Performance Appraisal is a quarterly or half yearly or yearly activity carried out by companies to check performance of employees. It is a system to check the performance of individual employees for promotion, salary increment or bonus. But this very system to check the performance can cause problems in the smooth working of the organization. A lot of gossips and rumor keeps mongering among employees. They are without head and tail and are carried out by those who are not happy with their performance reviews and feedback.