Performance appraisal is an important part of human resource management used to evaluate and develop employees. This study examines the effectiveness of performance appraisals at Pennar Industries. Data was collected through questionnaires and analyzed using weighted average methods. The results found that 68% of respondents felt appraisals were done effectively and impartially. Suggestions include using more modern appraisal techniques like 360 degree feedback. In conclusion, appraisals are more accepted when linked to rewards, and organizations can further develop employees through training programs.