This episode critically examines the common practice of annual performance appraisals in the workplace. 

It argues that these appraisals often annoy employees and are fraught with financial and emotional risks. The author cites research suggesting that individual financial incentives linked to appraisals can decrease performance and hinder collaboration. 

Furthermore, it highlights numerous biases and systemic errors inherent in traditional manager-led appraisals, questioning their reliability and value.

Alternative approaches, such as profit sharing for directors and peer-based evaluations, are presented as potentially fairer and more effective. 

Ultimately, the author suggests that trusting and empowering employees might be a more productive strategy than relying on flawed appraisal systems.

Excerpts from ⁠Magnetic Nonsense⁠⁠: ⁠⁠A Short History of Bullshit at Work and How to Make it Go Away⁠

Note: podcast generated by Google LM Notebook from the original book text.