Systems for performance appraisal are essential for assessing worker performance, increasing output, and propelling business success. This study investigates Premier Fine Linens Pvt. Ltd.'s performance appraisal system's efficacy, difficulties, and perceptions. The study uses both quantitative and qualitative analysis to pinpoint important problems that impact the assessment process, including bias, transparency, and technical difficulties. The results show that although 85.8% of workers think the system helps them advance in their careers, 72.5% have had difficulties using technology, and 34.2% have reported disagreements following assessments. Age and wage have a favorable link, according to statistical analysis, which emphasizes trends in experience-based pay. To improve efficiency and fairness, the report recommends putting in place AI-driven assessments, challenges, standardized performance measures, and ongoing feedback systems. Resolving these issues may result in increased transparency and happier workers.