360 Performance Feedback System is often used as an essential part of a performance evaluation and is also used for the development of an organization. The system is commonly used to get accurate feedback on leaders or managers in an organization. It is also used as development tool, due to its numerous benefits, such as identification of probable problematic areas, increased self-awareness and professional development, gaps in perceptions and openness and increased communication among the employees. 360 Feedback System helps in making general decisions, such as termination, pay increase, promotions and probationary status.

Today, using this system for performance appraisal has become a common practice. The managers and leaders use this system to get a better understanding of their strengths and weaknesses. The system usually measures –

. Behavior and competencies of employees and employer

. It provides feedback on how others observe an employee

. It addresses skills like planning, listening and setting of goals.

. The system also focuses on subjective areas, like character, team work and effectiveness of leadership

Use of 360 feedback system is most appropriate in the performance development of both, personal and organizational. It is quite successful, especially when a Human Resource expert is involved in the process and when the feedback supports the development of an employee with respect to the mission and vision of an organization and its core values.