My opinion of performance appraisal is that this can be a very useful tool to managers and employees. When used correctly it can encourage employees in weak areas and let the manager communicate their expectations to the employee. It lets the employee know about specific weak areas as well as strong areas. As far as being honest , I currently work in an office that uses the evaluation process to gauge the percentage of raise an employee receives. The appraisal forms that our office uses are catered to the type of position, for example a fireman does not receive the same type of form as a clerical position.
Senior managers receive a different type of form than supervisors.
By segregating the types of evaluations and having two to three levels review them makes the form and system a good one. The all-salaried workforce reward may be attractive to the hourly worker. The lump - Sum Salary Increase or Promotions reward systems may be attractive to the average manager. For the average executive the Gain Sharing reward may be attractive. Money is always a good motivator, but benefits are becoming increasingly important because health insurance costs are rising annually, paid sick and annual leave days are also important.