The main motive of organizations to conduct a 360 Degree Feedback is to encourage a healthy competitive spirit amongst its employees by promoting them to improve on their work skills. This initiative is also useful for identifying the potential future leaders and managers by the human resource departments of a company. The individual being surveyed is also asked to rate himself on the same aspects. All the ratings are then combined and the final result is prepared.

Most of the time this report is presented in a positive manner to the person, but in some cases it can be kept private and used by the company to handle the weaknesses by providing some kind of training to the employee without revealing his or her weaknesses to them.

The result generated from 360 Degree Feedback is also used as an input for performance management, succession planning, etc. The feedback provides an individual with the point of view of others about him or her. The result is presented in a form that an individual can work on his lacking factors and grow with the organization and become a valuable asset for the company. This survey has now become an integral part of almost all the organizations irrespective of them being big or small in terms of workforce.