The majority of empirical studies on performance appraisal (PA) systems focus on the search for the perfect form in which subjective traits are replaced by objective and job-relevant, measurable behaviors. Organizations using a PA system to evaluate their employees struggle with issues of implementation, adaptation, and linkage with other human resource systems. To make PA a viable management tool, from a broader perspective, organizations and researchers must invest time in training managers in PA skills; in developing system evaluations which take into account reliability, validity, and managerial goals; and in designing systems to meet specific organizational conditions and expectations. Further research in these three areas will help to develop more acceptable and successful PA systems. (BL)