Contribution of an Effective Performance Appraisal System in the Growth of New Startups

Today, every organisations endeavour to maintain their long term sustainability, growth, and diversify their business to the maximum possible extent with the help of their competent work force. An Effective performance appraisal system accelerates the growth of organisational performance through improved employee's performance. When startups struggle to established itself, it becomes more crucial that they, select adequate system of appraisal. A system that help to rectify employee's strengths and weaknesses, design proper training programme to enhance their capability and motivate them for higher performance through constant and constructive feedback. Present study analyse the overall contribution of an Effective Performance Appraisal System in new start-ups. The heterogeneous population was stratified and the simple random sampling method was used to select respondents from each stratups. Microsoft office excel was used to manage the data that was gathered from the field. It was found that majority of respondents agreed that an effective appraisal system continuously reviews the performance of employee and suggests corrective actions, if needed. So, it is very helpful for the organisation and the individual but on the other hands, management should consider various aspects during the implementation of appraisal system to make the process more effective and get appropriate result.