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 Table of Contents
Introduction.........................................................................................................................................2
360-degree feedback............................................................................................................................3
1. Advantages and Disadvantages of 360-Degree Feedback.........................................................4
1.1 Advantages.................................................................................................................................5
1.1.1 Creates Self-Awareness of One's Skills and Faults............................................................5
1.1.2 Identifies Training Shortcomings........................................................................................6
1.1.3 Improve Training and Career Development........................................................................6
1.1.4 Increase the Organization's Transparency.........................................................................6
1.1.5 Motivating Employees..........................................................................................................6
1.2 Disadvantages............................................................................................................................7
1.2.1 Dishonest Reviews................................................................................................................7
1.2.2 Increase Distrust in Leaders................................................................................................7
1.2.3 Time-Consuming Process....................................................................................................7
Recommendations................................................................................................................................8
Conclusion............................................................................................................................................8
References............................................................................................................................................9

List of Figures

Figure 1:360 degree feedback review........................................................................................4

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 Introduction

Performance management may be defined as a continuous method of identifying, measuring,

and growing individual and organizational performance while combining productivity with
the organization's strategic objectives. This is a technique that guarantees that a set of
activities inside an organization accomplishes the organization's goals. Planning, monitoring,
evaluating, and rewarding are all part of the performance management cycle. Every company
should have a performance management plan. To stay competitive, any organization needs to
rely on performance management tools. This method guarantees that managers, supervisors,
and upper management can connect workers' performance to the organization's goals and
objectives by allowing them to understand precisely what is expected. It should have been
done in a way that promotes the growth and development of the organization. Performance
appraisal will result in a few key contributions to the development and effectiveness of the
company. Various performance evaluation strategies, such as the critical event method, the
forced choice approach, the method, and others, have been used. However, each of the
techniques presented comes with its own set of constraints. 360-degree feedback systems
have gained popularity and are now chosen by organizations due to these attributes (Masanja
& Rweyemamu, 2020).

360-degree feedback is a joint development strategy for gathering information and improving
staff performance. A 360-degree feedback system is the most effective development method.
As a result, it is not acceptable for administrative purposes. Recruiters utilize 360-degree
feedback questionnaires to understand their weaknesses and strengths better. It automatically
summarizes and provides the information necessary to help the review recipient develop a
strategic plan (Baroda, et al., 2018). To preserve anonymity, individual answers are blended
with comments from others in a comparable rating category (e.g., peer, direct report). 360-
degree feedback is a multi-source assessment approach focusing on employee job
performance. It is also called a criteria-based assessment or multi-rater feedback since it is
based on data from several actors. It would ideally be completed by thoroughly assessing a
company's business connection from an external and internal perspective. The objective is to
correctly analyze a person's job skills, task quality of the output, and collaboration traits for
use in employee assessment and job evaluation (Tyson & Ward, 2004). This report will look
into 360-degree feedback and its advantages and disadvantages.

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 360-degree feedback

The 360-degree review is a type of employee measuring performance that occurs when the
person's colleagues, colleagues, and managers all score the employee anonymously. That data
is then included in the individual's performance review. This method's qualities include
anonymity, monitoring individual performance, eliminating survey stress, and training
respondents. It is required to utilize more than one reference while doing an assessment.
Many people other than the employee's immediate employer will assess their performance.
Another source is those who have direct working interaction with the employee. Peers,
subordinates, clients, or customers are examples. According to (Eisalou, 2014)feedback from
several sources will create a more accurate picture of the employee’s performance since each
assessor will have their viewpoint on the person.

The 360-degree assessment framework focuses on that person being reviewed and several
other key stakeholders who finish the review cycle, such as "peers, customers, superiors, and
subordinates.” In some instances, this assessment is much more comprehensive and covers
various external aspects other than the customer, as seen in the following figure. The standard
and well-implemented 360-degree feedback system are essential for both the organization
and the person since it is a good tool for determining an employee's potential value, which
must be achieved. Furthermore, it advises the individual on what they need to cultivate to
advance in their job. The review data collected from peers, who can accurately appraise the
employee's performance and routines since they are on the equivalent level of the task, maybe
the essential participant in the 360-degree review procedure. Subordinates and supervisors
play an important role in 360-degree feedback evaluation since they rate an employee's
competency from two opposing perspectives. External actors, like consumers, are just helpful
as data sources if they can be trusted (Bracken, et al., 2016).

