The answer to this question may vary from organization to organization. There are many small-sized enterprises that rely on traditional methods of performance appraisal. This is because the use of modern tools such as performance management software can be costly for them. Also, startups or small businesses have small teams so they don’t quite feel the need for having a modern performance management system at their disposal. But, most tech giants or mega corporations such as Google, Deloitte, Facebook, etc. are using modern performance management tools to evaluate employee performance.