Peer appraisal is a type of employee assessment method. It is a feedback mechanism where evaluation is provided by the employee’s colleagues as they are the closest while working in an organization. It is mostly done by colleagues from the same team. Organizations prefer peer appraisals as part of performance evaluation because co-workers stay closest to each other and know their strengths and weaknesses.
They can easily assess each other’s skills and pattern of working. The process involves workers ranking each member of the group from best to worst, either overall or on various areas of performance or responsibility and it includes rating colleagues on performance metrics.