The New York Times brings a read worthy column by Eilene Zimmerman about how to prepare for your annual performance review. In the various companies I have worked in performance reviews tended to be handled very different. One company had an elaborate system of ranking and rating that eventually ended up in an increase, or not.
Another very innovative company I worked for had abandoned all performance reviews and just paid people what the market would pay them. If they were stars they got opportunities earlier, if they were not so great, they would stay behind or be asked to leave. Instead of performance appraisals this company valued regular communication between the managers and their employees.
Clearly Eilene approaches the more traditional performance review. You need to go and read the column HERE
She also discusses the works from Shawn Kent Hayashi and Stephen R. Balzac, see Whawn’s book below: