Effectiveness of Performance Appraisal and Reward System in Enhancing Employee Performance in Automobile Sector

Abstract

This study explores the use of performance appraisal and reward systems in enhancing employee performance in the automobile industry, an industry committed to fostering a high-performance culture. As automobile industry is one of the growing industry and India being one the largest automakers in the world, the research aims to assess how effectively the current performance appraisal processes identify employee strengths, weaknesses, and areas for improvement, and how these insights align with organizational objectives. It also investigates the impact of both intrinsic (e.g., recognition, career development possibilities) and extrinsic (e.g., bonuses, promotions) rewards on employee motivation, job satisfaction, and productivity. Additionally, the study examines the relationship between performance appraisals and employee performance by analyzing how feedback, recognition, and goal-setting during appraisals influence productivity and engagement. The study evaluates the fairness, transparency, and effectiveness of these systems in driving positive employee behavior and continuous improvement. The findings are expected to offer insights into the strengths and weaknesses of current systems implemented, providing recommendations to enhance employee satisfaction, productivity, and alignment with the company’s long-term goals, ultimately ensuring its competitiveness in the market.