India is the second largest cement producer in the world that makes cement industry one of the most important industries in India. In any country, the production and consumption of cement define the country's progress to the certain extent. It comes from iron and steel industry, therefore, it plays the vital role in country's economy. Industry depends upon many factors such as capital, funds, technology and a very important factor is a human aspect, therefore, the need of Human Resource Management (HRM) came in focus where PMS is a very important factor. There are a number of factors, which make an impact on the employee, but PMS plays a vital role. If the workforce is poorly utilized then the growth of future in terms of employee satisfaction would be very tough. HRM is considered as the backbone of any industry including cement industry and PMS is considered as a key factor for building and developing the profitability of cement industry, besides land, technology, capital etc. HRM concept is considered as a sunrise whereas traditional personnel management is considered as sunset concept. HRM has aspired to be a business partner and see the PMS linkage with organization employee satisfaction. Hence, in cement industry, PMS is very important for whole production cycle. To analyze, understand and review the existing performance appraisal system and its implementation process in Shree Cement Ltd.