360 degree feedback increases the productivity of the company

Now a Days 360 degree feedback has been one of the most productive ways to improve the quality of a person’s work. 360-degree feedback, also known as multi-rater feedback, multisource feedback, or multisource assessment, is feedback that comes from all around an employee. "360" refers to the 360 Degree in a circle, with an individual figuratively in the center of the circle. Feedback is provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in some cases, feedback from external sources such as customers and suppliers or other interested stakeholders.

This method of feedback is very convenient for an employer or manager to see where their company might need more training. It is an easy way to isolate the strengths and weaknesses of an employee, project or company itself

360 feedback is a developmental tool. It is designed to encourage employees to grow and develop by providing feedback on their proficiency in the skills, competencies, behaviors, and practices related to the conduct of their jobs. As employees learn, grow, and develop, the organization increases its capacity to perform at higher levels. In business this means these organizations are more likely to out-perform their competitors. 

By design, 360 feedback is good at identifying, measuring, and improving the skills and competencies needed to perform a job. It is especially good for the hard-to-quantify interpersonal areas (often labeled the 'soft skills') of behaviors and practices. Examples of this include listening, informing, resolving conflict, coaching, teamwork, and leadership. Well designed 360's can even identify the underlying attitudes and thinking patterns that drive the behaviors and get to root causes of counter-productive actions. 360 feedback can also be adapted and used appropriately to identify and measure areas such as customer satisfaction, team effectiveness, training needs, and work environments. 360 feedback adds value to the employee and organization development process for three reasons: It has clear and precise measurement capability; it provides perspectives from multiple sources - co-workers who see and know the individuals' proficiency levels on a daily basis; and it accelerates learning. 

Performance appraisal, on the other hand, is good for measuring outcomes and results, what people are actually hired for and paid to produce. It is designed to clarify and document the goals, outcomes, milestones, time frames, and measurements to be used. Performance appraisal and employee development are separate and distinct processes with different purposes and different measurement tools. They can and do complement each other. They are related, but they are unique. 

360 degree feedback is also suggested to be followed up within year of the first assessment. In doing so,the employer or company and Productivity  will be able to see if there were results after giving such feedback. For many people, receiving constructive criticism is imperative to developing their leadership and team building skills. Once an employee has been told of their strengths and weaknesses, they will be more susceptible to working on their weaknesses. In conclusion, 360 degree feedback is an incredibly effective way to discover strengths and weaknesses through the company or management and to learn what needs to be changed for a more productive company.