Performance Appraisal is one the most widely accepted HR tool to assess the employee and organization performance. Selection of an appropriate performance appraisal technique has always been a point of apprehension for most of academicians as well as managers in each and every organization. The primary idea behind this study is to find out the most helpful and appropriate performance appraisal technique in education sector. The focus on this sector is primarily due to interest as well as prime occupational area of the researcher. To conduct and understand the concept and idea behind the appraisal system across various sectors several literatures were explored and reviewed. Evidences from majority of these literatures explain that the employees are more inclined towards online performance appraisal system than manual appraisal system. Moreover, the study also emphasizes on the fact that employee satisfaction can be improved through right kind of appraisal method. The present study analyses the appraisal system in education sector and tried to derive factors from the current appraisal system that can tighten the linkage between the current practices and the evolved practices. This will lead to strengthening of performance of employee and organization, reducing bias and creating positive work culture thus increasing organizational productivity.