Current state of the employee performance appraisal system in agricultural organizations in the Czech Republic

Abstract

Employee performance appraisal is one of the most important human resource management tools. The first part of the article concentrates on the theoretical background. The second part evaluates the results of the quantitative survey. The aim of the article is to evaluate the use of formal appraisal of employees in agricultural organizations in the Czech Republic and to test dependencies between selected qualitative characteristics. The results of the survey show that only 12.3% of agricultural organizations (n = 332) use formal appraisal of employees. They also confirm that the application of the formal appraisal of employees in agricultural organizations depends on the size of the agricultural organization (p-value 0.006, Phi coefficient 0.151) and the existence of a personnel department (p-value 0.000, Phi coefficient 0.210). 49.1% of agricultural organizations did not consider formal appraisal important. Only 5.8% of agricultural organizations that do not use any system of formal employee performance appraisal plan its implementation, despite the fact that currently people are considered to be the most important strategic asset of any organization for achieving a competitive advantage.