What is the effectiveness of the performance appraisal is often a topic of debate. Read the Forbes article, Eliminating Performance Appraisals Links to an external site. Based on the content of the article, 

argue reasons why performance appraisals should not be eliminated.

  

FORBES > LEADERSHIP Eliminating Performance Appraisals Edward E. Lawler III Former Contributor I am all about sustainable organizational effectiveness. Mar 25, 2014, 02:46pm EDT Should organizations stop doing performance appraisals? The argument in favor of eliminating them is that they frequently do more damage than good. Among the damage that they are said to do, the least troublesome is wasting time, and the most troublesome is the alienation of employees and creating conflicts between them and their supervisors. There is no doubt that in many organizations performance appraisals are poorly done, and that they create a multitude of problems. However, it is important to point out that they exist because of the need to motivate, direct, and improve the performance of individuals and organizations. Those who advocate eliminating performance appraisals don't disagree with these needs, but they point out that managers can and do this anyway, and that therefore performance appraisals are a redundant bureaucratic troublesome activity. It is hard to argue with the point that "good managers" do what a good performance appraisal is supposed to do. The fact that they can and do it supports the argument that appraisals can be eliminated, or at least, radically simplified. The "problem" is that many managers do not manage in ways that make performance appraisals unnecessary. Despite this, some companies have declared that they are performance appraisal-free organizations.