Effectiveness of Performance Appraisal and its Influence on Morale and Performance of Employees

Abstract

This paper aims to analyse the effectiveness of performance appraisal and the impact and significance of performance appraisal in the organisation on employee morale and performance. This research was conducted among 110 employees. Descriptive and simple random sampling is used for the study, and the data is collected from primary and secondary sources in the form of a questionnaire. Findings showed that the performance appraisal system followed in the firm also has an impact on the organisational goals, and employee performances are being improved because of the current system. 44.5% of the respondents have agreed that the current appraisal system helps employee development, and 31.8% of the respondents have agreed that the following appraisal system helps increase motivation. Most respondents were satisfied with the firm’s assessment, and well-analysed goals were established. The human resources department is a bridge between the employee and the functional heads or reviewing authorities. The human resources team is responsible for assuring the effectiveness of the evaluation procedure. The HR division is responsible for planning and executing performance reviews.