Peer appraisal is a form of 360 degree feedback and performance appraisal process. Peers of an individual give feedback for the individual which gives an unique perspective to the work and goal achievement of an individual. While managers and other appraisal systems tend to provide a perspective on targets and goals achieved by an individual, peer appraisal tends to give an perspective on the interpersonal skills of an individual and his interaction base with the customer and team in which he is working.
Peer appraisal forms an integral part of performance appraisal system, peers, team mates, group members are anonymously asked to provide feedback about an individual’s performance. Generally the peer appraisal is shared with the manager of an individual, as a metric to evaluate performance. But sometimes these are shared with the individuals too, to give a feedback about their performance as measured in the team by team mates.
Peer appraisal has many advantages same as 360 degree feedback, in addition to which it also increases accuracy and fairness in the appraisal process.