If you’re working as part of a distributed online team, you may some day find yourself managing that team – I know, it’s happened to me more than once. From there, it’s only a short hop to carrying out formal performance reviews. If you shudder at the thought, but have to carry out the work, take a look at SuccessFactors: a web-based performance reviews assistant.
The lowest-priced (starting at $99) Manager’s Edition offers enough hand-holding to get you through departmental reviews. It helps you organize the required competencies for each employee, has a whole pile of canned phrases for you to fill in the details, and converts the whole to a nice PDF when you’re done. They have other solutions with more extensive features for larger organizations as well.