[curun1r]

> How can you tell whether someone delivered significantly better then others?

I can tell because I don't suck at my job. I look at pull requests. I look at ticket completion. I'm with my engineers during planning to know whether people are padding their estimates. I make a note whenever someone steps up in some way (handling emergencies off hours, helping another developer get their work done, etc.) If a manager doesn't understand the work of the people s/he's managing, that manager is unqualified to do the job.

As to your 1), it all depends on what type of culture a company has and how much employees are punished for screwing up. At a company like Facebook, you're expected to "move fast and break things." I'd be very surprised if people were inhibited there. If you're at a bank where screw ups mean someone gets fired, you're probably right.