Exploring the Dimensions of Performance Appraisal System in Private Ceramic Tiles Companies in India

Appraisal of the employees is undoubtedly necessity at a continuing basis during the working life. It is very desirable, useful and constantly being done. The HR department is responsible for fixing the qualities and characteristics to be rated in determining appraisal of employees. It is to prescribe the appropriate procedure for performance appraisal. Performance appraisal is very important in planning for the employees' training and development and in assessing their relative strengths and weaknesses. It is the right tool to assess the employee which justifies the selection of a particular employee, training and promotion exercises. The career prospects of employees depend largely on their appraisals. In case of small scale enterprises employee's performance may be evaluated by the superiors or foremen. But in multinational companies, formal systems of performance appraisal are required for a rational judgment of employees' efficiency, performance and capacity. The issues like clarity of performance goals and standards, appropriate resources, guidance and support from management are central focus now. Broadly, performance appraisal is useful in human resource planning, recruitment and selection, training and development, career planning and development, compensation programs, internal employee relations and assessment of employee potential. An organization's long-term success in meeting its strategic objectives rests with its ability to manage employee performance and ensure that performance measures are consistent with the organization's needs.Review of literatureEdwards and Williams (1998) conducted research on 'Performance appraisal in academic libraries: minor changes or major renovation?' This article addresses the diversity existent in the performance appraisal process and the reasons for these differences. Performance appraisals generally occur to provide documentation for current and future personnel decisions such as promotions, salary increases, staff development, and disciplinary reasons. Lea Prevel Katsanis, and Pitta (1999) examined 'The performance appraisal process of pharmaceutical product managers in Canada: an empirical study.' Abstract examines the way in which the perfonnance of the pharmaceutical product manager is evaluated. Attempts to provide a picture of the principal functions on which the Canadian pharmaceutical product manager is evaluated, as well as of performance appraisal systems currently used in the pharmaceutical industry. Matthew and Kirk ( 1999) conducted a study on 'Teams and performance appraisal Using metrics to increase reliability and validity. ' Inter-rater agreement in a peer performance evaluation system was analyzed using a sample of 44 individuals who rated focal persons in seven teams. Objective information concerning individual perfonnance on multiple choice tests, as well as information gleaned from individual contributions to team testing and team graded exercises, resulted in high inter-rater reliabilities (assessed via ICCs) and strong criterion related validity for the performance evaluation instrument. Poon (2004) worked on 'Effects of performance appraisal politics on job satisfaction and turnover intention.' In this research the authors found the evidence that performance ratings are often manipulated for political purposes. It further examined the effects of employees' perceptions of political motives in performance appraisal on their job satisfaction and intention to quit using survey data from an occupationally heterogeneous sample of white-collar employees (N % 127) from various organizations. Soltani (2005) conducted research on 'Conflict between theory and practice: TQM and performance appraisal.' A remarkable amount of theory-based research is beginning to suggest that, even in organisations that pride themselves on having a quality orientation, the approach driving current policies and practices for human resource (HR) performance appraisal might be in fundamental conflict with essential requirements of total quality management (TQM). …