This document discusses performance appraisal, including its purpose, design, and key success factors. It begins by defining the goals of performance appraisal as maximizing contribution to business objectives and providing an ongoing development cycle. It then covers designing an effective system, including using a competency-based approach, multi-rater feedback, and focusing on future development. The document emphasizes linking individual performance plans to business, functional, and team objectives. It concludes that clear communication and addressing cultural aspects are critical to the success of any performance appraisal system.