One of the responsibilities of manager is to ensure that an organization functions effectively and efficiently. In order to achieve these goals, a manager must be able to determine and assess performance levels of both an organization and its individual employees. Effective appraisals must focus on proper performance criteria and standards. The purpose of this study is to enquire into the opinions of employees towards the effectiveness of their performance appraisal system in the Private Services Sector in Coimbatore. For the purpose, 120 respondents were selected using random sampling, including managers and executives. A structured questionnaire was administered to the respondents and primary data was collected. Secondary data was collected through various sources like magazines, journals, company records etc. Based on the analysis made, suggestions will be offered.