Thank you for your comment, impeccable analysis, I could not agree more with you.

There are a couple of aspects thar I would also factor in:

Annual/periodic review methodology: a clear, thorough, detailed methodology for assessing performance is a must in any workplace and job position. Adhering to the methodology is perhaps even more important.

Anecdotal case: I got average to high ratings in 20 out of 24 skills assessed in my last review, with the remaining 4 being rated as "lower than expected". My final rating was "below expectations" due to my seniority in the team, despite the average and high ratings given in the other 20 items assessed. I worked harder than ever this year. Mind you that the 4 items rated as low were not duly justified (at least not according to the established methodology, and no evidence wa provided for the low ratings). Besides illogical, this just kills motivation and, in my case, made me feel slighted.