A project report on

“THE ROLE OF PERFORMANCE APPRAISAL TO

HUMAN RESOURCE MANAGEMENT”
Dissertation submitted in partial fulfilment of the requirement for
qualifying
MASTER OF COMMERCE (M.Com – II) semester IV
Choice based (A.Y 2021-22)
Of
UNIVERSITY OF MUMBAI

SUBMITTED BY:
BAIG SADIYA RISAL
ROLL NO: 15
UNIVERSITY SEAT NO: _________
Under the guidance of
PROF. KRISHNA JAMBEKAR SIR

M.S COLLEGE OF ARTS, SCIENCE, COMMERCE AND B.M.S

MUMBRA – THANE 400612

1
 DECLARATION

I BAIG SADIYA RISAL, solemnly declare that the project with the
title:
“THE ROLE OF PERFORMANCE APPRAISAL TO
HUMAN RESOURCE MANAGEMENT”.

Is prepared by me under the guidance of PROF. KRISHNA

JAMBEKAR SIR, M.S college of Arts, Science, Commerce and
B.M.S. I choose the topic of commerce background and of my
interest as it is relevant for current scenario. I do abide the rule of
nature, rule of University of Mumbai and of my college and will
continue to do so in future.

Thanking you,

Miss Baig Sadiya Risal

Roll No: 15
Seat no: ________

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 ACKNOWLEDGMENT
To list who all helped me is difficult because they are so numerous and
the depth is so enormous.
I would like to acknowledge the following as being idealistic channels
and fresh dimension in the completion of this project.
I take this opportunity to thank the UNIVERSITY OF MUMBAI for
giving me the chance to do this project.
I would like to thank my Principal MRS.SAIMA KHAN MAM, for
providing the necessary facilities required for completion of this project.
I would like to express my sincere gratitude towards my project guide
PROF. KRISHNA JAMBEKAR SIR , whose guidance and care made
the project successful.
I would like to thank my COLLEGE LIBRARY, for having provide
various reference books and magazines related to my project.

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 M.S COLLEGE
OF ARTS, SCIENCE, COMMERCE AND B.M.S
(Affiliated to University of Mumbai)
(NAAC ACCREDITED)
Habib educational complex, M.H Mohani road, Kausa, Mumbra, Thane-400612

CERTIFICATE OF ACHIEVEMENT

This is to certify that MISS BAIG SADIYA RISAL, Roll no: 15, seat
no: _________ has completed the project with title “The role of
Performance appraisal to Human resource management.” as partial
fulfilment for examination on M. Com II- semester IV choice based for
mumbai university for A.Y 2021-22.

Date : Place: Mumbra

Internal Examiner External Examiner
Name: Name:
Signature: Signature:

Principal College Seal

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 TABLE OF CONTENT
Chapter No Topic Page no

1. Introduction 7

2. Research methodology 13

3. Review of literature 15

4. Main Study 17

5. Comparative study 37

6. Questionnaire 41

7. Data analysis and interpretation 45

8. Recommendation and suggestion 61

9. Conclusion 64

10. Bibliography 66

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 CHAPTER – 1
INTRODUCTION

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 1.1 HISTORY/OVERVIEW
In every organization effective use of human resources require a complete
knowledge of employees capabilities and effective record system. To
achieve this objective, it has become necessary to regularly take stock of the
experience and exposure levels of employment. This could be done with the
aid of performance appraisal. Performance appraisal could be defined as the
process of measuring necessary level performance of organization members.
It is one of the delicate issues in human resources management because an
employee overall success in an organization depends largely on the outcome
of performance appraisal. It is pertinent to state that some bosses take
advantage of this to undermine the prospect of employees they line. Thus a
proven performance appraisal system linking organization and employees
goals is of paramount important because it can serve development tool to
counsel and motivate employees.

Furthermore, it could as well assist employees to understand what is

expected of them in a job and where they fit into an organization. The fact is
that the scarcely few employees who would not like to know what exactly
their manager thinks of their performance makes performance appraisal a
controversial subject. In small organization with few employees, the level of
interaction between the manger and the employees is close that employees
generally know how their boss thinks of them. However, in large

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 organization such ,the degree of interaction is remote. Many employees find
it difficult to precisely know what their manager thinks of them. In
contemporary atmosphere of world wide recession and especially in Nigeria,
of down right economic growth characterize by massive unemployment and
increasing number of employee redundancy, this organization which are
holding their own are likely to be much more interested in maximizing the
effective use of existing personnel than having new staff. It follows
therefore, that if performance appraisal is properly utilized. It could go a
long in assisting in the management of the bank in human resource planning
and development.

1.2 MEANING AND DEFINITION:

A performance appraisal, also referred to as a performance review,
performance evaluation, career development discussion, or employee
appraisal is a method by which the job performance of an employee is
documented and evaluated. Performance appraisals are a part of career
development and consist of regular reviews of employee performance within
organizations. Companies use performance appraisals to give employees
big-picture feedback on their work and to justify pay increases and bonuses,
as well as termination decisions. They can be conducted at any given time
but tend to be annual, semi-annual, or quarterly.

In the words of Dale Yoder, “Performance appraisal includes all formal

procedures used to evaluate personalities and contributions and potentials of
group members in a working organization. It is a continuous process to
secure information necessary for making correct and objective decisions on
employees.”
According to Flippo, “performance appraisal is systemic , periodic and so
far as humanly possible an impartial rating of an employee’s excellence in
matters pertaining to his present job and to his potentials for better job. “

According to Gomej-Mejia – “Performance Appraisal involves the

identification, measurement and management of human performance in
organisation.”

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 According to Beach – “Performance appraisal evaluates systematically
performance of individual with regard to his or her performance on the job
and his potential for development.”

1.3 RESEARCH PROBLEM:

Most organization are quite interested in determining the quality and level of
performance of their employee in assessing the potentials they demonstrate
for future development, and in identifying areas of weakness that may
require assistance and training. The process of appraising the performance of
employees is made difficult by the fact that criteria of effective and
ineffective performance and frequently difficult to define, the areas of
performance for which an individual is responsible is often unclear and
evaluation tends to be base not in measurement of actual performance, but
on the perception and judgment of immediate boss.
Some of these vague, ambiguous and judgment characteristics of
performance appraisal in an organization are unavailable because of the
complexity of managerial jobs and the difficulties inherit to clearly concrete
criteria of effective performance. At the same time, vagueness ambiguity.
Associated with the appraisal process can be attributed to inadequate
attention being paid by organization to the design and functioning of its
performance appraisal doubtful of the extent to which the employees UBA
are usually satisfied after the appraisal exercise.

