1.0 INTRODUCTION The history or background of performance appraisal is quite brief. Its roots in the early 20th century and can be referred to Taylor's pioneering Time and Motion studies (Archer North, 2010). Unfortunately, this is not very helpful because for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the World War Two which is not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second most aged profession. People differ in their talents, skills and their aptitudes. There are always some inequalities between the quality and quantity for the same work and same job perform by two different people. Therefore, performance management and performance appraisal is necessary to critically understand each of the employee’s abilities, competencies and relative merit and worth for the organization. In a simple explanation, employee’s performance is being rates by the performance appraisal. This performance appraisal is universally used in the society. According to Khan (2008), it is an objective way to determine and evaluate employee work-related behaviour. An employer evaluating their employees is a truly classic concept. It is a crucial part or also can be seen as the heart of performance measurement. Performance appraisal is required to measure the performance of the employees and the organization as well in order to check the progress towards the desired goals and aims. The latest tune or mantra being followed by organizations all-around the world is that to get paid according to what you contribute. The focus of the organizations is turning to