PERFORMANCE APPRAISAL:AN ANALYSIS OF ITS EFFICACY AND ITS IMPACT ON EMPLOYEE'S PERFORMANCE AND JOB SATISFACTION

Abstract

A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain preestablished criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses etc. It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance. Performance Appraisal plays a crucial role in maintaining a high quality and competitive workforce. This report analyses the historical development of the Performance Appraisal system of All India Services and measures the validity, reliability and perceived fairness of the current PAR system. The study focuses on to find out the impact of performance appraisal on employee’s performance and also analyze that job satisfaction affects the relationship of performance appraisal and employee’s performance. The report then moves on to analyze the issues and flaws in the current system along with the proposed reforms, including some the best practices that can be incorporated into the system of PAR. Seven hypotheses were analyzed by using sampling techniques. One Way ANOVA and correlation analysis was applied by using SPSS tool to test the hypothesis. The research was conducted on 75 employees as sample by using simple random sampling among the employees of DOPT. Primary data were collected through standard questionnaire. For analyzing data, I applied ANOVA and correlation coefficient through IBM SPSS. The outcome has resulted is positive relationship between performance appraisal and Job Satisfaction. However there is no such relationship between Performance Appraisal or Job Satisfaction with either Age, Gender or Level of Education.