A survey of 218 industrial employees who had used a peer evaluation system for over a year found a higher degree of user acceptance than that reported in previous research. Users were significantly more favorable in their attitudes toward peer appraisals when the appraisals were used for developmental rather than evaluative purposes. Favorable user reactions were positively associated with the satisfaction that employees expressed with prior peer ratings and with the amount of leniency perceived in the peer rating process. User reactions were negatively associated with perceived friendship bias and years of company experience. No relationship was found between peer or self-ratings of performance and reactions to the peer appraisal process.