I've actually been hoping that a formal review process will be put into place soon at my current company, and I've been asking my boss(es) about it regularly. This is because I was under the impression that a formal review is the only way for me to get a raise. From that perspective, it's definitel in the company's best interest to dodge this as long as possible: upon reviewing me, they either have to tell me I don't deserve what I think I deserve, or they have to pay me more.

Is my understanding of the process wrong? Granted, this isn't a GE kind of company-- we have employees in the hundreds, not thousands-- so hopefully it's different.