Abstract: This empirical study explores the effectiveness of performance appraisal systems and their contribution to employee motivation within an organizational context. By examining employee perceptions at Lucas TVS, the research investigates whether clearly defined appraisal goals and recognition of high performance significantly influence motivation levels. Data was collected through structured questionnaires and analyzed using statistical tools such as ANOVA and Pearson correlation. The findings reveal that while performance appraisals are a common HR practice, their direct impact on motivation is limited unless supported by transparent goal-setting and meaningful reward mechanisms. The study emphasizes the need for organizations to align appraisal systems with motivational strategies to enhance employee engagement and productivity.

| DOI: 10.17148/IARJSET.2025.125169