In this era of cut-throat competition for achieving the organizational goal every organization mainly has to depend upon the human resource of their organization. Overall performance of human resource of the organization decides the future growth, prospects, performance and at last the existence of the organization. Therefore it is very necessary for the organization to manage and develop its human resource in terms of their skills, knowledge, technical know-how and abilities. Performance appraisal is one of the most effective practices used by the management under human resource development practices so as to ensure the employees job performance is directed towards that the expectation set by the  organization and it also helps the organization in achieving their organizational goals. This study was conducted in the selected service sector in Maharashtra. The service sector in Maharashtra is an outstanding division regarding national and states income contribution, trade flow and employment generation. This sector comprises ample range of actions consisting of trading, financing, communication, transport, real estate, business services, personal and social services. Different types of PA system are followed by the diverse companies in each segment of the sector. This research paper study the performance appraisal of employee who are working in the selected service sector on the basis and also study the impact of  job category, education and experience on the performance appraisal.

Keywords: Employee Performance, Performance Appraisal, Impact of Performance Appraisal.