Hypothesis On Performance Appraisal

1.3. Hypothesis on Performance Appraisal Identifying the proficient employees and presenting them rewards as a sign of motivation, in order to improve their performance are among the essential factors in performance appraisal (Loker, 1977). Kavussi (1999) believes that the appraisal system is a good instrument to improve the quality and quantity of the manpower's performance. Nowadays, performance appraisal is considered as an important aspect in human resources management and a part of the control process in administration

Employee satisfaction is considered a key to organizational success. Khan (2007) defines employee satisfaction with job as how well ones personal expectations at work are in line with outcomes. Malik et. al. (2010) stated

Over 90 percent of large organizations employ some performance appraisal system and over 75 percent of state employment systems require annual performance appraisal (Locker and Teel, 1988; Murphy andCleveland, 1991; Seldon et. al., 2001). The widespread use of performance appraisal can be attributed to the belief by many managers and human resource professionals that performance appraisal is a critically needed tool for effective human resource management and performance improvement (Longenecker and Goff, 1992). The assumption appears to be that an effectively designed, implemented, and administered performance appraisal system can provide the organization, the manager, and the employee with a plethora of benefits (Cascio, 1987; Coens and Jenkins, 2000). In spite of its widespread use, or perhaps because of it, the practice of formal performance appraisal continues to come under considerable scrutiny and criticism. Performance appraisal is one of the most widely researched areas in industrial/organizational psychology (Murphy and Cleveland, 1991.) However, in spite of the attention and resources applied to the practice, dissatisfaction with the process still abounds and systems are often viewed by employees as inaccurate and unfair (Church,

Scope of the Study Employees are the most significant resource of any business, and performance appraisals reflect the organization's commitment in developing this important resource of human capital. Performance appraisals grant upper management an opportunity to reward excellent performance or reprimand unsatisfactory performance. This powerful managerial tool should directly reflect the overall organization's goals and objectives; the employee assessment should provide useful feedback about the employee's contributions or lack of contributions towards achieving organizational goals.

The scope of any performance appraisal should include (i) providing employees with a better understanding of their role and responsibilities; (ii) increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working relationships and communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goal setting. Accordingly, the current study has been aimed to test the functions of Visakha Steel Plant, implementation of policies regarding performance appraisal system and their conveying to the employees for improving their quality of