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The aim of this study is to analyse how two groups of workers (promoters and receivers) at a Brazilian steel company perceive the performance appraisal (PA) practised there. In order to provide a theoretical foundation for this research, the role attributed to the HR area was reviewed; the central theme of the research, performance appraisal, was conceptualised; and aspects related to perception were developed, due to the subjective nature of the processes involving the central theme. From the reports found, it was possible to see that the DA process is much richer in the understanding of the promoters than in the understanding of the recipients. It was not possible to identify from the responses that employees perceive the DM practised at the steelworks as a strategic instrument for the company. Furthermore, it can be recognised that the failings of the process run through all levels of the company. The problems start with top management, with the lack of definition of strategicobjectives, through to HR, which does not communicate the aims of the DA programme satisfactorily, and management, which shirks its obligation to offer feedback.