Projet on Performance Appraisal System

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• This project has been undertaken to share my experiences on Performance appraisal system as well as to enhance my understanding of this fascinating subject by doing some study & research.

• The project explains the meaning of Performance Appraisal, different methods used to evaluate the performance of employees, its effective implementation and the benefits of the system.

• It also aims at understanding the problems associated with performance appraisal and suggests measures to be adopted to overcome these issues.

• Overall objective of the project is to understand the effectiveness of performance appraisal system. SCOPE OF THE PROJECT

This project report covers the definition and meaning of Performance Appraisal. It elucidates the benefits and drawbacks of the traditional methods as well as recent advances in the field of performance appraisal.

The project throws light on the concern areas for different people involved in the appraisal process and attempts to find out ways to overcome those problems.

Appraisees and appraising managers have both been given guidelines in evaluation process and subsequently the review meeting. It emphasizes how this approach will help the appraisees by giving them an opportunity to assess and correct areas that their supervisors feel may have overlooked. Such incidences do happen due to personal likes and dislikes of superiors. The system can help management to take informed decisions on pay-hikes and career enhancement for their employees.

Few formats of the performance appraisal forms have been included in the project to show the way different companies are evaluating the performance of their employees.

Thus, through this project report one can:

❖ have a reasonable understanding of the term performance appraisal;

❖ understand what needs to be done for its effective implementation;

❖ know the key areas of performance indicators;

❖ understand the benefits of the system;

❖ know how it helps in designing the Performance Rated Pay system;

❖ know how it helps in planning of career of employees;

❖ know how it helps in the future requirement of the organization as it grows.


Performance Appraisal is a crucial activity for organizations that are looking for growth and profit maximization in this ever-increasing competitive environment. This project report is a review based on theory as well as research and experience.

The research report starts with the background and explains it’s importance in the Performance Management System and also it’s changed scenario in Chapter 1.

The essential components of an effective performance appraisal system consist of understanding it’s Foundations and the essential steps that lay the foundation. It is also necessary to recognize the Objectives and Benefits of this system. For benefit realization it is necessary to Identify Key Result Areas (KRAs) i.e. Goal Setting and monitor resulting Performance so that a meaningful relationship between performance, reward and development of required skills, through counseling – if required, can be established. Finally lot of brainstorming is required to be done to devise a sound appraisal system by evaluating available techniques and implementation processes. One must remember that performance Appraisal is an inexact, human process and it is quite a challenge to actually implement it successfully. All these aspects form subject matter for Chapters 2 through 8.

Performance appraisal system has gone through a sea change over a period of time. In the beginning the process was non-transparent and the employee was kept in dark about his performance. No systematic exercise was done and the entire process was arbitrary. These earlier performance appraisal methods are discussed in Chapter 9.

The current processes of performance appraisal involve self-appraisal by the employee...
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