360 Degree Performance Appraisal: Step-by-Step Guide

Updated on:
July 8, 2025
Published on:
August 2, 2024
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TL;DR — Quick Summary
  • What It Is: 360 degree performance appraisals gather feedback from peers, managers, subordinates, and even clients to give a complete view of an employee’s performance.
  • Key Benefits: Promotes self-awareness, improves team dynamics, reduces bias, and highlights development areas from multiple perspectives.
  • Challenges: Time-consuming to manage, may contain biased or inconsistent input, and can cause feedback overload without proper structuring.
  • Core Purpose: To provide a holistic, fair, and growth-focused evaluation that goes beyond a manager’s opinion.
  • How It Works: Feedback is collected via surveys, compiled into a report, and used to guide development plans and performance discussions.
  • Teamflect Integration: Teamflect’s performance review module for Microsoft Teams makes it easy to collect, manage, and analyze 360 feedback seamlessly.
  • Real-Time Feedback: Capture insights during meetings, request external feedback, and use AI to interpret results.
  • Use Teamflect to send reviews with built-in 360 degree feedback sections—fully customizable and integrated into your Microsoft Teams workflow.

What is a 360 Degree Performance Appraisal?

Traditional employee performance reviews are not always the best way to go especially since they often fall short of providing a comprehensive understanding of an employee’s performance. That’s exactly where the 360 degree performance appraisal approach comes in!

With a holistic overview, 360 degree performance appraisals include input from several sources including peers, subordinates, supervisors, and even clients and other stakeholders. This multifaceted evaluation method is the way to go if you wish to promote organizational growth to the fullest.

With that in mind, let’s take a closer look into what 360 degree performance appraisals are, what benefits and challenges they come with, their purpose, and more!

Quick Definition: What Is a 360-Degree Performance Appraisal?

360 degree performance appraisal is by definition a method of evaluation and appraisal that has a 360 degree view over a person’s performance. The power they hold comes from the simple fact that they gather intel from multiple sources.

With 360 degree feedback, the main idea is to gain perspective from various viewpoints such as peers, supervisors, subordinates and clients. This way, the evaluation can move along with a well-rounded view of performance, rather than relying on a single source like traditional reviews.

What are the Pros and Cons of 360 Degree Performance Appraisals?

The 360 degree performance reviews approach has several benefits but it isn’t without challenges either. Let’s take a look at both so you can decide for yourself if it’s worth it in the end.

Pros of 360 Degree Performance Appraisals

Comprehensive Feedback: 360 degree feedback offers a holistic view of an employee’s performance by incorporating multiple sources.
Enhanced Self-Awareness: As the evaluation comes from various perspectives, it provides insight into one’s own performance and offers an opportunity for personal growth.
Improved Team Dynamics: By nature, 360 degree feedback appraisals start a conversation, encouraging open communication between various parties.
Balanced Assessment: With more communication on the horizon, 360 degree feedback helps reduce bias.
Identifies Development Areas: Highlighting strengths and areas for improvement from various viewpoints, 360 degree feedback aids career growth.

Cons of 360 Degree Performance Appraisals

Time-Consuming: Getting various sources to share insight can be a time-consuming process.
Potential for Bias: Whilst 360 degree feedback appraisals eliminate bias for the most part, it shouldn’t be forgotten that personal relationships may have an influence during the process.
Inconsistent Quality: Not all parties involved in the evaluation may not have the same level of understanding of the process which may lead to inconsistent data during the review.
Feedback Overload: As there will be more feedback available, it may end up being rather overwhelming for the employees to listen and digest all of the information.
Implementation Challenges: The well-rounded nature of 360 degree feedback requires careful planning and management which can at times prove to be challenging.

What is the Purpose of 360 Degree Appraisals?

The purpose of 360 degree appraisals is to simply offer a comprehensive evaluation of performance. This approach manages to do so through multiple sources taking part in the review process.

That in itself is the entire point of 360 degree performance appraisals. In doing so, this holistic approach to review periods helps enhance self-awareness, promotes professional development, fosters communication, and reduces bias all at once.

How Do 360 Appraisals Work?

If we haven’t been able to make it clear already, 360 degree performance appraisals’ sole mission is to incorporate the perspective of supervisors, peers, subordinates, and sometimes even clients into the evaluation process.

The method of collection is typically through questionnaires or surveys which are then compiled into a comprehensive report on performance. It is by utilizing the findings in this report, that reviewers are able to see one’s strengths and areas of improvements clearly as well as set a course of action to promote growth in the future.

Here’s a simplified view of how the process unfolds:

  1. Feedback Participants Chosen: Includes manager(s), peers, direct reports, and possibly clients or partners.
  2. Survey Sent Out: A structured questionnaire is sent via email or integrated tools.
  3. Feedback Collected: Anonymously or openly, depending on company policy.
  4. Results Compiled: All responses are combined into one performance report.
  5. Review & Development Planning: Insights guide coaching, goal-setting, or training.

How to Conduct 360 Degree Performance Appraisal in Microsoft Teams

We’ve made all this fuss about utilizing 360 degree performance appraisals but how do you actually do that? The answer is actually rather simple. You’ll need to utilize the right employee performance management software so that it can take on the load of 360 degree feedback for you, and we have just the thing!

Integrating A 360 Degree Review Tool: Teamflect

Teamflect is an all-in-one performance management solution designed specifically for Microsoft Teams that offers a solid feedback and performance review module that comes with, you guessed it, a 360 degree feedback feature!

Using Teamflect’s feedback module you can;

  • Capture real-time feedback in Teams meetings
  • Request external feedback and broaden perspectives
  • Analyze feedback with the power of AI
  • Receive detailed feedback reports

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Sending Out Performance Reviews With 360 Feedback Questions

Teamflect Performance Review Module

Teamflect’s performance review module allows you to streamline your evaluation processes and helps you focus on the analysis of performance rather than spend your time worrying about logistics.

Once in the review module, your view will let you access reviews about yourself, your team, or all reviews available at once. By clicking “New Review”, you can create an evaluation in various formats ranging from monthly, quarterly, and annual performance reviews, to onboarding, company exit reviews, and more!

Sending 360 Feedback Requests

Once in your review, the 360 degree feedback section is readily available! Teamflect’s extensive feedback features enable managers to gather insights from peers, supervisors, direct reports, and external stakeholders, ensuring comprehensive and impartial evaluations.

Use 360 degree feedback for performance reviews in Microsoft Teams with Teamflect

As you’re in the review process you have a wide range of choices as to who you wish to request 360 degree feedback from. Whether you wish to receive feedback from a direct report, a manager, a peer, or even external parties, Teamflect allows you to do so.

Receiving Feedback & Concluding the Assessment

Finalize performance reviews with development plans in Microsoft Teams with Teamflect

Upon the insights you gain from the 360 degree feedback process and other forms of performance evaluations available inside the review module, such as the 9-box talent view, you can finalize the process by setting goals for an employee to start a development plan and strive for continuous growth!

Final Thoughts

A 360-degree feedback system are a powerful way to support employee development, build trust, and create a culture of accountability. When combined with the right tools like Teamflect inside Microsoft Teams you can make the process seamless and scalable.

Looking to get started? Let’s set up a call and explore how Teamflect can fit your performance management needs.

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