Problem statement: Two methods for performance appraisal that are discussed in this study and they are Management By Objective (MBO) and Assessment Centre techniques. Employees are appraised for several reasons, the most important of which is to realize the best use of human resources and to plan for future needs; reward and punishment are secondary. Assessment Centre evaluation or appraisal is valuable because it allows a candidate to concentrate on the task at hand. Approach: The literature review and arguments were conducted to provide a systematic discussion of the study. Results: In Management by Objective performance appraisal, employees are obliged to deal with overcoming empirical challenges. In Assessment Centre Appraisal, the different outcomes for particular tasks can be evaluated and management can assess employees' relative proficiencies in terms of these tasks. In both forms, consistency in criteria is crucial, for purposes of comparison and standardization. Where comparisons are made with other employees, the criteria need to be parallel for employees at similar levels of responsibility. Conclusion: Differences between organizational cultures will impact on the way that assessment results are received under MBO performance appraisal as well. The outcomes that employees achieve in the tasks provided for appraisal purposes may involve different levels of risk, even within firm guidelines. In the assessment centre, the candidate is separated from colleagues. To make comparative rating assessments, effective MBO will incorporate objective criteria. At times, MBO will be useful in judging change over time for employees performing fairly routine work.