The purpose of this study is to evaluate the effectiveness of performance appraisal systems in influencing employee and organisational commitment at Suba Solution Pvt. Ltd. Performance appraisal plays a pivotal role in aligning individual performance with organisational goals, enhancing employee motivation, and fostering a culture of continuous improvement. This research explores the extent to which employees perceive the appraisal process as fair, transparent, and developmental, and how these perceptions influence their level of commitment to the organisation. The study employs a mixed-methods approach, utilizing structured questionnaires and interviews to gather data from employees across various departments. Key areas of focus include the impact of leadership styles, the role of feedback and communication, and the integration of reward management strategies with appraisal outcomes. The findings indicate a strong correlation between effective performance appraisals and increased levels of job satisfaction, engagement, and loyalty among employees. The research concludes that performance appraisals, when implemented transparently and consistently, significantly contribute to both employee and organisational commitment. Recommendations are proposed to enhance the existing appraisal framework to better support employee development and organisational success.