Typically, performance appraisal has been limited to a feedback process between employees and supervisors. However, with the increased focus on teamwork, employee development, and customer service, the emphasis has shifted to employee feedback from the full circle of sources as depicted in the diagram. This multiple-input approach to performance feedback is sometimes called "360-degree assessment" to connote that full circle.

Research has shown assessment approaches with multiple rating sources provide more accurate, reliable, and credible information. The circle of feedback sources consists of managers, peers, reports, and one’s self. It is not necessary, or always appropriate, to include all of the feedback sources in a particular evaluation. The organizational culture and mission must be considered, and the purpose of feedback will differ with each source. For example, report assessments of a manager's performance can provide valuable developmental guidance, and peer feedback can be the heart of excellence in teamwork.