360 degree feedback refers to a system where an employee, whom is to be evaluated, receives feedback from all the individuals around him. It could include his seniors, managers, supervisors, peers, juniors and even customers. This type of all round feedback is considered to be more reliable and effective as compared to the other commonly used surveys. Since the views of all the people associated are given equal importance, there is relatively no scope for biasness. Every person who participates in this process is free to share his true opinions and thus there is greater possibility that the final outcome will be based on the honest and genuine feedback of the employees. Generally in 360 degree feedback system all the information is kept confidential, which further motivates people to share their honest feelings without exposing their identity.

The information that is collected through this type of surveys can be utilized in a number of ways. First of all the collected data can be used to identify the strengths and weaknesses of a certain employee. It will give him a chance to work upon improving his weak points and emerge as a more credible and efficient employee. The HR department can also use this information while awarding appraisals. Work performance, abilities and skills are the primary factors, on whose basis the performance appraisals are given in any company. This type of comprehensive feedback system can provide the desired information to the HR department regarding the employees which are performing according to the desired standards.