Best Form Of Performance Appraisal

Hi,
I am in the process of designing a performance appraisal system for my current organisation. would like to invite inputs from you all in term of the best practises and techniques of performance management...
Pls. suggest.
thanks,
Amrit.

Hi Amrit,
Good PMS involves the following viz.:-
1. Discussion of the last year's performance based on KRAs
2. Discussion on the upcoming goals.Laying down the Key Performance Indicators( KPIs).
3. Potential Appraisal
4. Training needs.
5. Assessment of the employees on the Managerial Competencies
6. It should be a two way dialogue and more emphasis on the developmental part rather on the increment or raises.
Very unfortunately in most organizations the PMS get reduced to form filling exercises and ratings game! which should not be the case. Good organizations lay emphasis on the spirit behind the process and focus on the deveopmental part.
This involves sensiting the line managers the importance of this tool rather than living it to their past experiences. For this one must provide the guidelines and more importantly have a 'buy in' from the top Management.
Best wishes,
Regards,
Rajat

Thank you Rajat. Your inputs are very clear, practical and comprehensive. I woudl definitely need more help once i start designing the form...
thanks again,
Amrit.