Feedback, if given appropriately, helps in increasing employee engagement which simply means employees are more willing to give discretionary effort to do a job successfully.
A global shift is underway and today, employees need and want regular feedback, so a once-a-year review is not only too late but it's often a surprise. Managers cannot typically "judge" an entire year of work from an individual at one time, so the annual review is awkward and uncomfortable for both manager and employee. While some employees are a poor fit and are likely poor performers, these issues should be addressed immediately, not at the end of the year. Regular coaching is the key to alignment and performance. The most valuable part of an appraisal is the "development planning" conversation - what one can do to improve performance and engagement - and this is often left to a small box on the review form.
Organizations worldwide have realized this and are looking for a comprehensive solution for a continuous feedback-driven Performance Management System.