There has been a continuous debate throughout the world about the effectiveness of performance appraisal (PA) that even have forced different scholars to search for alternatives by abolishing PA. However, to many, if a performance appraisal is executed properly by the appraisers considering the reactions of the appraisers and appraisee without being biased, it is then can be regarded crucial for organizations. This Masters Dissertation, therefore, presents an evaluation of the effectiveness of employee performance appraisal considering the reactions of both the appraisers and appraisees with special emphasis on the bottom-up or employee oriented perspective and organizational justice system of PA using McDonald's as a case company in the UK. At the end of the dissertation a model for the ongoing, expected and effective performance appraisal especially for the mentioned company was developed on the basis of the theoretical and empirical grounds. This dissertation therefore, is considered to be helpful to the HR officials, academicians, professionals and researchers.