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The main problem of this study is to survey performance appraisal in private sector manufacturing companies so as to find out to what extent this sector adopts the open reporting system of appraisal. Performance appraisal is now widely practiced in private sector but it’s purpose in mis-constructed as the whole exercise is geared towards salary administration. One main objective of performance appraisal should be to review the subordinate’s performance with him in order to identify his main strength and weakness, and where weaknesses are identified to find ways and means of removing such difficulties through training. Performance appraisal systems in private sectors have been characterized with non-disclosure of appraisal result to the employees. This apparent secrecy over performance appraisal results have to be in the mind of the supervisors and managers a potentials tool for cracking down at immediate subordinate with impunity. Apart from safeguarding against irrational and biased evaluation, the feedback of the performance rating results to the employees through the open appraisal system has a motivational impact. Without the feedback system, the formal appraisal technique might not be able to effectively enhance improvement in individual performance. The subject of the study is the staff of Hardis & Dromedas and Juhel Nigeria Limited. The researcher used survey method for data gathering and stratified method for data processing. The instruments used for collecting data consist of questionnaire and personal interview. Three hypotheses were formulated. These were tested and analyzed by the use of decision rule method to either retain or reject the validity the hypothesis formulated. The findings in this research revealed that majority of the employees under study did not view performance appraisal as a developmental tool but rather view it as a promotion and increase in remunerations. It was also discovered that what is fundamentally wrong with most organizations especially private sector is that job description which should form the basic for which employees performance can be measured is not usually provided on employment. Employees are also discouraged when appraisal results are not implemented or when there is a discrepancy between the perceived performance and the actual result. Based on these findings, it was therefore recommended that employees should be given feedback of the appraisal so as to improve their performance and develop them generally. The system should also be free of prejudice to increase staff morale. Also the system should provide necessary and adequate training as at when due after appraisal while consistency in rating should be maintained and strictly adhered to on a regular basis.

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