Employees’ Performance Appraisal and Improvement: A Composite Model

Performance appraisal (PA) is being prided as one of the most critical among all HRM. An effectively designed, implemented, and administered PA system can provide the organisation, the manager and the employee with a plethora of benefits. This paper demonstrates how an integrated tool like Data envelopment analysis (DEA), fuzzy multi-attribute decision-making (FMADM), with fuzzy analytic hierarchy process (FAHP), fuzzy quality function deployment (FQFD) are applied as a fair evaluating and sorting tool to support PA system. The fuzzy linguistic approach has the advantage of reducing distortion and losing of information. FMADM focuses on the best practices of employees for the purpose of improving overall performance. Unlike traditional performance appraisals, FMADM searches for the highly skilled employees, those serve as peers. This study supports the ideas that rating formats need re-examination as an alternative to traditional rating methods. FMADM could overcome shortfalls of earlier adopted methods that seldom identified and quantified individual factors for improvement. Based on the results of FMADM improvement in employees’ performance are possible by way of providing training, talent enhancement and further qualification wherever required. Interpretive structural modelling (ISM) is used to analyse inter-relationships among PA factors to plan and design employees training programme for enhancing their knowledge, skills and attributes(KSA).