This is because instances abound where a staff has spent over nine (9) years
or one past without promotion. One is tempted therefore to conclude that;
performance appraisal is not so effective in assisting management in
selecting the first people for advancement.
Further, it appears that general feeling among the staff is that
performance appraisal is not achieving the desired objective. This
implies that all is not well with the way performance appraisal is
being conducted in . Beaming in mind that the instable nature of
human beings and the fact that they constitute the most difficult
variables for managers to predict and control, the researcher study
will endeavour to examine the performance appraisal system of its
pros and cons will assist the management to define effective and
result oriented performance.

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 1.4 RESEARCH QUESTION:
Recognizing the fact for the best and worst level of employee performance,
a manager is ever inclined to make comments, the researcher is curious to
ask some striking questions which is hoped would bring chant to some
doubt on the validity of performance appraisal as a tool for measuring
employees performance.

THE QUESTIONS ARE:

1. Should an employee be rewarded based on his or her scores in

performance appraisal report?
2. In what areas has the organisation performance appraisal scheme
created an impact on employees?
3. Do bosses influence performance appraisal report?
4. Are the employees aware of the method of approach to the performance
evaluation being used by management?
5. Does the modern methods are useful for performance appraisal?
6. Does performance appraisal motivate employees to do better things?
7. Is it helpful for organization to evaluate employee’s performance by
performance appraisal?
8. Is there any chance of Biasedness even if there is performance appraisal
in organization?

1.5 AIMS AND OBJECTIVES:

1. To explain the meaning of performance appraisal

2. To explain the importance of performance appraisal in organization
3. To observe the difference an organization gained by performance
appraisal.
4. To determine the benefits organization and employees experience by
performance appraisal.
5. To understand the different methods of performance appraisal.
6. To evaluate the performance of employees by performance appraisal
7. To understand the reward system of employees with the help
performance appraisal.
8. To identify the strength and weakness of employees to place at right job
at right time.

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 9. To assess the potential present in a person for further growth and
development.
10. To observe the difference between traditional and modern methods of
performance appraisal.

1.6 SCOPE OF RESEARCH:

The study covers the total performance of employees of the organization

from managers, clerks, security guards, cleaners etc. the study will develop
into such sensitive areas of promotion, salary increase, training and regard
for hard work. The whole process of performance appraisal exercise is
reviewing the past to enable proper project to be made of the future. The
study therefore is as important as the objective and growth of any business
organization. Business as we know cannot operate without employees, and
in order for organization to make profits, both employees and employers
must work in an understanding and satisfactory atmosphere so that one
will not be seen as an obstacle to the other. The study therefore will
therefore expose of reducing frication that many union as well as managers
and subordinates following the outcome of every appraisal exercise in
order to usher in a peaceful industrial harmony in the organization. The
organization will find the study particularly useful in human resources
planning of the organization. The study will also serve as an insight for
management on the proper use of performance evaluation on their
subordinate. Finally, the study can motivate other interesting researchers in
this subject there by giving them impetus to venture into a fresh field
study.

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 CHAPTER – 2
RESEARCH
METHODOLOGY

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Research methodology:
The role of performance appraisal to human resource management is an important
concept to understand and for this I have collected data from Primary as well as
secondary method. I prepare 15 questions on performance appraisal and is filled by
many people from different age groups. Also I refer commerce and human resource
management books for my content. I have asked Multiple choice based questions by
using Yes, No, Maybe. Also I have presented the questionnaire in graph method and
analysed it.

HYPOTHESIS:

Hypothesis 1- the suitability for promotion and salary increment does not fit
significantly to the performance appraisal scheme of the organization.

Hypothesis 2- the suitability for promotion and salary increment fits significantly
to the performance appraisal scheme of the organization.

Hypothesis 3- Identifying the proficient employees and presenting them rewards as

a sign of motivation, in order to improve their performance are among the essential
factors in performance appraisal.

Hypothesis 4 - Behaviour of employees change significantly after performance

appraisal.

Hypothesis 5 – Majority of respondents feel that salary is sometimes based on

performance appraisal.

Hypothesis 6 – There is no association between performance system and increment

in salary.

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 CHAPTER – 3
REVIEW OF
LITERATURE

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 The amount of research regarding the topic "Performance Appraisal" is so vast.
The paper which is based on an observational study of the researchers' daily work
experiences and review of literature identified constraints to performance appraisal
in employees in the institutions, which includes the current knowledge in
Performance Appraisal findings, as well as theoretical and methodological
contributions to a particular topic. Introduction: Organization are run and steered
by people and their labours. It is through people that goals are set and objectives
realized depend on the performance of the employees. The performance of an
organization is thus dependent upon the sum total of the performance of its
members. The success of an organization, depend on its ability to measure
accurately the performance of its members and use it objectively to optimize them
as a vital resource and strength. The performance of an employee is his resultant
behaviour on task, which can be observed and evaluated. It refers to the
contribution made by an individual in the accomplishment of organizational
objectives. Performance can be measured by some combination of quantity,
quality, time, and cost. Literature available indicates that a lot of researches have
been conducted on performance appraisal. However, for this study, this literature
review is focused on performance management, performance appraisal in general,
the history of performance appraisal, consequences of appraisal, design of
appraisal system, effective appraisal system, training of appraisers, appraisal
feedback and motivation. Every employer desires that his employee does his or her
job well and this can be achieved through managing performance. The success or
failure of performance appraisal programmes depends on the philosophy
underlying it, its connection with business goal, and the attributes and skills of
those responsible for its administration. According to Dessler (2005), performance
appraisal means evaluating employees ‘ current and or past performance relative to
his or her performance standards. That is employees will be assessed after a given
period of time what they have been able to achieve by a target set. This will also
help supervisors to know how well their subordinates are performing on their jobs.
Performance appraisal by nature requires that there is the need for goal setting and
expectation of results. Goal setting theory claims that people work better when
they have clear realizable and significant goals and argues that people will put
more E’s (energy, effort, enthusiasm, excitement and so on) onto their work if they
believe their effort will result in tangible achievements that will help them fulfil
personal needs.

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 CHAPTER – 4
MAIN STUDY

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The term performance appraisal refers to the regular review of an employee’s job
performance and overall contribution to a company. Also known as an annual
review, performance review or evaluation, or employee appraisal, a performance
appraisal evaluates an employee’s skills, achievements, and growth, or lack thereof.

4.1 BENEFITS OF PERFORMANCE APPRAISAL TO

ORGANIZATION:
Performance appraisals can help companies evaluate how well employees
perform their job duties and where employees can improve to more closely
align with companies’ overall mission. Holding frequent job reviews allows
for open dialogue about expectations and work goals. When conducted
successfully, a performance appraisal can lead to a more motivated and
dedicated workforce. In this article, we explore what performance appraisals
are and provide a list of benefits of utilizing appraisals for businesses.

