Performance appraisal of employees is important in managing the human resource of an organisation. With the change towards knowledge-based capitalism, maintaining talented knowledge workers is critical. However, management classification of “outstanding”, “poor” and “average” performances may not be an easy decision. Besides that, superiors might also tend to judge the work performance of their subordinates informally and arbitrarily especially without the existence of a system of appraisal. The proposal in this paper is a performance appraisal system using multifactorial evaluation model in dealing with appraisal grades which are often expressed vaguely in linguistic terms. The proposed model is for evaluating staff performance based on a specific performance appraisal criteria. The project was a collaboration with one of the Information and Communication Technology companies in Malaysia with reference to its performance appraisal process.