Performance appraisal system and its impact on employees

Performance appraisal is one of the most complex and controversial human resource techniques. In many organizations performance appraisal systems are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions Performance appraisal system is important to any organizational work performance; it determines the organization's success or failure. Employees are the most valuable and dynamic assets of an organization. For achieving the strategic objective of sustained and speedy growth, managing human resource has been featured as a vital requirement in alln organizations. It is a challenge to monitor the entire cycle of defining the competence requirement of the business, accessing existing competence in the organization and bridging the gap between the two. HR practices are crucial for any organization. Every phase from recruitment to exit interview is under the HR department.