To improve the appraisal system of organizations psychologists suggest certain type of training. It is true that scientific methods for the selection of employees are necessary. These methods help to appoint right man at the right job. If the needs of an employee are satisfied, then it will have positive effect on the work efficiency of the employee. Training is required to improve the style of working also. Moreover, due to advancement in technology and due to environmental factors, novel skills are required, which can be obtained by training. Appraisal means appreciation of the performance of the employee. The employee should be appreciated through award, certificate, promotion etc. The evaluation of the performance of the employee should be objective, neutral and free from biases, prejudices and mistakes.