Abstract
Every organisation for its survival and growth requires committed and qualified employees. Managers for the decisions such as the promotion, salary increase, appointment, fire, and replacement require evaluating the performances of their employees. With the assist of an appropriate performance appraisal system, companies will be able to overcome the problems related to employees' weak performances and can prepare plans for their performance improvement. In this paper based on the prior researches and studies, first the performance appraisal system, its objectives, content and process will be reviewed and then, the most recognised methods of performance appraisal and the effectiveness of performance appraisal system will be explained. And finally the performance appraisal system of an Iranian company will be examined and some improvement recommendations will be suggested.
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