The company focusses on 2 major components to give employee's appraisals and that are performance and tenure. The company gives more priority to the performance of the employees and checks if they reach their goals. However, they keep tenure of the employees in their mind as well during performance appraisals. Sometimes the situation comes when performance appraisals fail. There can be few reasons like the employee may get better career opportunities with a better salary offered so it gets difcult for the company and the HR to stop the employee. 0r sometimes when the employees are not happy with the organisational policies or the kind of appraisal they got, the performance appraisal fails