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Bachelor thesis topic "Appraisal system in organization" is mainly focusing on a performance appraisal of employees in a particular company. A goal of the thesis is to suggest an optimal appraisal system of employees in chosen enterprise, which should help to increase employees' work performance. To reach this goal several aspects contribute - determining fundamental theoretical terms in a given problematic, followed by a detailed system analysis of appraisal in this company, and finally summarizing pros and cons giving further advices. The company Kermi, s.r.o. with approximately 750 employees was chosen and described in a practical part. In a conclusion, the thesis summarizes strengths and weaknesses regarding to the utilized performance appraisal system, providing proposals for adjustments and an optimization in the chosen company.