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Performance management aims to get better results for the organisation and evaluation of individual 
performance. 
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Appraisal is part of the system of performance management, including goal setting, performance 
monitoring, feedback and improvement planning. 
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Appraisal can be used to 
reward
but also to identify 
potential
. It is part of performance management 
and can be used to establish areas for improvement and 
training and development 
needs. 

 
Formal appraisal systems
support objective, positive, relevant, consistent feedback by managers. 

 
Three basic requirements of a 
formal appraisal system 
are: defining what is to be appraised, recording 
assessments, and getting the appraiser and appraisee together for feedback and planning. 

 
There are a number of ways to judge or appraise performance. The most appropriate method will 
depend upon the circumstances and people involved. 

 
The appraisal 
interview 
is an important stage in the process, as it can be used to encourage 
collaborative problem-solving and improvement planning. A 'problem-solving' style is preferable to a 'tell 
and sell' or 'tell and listen' style (Maier, 1975). 

 
Problems
with appraisal are its implementation in practice and a range of misperceptions about it 
(Lockett, 1992). New techniques of appraisal aim to monitor effectiveness from a number of 
perspectives. 

 
New techniques of appraisal aim to monitor the appraisee's effectiveness from a number of perspectives. 
These techniques include upward, customer and 360 degree feedback.