The selection process of appropriate Performance Appraisal (PA) methods for organizations in today’s dynamic and agile environments along with its funding scales is a complex problem. Performance appraisal in modern organizations has become a part of the strategic approach toward integrating business policies and human resource activities. The existence of multiple criteria in the decision-making procedure makes finding the optimal PA method more challenging. The current study tackles a PA method assessment by applying a multiple criteria decision analysis method i.e., MULTIMOORA integrated Shannon’s entropy significance coefficient. A case study on the optimal PA method selection is analyzed by identifying the criteria and alternatives based on the literature and expert comments of the case-study employing two approaches, that is, MULTIMOORA and Entropy MULTIMOORA. The final rankings of the suggested methods are compared to TOPSIS and TOPSIS integrated Shannon’s entropy methods utilizing correlation coefficients of the final ranks. Eventually, by identifying the optimal PA approach i.e., 360-degree feedback, the selected optimal method employed in the case study and results are demonstrated and described with a comprehensive example.