Performance appraisal systems are affected by organizational social context. Social context consists of tow Factors, Distal Variables, and, Proximal Variables. Distal factors include but are not limited to organizational culture, organizational structure, and, values. Proximal variable categorize as both process factors and structural factors. In this paper the process factors were examined. The result demonstrates there is a significant difference between current and favored (expected) condition of process variables. Furthermore, the relation between appraisal system and supervisor & subordinate relationship accepted in confidence level of 99 percent. And also there is a significant relation between appraisal system and Leadership. However, no significant relation found between Performance appraisal systems and employees commitment, and group cohesion too. Generally, there is a meaningful relation between (process) social contexts of organization, including supervisor and subordinate relationship and leadership with Performance appraisal systems. These results are also in line with other studies.