Effectiveness of Performance Appraisal: It’s Impact On Employee Performance In Selected Company

Abstract

Globally, organizations whether service or manufacturing do everything possible to ensure that all employees are adequately committed to their specialized work in order to attain organizational goals (Mullins, 1996). It is noteworthy, that in Northern nations PA practice is done without the appraisers attaching themselves to the exercise unlike Southern countries where the exercise is said to be unproductive and affect organizational goals For every organization to constantly realized its set goals, it is important that PA or PS must become a regular exercise and must occupy central role/or function of the management. The unbiased practiced of PA will make all organisations to face keen competitions and challenges at local, national and international levels. That is, PA is must become a tool to measure the status of any organization across board.

Performance appraisal is a vital tool to measure the frameworks set by any organization to its employees. It is utilized

to track individual contribution and performance against organizational goals and to identify individual strengths and opportunities for future improvements and assessed whether organizational goals are achieved or serves as basis for the company’s future planning and development .This study examined the status of the performance appraisal system of L&T Construction Company and its implication to employees performance. The respondents of this study were tenured employees. The purposive sampling technique was used in the selection of respondents. Quantitative and qualitative method of research was utilized in the gathering of data. Interviews, focus group discussion and survey questionnaires were the main instrument used in this study. The result of the study showed that the performance appraisal system of the company are in place, aligned with the vision and mission of the institution , and is accurate in terms of content and purpose. On the other hand, the results reflected that the performance appraisal system of the company has brought about both positive and negative impact on the employees performance. Further, the respondents identified some major gaps in the implementation of the company’s appraisal system: no appropriate rewards are given to best employees, appraisal system was not fully explained to employees, no feedback of results and employees do not participate in the formulation of evaluation tools. It is recommended that the company should revisit and redesign its appraisal system that is align to its vision and mission towards the attainment of its organizational goals.