In this study the operative function in the human resource department are analyzed with respect to performance evaluation system of the company. Performance appraisal system is considered as a significant tool in all organizations for achieving goals effectively and efficiently. The study recommends the need to ensure fairness so that it does not demotivate an employee or have a negative impact on goal accomplishment. The findings revealed that the company has a very well designed Performance appraisal system, which involves feedback as well as reward system and the employees, are satisfied with the existing Performance appraisal system. But, more efforts are to be made to make the approach more effective to ensure increased productivity and high morale among the employees, which would lead to further growth of the company in all respects.