1. Helps Determine Training:

Performance appraisals allow companies to see which employees need
more training and determine what areas to provide training in. For
instance, if multiple employees are struggling to meet a daily quota, an
employer could provide a workshop on how to work more efficiently or
consider lowering the quota for employees.

2. Clarifies expectation:
During performance appraisals, managers can reiterate their expectations
for employees. This helps individuals to understand what their daily job
responsibilities are and what their manager wants from them.

3. Allows for conversation:

Performance appraisals create a structured, set time for managers to
discuss how each employee is doing overall and allows for a flow of
discussion with no distractions. During these meetings, managers can
coach staff and offer tips for how to improve their performance. This
scheduled time also provides employees with a chance to ask questions
and clear up any concerns they may have.

4. Evaluate goals:

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 Employers can evaluate how well an employee reached their goals and
provide feedback for what sorts of goals to set for the next period. Creating
a system with continuous goal-setting helps to ensure employees are
improving and contributing to the overall mission of the organization.

5. Provides Documentation:
Keeping a record of employees’ work over a specific period of time allows
managers to track an employee’s development journey and performance.
Organizations can keep documentation of each employee in a personal
folder to review at a later date. This helps inform superiors in upper
management about employees who they may not interact with regularly.

6. Addresses areas for improvement:

When employers hold performance appraisals frequently, they can spot
areas that need improvement before they affect the company or become
irreversible. Often employers provide suggestions and measures
employees can take in the future. This allows employees to continually
grow and become the best that they can be.

7. Strengthens team bond:

Performance appraisals help managers and employees align their priorities
and brainstorm together. Frequent meetings can build relationships and
make the manager appear more approachable. Peer reviews help
individuals see how their co-workers appreciate them.

8. Reward Top Performers:

The purpose of performance appraisals is to identify employees’ strengths
and weaknesses. Managers can use this information to determine who has
contributed the most to the company’s growth and reward top performers.
Therefore, employee evaluations may form the basis of merit-based
compensation plans that let your best people know how much the
organization values them.

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 4.2 BENEFITS OF PERFORMANCE APPRAISAL TO
EMPLOYEES:

The performance appraisal process can have a significant impact on

employee morale and engagement. This evaluation method often
provides valuable insights to managers and employees, helping
companies make decisions regarding bonuses, raises, promotions and
other rewards. It also allows managers to define medium-term and long-
term objectives for their team members and help them grow
professionally.

1. Boost Employee Morale and Motivation:

While it’s true that most employees dread appraisals, these evaluations
can serve as a motivational tool. Merit-based bonuses, promotions,
training programs, and other outcomes of performance reviews may
improve team morale. Praising your team members for their
accomplishments is just as important. Encourage your employees to
better themselves and offer specific steps for improvement. Focus on
the positive and show your team how to build on those strengths.

2. Create career growth:

Performance appraisals help employees grow in their careers,
particularly if they are looking to eventually advance with the company
to a higher role. A regular evaluation can help employees create a plan
for professional growth.

3. Improves performance:
Providing feedback helps motivate employees to do well. Employees
can work harder when their manager shares positive feedback. Because
performance appraisals are often used to determine how to give
bonuses, they can help give employees an incentive and reward for
their hard work.

4. Increases employees engagement:

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 Regularly involving employees in the performance review process can
lead to more engagement and a desire to stay with a company long
term. When employees can see how their actions affect the company
overall, they are more likely to perform better. Frequent performance
appraisals also show employees that their manager cares about them
and is willing to take the time to provide them with the instruction
needed to help them flourish.

5. Refocuses work:
During the day-to-day operations of a company, employees sometimes
forget why they are working or how their efforts make a difference. By
receiving feedback on projects they have completed, employees can
remember why their work matters. Performance appraisals also offer
managers a chance to reiterate the company vision and what goals the
company’s employees are working toward.

6. Guides current project:

Performance appraisals can give employees a chance to ask managers
questions about current projects they are working on and receive
further guidance or direction in how to complete their tasks at work.
These reviews can give employers a chance to check in with employees
and review employees’ progress on projects without micromanaging.

7. Support professional development:

Performance appraisals can reveal opportunities for improvement and
help managers identify the training needs of their staff, leading to a
more productive organization. They also allow you to spot potential
talent and determine when your team members are ready to take on
greater responsibility. Plus, companies that invest in employee
development find it easier to attract and retain talent.

8. Increase merit based compensation:

Performance appraisals are an excellent opportunity for employees to
get raises, bonuses and other increases in merit-based compensation,
according to the business software developers at KPI. Employees are
motivated and driven to meet their goals when they know there is an
opportunity to be rewarded for their performance. In addition to

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 increasing motivation, merit-based compensation helps employees feel
valued by the company.

4.3 TRADITIONAL METHODS OF PERFORMANCE

APPRAISAL:
Every method is used for Measuring different skills and qualities of
employee. Some are simple and economical while others are costly and
complex. Each organization adopts technique which is most suitable for
them. The traditional methods are as follows:

1. Ranking method:
In a ranking method system (also called stack ranking),
employees in a particular department are ranked based on their
value to the manager or supervisor. This system is a comparative
method for performance evaluations. The manager will have a
list of all employees and will first choose the most valuable
employee and put that name at the top. Then he or she will
choose the least valuable employee and put that name at the
bottom of the list. With the remaining employees, this process
would be repeated. Obviously, there is room for bias with this
method, and it may not work well in a larger organization, where
managers may not interact with each employee on a day-to-day
basis.

2. Paired comparison method:

This method is used to appraise performance. Under this method,
employees are arranged into pairs, and they are compared to each
other. This gives employers an idea about how each employee is
doing in accordance with the same standards.

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 The total number of times an employee is rated better compared
to others determine the final ranking of employee. this method is
simple but it is not suitable when the number of employees is
large .

3. Grading method:
In this method, certain categories of worth are established in
advance and carefully defined. There can be three categories
established for employees: outstanding, satisfactory and
unsatisfactory. There can be more than three grades. Employee
performance is compared with grade definitions. The employee is,
then, allocated to the grade that best describes his or her
performance .Such type of grading is done is Semester pattern of
examinations and in the selection of a candidate in the public
service sector. One of the major drawbacks of this method is that
the evaluator may rate most of the employees on the higher side of
their performance.

