Performance appraisal usage is expanding in public sector organization
s across the U.S. Organizations employ the formal appraisal process wi
th the belief that it provides them with a host of potential human res
ource benefits. In this study, 254 members of a large public sector or
ganization were surveyed to assess the degree to which the organizatio
n's formal performance appraisal system was perceived as being effecti
ve in serving functions typically associated with the appraisal proces
s. In addition, differences in manager/subordinate perceptions were an
alyzed and suggestions for improving the appraisal process were solici
ted. This research demonstrates that a properly developed appraisal pr
ocess can serve both managers and subordinates in a number of importan
t areas. At the same time, several critical functions of the appraisal
process were found to be less than effective. A discussion of the imp
lications of these findings to both academics and practitioners is inc
luded.