360-degree feedback has the following objectives:
1. Identifies Strengths and Weaknesses: The 360-degree feedback helps in identifying and evaluating the strengths and weaknesses of an employee against parameters like role performance, performance with regard to particular activities, capabilities and working patterns and his suitability for a given task.
2. Strengthens Change Management: The 360-degree feedback complements other efforts in change management, as well as interventional actions towards achieving change effectively, thereby strengthening the change management process.
Such efforts may include TQM (Total Quality Management) efforts, customer-focused or customer satisfaction-enhancing efforts, interventions aimed at quality enhancement and cost reduction, and changes required in the decision-making process.
3. Promotes Development: The 360-degree feedback helps in aligning the developmental needs of an employee and consequently blending the developmental efforts with present and future organisational needs.
This helps to objectively plan the development of an employee with regard to his current and future roles in view of the future organisational plans.
The development of employees is directed towards developing leadership qualities, team spirit and the desired organisational culture.
4. Provides a Basis for Personnel-Related Decisions: The 360- degree feedback helps to reduce subjective biasness and enhance objectivity in deciding rewards, such as performance-linked salary and other personnel decisions (promotion, demotion, transfer, etc.).
5. Aligns Individual and Organisational Goals: The 360-degree feedback can be used to align the aspirations of employees with the goals, vision and values of organisations.