4. Forced Distribution method:

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 Forced distribution is a method of employee performance
appraisal that many companies use. We also call it the forced
distribution method, stacked ranking, or bell-curve rating. It is a
rating system that employers use to evaluate their workers.
Managers must evaluate each employee, usually into one of three
categories, i.e., poor, good, or excellent. There may be more
categories. Although forced distribution is extremely popular
among companies, it is somewhat controversial among HR
experts. HR stands for human resources.

5. Forced Choice Rating Method:

Forced Choice Appraisal is a method of performance appraisal in
which the evaluator has to make a forced choice between the
available characteristics, about the employees. It is in the form of
a survey questionnaire. In this method, different categories of
performances are set; the proportion in each category need not be
symmetrical. All the employees are places under any one of these
categories. The evaluator are given a set of multiple choice
questions, from which they are to select one option and rate the
employees. This list contains only positive or only negative set of
choices of behaviours to choose from. This leads the employer to
be in a situation in which, he/she is forced to choose only the
negative or only the positive traits to attribute to the performance
of an employee. Thus the supervisor, himself doesn’t know
which is the best answer among the choices available.

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 6. Checklist method:
Checklist method is another of the easiest methods of appraising
employee’s performance. Under this method, a checklist is
prepared by the HR manager and is forwarded to the evaluator.
The checklist may include list of questions (depicting behaviour
and job performance of employee) and the evaluator has to
answer them in just ‘YES’ or ‘NO’ form.

The evaluator analyzes the question and the employee, and based
on his views, he answers them. Such questions also carry some
scores (equal or different), depending upon the nature or
importance, which is totaled at the end of the procedure by the
HR manager. This method is helpful not only in evaluating
employee’s job performance but also in evaluating degree of
uniformity of the evaluator by giving him two similar questions
in different manner. In the given figure, question no. 3 and 6 are
differently asked same questions.

7. Critical Incident appraisal method:

In this method the manager makes note of all important incidents
positive and negative of the employee that occurred at job. The
record helps evaluated to rate the employee correctly as per
actual performance. For example the manager takes record of the
incident where a difficult and unsatisfied customer was skillfully

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 handled by an employee. He takes note of the attitude and the
manner in which he deals with the incident. it aids the manager to
access the capability of employee. To handle the difficult
situations for example evaluation the manager is required to be
alert and observant about the activities occurring in his team. It is
an effective method to evaluate the strength weakness and
capacity of employees. It helps in appraisal interview and further
training but there may be situation where there are no enough
incidents or record which makes the evaluation process difficult.

8. Graphic Rating scale method:

Graphic rating scale is one of the oldest and commonly used
methods of performance appraisal. Under this approach, the
employees are evaluated on the basis of various job performance
criterions, such that each criterion is categorically divided into
poor, fairly poor, fairly good, good and excellent. Also, these
criterions carry certain score weight. The evaluator ticks the
category that best describes the employee and finally the score is
totalled. Graphic rating scale is an easy and simple method of
performance appraisal as it does not require any writing skills.
However, the evaluator capricious mood may result in ineffective
evaluation.

9. Essay Appraisal Method:

It is a traditional and judgmental approach under which employee
is evaluated and a descriptive essay is written on him/her. The

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 essay describes in detail about the strengths, weaknesses,
potential, nature, etc. Essay method helps in collecting a lot of
information about the employees as the evaluators are not
confined to appraise the employees in rigidly defined criteria.
The process is unrestricted and flexible, permitting the employers
to emphasize on any issues or traits that they feel relevant.
However, this method is tedious and difficult to manage as it
demands more description than other methods of appraisal. The
reports being descriptive in nature, it is difficult to compare and
contrast them or withdraw any conclusion. Besides, the evaluator
must have good writing skills, or else the whole process is
distorted.

10.Field Review method:

Field review method of performance appraisal is conducted by

the evaluator who does not belong to the employees’ department.
The evaluator is someone from the corporate, especially from HR
department. Use of this technique to evaluate employees’
performance is helpful in completely eliminating issues that arise
due to evaluator's biasedness. However, this method is not
widely used because of the drawbacks. They are the evaluator is
not familiar with employees, making it impossible for him to
observe their actual behaviour. The evaluator might feel
aggrieved in cases when employees try to clarify any matter.

4.4 MODERN METHODS OF PERFORMANCE

APPRAISAL:

Modern methods of performance appraisal include 360 degree

feedback, management by objectives (MBO), psychological
appraisals, and the behaviourally anchored rating scale (BARS),
to name a few.

1. Human resources accounting method:

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 Human resource (cost) accounting method analyses an
employee's performance through the monetary benefits he/she
yields to the company. It is obtained by comparing the cost of
retaining an employee (cost to company) and the monetary
benefits (contributions) an organization has ascertained from that
specific employee.

2. Management by Objectives (MBO):

Management by objectives (MBOs) is a concept developed by
Peter Drucker in his 1954 book The Practice of Management
(Drucker, 2006). This method is results oriented and similar to
the work standards approach, with a few differences. First, the
manager and employee sit down together and develop objectives
for the time period. Then when it is time for the performance
evaluation, the manager and employee sit down to review the
goals that were set and determine whether they were met. The
advantage of this is the open communication between the
manager and the employee. The employee also has “buy-in”
since he or she helped set the goals, and the evaluation can be
used as a method for further skill development. This method is
best applied for positions that are not routine and require a higher
level of thinking to perform the job. To be efficient at MBOs, the
managers and employee should be able to write strong
objectives. To write objectives, they should be SMART.

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 a. Specific. There should be one key result for each MBO.
What is the result that should be achieved?
b. Measurable. At the end of the time period, it should be
clear if the goal was met or not. Usually a number can be
attached to an objective to make it measurable.
c. Attainable. The objective should not be impossible to
attain. It should be challenging, but not impossible.
d. Result oriented. The objective should be tied to the
company’s mission and values. Once the objective is
made, it should make a difference in the organization as a
whole.
e. Time limited. The objective should have a reasonable
time to be accomplished, but not too much time.

3. Assessment Centres:
An assessment centre is a place to evaluate an individual
potentiality and performance, so as to position he/she in the core
functional areas. Normally, organisations outsource assessment
centres instead of making them by their own. An assessment
centre typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of
employees to assess their competencies to take higher
responsibilities in the future. Generally, employees are given an
assignment similar to the job they would be expected to perform
if promoted. The trained evaluators observe and evaluate
employees as they perform the assigned jobs and are evaluated
on job related characteristics.

