The purpose of the survey was to investigate the extent of performance appraisals in measuring performance of an organization. The study was guided by the following research questions; how does the objectivebased appraisal influence organizational performance? Staff agreed to a large extent that objectives set to achieve organisational goals are clearly understood and also to a large extent, objectives set are aligned to organisational goals. It was also revealed that the performance appraisal system also helps identify the strengths and weaknesses of the employee. The respondents also agreed that evidence of performance is well documented and available for reference if needed. A regression analysis done between variables of objective based appraisal on organizational performance revealed that 91.6% of the variation in performance was caused by variations in objective based appraisal. It was established that the performance manager is impartial when assigning ratings. Staff also agreed to a small extent that the numerical rating scale is fairly assigned. It was agreed to a large extent that performance ratings contribute to a motivation to achieve organisation goals and job satisfaction, respondents agreed that accurate and specific feedback is received from the performance manager on past performance and that the consequences for receiving each numerical rating are clear. A regression analysis was done and the findings revealed that 87.8% of the variation in performance was caused by variations in numerical rating. The study recommended that Mubende district local government needs to continue reviewing goals to reflect the dynamic business environment. There is a need proper documentation to ensure area of reference if needed. Mubende District Local Government should ensure objectivity of 360-degree feedback and the reviews need to be better aligned to the firm achievement of its goals. While using 360 identifies areas of evaluation, they should ensure that required follow up is done and the mechanism of capturing and storing evidence for future should be fully understood by all. Mubende District Local Government has to ensure performance manager continue impartiality when assigning ratings and while performance ratings contribute to a motivation to achieve organisation goals and job satisfaction staff need to be encouraged that other factors also come into place when analyzing the firm’s performance.