The current businesses have faced stiff competition in the global market, processes of re-engineering, and changing technologies that have resulted in many businesses failing to effectively compete in the marketplace. To meet these demands, companies and organizations are heavily relying on human resource and communications technology in monitoring and improving the productivity and performances of employees. Organizations are mainly successful in the global markets when their labor forces are efficient and effective. Performance appraisal and performance management are two of the most important management tools used in improving employee performance. As noted by Raisi et al. (2011), these two management tools play an important role in managing employees effectively in a viable organization. This is because when employees are effectively improved they are able to improve the overall productivity of their organization (Kim, 2011). Employees are improved after they are appraised and the management knows the exact areas which are problematic. For instance, through multiple rater method the appraiser is able to scrutinize and analyze the strengths and weaknesses of employees in an organization and hence knows what should be done to improve them (Behery & Paton, 2008). This study was aimed at investigating the performance appraisal and performance management within the United Arabs Emirates by looking at their challenges and benefits. In doing this, the study looked at two different performance appraisal methods; top-down one way performance appraisal vs. multiple-rater performance appraisal.