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The conditions and implications for the use of multi‐rater feedback or “360‐degree” methods are studied from both a psychological and an organizational perspective. Psychological research indicates that multi‐ratings cannot be put on the same footing as ratings obtained from more “objective” sources as for instance the assessment center. Multi‐rater feedback can be interpreted either as standing in the tradition of assessment centers, or originating from “total quality management”, but it seems more congenial to the TQM method of organizing “customer feedback”. Since multi‐rater feedback presupposes social interaction and consequently a work organization, the communicative conditions for such a feedback system are subsequently investigated from the perspective of organization science. It is investigated how various structural and cultural changes offer a fertile soil for the introduction of such kinds of feedback. However, the authors warn of the terror of “total feedback”.

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