Please try the below and let me know if your scenario is like below...
declare @p1 employee
insert into @p1 values('Raj', 'XYZ', '26747264')
insert into @p1 values('Dev', 'ABC', '12345567')
select * from @p1
declare @p2 phone
insert into @p2 values('XYZ', '033')
insert into @p2 values('DEF', '080')
select * from @p2
update @p1
set a.phoneno =
(
case b.phonetype
when 'XYZ' then b.code + a.phoneno
else a.phoneno
end
)
from @p1 a
left outer join @p2 b
on a.phonetype = b.phonetype
select
*
from @p1 a
left outer join @p2 b
on a.phonetype = b.phonetype