This article from the Wall Street Journal explores whether sharing 360 Degree Feedback results is a good thing.
The success of 360 Degree Feedback in HCL has everything to do with the fact that Vineet Nayar, the CEO, not only 'encourages' (read 'requires') managers to undertake and share their 360 results, but does so himself. Mr Nayar publishes his full 360 feedback to all 50,000 employees of HCL on the company's intranet, and communicates constantly to employees about it.
The 360 is also part of a wider culture that Nayar has put in place - where leadership is defined as listening to your employees and learning from them, rather than the other way around - so it's really part of the company's DNA. And the 360 itself has been designed around this cultural model.
And the final point is that once identified, the company gives the manager the support and resources to be able to make the changes he or she needs to make. Mr Nikore at HCL was obviously given some help and ideas in order to improve his people skills - despite his worry about the feedback and his disappointment at the initial results.
To summarise, transparency in 360 Degree Feedback is a great thing, but it's got to be part of a wider culture that encourages feedback, rewards honesty and allows people to make mistakes and learn from them. If you haven't got those elements, forcing people to share their 360 results is a very bad idea!