The Performance Appraisal Debate Continues

Does your organization use performance appraisals?  If not, what alternative to monitoring employee performance do you use (if any)?  I've previously written somewhat about performance appraisals (Performance Appraisals - The Plaintiffs Best Friend? and Performance Evaluations for Lawyers and Non-Lawyers). I see that the debate about the usefulness of performance appraisals continues.  Lisa Haneberg at Management Craft has a series on performance appraisals:

Scrap Performance Appraisals - Part 1
Scrap Performance Appraisals - Part 2
Scrap Performance Appraisals - Part 3
Scrap Performance Appraisals - Part 4   
Scrap Performance Appraisals - Part 5

I see that Bren Connelly at Slacker Manager has gotten into the discussion at Performance appraisals bite? as has Tom Lutz at HR for the leader in you at Performance appraisals....the good, the bad, the ugly.