Firms are currently are investing a critical amount onin their employees to improve their human resources for creating a competitive edge (Ali et al., 2014). Firms are also evaluating their human resources to identifyingidentify the employee development needs and the grey areas for performance improvement (Lira, 2015). For achieving the best performance, firms use an instrument called performance appraisal or an employee assessment tool, which provides the feedback of employees working and future development needs. It is essential for the employees to have their work evaluated so that employeesthey can be acknowledged and rewarded (Levy, Silverman, & Cavanaugh, 2015). Employee perception about performance appraisals makes a positive sense among employees that motivates them to participate in development activities, which subsequently improve the individual performance (Nikpeyma, Saeedi, Azargashb, & Majd, 2013).