The management and the employee meet together during the feedback-giving process to determine the obstacles preventing the employee’s performance and the steps necessary to get past them. One of the key components of performance management is performance appraisal, which can also be utilised as a tool for effective performance management. The process of determining, evaluating, and documenting an employee’s net worth is known as performance appraisal. The study on performance appraisal practices at Steel Authority of India (SAIL), Salem, holds significant importance in understanding the effectiveness and fairness of the existing evaluation system. In steel industry, a well-structured appraisal mechanism is crucial for employee motivation, career growth, and overall productivity. Also, enhancing performance appraisal practices can lead to higher employee satisfaction, reduced workplace conflicts, and better organizational outcomes. In this point of view, this study sought to look at Steel Authority of India Limited’s performance assessment system in Salem. The approach of this study is descriptive research. This work makes advantage of both primary and secondary data sources. The main data are gathered from a structured questionnaire sent among the population; the secondary data come from industry reports, research papers, and internet to help the analysis. The questionnaire includes both closed-ended and Likert-scale questions to assess the practices of performance appraisal mechanism among employees. The sample size has involved of 175 employees of Steel Authority of India Limited, Salem by implementing sampling technique of random. While a null hypothesis has been constructed to investigate the significant difference of performance appraisal mechanism, the gathered data have been examined utilising the statistical tools such percentage analysis, mean score, standard deviation, Anova and Multiple regression analysis. This study mentioned from analysis that maximum level of practices of performance appraisal mechanism is obtained by the employees belong to the 46-55 years age group, professional qualification, experience of above 15 years, undertake Peer Review method and undergo half-yearly appraisals.