Companies go through corporate transformation but whether that transformation is successful or not depends on the actual system and how the employees' react to it. Keeping that in mind, the researchers' have attempted to find out the gaps between the expectation and experience of employees' working at Cesdtech. It has been found that, employees' realize the importance of performance appraisal but not much effort has been made to implement a sound system which would benefit the appraiser as well as the appraisee.