Effectiveness of Performance Appraisal System on Employee Motivation in Engineering and Automotive Industries

Abstract

The employee performance appraisal is an important career development tool for the manager and employee.Performance assessment should be treated as a significant formative movement to a limited degree than a recommended once-a-year review. It should be personally checked by both specialist and assessor to ensure that objectives are mortal accomplished. Various previous studies generally spread the information about the employee satisfaction towards the existing performance appraisal system which is followed by the across the industries. This research was conducted mainly, in order to know about the existing performance appraisal and its effect on motivation of employees in the engineering and automotive industries in and around the southern part of Karnataka.From that the research was conducted from 10 selected companies with the 30 respondents per industry. The total 300 responses were collected and 03 responses were rejected due to missing information. Cluster random sampling is to be used to select the respondents for primary data collection. The variable outcome and non-performers manage in organization have significant influence on Satisfaction and other variables. The data results show that the employees are demotivated due to delay in promotion. Hence, we would suggest the company’s management to improve the promotional opportunities given to the line managers. Further this study find about training and feedback are given to the employees after every appraisal which helps the employees to motivate and improves the job performance.