What is the key to an effective, efficient and transparent performance management system? What's the best you came across so far? Why it's so different?

3 words: clearly defined targets I have been doing performance management for over10 yrs now and from360 feedbacks one of the most important thing for an effective PMP is the clearly defined performance indicators that are realistic, measurable, achievable and demonstrated through peer appraisals, reward strategies and recognition. When an objective is defined being witnessed as achievable and peer performance rewarded with announced recognition, each employee strives to meet those objectives.It is important at the same time to show the bigger picture, the value each team players adds to organisational goals and the added value translated through company and consequently employee growth.This model works well with good planning, monitoring and feedback training

3 words: clearly defined targets I have been doing performance management for over10 yrs now and from360 feedbacks one of the most important thing for an effective PMP is the clearly defined performance indicators that are realistic, measurable, achievable and demonstrated through peer appraisals, reward strategies and recognition. 
When an objective is defined being witnessed as achievable and peer performance rewarded with announced recognition, each employee strives to meet those objectives.
It is important at the same time to show the bigger picture, the value each team players adds to organisational goals and the added value translated through company and consequently employee growth.
This model works well with good planning, monitoring and feedback training

The successful performance management system should be based on the following key points:

1- Performance measures must achievable, challenge-able and attainable.

2- Targets or objectives must be SMART (specific, measurable, attainable, relevant, within a limited time frame).

3- Performance measures must financial & non-financial.

4- The best performance management tools are the key performance indicators (KPI's) , balanced scorecard (BSC), residual Income (RI), and the return on Investment (ROI).

1. Releancy.

2. Accountability.

3. Reliability.

4. Validity.

5. Fairness.

6. Practical.

and what about the lineincy of the functunal manager