Academic journal article International Journal of Education and Management Studies

Effectiveness of Performance Appraisal System in Ceramic Tiles Industry in India: A Turnover-Wise Comparative Analysis

Academic journal article International Journal of Education and Management Studies

Effectiveness of Performance Appraisal System in Ceramic Tiles Industry in India: A Turnover-Wise Comparative Analysis

Article excerpt

Appraisal of the employees is undoubtedly necessity at a continuing basis during the working life. It is very desirable, useful and constantly being done. The HR department is responsible for fixing the qualities and characteristics to be rated in determining appraisal of employees. It is to prescribe the appropriate procedure for performance appraisal. Performance appraisal is very important in planning for the employees' training and development and in assessing their relative strengths and weaknesses. It is the right tool to assess the employee which justifies the selection of a particular employee, training and promotion exercises. The career prospects of employees depend largely on their appraisals. In case of small scale enterprises employee's performance may be evaluated by the superiors or foremen. But in multinational companies, formal systems of performance appraisal are required for a rational judgment of employees' efficiency, performance and capacity. The issues like clarity of performance goals and standards, appropriate resources, guidance and support from management are central focus now. One of the purposes of performance management systems is to facilitate employee development. The second purpose is to determine appropriate rewards and compensation. Salary, promotion, retention, and bonus decisions are frequently based on data collected as part of performance measurement. The third purpose of managing performance is to enhance employee motivation. Finally, performance management systems facilitate the human resource planning process.1 Broadly, performance appraisal is useful in human resource planning, recruitment and selection, training and development, career planning and development, compensation programs, internal employee relations and assessment of employee potential. An organization's long-term success in meeting its strategic objectives rests with its ability to manage employee performance and ensure that performance measures are consistent with the organization's needs.

Review ofliterature

Poon (2004) worked on 'Effects of performance appraisal politics on job satisfaction and turnover intention.'2 In this research the authors found the evidence that performance ratings are often manipulated for political purposes. It further examined the effects of employees' perceptions of political motives in performance appraisal on their job satisfaction and intention to quit. It is found that when employees perceived performance ratings to be manipulated because of raters' personal bias and intent to punish subordinates they expressed reducedjob satisfaction that, in turn, led to greater intentions to quit theirjobs.

Brown, Hyatt, and Benson (2010) conducted research on 'Consequences of the performance appraisal experience.'3 The purpose of this paper is to examine the role of low quality performance appraisals (PA) on three human resource management outcomes (job satisfaction, organisational commitment and intention to quit). It is found that employees with low quality PA experiences (relative to those with mixed and high quality PA experiences) were more likely to be dissatisfied with their job, be less committed to the organisation and more likely to be contemplating leaving the organisation.

Gupta and Kumar (2012) worked on 'Impact of performance appraisal justice on employee engagement: a study of Indian professionals.'4 The purpose of this paper is to explore the relationship between perceptions of performance appraisal fairness and employee engagement in the Indian business context. The study findings suggest a significant positive association between distributive and informational justice dimensions and employee engagement.

Kuvaas (2011) conducted research on 'The interactive role of performance appraisal reactions and regular feedback.'5 The purpose of this paper is to test the relationship between performance appraisal (PA) reactions and employee outcomes in terms of affective organizational commitment and work performance. …

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