Thomas Otter posted a while back about the problems with appraisals (including a link to a video from the UK version of "The Office" which is extremely funny). Gautam Ghosh provides some good advice on about how to improve the performance appraisal process. New Employee Performance Management software, in and of itself, does not improve performance appraisals. It requires the right processes, culture (i.e., appraisals are fair, high performance is rewarded, etc.), and content (as Gautam points out, bad goals or too many goals can be problematic).