ABSTRACT

Human resource being one of the most essential and important factor of production need utmost efforts and care for its optimum utilisation. It is the responsibility of the organisations to inculcate strength among the employees and weed out their weaknesses in order to bring higher efficiency in them. Thus, performance appraisal as a tool provides an insight to the employees about their strength and weaknesses. Thus, it helps to develop their ability to perform. This paper is an attempt to study the perspective of the employees about the design and execution of performance appraisal (PA) system. In this study, the most significant determinants of effective PA system considered are: Involvement of employees in the design of appraisal system, Feedback mechanism, Post appraisal actions and Transparency in execution. The study progresses with the objective to bring out the determinants of effective PA system in manufacturing units in Goa. Further, the study concludes that feedback mechanism stands out as one of the most important determinant to make PA system more effective.

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Keywords: Performance Appraisal, Feedback Mechanism, Post Appraisal Actions, Determinant.