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The study aims at developing a strong impact of perceived fairness of performance appraisal on employee performance. The study is based on descriptive research. Data was collected from the respondents through a standardized questionnaire .Sample Unit consists of 80 employees from Vodafone and Tata Docomo. Analysis of data is done through quantitative method that is numerical figure. Instrument used for data analysis is SPSS. The analysis of responses was done by using correlation and regression analysis. Correlation analysis says that there exists a relationship between perceived fairness of performance appraisal and employee performance. In regression analysis, the nature of the relationship between the dependent and the independent variables was analyzed and the result was that there exists a significant impact of perceived fairness of performance appraisal on employee performance.

Key Words: Appraisal System, expected performance, role and targets, self review, self -serving bias, and training & development needs.