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This chapter reviews the performance appraisal theory and research to examine the expectations that (a) performance ratings are accurate and (b) performance improves as a result of receiving feedback. It provides a critical analysis of the performance appraisal literature and identify successes and challenges in living up to these expectations. The chapter organizes the review in two major sections. The first major section discusses the predominant strategies and challenges to improve the quality of ratings. The second major section also reviews a research on performance feedback, focusing on the characteristics of feedback that are likely to lead to employee development. To address the influence of rater motivations, rater training could incorporate interventions designed to increase motivation to rate accurately and reduce competing motivations. Future research can work to develop and test the efficacy of rater …