Performance Appraisal as a Sub-system of HRD – A Case Study

Performance Appraisal is most traditional but widely used method of measuring employee performance on the job, his relative abilities and skills to enable him to take up higher job responsibilities The organizations today are putting increased accentuate on performance appraisal practices to improve employee performance on the one hand and use it as a motivational tool on the other. It is one of the most important HRD mechanisms which contribute significantly to the building up of developmental climate in the organization. The present case study is an attempt to explore and assess the existing performance appraisal practices of public sector organizations in India. The study seeks to examine the existing performance appraisal practices in Indian Public Sector and its likely impact on productivity and efficiency. The study also examines the role of Performance appraisal in interpersonal relations, employee development and motivation development. A total of 125 executives of two public sector undertakings were selected for the purpose of the study.