Giriraj Kiradoo, Nik Alif Amri Nik Hashim, Shah Iskandar Fahmie Ramlee, K.M.Ashifa
Purpose: Performance appraisal is described as the measurement of outcome to generate reliable data on its effectiveness and efficiency. Performance appraisal measures the business activities and implements a strategy to bring them back to the desired position. This paper is useful in presenting a systematic understanding of the performance appraisal concept of the business entity.Research Methods: The Study of performance appraisal of a business entity has been performed using the literature review and case study analysis, interviews, and personal observation as the secondary source of data.Findings: It could be interpreted that the selection of methodology for performance appraisal should be based on the objective, strategy, mission, and vision of the company. The performance indicators could be financial and nonfinancial. Therefore, for a precise performance appraisal, the purpose and subjective methods needed to be combined based on the organisation's requirement. Conclusion: The performance appraisal's primary objective is to measure the business working by aligning the long term and short-term strategy. Long-term performance reflects the vision, while short term business performance is related to operations. The performance appraisal method should create an alignment between the measurement of procedures and strategies.