We don't recommend it by itself. There are numerous operational problems when using 360s in this way. Furthermore, validated 360 feedback surveys should never be used for performance appraisal unless they have been revalidated for that purpose.
When is 360 feedback most useful?
Multi-rater feedback excels at identifying perceptions of behaviors -- both the individual's self-perceptions and the perceptions of others. It forms a powerful basis for changing negative perceptions, because behavior can be changed through training and development.
What are the choices and tradeoffs among 360 feedback approaches?
There are 3 basic "organizing principles" to consider. You can use validated surveys, which use research linking specific skill areas to actual work outcomes. These offer the power of predictability -- if the participant exhibits a certain set of linked behaviors, he or she will be more effective. You can use competency studies, based on internal analysis of required skills and abilities. These measure internal progress against internal goals and needs. You can use vision and/or value statements, based on the need to move an organization in a direction. These are extremely useful feedback to management, helping them fine tune their leadership activities.
What is the difference between feedback for assessment and feedback for development?
Developmental feedback is restricted to job performance aspects that can be changed through training. Assessment feedback includes all aspects of a person that influence job performance, such as personality and motivation in addition to behavior. A 360 feedback instrument can be successfully combined with personality measurement to accomplish assessment. This integrated approach can be used to support training and development, at the same time providing insight into motivation.
