This write-up is part of the series of notes on Human Resource Management. It explains about the performance appraisal in organizations. Performance appraisal is described as one of the most effective management control systems. The note mentions the various aspects of designing a performance appraisal system, the content of performance appraisal forms, the selection of appraisers, performance review, and types of measures and data which can be used. It also states challenges to effective measurements and emphasizes on giving effective feedback.