This research aimed to evaluate the relationship between performance appraisal and employee performance within the context of Moroto Town Council as the case study organisation, with the goal of establishing how performance appraisal impacted and influenced the way employees performed their delegated responsibilities and achieved organizational objectives. Performance appraisal referred to the process where the work performance of employees was evaluated, usually annually or biannually, by assessing how well they had met pre-established performance standards whilst discharging their day-to-day duties over a fixed timeframe and providing feedback on their developmental needs for enhanced future contributions. The study employed a mixed research methodology combining both quantitative and qualitative data collection techniques to comprehensively analyze the object of inquiry from multiple perspectives. A survey questionnaire containing both closed and open-ended items was distributed to 200 permanent staff members across various departments to quantitatively gauge their perceptions and experiences regarding the organization’s performance appraisal system as well as obtaining selfreported assessments of individual work output. In addition, in-depth interviews were conducted with 20 managers tasked with conducting performance reviews to qualitatively explore the procedures followed and challenges encountered when appraising subordinates. It was hypothesized that a properly structured and consistently implemented performance appraisal process led to higher employee motivation levels, improved goal alignment between individual and organizational objectives, increased job satisfaction, and ultimately enhanced work performance overall. However, the research also acknowledged that there could have been instances where flaws and inadequacies in how appraisals were designed and operationalized negatively impacted employee morale and productivity instead. A bivariate correlation analysis uncovered a positive statistically significant strong correlation of .608 existing between these two variables when tested at the 99% confidence level. This implied that as the transparency, effectiveness and timeliness of communicating evaluation outcomes to personnel increased, employees tended to exhibit enhanced levels of role enactment, goal fulfilment and productivity outcomes.