The present competitive environment, organizations have to ensure peak performance of their employees continuously in order to compete the market place, effectively and traditionally, this objective was attempted to achieve though employee performance appraisal which was more concerned with telling employees where they lacked in their performance. Once the employee has been selected trained and motivated, he is then appraised for his performance. Performance appraisal is the step where the

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... ement finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken with the employed and to remedy them. The performance of an employee is influenced with various factors. The socio demographic factored has influenced in many ways.Here the researcher tries to find out the effectiveness of the performance appraisal system in Tamil Nadu based manufacturing industry, India. It is a descriptive type of research, simple random sampling was adopted, and self-prepared, structured questionnaire with the five point scale was used to collect the primary data. The finding is the socio demographic factors and the overall performance of the employee has the influence.