Performance appraisal is one of the main functions of human resource management. It is being useful not only for the Management but also for the employees so that they can know and understand about their performance from the Management Point of view. The motivation is influenced by both financial and non-financial incentives. Motivation can be developed by its own. People who actually demonstrate their excellence have identified their motivations and worked harder to develop them individually. They have added some of the knowledge, skill, experience and practice to consistently produce at the highest levels. Sometimes inspirational quotes, stories and poems help in motivating too. Powerful positive imagination also stimulates visualization in the conscious and sub-conscious brain, which encourages self-motivation, developmental behaviour, confidence and belief. People become highly motivated to achieve and do better when they have experienced and create feelings of success and achievement. A good employee appraisal can do wonders for the employee’s morale, performance and motivation, while a bad one can ruin his enthusiasm for the job. The impact of job satisfaction will lead to a good relationship between employees and organization and increase belief in the workplace. This Research will help in determining the impact of performance appraisal, motivation and employee performance on the organization as well as will also help in knowing the current appraisal practices followed in private and public sector banks. This study will further through the light in finding out what HR interventions seem to make performance appraisal systems more effective in general of the public and private sector banks.