Performance appraisal systems are designed to meet a number of objectives.

To motivate individuals by providing an opportunity for feedback and an opportunity for a staff member to discuss any issues.

Managers have a reluctance to give the highest or lowest grades, so end up giving all members of staff an average grading.

Timing of appraisals can lead to problems for management as it tries to schedule a number of performance appraisals within a short time frame.

If the scheme does not have top level buy in, it will be unlikely to succeed and may become a box ticking exercise.