Performance Appraisal System Effectiveness

Abstract

Performance appraisal system (PAS) has been noticed to be one of the most challenging activities of human resource management and is even a destructive effect on the relationship of employees and employers. It not only motivates the employee but also improves the productivity level of an organization. Performance appraisal is considered to be a key instrument and is practiced in almost all types of organizations, but with a few differences. In an effort to change the behaviors and attitudes of employees in the organizations, performance appraisal systems have incorporated the new values and desired behaviors. In this contemporary state the organizations have become more enthusiastic to augment the performance of their employees. The chapter aims at identifying the performance appraisal system undertaken in the organizations and its influence on employees' competency and efficiency. It emphasizes on the problems and consequences faced by the organizations, and also the best practices undertaken for successful execution.