Understanding 540-Degree Feedback: How Does It Differ from 360-Degree Appraisals?

Hi Communion,

Some time ago, someone asked about 540-Degree Feedback, mentioning that it was a new concept to us. However, this is not a new term in the realm of HR.

The feedback received on an employee's performance from various stakeholders such as superiors, subordinates, peers, internal and external customers, clients, or suppliers is referred to as 540-Degree feedback or appraisal. In this process, customers and suppliers also provide evaluations, distinguishing it from the traditional 360-Degree performance appraisal.

General Electric Company in the USA was the first to experiment with this concept in the early 1990s. Several companies like Reliance Industries, Godrej-GE, Godrej Soaps, Tata Steel, Telco, Voltas, Infosys, Wipro, Eicher, American Express, Thomas Cook, and Thermax have since adopted this approach.

Amit Kr. Chaturvedi

Hi,

If that is so, then it means that 540 = 360 + Clients + Suppliers. This covers everyone, namely self, peers, superiors, subordinates, internal & external customers, clients & suppliers. Then, what is a 720-degree appraisal? How do you differentiate between the two? As 720 also covers everything except for clients & suppliers, which is a wider appraisal, 540 or 720?

Please clarify my doubts as I think 720 is a wider appraisal covering more parties than 540. However, as you say, 540 covers more as it also includes clients & suppliers along with customers, but 720 does not. Please help in differentiating between the two.

Thanks & regards, Paulami

Dear Ajay Kumar,

Had you only searched CiteHr for previous posts or conducted a Google search, you would have found https://www.citehr.com/1615-720-degree-appraisal-3.html at 540 degree and 720 degree appraisals - Google Search. That would have thrown some light.

Have a nice day.

Simhan
A retired academic in the UK

"It is never too late to learn or improve oneself."

There is no difference between 540 and 720; the thing is, the more numbers you add, the more confusion there will be. The best appraisal system is 360.

Thank you.

Understanding 360, 540, and 720 Degree Appraisals

In traditional 360-degree appraisal, raters include:
• Boss
• Peers – immediate & functional colleagues
• Direct reporters
• Colleagues and internal customers

Expanding to 540 Degree Appraisal

The 540-degree appraisal adds more external customers and suppliers.

Introducing 720 Degree Appraisal

The 720-degree appraisal also takes feedback from stakeholders and family. In this approach, feedback is gathered from external sources such as stakeholders, family, suppliers, and communities.

Thanks