Do you think these types of annual meetings instead of performance appraisals breed mediocrity?

WEEK 4 2ND DQ JOANNE 

In healthcare, the trend is to do an annual touch base. This is a discussion of what is going well and if something isn’t going well then to tell management what it is you need from the organization. There isn’t a rating and nothing that is said is tied to pay increase. In some organizations – pay for performance is nonexistent.

Do you think these types of annual meetings instead of performance appraisals breed mediocrity?