To reveal evolving strategies for and existing problems in performance appraisal, this report summarizes recently published research findings and expert opinions. The first section examines the purposes of performance appraisal in organizations, discusses the relationship of appraisal to the job description, and presents an overview of the basic evaluation techniques available. Section 2 considers the advantages and disadvantages of techniques currently in use, section 3 focuses on the applications of appraisals, and section 4 reviews the issue of employment involvement, covering the management-by-objectives approach, the appraisal interview, the problem of unsatisfactory performance, and a solution proposed by a specialized system of appraisal. Finally, section 5 deals with employee protection, including the effects of equal employment opportunity law on performance appraisal procedures, the new emphasis on privacy of information, and the need for a grievance process. Court cases involving use of performance evaluation from the early 1970s to the present are appended. (Author/WD)