I'm not sure how I feel about it all, to be honest. As with most things, the extent to which it will work will depend on how it is managed. A lot of the staff seem concerned that they are being backed into a corner and won't be able to enjoy the yearly pay rise that is currently offered. I'm sure that's probably part of the plan too! I'm not too worried about having to 'prove my worth'. I can understand that people may be concerned, but if you're a hard worker who constantly looks for ways to improve your performance then I can't see there being too much of an issue.
One of the key elements that needs to be well-handled is that of trust. If the staff can't trust that the system will reward teachers who achieve high standards then it simply won't work. The process has to be clear and achievable. As the article states, it's no small task to appraise and evaluate a staff body and if there are questions of rigour then suspicions will be aroused. Also, if the staff are forced into an environment of competition, then the collaborative nature that is so important in our daily practice will suffer.
One of the potential benefits of a well managed performance analysis system is that good teachers will be more likely to remain in the classroom. This will serve to raise standards, which surely has to be the key focus of any such system.
I'm sure I'll have more to say on this topic once a decision has been made as to whether our school will employ a system of this type. Watch this space!