Leigh--- You're absolutely right--annual performance reviews are too often completed at the last minute, one sided, and generally hated by all concerned are an anachronism to be left in the dust bin of operations.
The excuse that they are needed for salary increases is a justification after the fact. Salaries are more often set by budget availability and the market.
Fancy forms are useless. A far better way is to evaluate performance based on a series of goals  which are specific, time limited and have weighted values assigned to each. They are preset by the parties together and are addressed frequently thereafter. As they are accomplished and replaced with new ones a summary evaluation is made of what has been accomplished.  The essential question for the supervisor is always " how can I help you (employee) succeed?" The essential question for the one supervised is always "what can I do to help my boss succeed?"  There is no once a year event, There is, instead, a series of ongoing conversations to improve everyone's performance.
The process only works when started at the top.