Conducting performance appraisal or performance evaluation is the most effective way to assess the performance of the employees at work place. The most commonly evaluated areas are intellect, competencies at completing the tasks or meeting deadlines, growth, achievements, relationship with other employees and communication skills. The 360 degree evaluation method offers detailed assessment of the employees’ behavior and performance and collects feedback from multiple sources. This feedback can be collected from managers, supervisors, stakeholders, peers, colleagues and subordinates. The 360 degree feedback provides valuable insight and helps to unveil areas of concern or improvement, so as to make any necessary changes. This kind of evaluation method is perfect to assess leadership qualities and also how the managers and supervisors are perceived by the employees and thus, is an effective way to spur growth and development within an organization. However, there are various things which you need to consider before conducting the 360 degree evaluation process. Since this kind of feedback and appraisal method is so comprehensive and thorough, it tends to be taken more personally, as compared to other types of evaluation methods. Thus, a simple depersonalization process would help the employees to take the criticism in a positive or constructive way. This will promote effective development and thus, you can make the most out of this evaluation procedure. The 360 degree appraisal method is quite beneficial for the business organizations, as it helps to identify the strengths, as well as weaknesses, of the employees and to figure out effective ways to work upon them. Also, it gives a brilliant opportunity to the employees to improve their performance and productivity, so as to enhance the level of efficacy which is expected from them. The 360 degree evaluation method also helps the employers to identify the training and development needs for specific employees and thus, this system serves as a brilliant development tool for the business organizations.