The Effectiveness of Performance Appraisal Every individual is different with their abilities, form of learning and the way they performed the same task as someone else. Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee (Fernandes & Pithadia 2012). It is important to conduct a performance appraisal regularly for performance feedback, employee training and development decisions, promotions, transfer, layoff decisions, compensation decisions, human resource planning and career development to help make the best in the human resources to be more efficient and productive in less hiring cost. An effective performance appraisal can enhance employee’s performance. Most employees want to know how well they are doing and how they can improve in the future. Employees with goals are motivated and are more motivated when they receive feedbacks about their performance. It is very important or an employer to understand the benefits and risk factors when providing performance feedback. By providing effective feedback to employees it encourages and enable their personal development which is beneficial to an organization. Two ways an effective performance appraisal can improve employee performance are by directing employee behavior towards organizational goals, and monitoring their behavior to ensure that goals are met. Managers are only humans so they tend to make mistakes while they evaluate employee’s performance. The performance appraisal process can be affected by biases and judgement errors. Every employee expect their performance appraisal to fair and totally free of biases. So many different kind of biases can show up while performance appraisal is being conducted. As I mentioned at the beginning of this paper, each individual is different in the way he or she does performs a task. A common