In spite of the efforts of researchers and practitioners, performance appraisal systems remain more of an albatross than an effective organizational tool. The movement toward objective measurement, employee participation, multiple raters, and the like, represents a definite improvement over traditional trait ratings. Still, internal improvements of appraisal systems may not be adequate to overcome the contextual factors that inhibit appraisal in organizations. Such things as the nature of managerial work, environmental demands, and organizational characteristics generally clash with the internal structure of appraisal systems. Designing appraisal systems congruent with organizational realities will require a new set of assumptions about what an effective appraisal system should look like. (Author)