We've just moved from stack ranking to a coaching orientated "flag if there is an issue" system. Thank the gods. So much time is wasted in performance management; what counts is that people who are not contributing can be coached into success; or removed if they are really not suitable to the team (very rare - and the fault of the manager - me - who accepted them). Promotion is done competitively and on the basis of achievements, so high achievers have a chance to differentiate. What I think is : all employees must have goals for their year; those goals should lead to growth and development - project contribution is table stakes... just do your job! Issues that get in the way need to go to the goal register.

Most (95%) people want to do their fair share and be good at their job. Some years they do a little worse because of health or family issues, some years they hit it out of the park. The 5% who don't want to do this are always a problem and need to be catered for separately. High performers can get promotions. Appraisals are to determine these two things and share information.