Performance appraisals are part of guiding and managing career development. Performance appraisal is the systematic evaluation of the performance of employees to understand the abilities of a person for further growth and development. The primary objective is to study the effectiveness of performance appraisal systems and their influence on employee productivity in logistics industries in Chennai. The secondary objectives are to reduce the grievances of the employees, identify employee attitudes towards the appraisal system, observe the work environment in the organization, and provide information to assist in other personal decisions in the organization. The study has been carried out with a descriptive research design. Primary data collection was done by the researcher from 120 employees working in logistics companies in Chennai. The data for the work has been collected through a well-structured questionnaire prepared and circulated among a larger population, and the data collected has been analyzed through various statistical tools like rank correlation, chi-square test, and confidential interval. Numerous new findings have been derived from this research, which has helped to provide suggestions to companies on improving their appraisal systems.