In order to be effective at work people need feedback, but it is often difficult for people higher up in the management structure to get a clear idea of what people think of them. 360-degree feedback attempts to solve this problem by confidentially collecting ratings from those you supervise, your peers, and your bosses. The idea behind this tool is that people need to take an honest look at their strengths and weaknesses in order to be the best leaders possible. In order to make 360-degree feedback work well, experts suggest that companies focus on follow-up support, giving the person receiving feedback one or two key changes to focus on.
See "To put best foot forward, look around", Stacy A. Teicher, The Christian Science Monitor, October 19, 2003