Abstract: Performance appraisal of employee is important in
managing the human resource of an organization. With the change
towards knowledge-based capitalism, maintaining talented
knowledge workers is critical. However, management classification
of “outstanding", “poor" and “average" performance may not be an
easy decision. Besides that, superior might also tend to judge the
work performance of their subordinates informally and arbitrarily
especially without the existence of a system of appraisal. In this
paper, we propose a performance appraisal system using
multifactorial evaluation model in dealing with appraisal grades
which are often express vaguely in linguistic terms. The proposed
model is for evaluating staff performance based on specific
performance appraisal criteria. The project was collaboration with
one of the Information and Communication Technology company in
Malaysia with reference to its performance appraisal process.