All organizations use performance appraisal for several purposes in a systematic way using multifarious techniques and tools to measure the effectiveness and efficiency of their employees in relation to certain pre-established criteria and organizational goal as objectively as possible to ultimately know whether the organization is moving towards its predetermined goals. .. Performance Appraisal ensures the best utilization of employee talent because it helps the organization to reward the employees having better abilities and rectify the wrong placement which in turns improves the human resource quality responsible for overall growth of the organization. The inability of organization to adopt a sound system of performance appraisal will be a hindrance to put an optimum use of the human resource in this era of globalization to attain the competitive advantage over others. The matter of fact is that Management assesses the performance of employees to maintain organizational control and disburse rewards and punishments to keep them on the track of organizational growt