In the case of the car manufacturing industry for instance, quality assurance is of high interest because the output or product offerings should be enough to convey customer’s trust and loyalty. Thus, an organization belonging to this industry must be able to come up with performance appraisal among its employee to constantly check the quality and organizational performance. This evaluation is centered on an individual’s performance and potential development (Singh et al., 2008).It is clear that employee performance appraisal is one of the bases in which the company has a corresponding idea on how to determine employees’ given compensation and other privileges. However, despite the presence of performance appraisal in almost every company or organization, there still a need to evaluate if it actually helps identify and meet employee’s development needs.Evaluation is very important especially in the corporate world because it is a way in which corporate performance is known at a specific significance. The case of evaluating employee performance is a complex task depending on the nature of the business operation.The employee is naturally under evaluation and it may be monthly, quarterly or annually depending on the organization. The evaluation is said to be formal because it determines an employee’s career in the organization. This evaluation is known as the performance appraisal and it actually helps the company decides on one’s career opportunity (Randhawa, 2007). It is a form of assessment in which an employee’s strengths and weaknesses are identified and observed for the purpose of enhancing, improving or commending performance for potential development (Landy and Conte, 2009. Aswathappa, 2005).Performance appraisal is very complex because it involves a specific standard that if not properly understood, would result in a certain level of confusion and unnecessary feedback.