Abstract:
Performance appraisal system has become one of the major and most important concepts in managing the human resource departments in organizations today. It has been proved beneficial in providing a proper and systematic approach to utilize and to apply the concepts of human resource management in organizations. The information that is gathered through performance appraisal systems provides the base and groundwork for selecting and recruiting. This also helps in maintaining a class workforce by appropriately rewarding their performance.
Performance appraisal system indirectly helps in building up a norm within the organization which results in developing expectations between the managers from their sub-ordinates and vice versa. Likewise it also builds up an expectation level of the organization from its employees and the employees looking forward to getting acknowledged for the work that they have done. This ends up in building up a culture for the organization.
Organizational culture is basically a set of shared values and norms, by a group of people of any organization. A culture is a very important as well as a critical part of any organization, as it facilitates the organization to deal with the changes in the environment. Out of the many important tasks, assigned to the top level management, one is to create and to maintain the organizational culture as it is the most essential of all. Thus, it can be concluded that communication and interaction between the employees of the organization is the most essential part of all.
