Key Factors Influencing the Executive Performance Appraisal System Systems is SMEs : Critical Analysis
NAMAN SEHGAL
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Abstract
Performance Appraisal is an important component of Management tools and a source for Management
Information and Control System. An appraisal system tells an employee what is expected of him/her, gives
him/her an opportunity, provides feedback, guidance & support and establishes policies concerning
reward, training, career development etc., which are contingent upon ones performance.
The reason for this exploration task is to conduct a critical examination of the Executive
Performance Appraisal System followed by the XYZ Company over a period of ten years without
having any changes to the system. The study directed (a) the Performance Appraisal Forms /
methods used (b) the Management's approach towards Performance Appraisal System and (c) what
needs to be put in place to help the system appropriate and effective.
The researcher through this project scanned 150 Performance Appraisal Forms over a period of 4 years,
of 50 Executives covering the major Departments, both Service and Production and the three levels of
Officers, Junior, Middle and Senior and gathered information that would assist in the development of a
fair, accurate, objective and effective Performance Appraisal System.
Keywords: Management tools; Management Information and Control System; Performance Appraisal
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