The document discusses the limitations of performance appraisals. It notes that performance appraisals may not provide accurate results if the assessment factors are not relevant. Supervisors may also lack the critical ability to properly assess staff. Additionally, subjective factors like initiative and personality are difficult to rate scientifically. The review is also done retrospectively based on events from 6 months prior, affecting recollection. This can lead to opposing opinions between staff and managers, causing demotivation.