It's not a surprise that Microsoft's performance review has been so debated in the past few years, and more recently after Vanity's Fair post on "Microsoft's Downfall". If you haven't heard of how the performance review works at Microsoft, I'd suggest you read these couple of blog post and article:
Microsoft Stack Ranking is not Good Management
Microsoft’s Downfall: Inside the Executive E-mails and Cannibalistic Culture That Felled a Tech Giant
However, what surprised is to come across some posts on how Google does its performance review. From recruiters, I knew all about the wonders that peer feedback are at Google and how things are more fair.
I did not know, though, the different side of the coin. Read it here:
What are the major deficiencies of the performance review process at Google?
Promotions System Redux
Essentially, the problems with performance review are everywhere at big companies. I wonder how well it works at Valve, as it has a non-traditional organization structure.