PERFORMANCE APPRAISAL SYSTEM: VITAL PART IN TODAY’S INDUSTRIAL UNITS DEVELOPMENT

Abstract

Performance Appraisal (PA) has been one of the most researched issues in the fields of Industrial Organizational Psychology and Human Resource Management. The purpose of appraisal is to make the most effective use of its human resources by developing them in a systematic way, in the interest of both the organization and the individuals being appraised. Survey of literature on various aspects of the subject reveals that there is still exists a need to highlight some of the aspects of the performance appraisal. This study will examine the performance appraisal system for the various HRM decision like incentives, promotions, wages, transfer, training and development. This research is regarding various types of appraisal systems adopted by various industrial units selected for research. The main aims and objectives of the study are to critically evaluate the existing performance appraisal system in the selected industrial units of Haryana. Significance of the study is to examine the negative aspects of the present systems and to suggest methods for the improvement in the existing system with introduction of improved appraisal system. It is revealed that appraisal system is required a lot of improvement and awareness among the employees at various industrial units in Haryana. Majority of employees do not know about the true meaning of performance appraisal. This research work is based on primary data. The study observes that Performance Appraisal is indispensable to be aware of each employee’s abilities, competencies and relative merit and worth for the organization. Finally, PA is a pre requisite for the success of any organization as it aims at identification of competency gaps and taking steps to bridge such gaps through appropriate HR development measures to face the challenges of competitive world.