A Study on Performance Appraisal and its Impact on Employee Productivity

Abstract

Performance appraisal is considered an important strategic management tool that ensures that human resources are utilized efficiently to meet organizational goals, especially in developmental organizations. This research focuses on examining the importance of performance appraisal and its effects on productivity within the YMCA Rural Centres and Institute of Rural Development, Marthandam. Primary data was obtained from 109 employees via a structured questionnaire. Reliability testing was carried out to ensure the validity of the research instruments used. The data analysis was carried out using SPSS through both descriptive and inferential statistics techniques which included the Independent T-tests and one-way ANOVA. From the findings, there is clear evidence that the appraisal process is very highly ranked with regards to its transparency rating of 71.6% and its capacity to determine training needs at 70%. However, this is overshadowed by the presence of huge gaps in terms of the process from the evaluation process to development stage. There is notable "subjectivity gap" because 63.3% of the respondents perceive evaluation parameters as being subjectively driven on the basis of personal output. In addition, there is significant statistical difference between men and women when it comes to mentoring/coaching after appraisals, where p=0.043.