The article discusses the importance of effective performance appraisal in an organization to manage talent and improve overall performance. It highlights various methods such as new scales for rating, forced distribution, and web-based appraisals to improve appraisal systems. The article also emphasizes the need for employee involvement in setting goals and the importance of leadership and management systems in determining the effectiveness of performance management. Finally, it recommends training employees and appraisers, separating development discussions from reward-oriented ones, and integrating comprehensive HR strategy with performance management.