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 4. Behaviourally anchored Rating scales (BARS) :
BARS method first determines the main performance dimensions
of the job, for example, interpersonal relationships. Then the tool
utilizes narrative information, such as from a critical incidents
file, and assigns quantified ranks to each expected behaviour. In
this system, there is a specific narrative outlining what
exemplifies a “good” and “poor” behaviour for each category.
The advantage of this type of system is that it focuses on the
desired behaviours that are important to complete a task or
perform a specific job. This method combines a graphic rating
scale with a critical incidents system. BARS are normally
presented vertically with scale points ranging from five to nine. It
is an appraisal method that aims to combine the benefits of
narratives, critical incidents, and quantified ratings by anchoring
a quantified scale with specific narrative examples of good,
moderate, and poor performance.

5. 360 Degree Appraisal:

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 360-degree appraisal is a modern technique to evaluate
employee’s performance which was developed in the early 90s in
the U.S.A. Under this method, an employee’s job performance is
appraised by the help of the factors that are present around him at
the workplace. Such factors may be superiors, colleagues,
subordinates and even clients, customer or spouse. An evaluator
asks various questions to these factors and collects their
feedback. The gathered information is then assembled through
computerized system and individual reports are prepared. Such
reports are finally distributed to the employees, following which
they can communicate with their appraiser in regards with their
opinion about how to improve his performance. 360-degree
method is considered to be the most effective way of appraising
employee’s performance as information and feedback is collected
from all around.

32
4.5 Steps in performance appraisal process:

Step 1: Establish Performance Standard:

Performance standards are set to ensure achievement of departmental goals and
objectives and the organization’s overall strategy and objectives. Standards are
based on the position, rather than an individual. In order to be clearly understood
and perceived as objective, standards should adhere to the same rules that apply to
goal-setting; that is, they should be “SMART:” specific, measurable, achievable,
relevant and time bound.
Step 2: Communicate performance standards:
In order to be effective, performance standards must be clearly communicated and
understood to be expectations. Performance standards assume that an individual is
competent, so initial and corrective training should be factored into the
performance management process. If there is a specific training period after which
an employee is assumed to be competent and performing to standards, that should
be communicated as well.

33
Step 3: Measure Performance:
Performance that is expressed in numeric terms—for example, cost, quantity,
quality, timeliness—is relatively easy to measure. Performance in the area of soft
skills—for example, communication, customer service and leadership—is more
difficult to evaluate. DeCenzo, Robbins and Verhulst recommend using a variety
of sources of information including personal observation, oral reports and written
reports. They note, however, that what is measured is probably more critical than
how an aspect is measured. The focus should be on measuring what matters rather
than measuring what’s easy to measure.
Step 4: Compare actual performance to performance standard:
In this step of the appraisal process, actual performance is compared to the
performance standards. Documentation should highlight actions and results.
Step 5: Discuss the appraisal with employees:
This is generally the step in the process that is the most difficult for managers and
employees alike and it can be a challenge to manage emotions and expectations.
Even when performance is strong, there can be differences of opinion on the next
action. A significant difference of opinion regarding performance can create an
emotionally-charged situation. If the manager is providing feedback and coaching
on a regular basis, this shouldn’t be the case. Related point: If an employee has
consistently poor performance, the issue should be addressed—corrective action
taken—in a timely manner and not deferred to an annual review. To identify and
prepare for differences of opinion, management can ask employees to complete
and submit a self-evaluation prior to the appraisal meeting. A key point to keep in
mind is that the manager’s ability to remain calm and civil will have a significant
impact on the employee’s confidence, motivation and future performance.
Step 6: Implement Personnel Action:
The final step in the appraisal process is the discussion and/or implementation of
any next steps: a reward of some sort—a raise, promotion or coveted development
opportunity—or corrective action—a performance plan or termination. Note,
however, that corrective action that might help an employee achieve expectations
shouldn’t be tabled until the next formal appraisal. As performance gaps are
identified, supervisors and managers should take the time to identify why
performance is not meeting expectations and determine whether the employee can
meet expectations with additional training and/or coaching. As mentioned above, if

34
performance is such that termination is warranted, that action should be taken in a
timely manner as well.

4.6 Limitations of performance appraisal

Performance appraisals are a part of career development and consist of regular

reviews of employee performance within organizations. Performance appraisal is
defined by Wayne Cascio as “the systematic description of employee’s job
relevant, strength, weakness.
The following are the limitations of performance appraisal:
1. Halo effect:
In this case the superior appraises the person on certain positive qualities
only. The negative traits are not considered. Such an appraisal will no give a
true picture about the employee. And in some cases employees who do not
deserve promotions may get it.

2. Horn effect:
In this case only the negative qualities of the employee are considered and
based on this appraisal is done. This again will not help the organization
because such appraisal may not present a true picture about the employee.

3. Central tendency:
In this case the superior gives an appraisal by giving central values. This
prevents a really talented employee from getting promotions he deserves and
some employees who do not deserve any thing may get promotion.

4. Leniency and strictness:

Some bosses are lenient in grading their employees while some are very
strict. Employee who really deserves promotions may loose the opportunity
due to strict bosses while those who may not deserve may get benefits due to
lenient boss.

5. Spill over effect:

35
 In this case the employee is judged positively or negatively the boss
depending upon the past performance. Therefore although the employee may
have improved performance, he may still not get the benefit.

6. Fear of loosing subordinates and spoiling relations:

Many bosses do not wish to spoil their relations with their subordinates.
Therefore when they appraise the employee they may end up giving higher
grades which are not required. This is a n injustice to really deserving
employees.

7. Goodwill and techniques to be used:

Sometimes a very strict appraisal may affect the goodwill between senior
and junior. Similarly when different departments in the same company use
different methods of appraisal it becomes very difficult to compare
employees.

8. Paper work and personal biased:

Appraisal involves a lot of paper work. Due to this the work load of HR
department increases. Personal bias and prejudice result in bosses favouring
certain people and not favouring others.

9. Time consuming process:

Every manager or supervisor is responsible for preparing performance report
for his team member. He is required to fill up an appraisal form for every
team member and note down strength, achievement, weakness and other
observations of his team members. The process includes lot of procedures
and is a time consuming process.

10. Inexperienced evaluator:

Sometimes appraisal may not be conducted by skilled or trained managers.
The evaluation process may not be carried out properly owing to lack of
knowledge and experience of evaluator.

11. Lack of participation from employees:

Employees resist performance appraisal system because they consider that
the whole process of appraisal in only for pointing out then mistaken

36
 criticizing their performance. Thus they may not be actively involved in the
evolution process.

12. Expensive:
The organization has to allot huge funds for setting up assessment centres.
Further technical experts are to be hired to plan and design evaluation
techniques. Sometimes organization also have to hire professional experts
from outside to conduct evaluation process. Thus the process of performance
appraisal is costly.

