This paper presents a systematic literature review of Performance appraisal systems and their effects on employee outcomes based on 30 published articles of empirical research available between the years 2000 to 2025. The review focuses on how PA systems affect job satisfaction, job motivation, organisational commitment, performance, as well as turnover intentions. By using the PRISMA guideline, selection and screening of articles were done, and the selected articles were analysed thematically and bibliometrically to capture the methodological nature, the themes, and the gaps in the research area. The findings have shown that there has been a transition in the PA practices from conventional approaches that are more summed up as evaluation models that are more developmental, participatory, and enabled by technology. Much prior research also shows that perceived fairness of an appraisal system, its clarity, and focus on developing employees are linked to positive outcomes. The relationships between these effects and the outcomes are further moderated by organization culture, national norms, and personal attributes. Organisational culture, National context, and individual characteristics. This review benefits scholars and organisations in PA system design by presenting recommendations backed by a literature review. It also points out areas that are understudied and suggests that scholars conduct more research with recognition of technologically, culturally, and structurally diverse performance management systems.
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