Rapid advances in teaching methodologies, the inroads of information technology in education institutions, advancement in using teaching tools, and organizational options have allowed for great advances in service delivery. Despite all these improvements, universities should know that it is still the people-members of the faculty-that have the greatest impact on the delivery of the state of the art education and that make the whole system work. The ever changing demand on organizations warrants management to be more responsive in terms of employee development. Although a plethora of research has investigated the issue of employee development, the amount of empirical research in investigating the relationships among employee development, job satisfaction, organizational commitment, performance improvement, employee's trust and turnover intentions in the universities seem to be scarce. It is essential that management and the employee should know where the deficiencies lie. The formal system of performance appraisal is one of the best way in this regard. Universities are required to relate this activity to employee development. This affects their attitudinal and behavioral outcomes.