Performance appraisal is an essential activity that determines how the employees behave and perform. From scholarly articles, it can be said that it creates both positive and negative impact on employees’ performance, which affects the overall organizational performance. The aim of this research paper is to understand how the method of performance appraisal used in a leading insurance organisation can have an impact on employees’ attitude towards work. It focuses on how technological factors, financial factors and feedback system of the appraisal system can have a significant impact on the fairness of the system. Taking a sample size of fifteen respondents from one organization has identified how the feedback system used by an organization and involving employees’ voice in in decision making can contribute to making the process fair.