The concept of performance appraisal came into ideal practice in the 1940s, helping a system to launch merit rating during the era of the Second World War as a fair wage system (Lillian & Sitati, 2011). Lots of research in recent decades have been done on the assessment of results (Bretz et al., 1992; Fisher, 1989). Often, a key aspect of human resource management is the performance assessment process. The target population of the present study consisted of all the employees working in the

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... private (Multan Medical complex, Care Family and Ibne Sina) hospitals of Multan, Pakistan. The study follows a convenient sampling technique for the determination of sample size and having n=131. Adopted questionnaire of Al-Ghamdi (2011) Verhulp (2006) was used with a 5-point Likert scale starting from 1= strongly agree, 2=agree, 3= uncertain, 4=disagree and lastly 5= strongly disagree. The study findings indicate 63% of the respondents belong to a male category, while on the other hand, 37% of the respondents belong to the female category. The study findings verified the fact that there exists an association between performance appraisal systems and seem to suggest that hospitals are interested in improving their performance through the performance appraisal systems. The findings verified the fact that there exists an association between motivation with employee performance.