In today's ever-evolving workforce landscape, fostering diversity and inclusion has become paramount for organizational success. Using organizational behaviour theories, the chapter analyses the impact of diversity and inclusion on the fairness and effectiveness of these evaluations. The research draws on literature and case studies to provide a comprehensive understanding of how diversity initiatives interact with performance appraisal practices in this sector, addressing a gap in existing knowledge. The study explores how inclusivity can enhance fairness and improve performance reviews by studying complex relations between various forces affecting a diverse workforce dynamics and evaluations for work done. Moreover, this chapter emphasizes comprehensive strategies that recognize and appreciate public sector organization diversities through theoretical frameworks and empirical evidence. Diversity as well as inclusion should be integrated with the appraisal process to make employees more passionate at work, more motivated, and more productive.