Abstract: The embodiments herein relate to employee management system and more particularly, to employee management in appraisal system. The embodiments herein disclose an appraisal system using a modified form of Activity Hierarchy Process (AHP). The appraisal system covers all the facets of appraisal to measure individual's “Capabilities” is disclosed. Every employee in an organization will be included in the appraisal system and the capabilities of the employees are measured to determine a value based on the rank given to the employees.