Performance appraisal is an important phase in human resource management where organizations assess the job performance of their employees. A good performance appraisal needs to be fair, objective and constructive, be based on specific examples of the employee’s work, and should provide clear and actionable feedback. The appraisal should also be timely, and it should be used to help the employee develop and improve their performance. In this paper, we developed a comprehensive performance appraisal for use in various manufacturing industries. Assessment criteria for the instrument were identified using Behaviorally Anchored Rating Scales (BARS) based on specific examples of behavior to assess employee performance. The criteria were weighed using Analytical Hierarchy Process (AHP), and then used to evaluate employee’s performance using Technique For Order Preference By Similarity To Ideal Solution (TOPSIS). Two case studies were selected as the implementation of the developed instrument. We claimed that the proposed instrument was objective, comprehensive, accurate, motivating and much better than the existing performance appraisal instrument currently used in both case studies.