IntroductionHendry et al (2000) suggest that appraisal is an 'overused' process, designed to monitor employee activities. However, past and recent scholars have considered performance evaluation as a strategic and integral part of an organization (Longenecker and Goff 1992; Coutts and Schneider 2004). Performance appraisal is defined as two simple terms that provoke and drive strong responses, feelings, opinions and judgments in the organizational context of the formal appraisal procedure when mutually used together (Pettijohn L. et al 2001 and Kumar 2005). Most organizations in the world, regardless of size, type and distinction of products, employ the use of performance evaluation; but with varying levels of achievement as a tool used to drive a combination of human resource management purposes (Pettijohn L. et al 2001). Previous literature suggested that performance appraisal existed based on several rationales that included predicting selection decisions, a metric for salary increment, a means of providing feedback between managers and employees, and facilitating employee development (Mount 1984). Research has focused on creating systems to improve the psychometric properties of performance evaluations (Mount 1984, Fombrun and Laud 1983). However, future research has attributed developmental changes in the recent performance appraisal system to large-scale organizations rather than advances in theory (Redman and Wilkinson 2006). Numerous definitions have been given to performance evaluation by numerous scholars, researchers and practitioners. According to Flippo (1984), "performance appraisal is the systematic, periodic and impartial evaluation of an employee's excellence in matters that concern the participants. This will lead to greater satisfaction for both employees and employers (Crook and Crossman 2004 and Hunt N. 2007).Conclusion There are huge benefits to implementing a regular and systematic performance appraisal system within an organization, some of which are increased contribution, of employee knowledge and productivity However, they come in the form of performance consultancy, professional training, performance improvement and proper feedback system which in turn increases employee contribution and ensures smooth productivity of organizations In order to achieve maximum benefit and acceptability from performance appraisals, it is recommended that a system be developed consultation with workers and managers and clear links are established between appraisals and rewards and valuable outcomes (Duraisingham V. and Skinner N. 2005).