Which method is commonly used in performance appraisals?

The method of self-evaluation and peer review is commonly used in performance appraisals because it provides a comprehensive view of an employee's performance from multiple perspectives. Self-evaluation allows individuals to reflect on their own contributions, strengths, and areas for improvement, fostering a sense of ownership over their professional development. Meanwhile, peer reviews incorporate insights from colleagues who work directly with the individual, offering valuable feedback that management may not see. This combination creates a more balanced and fair appraisal process, encouraging engagement and accountability among employees.

In contrast, relying solely on management evaluations may lead to a less holistic understanding of an employee’s performance, as it does not incorporate feedback from those who collaborate with the employee on a daily basis. Annual salary reviews focus primarily on compensation rather than overall performance evaluations, and random interviews lack the structured approach necessary to effectively assess performance, making them less reliable for formal appraisals. Overall, the integration of self-evaluation and peer review supports a richer, more constructive performance appraisal process.