Examining the Success of Performance Appraisal System

Performance appraisal system (PAS) is important for a component of the Human Resource Management (HRM) discipline that has been used to identify talents within the organization and make effective managerial decisions to boost organizational performance in the last 2 decades. It is a managerial platform that allows senior management to effectively communicate the organization's goals to the employees and ensure that those goals or targets are attained within the target time. Also, it helps decision-makers within an organization to make sound judgment in terms of reward, promotion, incentive, demotion, increase salary, and other performance incentive indicators to employees. PAS is a fair system, unlike the traditional way of promoting or rewarding employees based on favoritism, nepotism, family connections, and others. Here, the rewarding employee must have played an important role in attaining the organization's specific goals/targets and it will serve as a reminder or motivation to those employees who are not performing well as demanded by their positions of functions within the organization. Furthermore, the PAS offers a complete method of the assessment of employee's performance.