In this chapter, the author shows that analyzing diverse performance appraisal (PA) and performance management systems in terms of the models they present will help to illustrate the commonalities and explain the differences in systems. A number of scholars have proposed models of the PA process, primarily as a means of organizing past research and generating propositions for future research. These models have generated a large amount of research and have generally served the field well in terms of suggesting new ideas for research. The model begins by acknowledging the role of distal factors that operate at the level of the nation or region, but which can influence the appraisal process. Organizations that concentrate on providing stable service in a specialized niche would be likely to appraise things such as customer service and satisfaction, and might even try to hire employees who fit the image of the niche in which the firm competes.