Generally what I've experienced is an annual "review" whereby employees assess themselves on fairly broad requirements ("Helping build the company") and then receive some feedback and a number. This is often associated with an annual pay rise.
I now find myself in a position where I can have some influence over the implementation of such a process, but having mostly had bad or neutral experiences I find myself clutching at straws for suggestions (aside from "don't do this!").
Has anyone had great experiences with such processes? Or am I being too idealistic or just too negative?