Top
Managment

Immediate
Customers
Supervisor

360 Degree
Feedback
3 Review

Self Peers
 Suboradinate

Figure 1:360 degree feedback review

The significance of 360-degree feedback in businesses cannot be overstated. The purpose of

360-degree performance evaluation is to assist employees in assessing and understanding
their strengths and shortcomings for personal and organizational development. It helps with
job clarification, potential evaluation, career planning, mentoring, and team building. The
primary goal is to provide credible information to assist employees in accomplishing self-
development and improving their careers while benefiting the firm (Kuzulu & Iyem, 2016) .
As a result, the 360-degree feedback instrument is generally employed for personal growth
rather than organizational assessment.

1. Advantages and Disadvantages of 360-Degree Feedback

According to (Miao, et al., 2018), In each firm, the working environment significantly
impacts the performance of 360-degree feedback. While it is a dependable tool, it has the
potential to be used to further personal goals in workplaces with highly political office
politics. Consequently, management should investigate and determine the practicality of
using a 360-degree appraisal approach on the organization's specific circumstances while
ensuring that its usage is not undercut for self-benefit.

The use of feedback is seen to be advantageous in businesses when workers help one other's
professional development in a positive working culture. Employees in such firms do not take
any criticism adversely or personally; moreover, the company instructs its workers on
suitable feedback methods, maintains a privacy rule, and personalizes the 360-degree
evaluation technique to match the specific organization’s objectives. More significantly, the
firm should depend only on something other than this assessment technique to determine
employee advancement or pay raises (Hazucha, et al., 2009).

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On the other hand, the 360-degree feedback assessment procedure is the least successful in
firms that use it as a method for employee advancements and salary raises. This is because
the dangers of employee evaluation are high enough to motivate malice intended to hamper
fellow employee career growth now that the competition factor has been incorporated.
Moreover, the confidentiality shortage around submitted remarks adds to suspicion and even
heightens professional relations. Suppose the overall procedure isn't tailored to examine the
unique company's objectives and goals, and no different evaluation technique is used to
verify the 360-degree review. In that case, the overall process will significantly be setback
(Jagtap, 2017).

With a 360-degree feedback review, workers are provided with anonymous suggestions and
suggestions for improvement. This evaluation examines an employee's performance in depth.
It includes critical components like collaboration, teamwork, and leadership. It is a   method-
based growth strategy that dramatically improves employees' performance and productivity.
One of the main benefits of 360 feedback is that it helps managers and leaders assess the
strengths and weaknesses of those surveyed. There are many apparent advantages and
disadvantages to 360-degree feedback based on how firms utilize it and the consequences.

1.1 Advantages

1.1.1 Creates Self-Awareness of One's Skills and Faults

One of the main benefits of 360-degree feedback is that it helps workers realize their
strengths and weaknesses, encouraging them to develop their individuality. This has
undeniably benefited the employees' talent management, leading to high personal motivation
and lower staff turnover.

1.1.2 Identifies Training Shortcomings

While skills and capabilities impede business performance and advancement, they also hinder
individual growth. As people increase their self-awareness and work to better themselves and
others, they must develop a system for providing constructive criticism. Companies in the IT
industry, such as "IFS and WSO2," utilize 360-degree feedback to train employees and
improve operations. Companies measure how well their control and manage their teams using
360-degree feedback. Companies additionally include it in the annual evaluation of such
managers' performances. Assessments under this method compile feedback from the worker's
peers, direct reports, and clients to provide a whole picture of their disposition. Personal and

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group-level analyses reveal the capability or competency difference inside a particular group
and a coworker.

