2.0 Performance Appraisal In every business organization, employees have to play a vital role in determining its survival. (Rusli Ahmad, 2007 cited by Ahmad & Bujang, 2013) Employees are the most important resource for the organization. Therefore, most organizations comprehensively use performance appraisal to review and evaluate employee performance. According to Swanepoel et al. (2000), performance appraisal is a formal and systematic process of identifying, observing, measuring, recording and developing employee strengths and weaknesses relevant to the job. (Cited by Esfahani and Abzari et al, 2014) Performance appraisal is the result of employee performance within the organization. For example, they have buy-in and success in certain organizational projects. Performance appraisal is also a process within the overall performance management process. (Dowling & et al, 1999, cited by Jafari, Bourouni & et al, 2009) The performance management process includes organizational objectives, daily performance, professional development, rewards and incentives.• Rusli Ahmad, 2007 cited by Ahmad & Bujang , 2013, Journal: Issues and Challenges in the Practice of Performance Appraisal Activities in the 21st Century http://www.ijern.com/images/April-2013/45.pdf Date accessed: 5/4/2014• Dowling & et al, 1999, cited by Jafari, Bourouni & et al, 2009, Journal: New framework for Selection of the best Performance Appraisal Method file:///C:/Users/ng%20may%20sze/Downloads/9fcfd5101390753583%20( 3 ).pdfDate accessed: 4/5/2014• Swanepoel et al, 2000 cited by Esfahani and Abzari et al, 2014, Journal: Analyzing the effect of performance appraisal errors on perceived organizational justice http://hrmars. com/... ... middle of paper ...... ormance. Furthermore, this feedback method can provide information on the effect of a person's action in the workplace in changing their behavior through increased self-awareness. For example, United Parcel Service (UPS) airline in Louisville, Kentucky, uses the 360-degree process every six months. It is used to measure skills, such as customer focus, knowledge of internal business and financial processes, people skills, business value and leadership. Employees can download process information from the company intranet. Managers themselves start the process twice a year and ask colleagues to evaluate them. They are rated on a scale of one to seven and scores are reviewed with supervisors and direct reports. Based on the feedback, employees set goals for the next six months and HR can offer training if necessary.