The articles study the performance appraisal and for making all these possible an organization should possess human resources that could function efficiently and effectively. Human resources are valuable resources for any enterprise. They are vital as they possess the required intelligence to make material, physical and financial resources productive and effective. Create and maintain a satisfactory level of performance. Contribute to the employee growth and development through training, self and management development programmers and guide the job changes with the help to continuous ranking. The process of performance appraisal helps in linking information gathering and decision making process which provides a basis for judging the effectiveness of personnel sub divisions such as coming as rightly observed that the overall objective of performance appraisal is to improve efficiency of an enterprise by attempting to mobilize the best possible efforts from the individuals employed in it.