Vol: 6, Issue: 4 2016

Page: 05-15

Key Factors Influencing the Executive Performance Appraisal System Systems is SMEs : Critical Analysis

Naman Sehgal

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 one’s 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.