What is the value of the performance review?

Really, what is the purpose of the performance review? Why is so much anxiety expended preparing your response for an ill-prepared manager lacking the skills to execute a relatively straightforward meeting?

I sometimes wonder what the real benefit the performance review is to the organisation, we are having this meeting because all the other companies are holding performance reviews - that's not a real reason. The trend in US corporations is to move away from performance reviews, there is plenty of evidence indicating the yearly performance performance is purely a paperwork exercise. So what other choices exist then? Tech company Adobe Inc is moving to an eight week process where managers and team members set mutual goals and check-in with managers to measure performance against goals - this is really an adaption of Drucker's 1954 management by objectives incorporating Doran's 1981 SMARTT goals. The old 1950s system as described by Peter Drucker is still the superior process - who would have thought.