What tactics should HR professionals use to make the annual performance review more effective?

ensuring the KPIs are measurable and no personal influence or opinion can change the percentage of KPI evaluation. 

Superior performance appraisal methods should be used. Employees performance should be reviewed at regular intervals and feedback should be given thereof, employers should have good personal relation with the employees to understand the results of his/her performance, wherever possible.

I agree to Mr. Obaid Ur Rehman views

1. Having good prestige with the employees.

2. Gathering every one who wanna join once or twice a week .

3. Listening to each other and Trying to suggest future profit .

4. Always , Keep in touch with others kindly .

The effectiveness of the performance annul review should take in consideration the personal meeting with the employee and the neutral discussion concerning the performance and the necessary points of development

Thanks for invitation,

In my opinion, using "Balanced Score Card", methodology. 

Become a one minute manager. Give the employee clear instruction of their goals and what they will be held accountable for. During the course of business Praise them for a task well done, big or small. But also be willing to Reprimand them if they have done something wrong. Sit with them and specify what they have done wrong and give them the chance to rectify the situation. This should be done throughout the year and not be handled or discussed in an annual performance review.  

Thanks 

I prefer to wait for more answers from colleagues 

Regards 

180 degree appraisals and target based proposal submitted by the employee

Performance appraisals are an essential component in gaining competitive advantage in the market by honing available talent and setting the way forward.

Few key principles that are useful and must be lead by HR to make this process successful are listed below:

Effective Goal Setting: HR can kick-start the Annual Performance Appraisal process on a positive note by indulging and facilitating an effective Goal Setting exercise across the company.

Business Engagement: HR needs to engage actively with all Departments, BUs and Line Managers to align them with the organizational and HR objectives of the APA process.

Documentation is Critical towards Success: Without thorough documentation, performance appraisals are ineffective. This means a very detailed breakdown of the goals that are to be assigned to employees (on enterprise, department and individual levels) and their performance with respect to the objectives. It might serve to provide line managers the updated job descriptions of the employees they are about to evaluate to ensure more accurate analysis.

Standardization is Gold: It completely eliminates lack of transparency. Managers need to be provided with sample benchmarks as to what stellar performance should look like so that they can grade their employees better, without assuming too much or allowing personal feelings to intervene.

Automation is Sweet Success: Last but not the least, automation is critical and a game-changer. When managers receive regular updates and notifications on what they must do to complete successful evaluation of employees, it takes the guesswork out of the equation.

A complete performance management system is a platform that brings all of these desirable appraisal workflow features together and HR can be the champion who wins it for the organization!