Performance appraisal plays a vital role in recognizing the strengths and areas for improvement of the workforce, assessing their training requirements, and establishing a fair compensation framework. This research focused on exploring multiple facets of employee performance appraisal specifically within the healthcare sector. The literature search targeted major databases including Web of Science, PubMed, and Scopus, covering publications from 2000 to 2019. The study selection process involved three phases: initially reviewing titles to exclude irrelevant studies, followed by abstract screening, and finally conducting a full-text evaluation. From an initial pool of 8,022 articles, only 11 met the inclusion criteria. According to the reviewed studies, key aspects of employee performance appraisal in healthcare organizations encompass the objectives behind appraisals, the techniques employed, the criteria used for evaluation, and the ways appraisal outcomes are utilized. Considering the crucial role of human resources in health institutions, it is essential for management to leverage international experiences in order to identify core components for designing an effective performance appraisal system. Additionally, the importance of involving employees actively throughout every stage of the appraisal process was consistently highlighted.