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Performance appraisal is a form of test conducted to measure the level of ability of a person in achieving an evaluation objective. Performance appraisal covers several criteria as well as specific steps in its implementation. The use of this type of assessment in measuring the ability and performance of students in school is seen as relevant in making their assessment more holistic and not focused on certain aspects only. This performance appraisal can also expose teachers to the real reality of the situation of the students being tested. This concept paper is written to explore the understanding of all aspects of performance appraisal in schools covering the strengths and weaknesses in its implementation. It is hoped that this concept paper can provide a basic overview of the needs of performance appraisal in schools.