Performance appraisal has been the focus of considerable research for almost a century. Yet, this research has resulted in very few specific recommendations about designing and implementing appraisal and performance management systems whose goal is performance improvement. We believe that a reason for this is that appraisal research became too interested in measurement issues and not interested enough in ways to improve performance, although some recent trends in the area have begun moving the field in the right direction. We review these trends and their genesis, and propose a motivational framework as a means of integrating what we have learned and generating proposals for future research that focus on employee's performance improvement.