Definition

A 360-degree assessment gathers individual, anonymous assessments from all persons with whom a given employee interacts during the course of performing his job.

Purpose

In collecting this information, the assessment is intended to provide a fuller view of all aspects of an employee's working habits and relationships than might be gained from traditional supervisory review. Multiple viewpoints are taken into account.

Potential Positive Outcomes

With more complete pictures of a given employee's performance, praiseworthy attributes can be highlighted. Areas of concern can be addressed in a constructive manner.

Potential Negative Outcomes

These assessments conducted in a vengeful or destructive manner can undermine company morale and decrease productivity. Using them to gather information with the express purpose of rooting out so-called "problem" employees can foster an environment of paranoia among the staff.

Who Should Conduct 360-Degree Assessments?

Ideally, an impartial third-party should conduct these assessments. If a separate human resources department conducts companywide assessments it can help to avoid perceptions of potential bias.

Source:

Boston.com: The Use and Misuse of 360-Degree Assessments