"Designing of An Performance Appraisal System for Industry"

People differ in their abilities and attitudes. There is always some difference between quality and quantity of the same work on the same job being done by different people. Performance Appraisal of Employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization, it rates employees in terms of their performance. "It is a system for determining how well employees are performing their jobs, communicating that information to them and making plans to improve their performance". The latest mantra being followed by organizations across the world being-" get paid according to what you contribute" -- the focus of the organization is turning towards performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual's performance. It helps to align the individual performances with the organizational goals.