This study examined supervisor perceptions and subordinate reactions to formal performance-appraisal reviews. The performance-appraisal behaviors of supervisors and the reactions of their subordinates were studied in a sample of university employees. A factor analysis revealed that there were three dimensions of formal performance appraisals: two developmental dimensions (being supportive; emphasizing performance improvement) and one administrative dimension (discussing pay and advancement). Regression analyses suggested that supervisors supported highly rated individuals and stressed improvement efforts for poor performers. After controlling for the level of previous performance ratings, results indicated that support in the appraisal review was associated with higher levels of employee motivation, while discussing pay and advancement was associated with higher levels of employee satisfaction. Unfortunately, improvement efforts by the supervisors did not influence job performance one year later.