Performance appraisal practices are significant policies among other human resource practices implemented in the organization. Hence, it is important for the organizations to focus on the effective appraisal system. Further, it is important in knowing the insights to make changes in the appraisal system. The present study is seeking to understand the influence of appraisal system on the employee variables such as career advancement, job satisfaction and organizational commitment. The study collects the primary data for analysis through a structured questionnaire distributed among the employees working in multi-national corporations operating in Andhra Pradesh. The study results reveal there is a significant relationship towards appraisal system and career advancement. However, the appraisal system and job satisfaction and organizational commitment are certainly found as insignificant for career advancement in MNCs. Many Indian companies have been borrowing modern appraisal methods from the domestic and foreign organization in order to improve the best performance appraisal climate among selected multinational corporations operating in Sri City at Nellore, Andhra Pradesh.
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