A Study on Employee Perception About Performance Appraisal System in The Organization and Its Implications

The need of the present business environment is change and how well an organization is able to cope up with changes happening which is dynamic and volatile in nature. Employee is one of the key factors for any organization as attitude and performance of employee has a direct impact on productivity and profitability of any company. To tame and streamline employee's performance as per present industry requirement it is extremely important to understand and evaluate present status of employee in terms of performance which is done through process of Performance appraisal system. Focusing on employee career growth and catering to right requirement of training and development is proving to be a challenging task not only in terms of enhancement of workforce performance, but also to retain and motivate efficient employees within the organization. Performance Appraisal system in the company not only evaluates employees job performance but also provides scope for the organization and an opportunity to employees to work on their weak areas of performance and strengthen their areas in which they are excellent. Study intends to understand employees perception about performance appraisal system practiced in company on various aspects such as appraisal benefits for employees, communication system followed for appraisal process, measures followed by organization based on outcome of the process etc. The data was analyzed using the statistical software IBM SPSS 20, excel and MS word. Chi square, correlation and fisher's exact test were used for testing hypothesis based which we can state that there is relationship between communication system used for conveying appraisal result, actions taken by organization to enhance employee skill based on appraisal result and employees being satisfied with appraisal process at work.