Human resource as a factor has gained enormous importance in the organisation and so the organizations always strive to achieve peak performances of their employees through various techniques. Performance Appraisal is one among such technique which helps to improve the capabilities among the employees. Performance appraisal is useful for guiding the employees for self-improvement and employee development with the help of feedback mechanism. Employee development focuses on learning new skills, overcome weaknesses and to develop the abilities over a period of time. Employee development helps to enhance the potential of employees which result in individual growth as well as organizational growth in the long run. The present study has made an attempt to study the role of feedback mechanism in the performance appraisal system to influence employee development from employee’s perspective. Employee development is fragmented into four variables namely overcome weaknesses, employee productivity, motivation, and overall development. The feedback system in the performance appraisal system has the potential to bring overall development of the employees which in turn facilitate the organization to broaden their horizon