India has the largest market for telecom services and it’s growing in the fastest way day by day. Telecommunication services are necessary to develop the socio-economic growth of any country. A telecom service has become a prime support service in every sector. This present study is an attempt to explore the existing performance appraisal practices in the private and public telecom company in the North-Eastern Indian state. For this purpose, the researcher has conducted a self-structured questionnaire survey among the employees of BSNL and Airtel at the executive and non-executive level from the district of Mizoram. The result of the study reveals that there is a significant difference in the performance appraisal system in selected companies. The performance appraisal system in a private telecom company is more effective as compare to the public telecom company. Further, on the basis of the result, the study has suggested improving the performance appraisal practices.