Intense competition is forcing companies to develop innovative strategies to capture customer needs and improve customer satisfaction in the external business environment Performance appraisal and employee satisfaction is high on the agenda of many companies around the world and with the growing number of improvement models now available. Employee care has to be taken to adopt an approach that will yield the modest attractive return on investment in an internal business environment. Employee performance appraisal is a subject of great interest in most organizations. This is because performance appraisal decisions have effects and consequences on workers' compensation and recognition. To deal with this performance appraisal business process, the authors proposed a Decision Support System (DSS) which consists of a mathematical model to evaluate the performance appraisal for individual and for departments in an organization. The findings of this paper provide important direction for the development of employee relation in an organization. © 2008 IEEE.