360 Degree Feedback is a process where employees receive anonymous feedback from their manager, peers, and direct reports. It can be used as a development tool to help employees improve strengths and weaknesses or as a performance appraisal tool. As a development tool, 360 feedback provides insight for employees to adjust behaviors and develop skills. However, it is difficult to use as a performance appraisal, as it focuses more on behaviors than job requirements. While 360 feedback provides an overall view of an employee's performance, disadvantages include potential for dishonest feedback and inconsistent interpretations of behaviors across raters.

1. 360 Degree Feedback
360 Degree Feedback is a system or process in which employees
receive confidential, anonymous feedback from the people who work around
them. This typically includes the employee's manager, peers, and direct
reports.
How is 360 Degree Feedback Used?
Companies typically use a 360 feedback system in one of two ways:
1. 360 Feedback as a Development Tool to help employees recognize
strengths and weaknesses and become more effective
When done properly, 360 is highly effective as a development tool. The
feedback process gives people an opportunity to provide anonymous
feedback to a co-worker that they might otherwise be uncomfortable giving.
Feedback recipients gain insight into how others perceive them and have an
opportunity to adjust behaviours and develop skills that will enable them to
excel at their jobs.

2. 2. 360 Feedback as a Performance Appraisal Tool to measure employee
performance
Using a 360 degree feedback system for Performance Appraisal is a common
practice, but not always a good idea. It is difficult to properly structure a 360
feedback process that creates an atmosphere of trust when you use 360
evaluations to measure performance. Moreover, 360 feedbacks focus on
behaviours and competencies more than on basic skills, job requirements,
and performance objectives. These things are most appropriately addressed
by an employee and his/her manager as part of an annual review and
performance appraisal process. It is certainly possible and can be beneficial to
incorporate 360 feedbacks into a larger performance management process,
but only with clear communication on how the 360 feedback will be used.
Importance of 360 Degree Feedback
The360 degree feedback as said above is a method of performance appraisal
and thus it enables the organisation to evaluate its workers from different
view points.
Its different contributions to the prosperity of an organisation cannot be left
aside and these will be explained below.

3. Define corporate competencies
The multi-rather feedback enables the employee to be aware of his
performance within the company. This concept enables organisation to be
aware of the skills the different employees have and thus they can set up a
strategy to meet employees individual goals and boost overall corporate
productivity.
 Increases the focus on customer service
 Its support team initiatives
 Create a high-involvement work
360 degree feedback advantages & dis advantages
The 360 degree feedback mechanism gets its name from the all-around
feedback on competence –based performance. The success of this system
relies on how it is designed, how communications are handled regarding the
goals of the program.
Advantages
1.Organization-the
The 360 degree feedback benefits the organisation in the fact that it provides
an overall view of the performance level of its employees.
Its provide company vital information about the work force strengths and
weaknesses.
This can be done by developing and providing adequate training
It’s also developer the better relationship with suppliers, shareholders.

4. Therefore, the multi-ratter feedback, not only influence the organisation’s
overall activity, it’s also enables it to achieve goals.
2. INDIVIDUAL GROWTH
The 360 degree feedback provides is that it allows the individual to
know about how she/he is performing within the organization.
 This provides the worker to know how his work is perceived from
different point of view.
 It is enriching experience for the worker to question himself, to see if
his performance is coherent with the organisation’s culture, polices
and goals.
DISADVANTAGES
 Dishonest feedback
 Is that employees may not feel comfortable offering frank
opinion of supervisors
 This also tends to happen in employee-to-employee
evaluations.
Consistent interpretation
The another major challenges in The 360 degree feedback process is ,
“as each ratter sees a different behavior, how do we know the basis upon
which the ratings are observed?

5. That is, different employees interact in different ways with the person being
reviewed-Subordinates observe different behaviorsAdditionally; customers
have different views on how an employee is expected behave. While, you can
gain insight on perceptions of the employee from all around, acquiring a
consistent interpretation of both positive and negative behaviors is
challenging.