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Performance appraisal has always been a hot and challenging issue for the managers across the world, human resource managers as well as line managers. These caselets discuss some of the common issues in designing and implementing a performance appraisal system. One of the caselets discusses not just performance appraisal, but the broader issue of performance management. The method of appraising using the balanced scorecard approach has been discussed in the last caselet. These caselets are designed to enable students to: (1) understand the role and importance of performance appraisal in an organisation; (2) understand the implications of implementing an ineffective performance appraisal system; (3) understand the importance of winning employee support and acceptance for the appraisal system; (4) analyse the importance of not just designing but also implementing an appraisal system; and (5) discuss what constitutes a good performance appraisal system. The caselets are targeted at undergraduate and postgraduate students and are intended to be part of the human resources management curriculum.