Generally, feedback about the performance of an individual is taken only from the immediate senior, such as manager or supervisor. In 360 feedback system the feedback is collected from co-workers, clients, managers and whoever is connected to that employee. The data is collected in the written form and covers the areas like skills, abilities, job performance, behavior, competencies etc. This type of feedback can be very helpful for an individual to know about his strength and weaknesses. It gives him a chance to improve his performance by working on the areas in which he lacks. An individual can work on his weaknesses and can learn new skills as well. It also helps an employee to know the views of his subordinates and seniors about his performance and behavior. An organization can come to know about the skills and performance of its employees with the help of surveys. In case the employees are not performing according to the set standards, then the company can make provision for their training accordingly.

There is lesser scope of biases in 360 feedback system as compared to other surveys, as the data is collected from multiple sources, rather than from one person. It can prove very beneficial at the time of appraisals as well. By conducting such surveys a company can make its employees feel valuable. They feel empowered and appreciated by taking part in surveys and feedbacks as they feel that their opinions also matter for the company. If conducted properly and carefully these surveys can become an effective tool for the development of an organization.