Much like a leader, an appraiser is made and not born. Two other ways to provide feedback to subordinates besides performance appraisals are ordinary feedback, coaching, and counseling. Coaching and counseling, the second type of feedback is fairly structured and the surroundings may be informal. This feedback is sometimes known as the curbstone conference. For example, if you were a sales person, your boss would explain what you did wrong or did right as soon as you make the sale.
Performance appraisal is the type of feedback that is the most structured.
If you have fair honest workers in your business then peer reviews will work effectively. Your employees evaluate each other based on what they see in each one's work habits. Since peers work with or around each other every day they should be able to give an accurate review of each co-worker. Peer reviews may work best if they are not based on pay. Peer reviews may work best if all parties know that the reviews will not be used for setting pay, promotion possibilities, or disciplinary actions.