To Measure The Effectiveness Of Performance Appraisal System



Performance appraisal is an essential activity for any organisation that looks for the growth and to make the maximum profit in this ever-increasing competitive environment. The main purpose of this research proposal is to calculate the force of performance appraisal approach towards the employees and also to study the relation between employee performance and performance appraisal. To access employee's performance, performance appraisal is a new approach which is commonly used on organisations to get out successive updates in employee performance.

The essential mechanism of a valuable performance appraisal system consists of accepting the fundamentals and the basic steps that set the organization. To recognize the objectives and benefits of the system is also vital which can be done by identifying key result areas (KRAs). As we know that performance appraisal is an inaccurate, human process and so it is a tough task to successfully put into practice.

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When performance appraisal system was first implemented the process was non-transparent. Means employees were not told about their performance. There was no methodical work out and the complete process was random, whereas the current process of performance appraisal holds self-appraisal by the employee as well. Thus by the time the system has improved from non-transparency to transparency.

Table of contents

Title 1

Abstract 2

Table of Contents 3

Literature Review 4

Rationale 4

Introduction 5

Purpose 5

Pitfalls to Avoid 6

Legal Implications 6

Rewards 6

Research Questions 7

Methodology 7

Data collection 7

Data collection procedures 8

Time scale 8

References 9

Literature Review


One of the most important requirements for successful business and human resource policy are performance appraisals (Kressler, 2003). The aptitude to conduct performance appraisals depends on the expertise to access an employee performance in a reasonable and truthful manner. As soon as leaders learn the nature of the job and the sources of information, it should be collected in a systematic way, and then it should be provided as feedback, and included into the organisation's performance management process for use in job placement, making compensation, and training decisions and assignments (London, 2003)

The skills and knowledge are the factors that affect the performer which are required for the job. If skills and knowledge are not enough or missing, job performance is messed up and training may be required for the job. The employee's own individual capacity is another factor that affects the performer. This involves the performers' internal capabilities. No matter how supportive their environment or effective their training, they will not be able to do their job if they lack the physical, mental, or emotional capacity to achieve the goals. Appraisals Feedback tells a performer to change performance or to keep on performing the same way. Without feedback, good performance can Fall off-track and poor performance can remain unimproved.


It is the inspection and assessment of an employee's work activities and actions for the reason of making judgments about the staff member. The concept of performance appraisal has become an almost universally accepted in most organisations. These decisions may include wage, salary, and benefit determination; promotion, demotion, transfer, or termination actions; and coaching and counseling, training, or career development options. Because of all of these uses for the performance appraisal process, it is increasingly important that organisation leaders more than ever need to improve their managerial and supervisory skills in such areas as creating individual performance standards, getting employee commitment to performance standards, and conduction interim and end-of-year performance appraisal meetings.

Performance appraisal is one of the accepted theories surrounded by the multinational and local organisations. The theory is the method which lets firms to assess and accordingly evaluate an employee's success and behavior over a definite period of time (DeVries et al. 1981). The core intension of applying performance appraisal system within an organisation is to hold up the employee's hard work with the overall objective of the firm.

This project has been carried out to share my experience on performance appraisal system. This will develop my perception of this interesting subject. The project make clear the sense of performance appraisal, distinctive techniques used to calculate the execution of employees, its valuable achievement and the benefits of the structure. It also spot towards at understanding the harms linked with performance appraisal and recommends measures to be accepted to conquer these topic.

Scope and Purpose

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This task information covers the explanation and significance of performance appraisal. It describes the gain and loss of the traditional process as well as current evolvement in the ground of performance appraisal.

The task bowl light on the unease region for diverse people implicated in the appraisal development and try to find out traditions to triumph over those troubles.

Appraises and appraising managers have both given strategy in appraisal development and later the evaluation meeting. It emplasises how this method will assist judge by providing them a chance to evaluate and correct section that their supervisors experience may have ignored. Such occurrences do occur due to individual likes and dislikes of seniors. The scheme can assist executive to take knowledgeable judgment on pay-hikes and job development for their employees.

