Introduction:An organization is a group of people brought together to achieve specific objectives. Goals can be achieved if team members perform well. Performance is the result of activities provided to an organization's employees to be achieved within a specific period of time. The evaluation of employees' current performance against past performance and organizational standards is known as Performance Appraisal (Dessler, 2005). Furthermore, performance appraisal helps the company to know how individual employees are performing and how to improve their performance, thus improving the company's performance (Grubb, 2007). A performance appraisal is proposed in which the performance management system in an organization sets work objectives, determines performance standards, provides performance feedback, determines training and development needs, and distributes rewards, as well as evaluates the job performance of an employee during a period of time. A team member's performance is more than just evaluating the work of individuals, it is managing the company, so an employee's performance is influenced by an organization's performance. The goal is to achieve the best results for the planned strategy by managing employee activities. There are many different opinions on performance appraisals, some organizations carry out performance appraisals without any purpose simply following others, where as some organizations carry out performance appraisals to ensure they have a piece of paper in the employee's file - they are careless about performing a corrective action. But successful organizations understand the importance of combining performance appraisals into the performance management process and strategic plan as the success of any organization… middle of the paper… annual reviews of the organization's pay and grades , performance evaluations typically review each individual's performance against the goals and standards for the trading year, agreed upon in the previous evaluation meeting. Performance reviews are also essential for career and succession planning: for individuals, for critical jobs, and for the organization as a whole. Performance appraisals are important for motivating staff, developing attitudes and behaviors, communicating and aligning individual and organizational goals, and promoting positive relationships between management and staff. Performance appraisals provide a formal, recorded and regular review of an individual's performance and a plan for future development. References • Grubb, T. (2007). “Performance Evaluation Reevaluated: It's Not All Good.” Journal of Human Resources Education. vol. 1, (no. 1,): 1-22.