This MBA thesis, submitted by Ihsan Ullah to the University of Peshawar, examines the impact of performance appraisals on employee motivation within the Health Department. The research explores the background, significance, scope, and objectives of the study, including key research questions and limitations. The thesis reviews relevant literature on performance appraisal and motivational theories, investigating employee motivation practices, sources of motivation, and the role of appraisal as a motivational mechanism. The methodology includes a theoretical framework and data collection instruments. Results are presented with descriptive analysis of the Health Department in KPK. The study concludes with findings, recommendations, and a discussion of the impact of performance appraisals on employee motivation, offering insights into employee satisfaction and potential improvements to the current appraisal system. The research also highlights the limitations of the study, such as the relatively small sample size and the honesty of the participants in filling out the questionnaires.