4.7 Case study on Performance Appraisal:

1. Introduction of client (Mobile app company) :
The client is a high growth mobile application software company, providing
creative solutions to a range of national and international clients.

2. The Brief:
The client wanted to drive individual performance cohesively towards
shared business objectives in order to further improve company
performance. There wasn’t a mechanism in place to review the future
demands of the business and to translate that down into meaningful
objectives for each employee. Any support, direction or allocation of
activities typically would happen within the open office.

3. The solution:
Following the client’s initial briefing we soon identified that employees had
limited opportunity to receive feedback, support and direction with future
tasks. A process to identify skill and knowledge gaps was needed, coupled
with a formal mechanism for communication and a way to align business
objectives with individual performance. The solution was to address all of
these requirements within a bi-annual appraisal process. Solutions for HR
designed the appraisal process and documentation and delivered training to
the management team in how to:
• Appraise performance by reviewing achievements.
• Deliver feedback constructively to employees.
• Motivate employees to drive performance to meet new objectives.
• Use the process to formalise under-performance.

37
 • Get the employees to self-assess their performance.
• Identify skills and knowledge gaps.
• Identify how an individual’s performance could contribute better to
overall business goals.
• Identify potential opportunities/career paths for over achieving
employees.
This provided an opportunity for the managers to develop their skills by
observing the appraisal techniques and constructive language used when
delivering underperformance feedback and how to develop short term
objectives in support of longer term business goals.
4. The results:
Performance appraisal allowed the company to introduce a formal approach
to reviewing performance in a positive way to the entire workforce. The
process enabled many meaningful conversations about the future visions of
the company and identified a number of development opportunities for
certain employees that hadn’t previously been identified. This allowed the
company to embrace the development needs to up-skill in readiness to
achieve the future objectives of the business. The process also identified an
immediate under performance concern and an action plan with short term
objectives was put in place.

38
 CHAPTER – 5
COMPARATIVE
STUDY

39
5.1 Difference of performance appraisal in domestic enterprises and in
multinational enterprises:
Very little work in the past has focused on the comparative analysis of
human resource management (HRM) practices between domestic and
multinational enterprises (MNEs). The majority of the work in this area has
instead concentrated on comparing the HRM practices utilised by the
subsidiaries of MNEs, and has mostly been conducted in the context of
developed countries. In this paper, we examine how the HR practices of
appraisals, rewards and incentives are offered, explained and monitored in
domestic enterprises versus MNEs, and how they are similar or different in
nature. A context within which no previous work of this nature has been
undertaken. An analysis reveals several interesting results: HR practices are
more advanced and better structured in MNEs that conduct performance
appraisals (PA) more frequently than domestic enterprise, and their feedback
system is also rapid; incentives and rewards systems in MNEs follow market
ethos and principles; the HR directors and employees of MNEs are more
receptive to performance appraisal than those in domestic enterprises whilst,
in contrast to domestic enterprises, incentives and rewards systems in MNEs
follow market ethos and principles. Furthermore, with regard to size,
younger firms are more likely to be following market principles in terms of
explaining incentives and rewards systems to their employees, whilst older
firms claim that working for them carries social and psychological benefits
for employees.

5.2 Organization without Performance appraisal and with Performance

appraisal.

5.2.1 Organization without performance appraisal:

Employees crave feedback on their performance. Failure to conduct regular
performance reviews – even skipping a single performance appraisal – can

40
 degrade the quality of their work and lower their personal performance
standards. Employees subject to ineffective systems and performance review
practices are likely to feel upset, demoralized, and demotivated. This can
lead to personal relationships that are damaged, sometimes permanently.

5.2.2 Organization with Performance appraisal:

Organizations that use the results of performance appraisal to identify areas
of strength and opportunity can benefit as well. Performance appraisal can
provide an indication of areas of training need as well as direction for
leadership development, performance improvement and succession
planning. A performance appraisal is a regular review of an employee’s job
performance and contribution to a company. Companies use performance
appraisals to determine which employees have contributed the most to the
company’s growth, review progress, and reward high-achieving workers.

5.3 Performance appraisal versus Performance Management:

Performance appraisal and performance management are two employee

performance assessment methods. Many professionals consider the two
systems to be the same, however, a lot more think they are different.
Performance appraisal has underpinned employee and organizational
assessment exercises for the past several decades, having come to replace
the unempirical and undependable systems that dated back to the industrial
revolution era, when wages were tied to output. Applicable in industry for so
long, performance appraisal began to lose its patina when it started to come
under intense disapproval for perceived mistakes, not least, the much talked
about human influence that renders the scheme unfair and unreliable. In the
wake of such severe criticisms came a new assessment method called
performance management. It was expected to be more effective and address
the issues raised about performance appraisal. It replaced performance
appraisal in the assessment of employees and organizations on a global
scale. Yet, it was not long before establishments began to have issues with
the system, with many organizations abandoning it and returning to the use
of performance appraisal. Both systems have the same objective, to measure
achievement in the organization to trigger corrective actions to make the
organization attain higher performance. Their methodologies may differ, but
their objectives remain the same. This has given reason for intellectuals to

41
 disagree on whether they are the same or not. For instance, is emphatic that
an appraisal does not equal performance management. According to him, an
appraisal reflects past performance, while performance management is about
the future. After reviewing literature on the two systems, this I think they are
pretty much the same, and may be used interchangeably though, an austere
academic debate would tend to put them apart.

5.4 Traditional methods of performance appraisal versus Modern

methods of performance appraisal:
Traditional methods tend to measure an employee’s past performance and
focus on assessing employee personality traits such as initiative,
dependability, and leadership potential while modern methods weigh job
achievements more heavily, regardless of the employee’s personality traits,
which is thought to be a less biased approach. The key difference between
the traditional methods and the modern methods of performance appraisal is
that traditional methods of appraisal are more work-oriented or goal-oriented
and does not pay attention to employee's other strengths, whereas the
modern method of performance appraisal focuses on employee's strength
and weaknesses. The reason why modern method is better than the
traditional method is because it offers benefits like clearer standards,
consistency, better feedback and more accurate gauge in evaluation.
A more widely used classification of appraisal methods into two categories,
viz., traditional methods and modem methods, is given by Strauss and
Sayles”. While traditional methods lay emphasis on the rating of the
individual’s personality traits, such as initiative, dependability, drive
creativity, integrity, intelligence, leadership potential, etc.; the modem
methods, on the other hand, place more emphasis on the evaluation of work
results, i.e., job achievements than the personal traits! Modem methods tend
to be more objective and worthwhile.

