So far in this series the emphasis has been on organisation theory and how it may he used to examine the organisation. With this article the emphasis changes and we start to examine specific aspects of organisation behaviour and how these are influenced by the organisation itself. In this article Charles Handy examines appraisal and identifies the dilemmas inherent in designing appraisal systems. He then discusses the appropriateness of differing approaches in appraisal to two organisational styles.