Significance of 360-degree performance appraisal

360-degree performance appraisal method was first used in the year 1940s. It is referred as a systematic evaluation of the performance of employees in a company. This is mainly done to evaluate the overall performance of an employee from each and every aspect.
360-degree performance appraisal is a very efficient system that an organization must have to implement in order to evaluate the performance of their valuable employees. Evaluating performance of your employees will help them to get a feedback and a chance of improvement in them. Organizations generally perform performance appraisal once in a year. But organizations should do performance appraisal time-to-time so that the employees can get feedback on time and enhance their skills.
What happens in a 360-degree performance appraisal? 
In a 360-degree performance appraisal system, the employee is evaluated in all the aspects. This evaluation process involves all the delegates and subordinates with whom an employee interacts. This gives a 360-degree measurement of an employee. In this evaluation process, the superiors, customers, peers, suppliers & subordinates give their valuable feedback for a particular employee.
Which organizations need 360-degree performance appraisal needed? 
Most organization that focuses on employee development and growth must have to implement this process. Organizations take valuable feedback about an employee before making a major decision about the professional career. 360 degree performance appraisal will also help the employees to develop their skills and provide a good career scope in the organization. This evaluation process helps in making decisions like salary growth, promotion and other valuable & important things.
Aspects of 360-degree performance appraisal system:
There are so many advantages associated with 360-degree performance appraisal system. Here we are sharing some of them: 1. Data maintenance to decide salary packages, promotions & etc. 2. To know the strengths and weaknesses of the employees in order to put them at the right place at the right time. Employees can work on their weaknesses which will ultimately increase the productivity of the organization. 3. Give feedback to the manpower about the performance of the employees. 4. Analyze and keep hold of training programs for the promotions of the employees. 5. Gives a 360 degree feedback of an employee by each and every aspect.