Performance appraisal is a systematic process of evaluating an employee’s job performance, abilities, behaviour, achievements and contribution to organisational objectives over a specific period. In Human Resource Management, it is an important tool for measuring how effectively employees perform their assigned responsibilities and for identifying areas requiring improvement. Performance appraisal generally involves setting performance standards, communicating expectations, observing and measuring actual performance, comparing results with established standards, providing feedback, and taking appropriate developmental or administrative decisions. It may be conducted through methods such as rating scales, ranking, critical incidents, management by objectives (MBO), 360-degree feedback and self-appraisal. Performance appraisal has considerable significance for both employees and organisations. First, it provides employees with regular feedback about their strengths and weaknesses. Constructive feedback helps employees understand what is expected from them and encourages them to improve their performance. Second, appraisal results support decisions relating to