This answer is best explained by an example. A factory has 200 workers. 100 work on new machines and the remainder work on the old ones. The workers on the new machines will be more productive because they have new equipment. This fact should not contaminate the performance standards when appraising the workers. In the landmark US Supreme Court case of Albermarle Paper Company v Moody , the court held that job performance standards had to be clearly defined. This is the important case that required employers to comply with focused and precise job performance standards to ensure that HRM decisions were fair. Manager or supervisor appraisal occurs when the review is conducted by the employee’s superior and that is then reviewed again by a more senior manager; whereas subordinate appraisal occurs when an employee carries out the appraisal on a superior. This is what occurs in a subordinate appraisal. It is normally conduced for developmental rather than administrative reasons. It is good that managers get feedback from their charges. Peer appraisal refers to a review conducted by the employee’s manager with feedback obtained from peers but it is not commonly used because of concerns that peers rely on stereotypes , that they may be rating based on popularity or fears of retaliation if a low ranking is given. There is a concern that the feedback given may be colored by stereotyping rather than being entirely unbiased. Team appraisal is based on Total Quality Management concepts that stress team achievements rather than individual performance. Total Quality Management (TQM) sets performance standards derived from the customers’ needs. The employee’s performance is compared against the standard and then ideas for improvement suggested. Customer appraisal is the performance appraisal of employees based on feedback from both external and internal customers with many managers setting customer service measures as a performance standard normally linked to incentive programs. Customer Service Measures (CSM) are a performance standard and are normally linked to organizational targets. The 360-degree appraisal is meant to provide employers with an overall picture of the employee’s performance. This is the term coined for this type of appraisal which combines feedback from as many sources as possible. The 360-degree appraisal approach is well adopted amongst the bigger firms but to make it successful feedback should remain anonymous , managers should personally discuss the evaluation in detail with every employee, checks should be conducted to ensure that cheating and biases do not occur. With the exception of the manager’s rating, the employee should not know how the evaluation team responded. This will ensure honesty.