42
 CHAPTER – 6
QUESTIONNAIRE

44
 1. Name

2. Age Group
• 15-20
• 21-25
• 26-30
• 31 and above

3. Educational qualification:
• High school education
• Undergraduate
• Graduate
• Post graduate

4. Do you think performance appraisal will play an important role in

organization?
• Yes
• No
• May be

5. Will performance appraisal motivate employees to do better work?

• Yes
• No
• May be

6. With the help of performance appraisal is it become easy for organization to

evaluate employee performance?
• Yes
• No
• May be

7. Do you think performance appraisal is required for every employee from

manager to subordinate?
• Yes
• No
• May be

45
 8. Do you think performance appraisal is helpful for Human Resource
department to plan and design training program?
• Yes
• No
• May be

9. Do you think performance appraisal helps in personal and career

development of employee?
• Yes
• No
• May be

10. Do you think there is chance of being biased in performance appraisal?

• Yes
• No
• May be

11. Which method is more effective?

• Traditional
• Modern
• Both

12. Do you think performance appraisal gives platform to improve employees

communication?
• Yes
• No
• May be

13. Do you think performance appraisal benefits both employees and

organization?
• Yes
• No
• May be

14. Do you think experience of evaluator matters in performance appraisal?

46
 • Yes
• No
• May be

15. Does performance appraisal facilitates good work atmosphere which directly
benefits final output?
• Yes
• No
• May be

47
 CHAPTER -7
DATA ANALYSIS
AND
INTERPRETATION

48
First three questions are based on demographic of respondents that is name, age
and educational qualifications. The representation and analysis of questions is
given below:

Age group
39 responses

The respondents are of age from 15 years to 40 years. From all the respondents
53.8% are from age group of 21-25, whereas 33.3% of the respondents are from
age group of 26-30, only 10.3% respondents are there from the age group of 30 and
above. And the least one that is 2.6% of the respondents are from the age group of
26-30.

49
Educational Qualifications:
39 responses

Answers Frequency Percentage

High school education 4 10.3%
Undergraduate 16 41%
Graduate 9 23.1%
Post graduate 10 25.6%

I collected this data and most of the respondents are undergraduate that is 41%.
Then 10% of the respondents are post graduate. From the total 23.1% are graduate
that us 9 persons. The least that is 10.3% have done high school education.

50
Do you think Performance
Appraisal play an important role
in organization?
39 responses

Answers Frequency Percentage

Yes 38 97.4%
No 0 0%
May be 1 2.6%

From the graph we came to know that maximum respondents that is 97.4% think
that performance appraisal play an important role in organization. None of them

51
disagree with the question. 2.6% respondents think that it may play an important
role and may not.

Do you think Performance

Appraisal motivate employees
to do better work?
39 responses

Answers Frequency Percentage

Yes 37 94.9%
No 0 0%
May be 2 5.1%

94.9% of the respondents agree with question that performance appraisal motivate
employees to do better work. Also none of them disagree with the question.

52
However 2 respondents that is 5.1% think that it may motivate employees or may
not be.

With the help of Performance

Appraisal is it become easy for
Organization to evaluate
employees performance?
39 responses

Answers Frequency Percentage

Yes 33 84.6%
No 1 2.6%
May be 5 12.8%

53
Evaluation of employees performance has became easy with performance appraisal
84.6% of the respondents agree with it. However 5 respondents think that it may be
easy. Only 2.6% of the respondents disagree with the question.

Do you think Performance

Appraisal is required for every
Employee from manager
to subordinate?
39 responses

Answers Frequency Percentage

Yes 32 82.1%
No 2 5.1%
May be 5 12.8%

54
Out of 39 respondents 32 think that performance appraisal is required for every
employee from manager to subordinate. 5.1% think that it’s not require for every
employee. 12.8% respondents think that performance appraisal may required for
every employee.

Do you think Performance

Appraisal is helpful to H.R
Department to plan and design
Training programs?
39 responses

Answers Frequency Percentage

Yes 33 84.6%

55
 No 1 2.6%
May be 5 12.8%

Around 84% respondents think that Performance Appraisal is helpful for H.R
department for planning training programs. And only 2.6% respondents are counter
viewing the point. 5 respondents think that it may be helpful or not.

Do you think Performance

Appraisal helps in personal and
career development of employees?
39 responses

Answers Frequency Percentage

Yes 32 82.1%
No 1 2.5%

56
 May be 6 15.4%

Performance appraisal helps in personal and career development, 82.1%

respondents agree with the same. And 2.5% respondents disagree with the
question. 15.4% respondents think that it might develop the employees or might be
not.

Do you think there is

chance of being biased in
Performance Appraisal?
39 responses

Answers Frequency Percentage

Yes 18 46.2%

57
 No 6 15.4%
May be 15 38.5%

Chances of biasedness is more in Performance appraisal and 46.2% respondents

agree with the same. And less respondents that is 15.4% respondents think that
there is no chance of biasedness. Around 46.2% of the respondents think that it
may be biased or may be not.

Which method is more effective

for Performance Appraisal ?
39 responses

Answers Frequency Percentage

Traditional 2 5.1%
Modern 14 35.9%
Both 23 59%

58
As traditional method of performance appraisal include graphic rating scale, essay
method, and many more. Whereas modern method includes 360 degree appraisal,
MBO etc. So 35.9% respondents think that modern method is more effective as
compare to traditional and only 5.1% are in favour of traditional method. However
59% respondents think that both the methods are effective.

Do you think performance appraisal

gives a platform to improve
employees communication?
39 responses

59
 Answers Frequency Percentage
Yes 31 79.5%
No 1 2.6
May be 7 17.9%

Performance appraisal improve the communication of employees as asked, so

79.5% respondents agree to the question. Only 2.6% respondents disagree with the
question. 7 respondents that is 17.9% of the total population think that it may
improve the communication skills of employees.

Do you think Performance appraisal

benefits both employees and
organization?
39 responses

60
 Answers Frequency Percentage
Yes 36 92.3%
No 0 0%
May be 3 7.7%

Yes, 92.3% respondents agreed that performance appraisal is beneficial for both
employees as well as organization and none of the respondent disagree with the
same. However few 7.7% respondents think that it may benefit both or may not.

Do you think experience of

Evaluator matters in
Performance appraisal?
39 responses

61
 Answers Frequency Percentage
Yes 27 69.2%
No 3 7.7%
May be 9 23.1%

Yes the experience of evaluator matters while evaluating employees performance

in order to avoid any kind of discrimination and 69.2% respondents agree with the
question. 7.7% respondents think that the experience of evaluator does not matter.
Around 23.1% respondents think that evaluator experience may be matter for
performance appraisal.

