upon after the feedback is received and therefore causing no change to organizational behavior.
  • The confidentiality of the data provided is sometimes not entertained and this hinders employees to open up honestly about their experiences and progress.
  • Some organizations only focus on the weaknesses of the employees and ignore their strengths during the process (Jackson, 2012).


Anand, V.V., Badrinath, V., Renganathan, R., Bharathi, K.S., Manjula, R. and Nallisai, E., 2018. An assessment of 360 degree performance appraisal system-



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