Nowadays, performance evaluation has become an inevitable factor in the field of all sectors. It has become a formal procedure in measuring the progress of employee’s work scales. It is an important procedure in measuring the growth of work progress and it promotes the promotion of the employees. Performance evaluation helps in grading the employees annually and aids in salary raises. Further, i t also enhances the quality of work progress, provides useful feedback regarding the work performed. This paper tries to investigate the importance of performance evaluation and its importance in the organisatinal sector. Further, this paper tries to under line the need for a performance evaluation system in the field of work in this present globalized technological world.