The study deals with a variety of aspects related to the work culture and working conditions in the internal administration of Indian railways. The policies of Railway Ministry and decisions by Railway Boards are extremely important in deciding the work environment of railway departments. The general managers of divisional levels are the superiors, who decide the work environment of departmental level. They have to follow good human resource practices, while effectively implementing the government regulations. This organization, primarily a service entity is directly linked to providing smooth transportation facilities to the society at large. This automatically increases the work pressure on its employees. The human resource policies like promotion and performance appraisal and its impact on the job satisfaction level of railway employees is the key research problem in this study.