1. Performance appraisal usually takes the form of a periodic interview in which the work performance of the subordinate is examined and discussed, with a view .......... identifying weaknesses and strengths as well as opportunities for improvement and skills development.

2. In many organizations — but not all — appraisal results are used, either directly or indirectly, to help determine .......... outcomes.

3. That is, the appraisal results are used to identify the better performing employees who should get the majority of available .......... pay increases, bonuses, and promotions.

4. By the same .......... appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.

5. Organizations need to be aware of laws in their country that might restrict their capacity to .......... employees or decrease pay.

6. Whether this is an appropriate use of performance appraisal — the assignment and justification of rewards and penalties — is a very uncertain and .......... matter; few issues in management stir up more controversy than performance appraisal.

7. There are many .......... sources — researchers, management commentators, psychometricians — who have expressed doubts about the validity and reliability of the performance appraisal process.

8. Some have even suggested that the process is so inherently .......... that it may be impossible to perfect it (Derven, 1990).

9. At the other .........., there are many strong advocates of performance appraisal; some view it as potentially "the most crucial aspect of organizational life" (Lawrie, 1990).

10. Between these two views lie various schools of belief; while all .......... the use of performance appraisal, there are many different opinions on how and when to apply it.