The history of performance appraisal is quite brief. Its roots
in the early 20th century can be traced to Taylor 's pioneering Time and Motion studies.
But this is not very helpful, for the same may be said about almost everything
in the field of modern human resources management. As a distinct and formal
management procedure used in the evaluation of work performance, appraisal
really dates from the time of the Second World War - not more than 60 years
ago.
In many
organizations - but not all - appraisal results are used, either directly or
directly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses and promotions.
By the same
token, appraisal results are used to identify the poorer performers who may
require some form of counseling, or in extreme cases, demotion, dismissal or
decreases in pay. (Organizations need to be aware of laws in their country that
might restrict their capacity to dismiss employees or decrease pay.)
The purpose of
this study has been to determine whether the performance appraisal was used for
employee development and whether the appraisal was emphasized as an important
part of the performance appraisal process. Also whether the performance
appraisal helps in increasing company’s profitability.
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