Seventy-five percent of these companies provided individual development plans, and 33 percent provided 360 degree feedback for most of their employees in 1998, compared to 50 percent and 10 percent in 1997, according to ASTD.
Organizations that are happy with the 360 degree component of their performance management systems identify these positive features of the process. These features will manifest themselves in well-managed, well-integrated 360 degree feedback processes.
- Improved Feedback From More Sources: Provides well-rounded feedback from peers, reporting staff, coworkers, and supervisors. This can be a definite improvement over feedback from a single individual. 360 feedback can also save managers time in that they can spend less energy providing feedback as more people participate in the process. Coworker perception is important and the process helps people understand how other employees view their work.
- Team Development: Helps team members learn to work more effectively together. (Teams know more about how team members are performing than their supervisor.) Multirater feedback makes team members more accountable to each other as they share the knowledge that they will provide input on each members performance. A well-planned process can improve communication and team development.
- Personal and Organizational Performance Development: 360 degree feedback is one of the best methods for understanding personal and organizational developmental needs.
- Responsibility for Career Development: For many reasons, organizations are no longer responsible for developing the careers of their employees, if they ever were. Multirater feedback can provide excellent information to an individual about what she needs to do to enhance her career.
Additionally, many employees feel 360 degree feedback is more accurate, more reflective of their performance, and more validating than prior feedback from the supervisor alone. This makes the information more useful for both career and personal development. - Reduced Discrimination Risk: When feedback comes from a number of individuals in various job functions, discrimination because of race, age, gender, and so on, is reduced. The "horns and halo" effect, in which a supervisor rates performance based on her most recent interactions with the employee, is also minimized.
- Improved Customer Service: Especially in feedback processes that involve the internal or external customer, each person receives valuable feedback about the quality of his product or services. This feedback should enable the individual to improve the quality, reliability, promptness, and comprehensiveness of these products and services.
- Training Needs Assessment: 360 degree feedback provides comprehensive information about organization training needs and thus allows planning for classes, cross-functional responsibilities, and cross-training.
A 360 degree feedback system does have a good side. However, 360 degree feedback also has a bad side and even, an ugly side.

