The Significance of 360 Degree Appraisal in Performance Management

360 Degree Feedback is a system, which gives information regarding behaviors, competencies, performances, and relationships of the people working within an organization(CIPD, 2008). 360 degree feedback accumulates performance related data of the individual, groups and teams from a variety of sources (stakeholders), the feedback of which is used to evaluate their performance against the standards (Ward 1997).

According to Rowe (1995), besides the upward and downward appraisal of performance, 360 degree feedback also involves the appraisal of colleagues and self appraisal, which gives an all round appraisal of employees’ performance. The use of 360 degree feedback provides an overall performance picture of the organization and helps determine the need for motivation, participation, training and development, counseling, coaching, communication, team work, remuneration and others (Ward 1997).

Bracken et al. (2001: 4) specify that the characteristic of a good 360 degree feedback is that it

“… creates focused, sustained behavior change and/or skill development in a sufficient number of people so as to result in increased organization effectiveness”.

Furthermore, 360 degree appraisal offers an insight of the standing of an organization in terms of its flexibility towards understanding the needs and expectations of the employees and provides an indication if employees need performance development, training to enhance their performance, benefits and rewards and the like. Such signals helps organizations reduce the gap between performance standard set for employees and employees actual performance.  360 degree feedback also helps organizations understand any job dissatisfaction issues among employees and assists organizations reach a decision how to resolve these issues (Mohapatra, 2015).

Curtis (1996) pointed out that Organizations get benefitted from the implementation of 360 degree performance appraisal in various ways –

  • Highly performed management team due to improved management & leadership style.
  • Better flow of communications between employees and managers to a greater extent.
  • Better understanding of what organizations want and what employee needs.
  • Boosted team work
  • Healthier relationships among employees

360 degree feedback provides an effective basis for managing performance due to its all round appraisal process and its diverse use in different HR areas (CIPD, 2008).



• Bracken, D. W., Tamarack, C. W., Fleenor, J. W. and Summers, L. (2001), “360 Feedback from Another Angle”, Human Resource Management, Vol. 40, No. 1, pp. 3–20.
• CIPD (2008), 360 Feedback, Chartered Institute of Personnel and Development,[Online], Available:
• Curtis, D., (1996).Employers appreciate 360 degree feedback. Management Development Review, 9(5), 34 -36.
• Mohapatra, M. (2015), “360 Degree Feedback: A Literature Review”, International Journal of Research and Scientific Innovation, Vol. 2 No. 1, pp. 112-116.
• Rowe, C. (1995), “Introducing 360-Degree Feedback: The Benefits and Pitfalls”, Executive Development, Vol. 8 No. 7, 1995, pp. 14-20.
• Ward, P. (1997), 360-degree Feedback, Institute of Personnel and Development, London.


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