Performance Appraisal has been considered as the most significant an indispensable tool for an organization, for an organization, for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increases. Performance measures also link information gathering and decision making processes which provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation. This research will concentrate on examine the effect of the performance appraisal on an individual as well as on the organizations. The sample size of 100 has been chosen from the company. The data used for the study is primary data collected through the help of questionnaire filled by the samples. The data was evaluated with the help of statistical tools i.e., chi square test. The findings of the research show that there is a noticeable employee’s opinion of the performance appraisal on the organization as well as on the Individual