A performance appraisal is one of the most complex, and controversial, human resource techniques. The participatory performance appraisal is an essential and proven attribute of an effective performance appraisal system. This article summarizes the conceptual foundation for participation including its intrinsic motivational value, the expansion of available information, and the opportunity to interject employee voice. The moderating role of goal setting and feedback in enhancing participation effectiveness is outlined. The article concludes with factors that attenuate the effectiveness of participation including lack of training, absence of rater accountability strategies, and organizational and supervisory resistance to honest subordinate feedback.