Performance appraisal is a crucial practice in human resource management for organizations. A well-functioning performance management system not only provides vital information for other HR management systems but also plays a significant role in the annual business planning cycle. Performance management goes beyond initial issues like recruitment, selection, and training, addressing ongoing matters and incorporating subsidiary performance when expanding internationally any organization is to align individual aspirations with organizational expectations. By achieving this balance, individuals can effectively meet the expected level of performance. A robust performance system enables employees to develop the necessary skills and competencies to perform at a higher level. Its ultimate goal is to convert plans into desired outcomes through effective execution. Taking a proactive approach, performance management requires managers to identify underperformance early on and take corrective measures to minimize future damage. Additionally, it aims to foster an environment built on trust and honesty, encouraging open communication among employees, which is vital for achieving enhanced performance. Organizations can communicate their expectations to employees and provide them with valuable feedback, guidance, and training to enhance both separate and team recitals. Ultimately, performance management plays a vital role in creating and retaining top organizational performers.

KEYWORDS: Performance Management, Organization, Company, Appraisal.