In most Organisations, Appraisal is just a way of justifying a decision already taken by the Managements on the career advancements of employees.
In many cases, there are assessments made by colleagues too. In such cases, it is rare to ask the colleague to justify his/her assessment and there by personal prejudice gets a say.
If conducted properly and without any bias, Appraisal will be a very good tool for the performance of the Organisation. After all a satisfied employee will perform better.