In the wake of the COVID-19 pandemic, organizations are undergoing significant changes that call for more effective people management strategies. With new competitive challenges and constantly evolving environments, modern organizations need to adapt to ensure their continued success. One valuable tool for achieving this goal is a performance management system. However, it is crucial to update the theories and techniques of this system to meet the current demands. This study explores how the performance management system affects employees’ social experiences from a neuroscience perspective. Using a quantitative approach, the study gathered information from 268 employees across various industries in India, considering ten performance management criteria and evaluating social experience components using the SCARF model based on neuroscience. The results reveal that specific aspects of the performance appraisal system significantly impact employees’ social experiences. Based on their understanding of the link between different factors in the performance appraisal process and the quality of social experience, researchers recommend a performance appraisal model that promotes a brain-friendly work environment. These findings are especially relevant to managers and organizations, as they offer valuable insights into critical factors to consider when planning and implementing performance appraisal systems in modern workplaces.