The Employee Appraisals event type must be set to 'show' in order to set up employee appraisals.
System Configurations>>Event Types
Check the MSS Module box if you want the managers to manage the appraisal events. If the box is checked the Employee Appraisals event type will be displayed via User Self Service>>Manager>>Talent Management>>Manage Events.
If the HR Module box is NOT checked, then the Employee Appraisals event will not be visible via HR Events and therefore HR will NOT be able to set up appraisals.