Final answer:
The process described is known as Performance Appraisal, a key tool in human resource management that involves the evaluation of an employee's job performance through methods including 360-degree feedback.
Step-by-step explanation:
The process involving observation of employee performance and conversations focusing on job performance between the manager and the employee is called Performance Appraisal. These appraisals are typically documented several times a year and may culminate in an annual face-to-face meeting.
Performance appraisals serve multiple functions including communication of performance feedback, setting goals, identification of training needs, documentation for HR decisions, and as a means to motivate employees to improve work performance.
A 360-degree feedback appraisal is one method used in performance appraisals wherein supervisors, peers, direct reports, and sometimes even customers provide input on an employee's performance.
It's worth noting that despite their intentions, performance appraisals can be controversial within an organization if not done properly. The effectiveness of these systems is often explored within the field of industrial psychology which focuses on how they can contribute to an organization achieving its goals. Special attention is given to the organization's culture and the fit of the appraisal system within that context.