This is a very comprehensive review, and is used in many circumstances. With increasing use of remote or virtual teams, supervisors may not be as familiar with an employee’s work as they were when everyone was located close together. Instead of gathering feedback from one manager, the feedback is gained from a group who are more like a committee than a single reviewer.

The 360 degree performance review provides a more comprehensive view of employee performance, and increases the credibility of the appraisal since it involves people who are very aware of the individual being rated. It enhances employee development by soliciting feedback from peers, customers, subordinates, and also importantly includes a self-assessment. One goal of this process is to identify any gaps between a self-appraisal and the perceptions of others. The self-appraisal component is very positive for people who tend to rate themselves very harshly, since it provides them with perceptions that other people hold.

It should be noted that the process is not always successful. A culture of fairness and constructive feedback must be established and supported for the 360 degree performance review process to be effective. If there are a lot of staff who are unhappy in their jobs or there is low morale within the organization, some staff can become clear targets of their peers or subordinates and the process is ruined.

All employees must be assured that results are kept confidential. Responses should be gathered by the human resources department to maintain confidentiality, both to protect the identity of participants and to encourage their honest feedback, and to avoid having the employee see just by whom, and how, they have been individually rated.