360-degree feedback is an orderly aggregation and feedback of performance data about an employee or a group of employees obtained from many stakeholders in their performance.
The 360-degree appraisal is also known as multi-source feedback, multi-rater assessment and feedback system, full-circle appraisal, and group performance review.
It is a technique to measure the detailed competencies and behaviour of an employee or a group of employees in achieving targets and goals.
It is a process in which there are many stages (after receiving feedback) for improving behavioural patterns.
Hence, 360-degree feedback is not a speedy process that can be quickly accomplished. The 360-degree performance appraisal has attained popularity because of the changes in the perception of what organisations expect from their employees, increasing the necessity of performance measurement, fast-changing management concepts, and better receptive attitudes.
Participants involved in 360-degree feedback are shown in the figure given below:
According to Lepsinger, “The (360-degree) feedback process involves collecting perceptions about a person’s behaviour and the impact of that behaviour from the person’s boss or bosses, direct reports, colleagues, fellow members of project teams, internal and external customers, and suppliers”.