Performance appraisal systems are necessary to provide employees with the opportunity to develop their professional potential and to be assessed and rewarded according to the efforts. That is why, to meet the managers’ needs to assess the employees’ performance, the performance appraisal systems should respond to such criteria as relevance, sensitivity, reliability, and acceptability (York 157). These criteria are important to be taken into account while discussing the effectiveness of the performance appraisal system used at Sikorsky Aircraft Corporation. Sikorsky Aircraft chooses to use the general performance appraisal system appropriate for all the company’s departments, and it is necessary to assess the system’s effectiveness along with proposing the variants for the system’s improvement. The managers at Sikorsky Aircraft focus on the aspects of the employees’ performance as the prompts to plan compensation and rewards. Providing competitive salaries as a result of analyzing the employees’ experience and performance, the company’s managers need the effective performance appraisal system. The existing system depends on the overall performance rating, formal review of the annual performance, and on the analysis of the achievement of the individual goals with references to the Individual Development Plan. Having analyzed the results of the performance appraisal activities, the company’s managers conclude about the necessity for employees to improve the performance with the help of training and development programs (“Sikorsky: Performance Culture”). In spite of the fact that the described performance appraisal system is used at Sikorsky Aircraft during a long period of time, it cannot be discussed as sensitive and reliable, and the system can be improved to contribute to the employees’ productivity and motivation. The three specific ways to improve the company’s performance appraisal system are the shift to using graphic rating scales, the use of the “My Dream Job” approach to the assessment of the employees’ performance, and the focus on the special training needs assessments. The use of graphic rating scales can help managers discuss the employees’ performance with references to their individual skills, talents, abilities, and experiences which respond to the company’s goals. The effective graphic rating scales should assess employees with references to the set job tasks, expected levels of performance, and performance dimensions or anchors (York 177). As a result, the manager can compare the employees’ performance according to the scale and conclude about feedbacks, rewards, and bonuses. The “My Dream Job” approach to the assessment of the employees’ performance is the focus on the employee’s vision of his or her career development and professional growth within the company (York 197). Although the managers of Sikorsky Aircraft Corporation assist employees to develop the individual plans, the information presented in the plans is not enough to decide about the employees’ priorities and goals. The assessment of the employees’ skills and experiences with references to the idea of the dream job can be more effective to focus on the employees’ individual potential. The next necessary improvement is the development of the train