This report examines the performance appraisal challenges faced by Zubias Threading, a beauty salon chain in Australia with over 30 locations, focusing on employee motivation and organizational efficiency. The study investigates the impact of inadequate performance appraisal techniques on employee dedication and service quality, particularly in the context of a workforce comprised largely of part-time employees. The report includes a literature review on performance appraisal methods, such as Management By Objectives and Rating Scale, and analyzes employee survey results to identify key issues and potential solutions. The research aims to recommend suitable strategies for improving the salon business through effective performance appraisal, addressing issues such as low employee dedication, conflicts between managers and employees, and ultimately, the quality of service provided to customers. The report concludes with recommendations designed to enhance employee performance, improve job satisfaction, and support the achievement of organizational goals.