ABSTRACT 

Performance appraisal is most often undertaken with the aim of improving performance, motivating employees, or allocating rewards. Armstrong (2006) observes that the assumption underpinning the practice of human resource management is that people are the organizations key resource and the organizations performance largely depends on them. Therefore, if an appropriate range of human resource policies and practices are developed and implemented effectively, then human resource will make a substantial impact in organizations performance. Boohene et al (2011) argue that the case for an association between human resource management and organizations performance is based on two arguments. The first one being that the effective deployment of human resources offers one of the most powerful bases of competitive advantage. The second argument is that effective deployment of human resources depends on the application of a distinctive combination of practices, of the use of a consistent set of human resources practices. Performance appraisal can be defined as the process of assessing the performance of an employee in his job periodically so that human activities can be coordinated to accomplish objective. Put differently, the process of defining expectations for employee's performance, measuring, evaluating and recording employee's performance relative to those expectations, and providing feedback to the employees.