360 degree feedback is also known as Multi-rater feedback, Multi-source feedback, Full-circle appraisal or Group performance review. Contemporary 360-degree methods have roots as early as the 1940s. However, the exact details of the start of the technique are not very clear.

Most scholars agree that 360-degree performance appraisal has historical roots within a military context. During the 1950s and 1960s, the multi-rater trend continued in the United States within the Military service academies.

At the United States Naval Academy at Annapolis, the midshipmen used a multi-source process called “peer grease” to evaluate the leadership skills of their classmates.

During the 1960s and 1970s, in the corporate world, organizations like Bank of America, United Airlines, Bell Labs, Disney, Federal Express, Nestle, and RCA experimented with multi-source feedback in a variety of measurement situations.

360 degree feedback system provides performance data from multiple points of reference. It is more powerful, reliable and accurate as compared to traditional, single source feedback processes. The feedback tends to be more balanced and is also harder to dismiss due to its' broader range of inputs’.

This method employs a multi-source feedback method which provides a comprehensive perspective of employee performance by utilizing feedback from the full circle of people with whom the employee interacts: supervisors, subordinates and co-workers.