In some organizations, that happens. Those are admirable benefits. But in the real world, the possible benefits aren't always achieved. Many appraisal forms aren't individualized enough to be meaningful. Many don't even measure the sought-after things.
Many evaluators get no training in how to write good evaluations.
In the real world, performance appraisals more often are hastily scribbled tick marks on a page, done on deadline so raises can be dished out on workers' employment anniversaries. In the real world, I once watched a lawyer doing his assigned part to evaluate associates at his law firm.