The Information Technology (IT) sector in Coimbatore is expanding rapidly, presenting HR professionals with the challenge of managing employee performance effectively. Traditional performance management systems rely heavily on quantitative metrics that often fail to capture the emotional and motivational dimensions of employee performance. Sentiment analysis — a branch of Natural Language Processing (NLP) and Artificial Intelligence (AI) — offers a powerful method to transform unstructured textual data from employee feedback, surveys, performance reviews, and exit interviews into actionable HR insights. This study examines the awareness and application of sentiment analysis in IT employee performance management in Coimbatore, drawing on primary data collected from 150 respondents across various IT roles. Percentage analysis and Chi-Square tests were employed as statistical tools. Findings reveal that 64% of respondents are aware of sentiment analysis, 64% agree or strongly agree that it can improve performance appraisal, and 66% agree or strongly agree it can predict attrition. Privacy and surveillance concerns emerge as the foremost challenge to adoption. Chi-Square tests confirm significant associations between gender and awareness, and between work experience and willingness to adopt sentiment analysis. The study underscores the urgent need for ethical frameworks, data privacy policies, and awareness campaigns to enable responsible adoption of sentiment analysis in Coimbatore's IT sector.