A discussion of the need for procedures to identify the causes of failure of performance appraisal and supervision. The text describes a sound practical concept of evaluation that can be used to meet this need. A performance appraisal system is defined as a series of actions that are carried out by supervisors and employees to: plan what employees are to do, insure that employees understand what is expected of them, assist employees to perform up to standard, and provide information on making management decisions. Systems analysis is used to describe a comprehensive performance appraisal system that contains all of the parts necessary to function effectively. This system description is summarized in five pages of tables for the convenience of the practitioner and is described in detail in the text. The consequences of failure are also enumerated for each step of the process. Procedures are included to identify discrepancies in the systems within an organization, in order to determine if the parts of the system are being carried out in practice, and to establish if the desired objectives are being achieved. These procedures also include ways to determine whether the appropriate methods are being used to measure performance and ways to control human error. Finally, the requirements for a continuing evaluation effort are discussed.