The purpose of this study was to explore the views of employees and Officers/Managers about the Performance Appraisal system of their Organizations for a valid, reliable performance evaluation system to give employees and managers data about employee’s strengths and needs for development. If these data are used to reinforce employee’s strength and to plan and provide development assignments in areas of need, one might also expect improvement in morale, motivation and productivity. This study explores employees and administrator perceptions of a system with these goals, a system specifically designed to appraise performance of Public Sector Organization. Performance Appraisal system is the best source of to check and evaluate the performance of employees. Employees’ satisfaction with performance appraisal system is necessary, it helps and motivates the employee to work hard. Performance appraisal system must be base on performance of the individual. If criteria of assessment are based on performance, then every employee works hard.