The purpose of this study is to review the performance appraisal system in place in Focus Ireland in terms of: Whether it is being used or not - establish the numbers that have been appraised in 2001. If it hasn't been used find out the reasons why it hasn't been used. Establish the happiness factor of the staff that have been appraised. Establish the happiness factor of the managers that have appraised their staff. It was decided to review Focus Ireland's performance appraisal system because their new system was implemented over one year ago and they wanted to know if the system was being used and if the staff and line managers where happy with it. It was intended at the outset that all staff should be performance appraised in the first year of the systems implementation. Having done limited research into this before undertaking this report I sensed that performance appraisals where not taking place as was anticipated. Questionnaires where sent to both line managers and staff to establish their happiness factor and also reasons as to why appraisals where not carried out. It was found that in general staff and line managers where satisfied with the performance appraisal system in place although less than 20% of the staff population where appraised.