An Analysis of the Performance Appraisal in IT Companies with Special Reference to Chennai

Human resource is a functional department within enterprises, and employees' performance is a key element for enterprise success. The goal of the study is to find the employees' satisfaction regarding performance appraisal. The term performance appraisal refers to the regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee's skills, achievements, and growth. Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. Convenient sampling method is used in this study for collecting the samples. Samples are collected based on ease of availability of respondents and sample size is 200. The independent variables used in this study are age, gender, educational qualification, occupation, marital status, and monthly household income. The dependent variables for this study are whether performance appraisal is essential for the organization, the best performance appraisal methods, and agreeability towards the various steps taken by an HR Manager. The key results of the study indicate that performance appraisal plays a significant role in organizational productivity and employee motivation.