Does performance appraisal

facilitates good work atmosphere
which directly benefits final

62
output?
39 responses

Answers Frequency Percentage

Yes 32 82.1%
No 1 2.5%
May be 6 15.4%

Good work atmosphere is very essential for organization and as the question was
asked does performance appraisal aids in good work atmosphere which leads to
benefit final output so 82.1% respondents answered YES. 2.5% respondents
disagree with the question. Remaining 15.4% think that it may benefit or may not.
Summary of findings:
• Around 53% of the sample space belong to people of age group 21-25
• Maximum of respondents are graduate and post graduate.

63
 • 97% respondents think that performance appraisal play an important role in
organization.
• Around 95% people think that performance appraisal motivate employees to
do better work.
• 84.6% respondents think that with the help of performance appraisal it has
became easy for organization to evaluate employees performance.
• Around 82% respondents think that every employee from manager to
subordinate require performance appraisal
• 84% respondents think that performance appraisal helps organization to plan
and design training programs for employees.
• Majority of respondents think that performance appraisal leads to personal
and career development of employees.
• Around 46% respondents think that there is chances of biasedness in
performance appraisal.
• Around 59% respondents think that both traditional and modern methods of
performance appraisal is effective. However 36% think that modern method
is effective.
• Majority respondents think that performance appraisal helps employees to
improve communication skills.
• Around 92% respondents think that performance appraisal is beneficial for
both employees and organization.
• Around 70% respondents think that experience of evaluator matters in
performance appraisal.
• Majority of the respondents think that performance appraisal facilitates good
work atmosphere that directly effects final output.

64
 CHAPTER - 8
RECOMMENDATIONS
AND
SUGGESTIONS

65
Recommendations:
Meeting goals: Assess what went off track with unrealized objectives and
structure your comments around what needs to be done moving forward.
Team work: Even the most independent workers contribute to the team in one
way or another, and being an active and enthusiastic participant in group
initiatives is important to overall business health. If a staffer shies away from this
type of work, there may be something underlying that can be addressed in your
recommendation for improvements.
Initiative: It can be hard to quantify initiative in the workplace, but you can give
broad examples when you want an employee to better develop their go-getter
approach.
Attention to detail: Lack of attention to detail can be found in many professional
roles, and all have a differing degree of fallout. A poorly worded advertisement can
be misleading, and a missed decimal point could mean the difference between
profit and loss. If an employee needs improvement in this area, be specific in the
changes you want to see happen.
Communication skills: Communication skills impact everything from how
staffers interact with customers to how well they engage with colleagues and
vendors in the workplace. If you have an employee who struggles with
communication issues, provide direction on how this area can be improved.
Set clear milestone: Setting clear milestones is important in both personal and
professional life. As human beings, we have a habit of shooting for the stars and
the same reflects in the goals we set. Now, it’s ok to be a little bold but when it
comes to “goals”, it’s much better to think clearly and be realistic.
Use the right tools:
It’s a proven fact that when you provide the right kind of tools, your team’s overall
performance improves by leaps. Recent research and studies clearly reflect that the
majority of organizations are shifting to cloud-based tools and technology to
leverage their many benefits.

66
Suggestions:
Performance appraisal is an important tool for today’s world to evaluate employees
performance. Large organization need to adopt this technique in order to improve
the efficiency of employees as well as organization. When an employee know
about its strength and weakness it leads to motivation among them. Motivated
employees are an asset of organization. However care should be taken to avoid any
kind of biasedness from the side of evaluator. In order to overcome the limitations
organization must select the best method and most effective method. Organization
may use traditional as well as modern method to evaluate employees performance.
Modern methods are effective than traditional one. It leads to improvement in
employees communication and leads to employees personal and career
development. Overall growth in organization is expected with the help of
performance appraisal. We need to focus on more opportunities and proper
implementation of the H.R policy regarding performance appraisal to get the best
output.

67
 CHAPTER – 9
CONCLUSION

68
Performance appraisal also known as performance review, formally documents the
achievements of an individual with regards to set targets. It is a component of
PMS. The system has become an essential management tool in today’s
organizations. Managing employees’ performance can be said to be as important as
any other work that all managers execute during the year. Performance appraisals
are most often conducted by an employee’s immediate manager or line manager.
While extensively practiced, annual performance reviews have also been criticized
as providing feedback too infrequently to be useful, and some critics argue that
performance reviews in general do more harm than good. It is an element of the
principal-agent framework, that describes the relationship of information between
the employer and employee, and in this case the direct effect and response received
when a performance review is conducted. Performance management systems are
employed “to manage and align” all of an organization’s resources in order to
achieve highest possible performance and to eliminate distractions procured from
individual agents that neglect the companies goals. “How performance is managed
in an organization determines to a large extent the success or failure of the
organization. Therefore, improving PA for everyone should be among the highest
priorities of contemporary organizations”. Some applications of PA are
compensation, performance improvement, promotions, termination, test validation,
and more. While there are many potential benefits of PA, there are also some
potential drawbacks. For example, PA can help facilitate management-employee
communication; however, PA may result in legal issues if not executed
appropriately, as many employees tend to be unsatisfied with the PA process, as
well as, the misuse of PA’s can incur apathy towards organizational goals and
values. Performance appraisal created in and determined as useful in the United
States are not necessarily able to be transferable cross-culturally.

69
 CHAPTER – 10
BIBLIOGRAPHY

70
 • T.Y.Bcom Book COMMERCE-6 by MANAN PRAKASHAN
• 'COMPLETE GUIDE TO PERFORMANCE APPRAISAL' by DICK
GROTE
• ‘THE PERFORMANCE APPRAISAL TOOL KIT' by PAUL FALCONE.
• https://www.economicsdiscussion.net/performance-appraisal/performance-
appraisal-definition/31970
• https://www.indeed.com/career-advice/career-development/benefit-of-
performance-appraisal
• https://smallbusiness.chron.com/effects-performance-appraisals-employees-
17558.html
• https://www.businesstopia.net/human-resource/performance-appraisal-
methods
• https://www.assignmentpoint.com/business/human-resource-
management/limitations-of-performance-appraisal.html
• https://www.researchgate.net/publication/347948725_A_Comparative_Revi
ew_of_Performance_Appraisal_and_Performance_Management
• https://en.m.wikipedia.org/wiki/Performance_appraisal
• https://www.ukessays.com/essays/business/literature-review-of-research-
related-to-performance-appraisal-business-essay.php
• https://courses.lumenlearning.com/wmopen-
humanresourcesmgmt/chapter/steps-in-the-appraisal-process/
• https://open.lib.umn.edu/humanresourcemanagement/chapter/11-2-appraisal-
methods/

71