In fundamental nature, performance appraisal is premised on recognizing attainment of certain objectives belonging to a specific job within a given time period. Moreover, this activity plays a crucial function in shaping the perception of subordinates about self and about their contribution to the realization of organizational goals. In a study, Bdernardin and Russel (1993) posited that broader communication of policies on performance appraisal within organizations is critical to make subordinates understand their specific functions in organizations. Performance appraisal has a positive relationship with organizational performance because client- based performance appraisal enhances quality and productivity, firm performance and increase subordinates commitment (Lee & Lee 2007; Sang, 2005; Rahman, 2006). Likewise, Brown and Hewood (2005) posited that the process of performance appraisal system has a positive association or relationship with enhanced productivity of firms. For Cook and Crossman (2004) the relationships formed between employees and supervisors during the process of performance appraisal strengthens the relationships of the players involved. From the above discussion