The reasons that traditional performance management no longer works varies from the academic (the traditional model is based on an archaic view of worker performance) to the everyday (it's viewed as a hassle and time drain that doesn't truly benefit the employee, the manager, or the organization).
This paper explains:
Why the traditional method of performance management doesn't work and what's changing
The key components for an organization to understand to begin implementing performance management innovation
A brief look at the first course developed specifically to help any organization gain a working model for how to think about and conduct performance management innovation and effect change in their organization.