Final answer:
The statement that including a self-appraisal component in the performance appraisal process encourages employees to reflect on the performance of a peer is false. Self-appraisal focuses on an individual's own performance, while peer appraisal would involve assessing others. The 360-degree feedback method incorporates self, peer, and other stakeholder assessments for a comprehensive view.
Step-by-step explanation:
Including a self-appraisal component in the performance appraisal process is false when it comes to the claim that it encourages employees to reflect on the performance of a peer. Self-appraisal is primarily a tool for individual reflection rather than peer assessment. The 360-degree feedback, however, is an approach where not just the self-appraisal but also the feedback from supervisors, customers, direct reports, and peers is considered.
While there are varying perspectives on the effectiveness of self and peer ratings, with some criticism highlighting their unreliability, others argue that the discussions stemming from these ratings can be learning opportunities. Therefore, performance appraisals, which include self-appraisal, serve different purposes, such as motivating employees, identifying training needs, and documenting performance for administrative decisions.