EFFECTS OF

APPRAISAL
SYSTEM ON
EMPLOYEES’
PRODUCTIVITY
 Introduction

Appraisal System is a crucial tool for measuring

employees’ performance and determining rewards.
This presentation analyzes how the system affects
productivity and employee motivation. We will
explore different types of appraisal systems, their
benefits, and drawbacks, and how to implement
the most effective one.
What is Appraisal System?

The Appraisal System is a structured approach to

evaluate and review employees' job performance. It
involves setting clear targets, assessing employees'
progress, giving feedback, and determining
rewards. The system can be used for development,
motivation, and administrative purposes. However,
there are different types of appraisal systems,
including 360-degree, self-appraisal, and forced
ranking. Each has its advantages and
disadvantages.
 Positive Effects
The Appraisal System has several
positive effects on employees'
productivity. It provides clarity on job
expectations, helps to identify training
needs, and encourages employees to set
performance goals. It also motivates
employees to improve their performance
and provides a sense of achievement.
Furthermore, it can foster trust and
communication between employees and
managers.
 Negative Effects

While the Appraisal System has positive effects, it

can also have negative consequences. The system
can create a stressful work environment, especially
if it is perceived as unfair or subjective. Additionally,
some employees may feel demotivated if they
receive negative feedback or are not rewarded for
their efforts. If the system is not implemented
correctly, it may result in decreased productivity
and employee morale.
Best Practices
To ensure the Appraisal System is
effective, it is essential to follow best
practices. These include setting clear
performance goals, providing regular
feedback, using objective criteria, and
ensuring fairness and transparency. It
is also crucial to train managers on
how to conduct appraisals and use
the results to develop employees'
skills and enhance their productivity.
 Conclusion
In conclusion, the Appraisal System can have a significant
impact on employees' productivity and motivation. While there
are different types of appraisal systems, it is essential to choose
the most appropriate one and implement it correctly. By
following best practices, organizations can ensure that
employees feel valued and motivated, leading to increased
productivity and improved business performance.
Th