2.0 Performance AppraisalsIn every business organization, employees must play a vital role in determining its survival. (Rusli Ahmad, 2007 cited by Ahmad & Bujang, 2013) Employees are the most important asset of the organization. Therefore, most organizations broadly use performance appraisal to review and evaluate employee performance. According to Swanepoel et al. (2000), performance appraisal is a systematic and formal process of identifying, observing, measuring, recording and developing employees' job-related strengths and weaknesses. (Quoted by Esfahani and Abzari et al, 2014) Performance appraisal is the outcome of employees based on their performance within the organization. For example, they joined and succeeded in some 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 goals, 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 Accessed Date: 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 of consultation: 04/05/2014• Swanepoel et al, 2000 cited by Esfahani and Abzari et al, 2014, Journal: Analysis of the effect of performance evaluation errors on performance perceived organizational justice http://hrmars.com/... ... middle of paper ......ormance. Additionally, this feedback method can provide information on the effect of a person's action in the workplace to change their behavior by improving their self-awareness. For example, United Parcel Service (UPS) airline in Louisville, Kentucky uses the 360-degree process every six months. This involves measuring skills such as customer focus, financial and internal process knowledge, soft skills, business value and leadership. Employees can download information about the process from the company intranet. The managers themselves initiate the process twice a year and ask their peers to evaluate them. They are rated on a scale of one to seven and their scores are reviewed with supervisors and direct reports. Based on feedback, employees set goals for the next six months with human resources to provide training if necessary..