As the description suggests, use this template when someone needs to be reviewed without his/her knowledge. Typically use cases include probation assessment, peer assessment, performance review where only manager adds his responses for the team member. By default content of this type of template remains visible to the reviewer (can be anyone based on how you distributed the template), the Employee Success admin who distributed this template & super admin irrespective of shared or not. Of course, content can be further shared via explicit sharing with other users too.
In this section