Employee's performance is the major issue in an organization. Our study focuses on to find out the impact of performance appraisal on employee's performance and also analyses that motivation affects the relationship of performance appraisal and employee's performance. Twohypotheses are analyzed by using sampling techniques; we were select 150 numbers of employees as sample by using simple random sampling among the banks of Dera Ghazi Khan.Primary data were collect through standard

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... For analyzing data, we applied correlation coefficientthrough IBM SPSS and Amos Software. Results presentedthere is positive relationship between performance appraisal and employee's performance. Motivation as a moderator positively affected the relationship between performance appraisal and employee's performance. Divisional banks can use appraisal system as a strategic approach by integrate it with business policies and HR practices and can improve the performance standers of its employees.