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Performance appraisal system operates in which an individual manager regularly, annually records performance and developments in top down process. It can be argued that perceived defects of appraisal system led to development of more sound concepts of performance appraisal. The provision of challenging assignments and regular performance feedback are included in effective performance management system. At the end of the performance period usually a year the supervisor and employee meet to summarize the accomplishments and challenges of the past year and document the discussion using performance management form. In any organization to be effective the resources should be property maintained. The study concentrates on finding whether the current performance management system followed in organization is effective and how far they are satisfied and whether all the employees all aware of performance standards fixed for them and promotions are given based on performance. It also suggests whether any change is required in the existing system. Success with performance appraisal system relies on good design and implementation. Managing employee performance is an effective mechanism for developing both employee and organization growth. Management and employee involvement in the design/review of a performance management system is important performance appraisal can be redesigned for betterment of performance. Thus performance appraisal is a shared commitment to high performance.