How Does the 360° Performance Review System Work in HR?
- Tamar Bosikashvili
- 3 days ago
- 3 min read
Employee performance reviews are no longer just a manager's one-sided and subjective view. Modern organizations use 360-degree reviews, which provide a comprehensive assessment of an employee from multiple perspectives.A
360-degree review is a system that collects feedback from managers, colleagues, subordinates, and the employee themselves. This process provides an objective and multifaceted assessment based on real work relationships.
What Is 360° Review and Why Is It Important
The concept of 360 review began in the 1950s, but today it is used by 85% of Fortune 500 companies for leadership development.
Compared to traditional reviews, which include only two perspectives (manager and employee), the 360° model reduces subjectivity and provides a real picture:
How colleagues perceive an employee's teamwork
How subordinates evaluate a manager's leadership skills
How a manager assesses overall performance and goal achievement
How the employee evaluates their own work
Research shows that employees who receive regular feedback are 80% more engaged in work processes.
How the 360° Review Process Works
The 360 review system is divided into five key stages:
1. Planning and Goal Setting
First, the organization must define the purpose of the review - employee development, leadership refinement, or organizational culture improvement. Clear goals ensure that the review is focused on specific outcomes.
2. Selecting Reviewers
For each employee, 6-12 reviewers are selected from different categories: direct manager, colleagues, subordinates, and employees from other departments with whom they interact.
3. Collecting Feedback
The review is conducted anonymously through a specialized HR platform, which ensures honest and constructive feedback. Questions focus on specific competencies: communication, leadership, teamwork, problem-solving.
4. Analyzing and Interpreting Results
The system automatically aggregates assessments by category and shows strengths and areas for development. This process maintains anonymity.
5. Creating a Development Plan
Review results become the foundation for a personal development plan. The manager and employee together create an action plan with specific goals and timelines.
Benefits of 360° Review for the Organization
An effective review system provides numerous benefits:
Objectivity and fairness - different views of an employee reduce individual, subjective assessments
Increased self-awareness - employees better understand how others perceive them
Greater engagement - constructive feedback increases motivation
Organizational transparency - ensures an open and equal environment
How to Implement 360° Review in Your Company
For successful implementation, take the following steps:
Create a culture of trust
The process must be transparent. Explain to employees that the review is not a punishment, but a development tool. HR automation ensures the structured nature of this process.
Conduct training
Teach employees how to give constructive feedback and how to receive it positively. This increases the quality of the review and reduces resistance.
Use a specialized HR platform
A digital platform, such as the Aisitec HR system, simplifies the entire process: automatic questionnaire sharing, anonymous response collection, results visualization, and report generation.
Regularity and consistency
Conduct 360° reviews once a year or semi-annually. Regularity allows employees to see progress and development over time.
Common Mistakes and How to Avoid Them
The 360 review process requires the right approach:
Don't link the review only to salary or promotion - this creates stress and reduces honesty. The review should be a development tool, not just salary accounting.
Don't leave results unattended - just conducting a review is not enough. Follow-up meetings and development plan execution are important.
Aisitec HR's 360° Review Module
The Aisitec HR platform offers a complete 360-degree review module that:
Creates structured questionnaires by position or department
Uses anonymous assessment to build trust
Generates aggregated reports for each employee
Displays results with visual charts
Allows you to analyze both individual and departmental data
All this in one complete HR system, along with other modules: HR administration, Payroll, time tracking, and analytics.
Conclusion
360-degree review is a powerful tool for employee development and strengthening organizational culture. When implemented correctly, it creates a transparent, fair, and growth-oriented environment.
If you want to implement a 360° review system in your organization and benefit fully from a digital HR platform, request a free demo and explore Aisitec HR's capabilities.
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