1.1.3 Improve Training and Career Development

360-degree feedback aids in training and professional growth. Appraising an employee's

performance is a crucial aspect of the employee's career growth. Furthermore, assessment
serves as a connection between an employee's career growth and corporate goals and
objectives. Employee performance assessment data is often utilized to identify training
requirements and career advancement. The benefit of using 360 to evaluate workers is that it
allows for input from employees and stakeholders (Chandhana & Easow, 2015).

1.1.4 Increase the Organization's Transparency

360-degree feedback offers various benefits in a firm, including "more openness, which
enables all individual workers even further to establish trust among members." Improved
trustworthiness leads to more excellent decision-making, which results in increased
performance and earnings. When 360-degree feedback is conducted correctly, it provides a
solid basis for evaluating the effectiveness of a company's human resources practices,
recruitment efforts, and management structure (Toegel & Conger, 2003).

1.1.5 Motivating Employees

360-degree feedback also aids in staff motivation. Motivating people is critical to attaining
the company's objectives and goals. The 360-feedback mechanism also aids in boosting
organizational visibility and openness. Executive team members may create trust with one
another by increasing visibility.

1.2 Disadvantages

1.2.1 Dishonest Reviews

No one will offer honest feedback if the people doing the 360-degree feedback evaluation are
not accepted. Participants may respond to what they perceive they would like to hear, making
the response useless. This then needs to be established and managed transparently and
openly. In addition, if workers know their scores will be used in a ranking system, they may
conspire to give each other higher ratings in the lower tiers so that they seem better than their
peers.

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1.2.2 Increase Distrust in Leaders

If a manager doesn't share what they learned or what they plan to do to address the input,
those who provided it may as well have not bothered, says Aleman. Employees who don't
believe in their leader and the company won't feel motivated to work there. It is critical for
the leader's credibility and the team's trust in them to follow through on an action plan based
on feedback.

1.2.3 Time-Consuming Process

This evaluation is that they necessitate much effort from members of the team and Human
resource professionals. Several employees must spend the time to react to inquiries, ideally
thoughtfully. Managers and HR personnel must also analyze the data to make it worthwhile.
It may be tough to weigh criticism from several sources and include it in a comprehensive
review paper. Although specialist tools can help speed up the process, building the entire
system remains tough.

On the other side, 360 has various drawbacks, one of which is that feedback from 360
evaluations might be insufficient. Another downside of 360 feedback and assessment is that it
might need to be better executed if the organization's management does not agree with or
support the system. Another problem with the 360-feedback system is that it sometimes needs
to be utilized correctly. Managers often use the 360 methods to identify the vulnerabilities of
their team members. Another downside of 360 feedback is that it necessitates stakeholders'
involvement, particularly consumers or clients (Hosain, 2016).

360-degree feedback may be a valuable tool for measuring achievement, setting objectives
for your staff, communicating organizational changes, and so on. Results are often provided
instructive and understandable, giving users all the details they want regarding their overall
personal performance.360-degree feedback also holds workers responsible, which implies
businesses will function more effectively in the long and medium term. However, since 360
findings make people feel frightened by individuals who talk adversely about their job or
environment where attitude issues may occur, this form of feedback may offer both obstacles
and possibilities (Chopra, 2014).

Recommendations

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360 feedback approach must be linked with other developmental activities to yield better
results. As a result, employees will be more aware of the variety of jobs being performed, and
they will be able to provide more feedback. Specific process training will help to improve
performance. The system's objective should be higher. It should not include any remarks that
could offend the feelings of others. Decisions made after the feedback process is finished
should be given more weight.

The feedback report should be different from the process's endpoint. Instead, it should
concentrate on making improvement suggestions and implementing extensive training
programs. Appraisal comments should be incorporated into the development process rather
than used as a means of development. Other developmental variables should be included in
the appraisal process to motivate employees to improve their performance. The assessment
system should be implemented after considering the requests and sentiments of religious
groups or labor unions in the organizations. Labor unions have the right to influence workers'
decisions by claiming that the assessment system is merely a carrot to entice employees to
work. As a result, the system should be built with such groups' mentalities in mind.

