In the major companies I've worked at, your year-end appraisal/performance-review determines your raise. The process is basically your opportunity to prove your worth. To your point, if you are already maxed out, then you are simply fighting for maximum allowable raise. That's basically where I'm at. I'm capped and should only expect 3-5% raises, and my bonus, if I've earned them. If my appraisal was more mid, like average instead of above-average, then I am fighting for a 1-2% raise vs 3-5% at the higher rating.
