You are incorrect in saying Annual Performance appraisals are being discontinued. As an employee I see that the biggest impact to this is in the process of how we are evaluated.Rather than following a force-fit bell curve, the approach is measured in terms on contributions to the team based on a set of priorities and team performance is rewarded. This also means that we dont have to shut out average performers as per a laddering method.That said the parameters for performance evaluation very much exist to differentiate one from another but this is based on the impact they made to the team.