The feedback received from a 360 degree evaluation is kept anonymous and confidential. The feedback is often provided by peers, colleagues, managers and supervisors. Another way of doing 360 degree evaluation is by using the forms which include the questionnaire to be answered. The questions can pertain to different competencies and capabilities in the work place. The answers to these questions are then weighted or measured on the rating scale. Thus, 360 degree evaluation is quite a significant system in order to acquire useful information, which can be used by the management to enhance productivity and eventually boost up the sales.

This kind of evaluation is also used as one of the development tools which, helps to assist the employees in identifying their strong and weak performance areas in order to improve their productivity and effectiveness. The 360 degree evaluation is done sincerely and anonymously so that the employees do not have any discomfort while providing their feedback. This also helps the employees to understand how the other employees perceive them. This in turn allows them to cultivate behaviors and skills which help them to do their duties in a better way. Besides, this system can also be used as a performance appraisal tool in order to evaluate employee’s performance. However you need to keep few things in mind while using 360 degree evaluation as a performance appraisal tool. It is quite important to structure the atmosphere of trust and sincerity. Thus, 360 degree evaluation is gaining immense popularity these days and is widely being used by various business organizations owing to its great benefits.