Performance appraisals are tools used by organizations to evaluate employee performance and development. While performance appraisals have been used for decades, there are ongoing problems and debates around their effectiveness and validity. Some key issues include appraisals relying too heavily on subjective manager opinions, a lack of communication and goal setting with employees, and biases influencing ratings. Overall, performance appraisals continue to be widely used but improving their processes remains an important challenge to help motivate employees and benefit organizations.