Introduction A performance appraisal system can only be effective if both the management team and the employees can relate to it and feel comfortable with the whole process (Fink & Longenecker, 1997). At EatNGas inc. the existing performance appraisal system is ineffective and deeply flawed. The first problem with the system is that it has not been very helpful as no positive impact has been achieved. Secondly, it seems that employees view the process negatively and bad reaction to the appraisal feedbacks is common. The third problem is that the managers are unable to fill the appraisal forms correctly hence meaningful information cannot be derived from the process. The final problem noted with the system is that no guidance has been provided to the managers concerning the appropriate methods to describe employees’ positive behavior and future improvements needed. Problem Solution A well structured performance appraisal system should be subjective, individualized, qualitative and be geared towards problem solving. The appraisal system should be specific and contain realistic and measurable standards and performance indicators (Yammarino & Atwater, 1993). The current system that exists at EatNGas cannot effectively meet the above requirements hence there is need to institute a new performance appraisal system. There are several performance appraisal techniques that differ both in strengths and weaknesses process (Fink & Longenecker, 1997).  1. Essay appraisal method: This system requires the assessor to describe the general potential of the employee as well as their strengths and weaknesses in an essay format. The method therefore requires extensive interaction between the assessor and the employee and has the disadvantage that it is hard to compare results due to differences in the content of the essays written for different employees.  2. Graphic Rating Scale: This method assesses an employee with respect to their work. Terms generally used include unsatisfactory, average, above average or outstanding. This method is more consistent and reliable than the essay appraisal technique and can be used to assess many types of job responsibilities within the company.  3. Field Review Method: Due to the limitation of the graphic rating and essay appraisal technique, researches in the field of human resource management developed a methodical review process by combining the two techniques forming the field review method. Due to differences arising in the standards used by assessors, a discussion group consisting of assessors and a member of the HRM office discuss each rating used for analyzing performance and systematically analyze all the differences in the system thus arriving at a more standardized performance criterion. This method has the disadvantage that it is very time consuming (Longenecker & Golf, 1992).  4. Forced-choice rating method: In the techniques, several statements are provided describing a given criterion and the assessor has to choose one to describe the subject. The statements are given particular scores in advance which are not revealed to the assessor to avoid bias. This technique however cannot be used in interviews and is only undertaken by the assessor without employee involvement.  5. Management by Objectives: This is a relatively new technique whereby the performance goals and criteria are set by the empl