I like to make it a point to have each employee say at least one thing in each meeting. It may also prevent your employee from shopping around for greener pastures. The 21st century will bring a much more pronounced merit pay system. Incentive pay has traditionally been based on productivity but a profitability measure has become much more common in recent years. This helps to keep good employees and helps motivated employees improve.
Most managers see the review process as simply a means to back up a dismissal.
Regular reviews also make the incentive process a much more refined and accurate process. In many instances it is better to evaluate on accomplishments and increased effectiveness than mandated quotas. However, the Evaluation and Review process must be always maintaining credibility. Keeping poorly performing employees can lower the morale of other employees. The Employee brings value to the business.