This paper details the use of a style of performance appraisal, known as 360 degree appraisal, in order to improve employee performance. The paper explores whether the use of 360 degree appraisal provides better feedback than only using the traditional performance interview. It provides a review of the current literature pertaining to performance appraisal, to the development of a performance appraisal scale, its implementation, and analysis. The survey instrument was tested on eleven supervisory staff at a major hotel in the Central Business District of Melbourne. Each supervisor was evaluated using up to nine appraisals from peers, subordinates, managers, customers, and their own supervisor. The data were then analysed; factor analysis revealed four underlying factors relating to communication, leadership, teamwork and excellence. A report was developed for each supervisor and used in conjunction with other appraisal methods such as interviews. Interviews were then conducted with the Human Resources (HR) Manager and with some participants in the process to assess the performance of the 360 degree appraisal. Participants who were interviewed, were unanimously supportive of the 360 degree appraisal system believing that being asked to rate the performance of others encouraged them to reflect upon their own performance. Most interviewees, however, felt that more training was needed prior to the process taking place. The HR Manager was firmly of the view that this approach provides a wealth of information to assist with staff development that is not obtained in the more traditional performance appraisal process.