The 360 feedback system is a kind of evaluation system which involves appraisal of the performance of the employees by obtaining feedback from multiple sources. These sources can be peers, colleagues, subordinates, stakeholders, managers and supervisors. The major benefit of 360 feedback system is that the employers are able to get comprehensive and balanced reviews of the employees related to workplace competencies. Around eight to twelve employees are asked to complete the online survey anonymously where they provide their feedback and rank an employee on certain competencies on the rating scale.

The employees are also asked to give text comments to support their ratings, in order to have a lucid idea of how the target employee is perceived by the other employees. The 360 feedback system is one of the best ways to have a clear understanding of the strengths, as well as weaknesses, of the employees. As the feedback comes from multiple sources, the employees are more likely to accept the reviews and figure out effective ways to work upon them. Thus, the system can be used frequently to maintain quality work and high productivity at all times. Thus, the system must not be used as a perfect evaluation tool, but it should be utilized as an efficient self help tool by the business heads to ensure high productivity and performance within their organization.