Modern day organizations have changed in numerous ways resulting into the change in processes used for running the organization. In this change of process HR has achieved a strategic importance. Performance has become a key word in today's organizations. This along with change in work styles has brought about a change in the ways in which performance of employees is assessed and managed. A carefully designed performance appraisal system may be as a tool for employee empowerment, employee development, boosting morale and as an assistance in employee retention. The paper discusses multiple roles that an appraisal system is capable of playing. But this goes along with certain assumptions which are highlighted in the discussion. Various concerns that accompany the modern systems of managing performance have also been pointed out in the paper.
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