According to Milliman and others, “360-degree appraisal is the process of systematically

gathering data on a person’s skills, abilities and behaviors from a variety of sources-the
manager, peers, subordinates and even customers and clients”.

Components of 360 Degree Appraisal:

The components of 360-degree appraisal are described as under:

1. Self Appraisal
Self-appraisal is a very important part of the 360 degree appraisal system because it gives
the employee absolute freedom to look at his strengths and an opportunity to assess the
performance. Self-appraisal also provides an opportunity to the employee to express his
career moves for the future.

Another important area of self-appraisal is the concern for self-renewal and development of
the employee.

2. Superior Appraisal
Here the focus is to provide constructive feedback on employee’s performance and his
development needs. It is the responsibility of the superior to put carrier aspirations of the
employee in proper perspective.

Firstly, superior must communicate to the employee in clear way what the organization
plans for the employees.

Secondly, if the employees have unrealistic aspirations, then also it is superior’s

responsibility to share with the employee the realistic picture given his/her strengths,
development areas, experience, qualifications and the organization’s ability to provide
growth. This is how the superior’s appraisal has a very significant role to play rather than
the “fixing” syndrome (condition) of the traditional appraisal system.

3. Peer Group Appraisal

Peers play an important role in the life of an employee in the organization. They can also
provide a deep insight into the personality make up, attitude and style of working of the
employee. Peers both from within the department as well as from the other departments
which are directly connected with the working of employee’s department are to be included
in this system.

Peer appraisal must strive to get the feedback on

 employee’s working style,

 sensitivity towards others,
 spirit of co-operation and collaboration, and
 ability to work as a team member.

4. Subordinate’s Appraisal
It signifies two things.
Firstly, is a clear expression from the organization that it encourages openness and that
feedback is a two-way process.

Secondly, it is a systematic recognition of the fact than employee’s subordinates do play a

vital role in his appraisal. Thus, the purpose of subordinate’s appraisal is to get first hand
assessment of how the subordinates perceive their superior to be in terms of:

 delegation of authority,
 guiding and training of subordinate,
 motivation of subordinates
 team building, etc.

The upward appraisal also provides an opportunity to the subordinates to give feedback to

their superior on the kind of things they would like him/her to continue doing (status quo),

things they would like him/her to stop doing (arrears for corrective action), things they

would like him/her to start doing (areas for new initiatives).