What is the 360-degree feedback appraisal and what is it used for?

In this system, the employee's appraisal derives from a combination of ratings from supervisors, peers, supervisees, and from the employee herself. Occasionally, outside observers may be used as well, such as customers. The purpose of 360-degree feedback appraisal is to give the employee (who may be a manager) and supervisor different perspectives of the employee's job performance. This system should help the employee make improvements through her own efforts or through training. This system is also used in a traditional performance-appraisal context, providing the supervisor with more information to help make decisions about the employee's position and compensation.