Pitfalls to Avoid

It is essential to be in mind the general drawback to be prevented while controlling performance appraisal at any level. These drawbacks may consist of but are not limited to:

Discrimination: race, religion, education, family background, age and/or sex.

Characteristic review: too much notice to individuality that have nothing to do with the work and are complicated to evaluate.

Over-stress on favourable or unfavourable operation of one or two odd jobs which could direct to an unbalanced assessment of the overall involvement.

Relying on thoughts rather than truth.

Holding the employee tasks for the effect of factors outside his/her control.

Legal Implications

Any performance appraisal system operate to build employment verdict about a member of a protected division must be a legal system i.e. established on age, race, religion, gender, or national origin.

Another significant characteristic to think about is the employee's rights to secrecy. Employees must have entire access to their personnel files, but other should have restricted access. The report should be correct, true, significant, and in progress.


Successful reward systems are frequently hard to launch when making performance appraisals. The query of how definite the reward, when the reward should be prearranged can be a difficult topic to master.

Our suggestion on this is that it is significant to well-known reward system. However, rewards can be as straightforward as more independence on the work, congratulate for progress and extra professional development support.

The essential features to remember when founding reward system is to be constant. If two employees are being appraised in the same way, their reward chances should replicate their evaluation results.

Research Questions

What set's the foundation of Performance Appraisal?

What are the essential steps that set the foundation for an effective Performance Appraisal?

How this entire interaction and review process is beneficial to the organization as a whole and what are the objectives of performance appraisal?

How to make the appraisal process effective?


Sidmak Laboratories (India) Pvt. Ltd. is a pharmaceutical corporation contains developing ability at Gujarat, India. Sidmak point towards at improved safety and ease for human life through a dedicated excellence in manufacturing recommendation drugs, specifically oral dosages. The organisation is permitted by W.H.O. as per GMP rule and by local FDA as per Drug and Cosmetic Act. The organisation has skill in the production of constant release solid dosage mode. Sidmak manufactures both pharmaceuticals as well as nutraceuticals products. The organisation preserves highest level of quality by sticking on to cGMP and cGLP compliance rule in manufacturing products and meeting national and international requirement.

Working with Sidmak has given me good experience about how to work in an organisation. It has also given me knowledge about the work flow from one department to another department. Thought the work flow is very smooth in Sidmak, I personally feel that it can be more productive and beneficial to the employee and the organisation if company adopts proper appraisal system.

The study of the topic "Performance Appraisal" has been done through various sources. In order to achieve the objective set for writing this project and to determine the impact performance would create individual accomplishing the organisations goals and objectives, it is therefore necessary to adapt particular plan that would provide practical assistance to both management and employees individual achieving its objectives.

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The difficulties inherent in this task cannot be compared with the benefit or the impact if would to the achievement of the organisations goals and objectives.

Data collection

The primary source includes the personal experience which I had experienced while working with Sidmak Laboratories (I) Pvt. Ltd. and the secondary sources includes information gathered through surfing the internet, information available on intranet site on knowledge management, different study materials, and sample performance appraisal forms obtained from reliable resources.

Data collection procedure

With the permission of Administration Officer and working closely with HRD:

Contact by phone or email with the participants to seek permission for data collection.

Introduce the research and its objectives.

Asking questions to HOD / HR about the performance appraisal in the organisation.

Stress that individual answers will not be identified in the results.

If participant refuses to participate, inform HRD and ask them for the next available participant who is interested.

Review each data collection:

Make sure they are complete

To verify any missing information

Time Scale






Week Number














Meet Supervisor

Literature and submit

Finalize objectives

Literature review

Supervisor guidance


Research approach

Research strategy

Analyse data

Meet supervisor

Result chapter

Literature write-up

Other chapter

Supervisor and await

Revise and format draft

Print and bind

Final submission