This study focused on reviewing the findings of previous studies to explore the administrative and development uses of performance appraisal. The study applied descriptive research design and collected the data from the Human Resource Management Books as well as the research articles on the various journals published in refereed international journals in dedicated Human resource management, applied psychology, and management journals. A systematic literature review was conducted to identify the uses of performance appraisal including administrative and development uses. The study found that Performance appraisal outcomes are used for administrative decisions such as promotions, demotions, terminations, layoffs, and transfer decisions as well as for development decisions including performance improvement plans, training and development decisions, and career planning and development decisions. The study recommends that Organizations should set and develop a clear and systematic performance appraisal system as well as clear, realistic, and achievable performance goals and communicate performance expectations to the employees. The organizations should also make the Performance appraisal manuals available to the employees in the organizations for guidance about the performance appraisal process. Finally, the study recommends that Performance Appraisers should be trained in conducting performance appraisals since the performance appraisal results are used for administrative and development decisions.

Keywords: Performance Appraisal, Administrative Decisions, Development Decisions.