This report assesses the current state of the art of personnel performance appraisal in education to provide guidelines for new initiatives and developments in the use of personnel evaluation systems in Ontario schools. It is organized in such a way that the major issues related to performance appraisal are presented in the order in which an organization considering performance appraisal will need to address them. The study is presented in seven chapters. After a brief introduction, the second chapter, "The Nature of Appraisal," surveys current efforts to formalize and objectify the act of personnel evaluation, and some of the issues and problems arising with such efforts. The third chapter outlines three major responsibilities of management that are prerequisites to implementing a personnel evaluation system: establishing goals, coordinating efforts, and setting standards. Chapter 4 suggests that effective performance-management strategies precede effective performance appraisal systems, and that both depend on a clear conception of the nature of the work to be managed. Chapter 5 uses concepts developed in the previous chapter to examine the nature of teaching as it relates to the structural attributes of the education system. The sixth chapter describes the implications of all the preceding chapters for performance appraisal practices in general, and in educational organizations in particular. The major issues and recommendations identified in this report are summarized in the seventh and final chapter. A bibliography is included. (TE)