High competition in business typically results in reduced profit margins. So you have to minimize expenses to gain some profits. A 360-degree review requires you to pay those customers who will participate. Also, some employees will spend their working time answering the questions.

If you quantify the time in monetary form, then you’ll see that you can’t afford to do it very often. But, there are instances when it’s your only savior.

Instances When You Have to Use 360-Degree Feedback Appraisal Systems

1. Achieve a specific business strategy

Businesses vary! You have to apply some different approaches to achieve a competitive advantage. Any plan requires the input of your employees. But, you must know their strengths and weaknesses. It will help you understand how to allocate roles. Using the traditional appraisal method may not help. You need reliable and valid information before you make a decision. 360 degree feedback will provide you with reliable information. You will know which workers have the strengths you need to drive the strategy to ensure success on every level.

2. Promote culture change

Every organization has a culture. Culture is the way things are done in that company. Also, it is the values and beliefs shared by the owners and the employees. The culture of your company may not be the best. It could also be one of the hindrances of success. The best way is to change it. And it’s not a natural activity! Some workers are attached to the old culture. Use 360 degree feedback to understand which workers are connected to the culture. Besides, such information will help you identify those in need of counseling. It will help change what they believe in. Moreover, you need to know those who lack the skills required to change the culture and act on it.

3. Improve team and individual effectiveness

Each employee needs to have the skills and expertise necessary to perform his/her duties. You cannot know how skilled your workers are until you subject them to an appraisal system. Unfortunately, the traditional one is not as effective as the managers can be biased. In a 360-degree review, the feedback comes from a variety of sources. It is thus reliable. Also, it enhances teamwork. Each employee understands that the workmates may provide some feedback on their performance. Besides, each employee will ensure excellent customer feedback.

4. Improve HR’s management systems

Usually, the human resources department checks the welfare of the employees. It also ensures that the organization’s performance is not hurt in the process. Sometimes, the HR manager may not understand the behavior of some employees. He may even reprimand them for behavior over their control. A 360-degree review will help the HR manager identify the good behavior and the bad ones. Also, he/she will learn about the needs of different employees. Thus a 360-degree review will help improve the HR management system.


You can use the above system at any time. But, due to the activities involved, it is essential to use it to achieve the above goals.