Appraisals - The evaluation process

I want to introduce an appraisal system to my business but am unsure if it is worthwhile. How would I go about implementing such a system if I do choose to use one?

Appraisals are a fundamental part of a business and can be advantageous to both the employer and employee. By definition, appraisals record an assessment of an employee's performance, potential and development needs. They are an opportunity for discussion to take place regularly, in a formal manner, on the overall view of work, content, workloads and volume, to review what has been achieved during the last appraisal period and to agree objectives for the next. For an employer, appraisals are