ID3 algorithm a decision tree classification algorithm is very popular due to its speed and simplicity in construction but it has its own snags while classifying the ID3 algorithm and tends to choose the attributes with large values and practical complexities arises due to this. To solve this problem the proposed algorithm empowers and uses the importance of the attributes and classifies accordingly to produce effective rules. The proposed algorithm uses the attribute weightage and calculates the information gain for the few values attributes and performs quite better when compared to classical ID3 algorithm. The proposed algorithm is applied on a real time data (i.e.) selection process of employees in a firm for appraisal based on few important attributes and executed.