Intended for use by library managers, this self-study guide provides an introduction to performance appraisal as an effective tool in human resource management, and a review of the extensive management literature on performance appraisal. Topics discussed include: (1) the functions of performance appraisal, which include the provision of information for making objective comparison among staff, the review of past performance in order to set future objectives, and the identification of employees with high potential; (2) the choice of a performance appraisal system, with information on the strengths and weaknesses of graphic rating scales, essay descriptions of employee performance, the forced-choice system, management by objectives (MBO), behaviorally anchored rating scales (BARS), and the tenure system for academic librarians with faculty status; (3) issues in performance measurement, including environmental and legal constraints, questions of equity, managerial resistance, and the decision as to whether or not merit pay should be awarded for superior performance; and (4) the necessary steps and required techniques and skills for conducting an appraisal interview. Suggested readings, an annotated bibliography of further readings, and exercises are included in each chapter. The conclusion provides a five-step check list for developing a program of performance appraisal. (ESR)