Performance appraisal is the process of evaluating employee performance, sharing that information with employees, and finding ways to improve performance. It is used to allocate resources, motivate employees, give feedback, maintain fair relationships, and develop employees. 360 degree feedback involves employees receiving anonymous feedback from coworkers. It can be used as a development tool to help employees improve or as a performance evaluation tool. There are guidelines for effective performance appraisal and feedback, including being specific, allowing choice, and stating information objectively.