360 Degree method of appraisal, though used widely to achieve greater objectivity in appraisals due to

all-round appraisal technique used in it, has its own demerits or disadvantages. Some of them are listed
below:-

1. It is time consuming and administratively more complex.

2. Extensive giving and receiving feedback can be intimidating to many employees.
3. It requires extensive training and significant mind-set change effort to work effectively.

The merits of 360 Degree appraisal method are:-

1. It provides a more comprehensive view of an employee's performance.
2. It is more objective being multi-rater based.
3. It increases credibility of performance appraisal.
4. Feedback from peers enhances employee's self-development.
5. It improves team work.
6. It increases accountability of employees to their customers.

360 Degree Appraisal is yet another progressive experiment in this direction to achieve greater
objectivity in appraisals. 360 Degree Appraisals are performance appraisal of an employee using multiple
assessors or appraisers. All those who form the Role Set Members (i.e., those who have working
relationships with the appraisee) evaluate the appraisee once a year (or for a specified duration) on a
standard format developed through careful research, reflection and experience. These 360 Degree
Appraisals are also called as "MULTI - RATER APPRAISALS". The appraisers are taken from the superiors,
subordinates, colleagues and other internal or even external customers and hence, the name 360
Degree Appraisal.
360 Degree Appraisals are supposed to be more objective, suit flat structures, enable better planning
and management of performance, encourage quality consciousness and are team work oriented and
more participative.
TV Rao Learning Systems (TVRLS) had done a lot of pioneering work in the area of 360 Degree Appraisals
in India. Their survey had indicated that though a number of organisations (particularly multinationals
and joint ventures) have started using this method, they are limited to senior management level and
have developmental objectives and not linked to rewards fully.