Performance feedback is an important part of many organizational interventions. Managers typically assume that providing employees with feedback about their performance makes it more likely that performance on the job will be improved. Despite the prevalence of feedback mechanisms in management interventions, however, feedback is not always as effective as is typically assumed. In this article, we present specific conditions under which feedback might be less effective, or even harmful. We then discuss the implications of our results and model for designing of interventions aimed at improving performance, and focus more narrowly on 360-degree appraisal systems. After arguing that these systems typically have design characteristics that reduce effectiveness, we conclude with recommendations for improving their effectiveness. We also emphasize the need for systematic evaluations of feedback interventions.