The concept of Performance appraisal (PA) has been transformed over the time period. Performance was usually associated with the yearly appraisals which determine or assess the entire years effort of an employee wherein numbers are used for assessment. A performance management system is not about trying to control employees, but rather to focus on improving overall performance. Performance Management System (PMS) can be a good instrument which can be comprehensively designed and executed or implemented in all sincerity. Changes can be made to improve the effectiveness of PMS and can be more effective. With any other organizational system, performance management systems effectiveness is heavily dependent upon the way it is designed and implemented and perhaps, the reason for it being one of the most praised, criticized and debated management practices for decades.