Appraisal is essential for effective managing. If a organization is to reach its goals effectively and efficiently, ways of accurately measuring performance must be found and implemented. However, in an activity as important as managing, there should be no reluctance to measure performance as accurately as possible. Most people, particularly people of ability, want to know how well they are doing, what managers are expected from there, and what they can expected from organization. Managers have long been reluctant to appraise subordinates. The managers in some organizations are afraid of using the appraisal and they sometimes are not good at managing it. There are often differences between the stated objectives of appraisal and the way they were actually used.