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This paper aims to review the challenges of performance appraisal in organizations and argue that these challenges can and must be overcome.

The authors review research on performance appraisal in organizations and on claims that organizations are abandoning performance appraisal.

Structured performance appraisals are still the norm in organizations around the world. There are clear and practical strategies for improving appraisals. These include improving feedback and removing unnecessary complexity, clarifying the goals of appraisal systems, focusing appraisal on behaviors and outcomes under the employee's control and increasing the fairness of appraisal systems.

Research is needed on the effects of changing the ways performance appraisals are conducted in organizations.

Practical strategies for improving performance appraisal are outlined.

Better performance appraisals will benefit organizations and their members.

This paper refutes the growing claim that organizations are abandoning performance appraisal and illustrates practical strategies for improving performance appraisal.