Performance Appraisals and Agile Teams

Who among you has that uneasy feeling during each and every scheduled performance appraisal? Supervisors tend to dislike it, employees are repelled by it, and yet it is still practised. We, Agile practitioners, do not lack the values and principles to drive ourselves to excellent performance.  Yet we get de-motivated by company policies and practices that operate under false assumptions. Performance appraisals try (and fail) to provide solutions to specific areas, in the world of work. Even worse, it risks driving a culture of disenfranchisement and directs towards individualism over collaboration. What do we do instead?