In the world of business the use of performance management systems or annual performance appraisals is one that is viewed differently by each organization and management team. Although these two methods have some of the same characteristics, they also contrast in many ways. Performance appraisals can be an effective tool for organizations but along with many business techniques can be problematic. Another important method that should be practiced by organizations is the management of turnover rates. A swinging door of employees leaving and entering can quickly become a costly routine for an organization.