Internal politics and groups within the company should be discouraged because they can
impact the assessment system by causing a particular rating pattern. Employees in small
informal groups may decide what kind of remarks to make to a specific person. As a result,
forming such groups should be avoided because it may affect the review's outcome. Top
management participation is required for the system to function correctly. They should be
involved in developing feedback criteria and evaluating feedback reports. They should ensure
that the questionnaire contains relevant information and covers the workers' genuine
experiences.

Conclusion
To summarize what has been said thus far, the 360 feedback system provides several benefits
to the organization, such as the ability to improve management and, therefore, the advantage
of numerous organizational components. The following benefits have accrued about this
issue: this system could indeed continue to improve the organization’s productivity,
everything that is not discussed could be mentioned, feedback from peers or coworkers can
lift workers' spirits, and this system is nonbiased and a lot more strictly simple. Although
360-degree feedback has many advantages, it also has some disadvantages that must be
discussed or resolved thru a variety of recommendations, like making sure negative follow-up

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negative feedback with training, mentoring, and guidance and support projects, conducting a
pilot study, identifying appropriate assessors, and having good communication skills.

Consequently, a 360-degree evaluation procedure should be used only in companies where

interpersonal support exists among employee work relationships and the workplace
environment is ordinarily polite and devoid of competitive elements. The purpose of
organizational leadership should be to determine if implementing a 360-degree feedback
assessment would be acceptable for the corporate structure and if it could enable management
to evaluate their employees objectively. 360-degree feedback may help build self-awareness
and communication openness by increasing trust, sharing, and clarity about desired objectives
and actions. Implementing a proper 360-degree feedback process is a severe issue that should
not be underestimated. As a result, effective leaders should examine team members, process
details, and the long-term goals and actions required to keep the advantages. In general, the
healthy 360-degree feedback method has the potential to improve overall team performance.
Finally,360-degree feedback is challenging, but the positive outcomes are incredibly fulfilling
when done correctly. 360-degree feedback evaluation is an effective tool for assessing
performance.

References
Baroda, S., Sharma, C. & Bhatt, J. K., 2018. 360 Degree Feedback Appraisals- An Innovative
Approach of Performance Management System. INTERNATIONAL JOURNAL OF
MANAGEMENT & INFORMATION TECHNOLOGY.
Bracken, D., Rose, D. & Church, A., 2016. The Evolution and Devolution of 360° Feedback.
Industrial and Organizational Psychology,, 9(4).
Chandhana, K. & Easow, . D. T., 2015. Performance Appraisal Method Used in Top 10 IT
Companies-360 Degree Feedback & Balanced Score Card: A Review. Bonfring International
Journal of Industrial Engineering and Management Science.
Chopra, R., 2014. 360 Degree-Performance Appraisal Method. International Research
Journal Commerce arts science, 5(1).
Eisalou, M. R., 2014. Human Resource 360- Human Resource 360-. s.l.:LAP LAMBERT
Academic Publishing.
Hazucha, J., Hezlett, S. A. & Schneider, R. J., 2009. The impact of 360-degree feedback on
management skills development. Human Resource Management.

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Hosain, S., 2016. 360 Degree Feedback as a Performance Appraisal Technique: Does it
Really Work?. Asian Business Review.
Jagtap, S. P., 2017. 360 Degree Feedback Tool – Pros and Cons. International Journal of
Management and Commerce Innovations .
Kuzulu, E. & Iyem, C., 2016. Is 360 Degree Feedback Appraisal an Effective Way of
Performance Evaluation?. International Journal of Academic Research in Business and
Social Sciences , 6(5).
Masanja, N. M. & Rweyemamu, A., 2020. The Implication of 360 Degree Feedback on The
Implication of 360 Degree Feedback on The Implication of 360 Degree Feedback on.
Contemporary Journal of Education and Business (CJEB).
Miao, C., Humphrey, R., Qian, S. & Oh, I.-S. , 2018. (How) Does 360-degree feedback
benefit the field of entrepreneurship?. New England Journal of Entrepreneurship.
Toegel, G. & Conger, J. A., 2003. 360-Degree Assessment: Time for Reinvention. AMLE.
Tyson, S. & Ward, P., 2004. The Use of 360 Degree Feedback Technique in the Evaluation
of Management Development. Management Learning,.

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