In all my leadership roles I have recognised the importance of a performance management process which can act as a way to acknowledge good performance, while also providing the platform for tackling the more difficult staff issues which can arise in any organisation.
The common method is through the annual appraisal. Having been on both sides of this discussion for many years I have often questioned the value of this event. For many it is just an inconvenient task which has to be completed and I haven't met many people who think the annual appraisal adds much value to any organisation I have worked in.