In today’s age and times, one wants to know as to which method will suit best for a performance appraisal. Are the traditional methods still good, or does one have to shift to the newer methods or the modern methods? Also, whether any correlation existed between the traditional forms of performance appraisal and employee promotion and the modern forms of performance appraisal and employee promotion. The study was conducted on 50 managers from different service organizations across the state of Goa. A random direct structured questionnaire was utilized wherein a personal interview was conducted. The findings were such that the highest ranked method of performance appraisal desired by the service managers was the 360-degree method followed by management by objectives (MBO) and assessment centers. A high negative correlation existed between traditional forms of performance appraisal and employee promotion and a medium positive correlation between modern forms of performance appraisal and employee promotion. This meant that although the modern forms of performance appraisal were desired by managers, they did not feel the need to use them when it came to giving promotions to the employees.