Analyzing the Impact of Performance Appraisal Systems on Employee Productivity and Organisational Effectiveness in a Business and Management Consulting Firm, Lilongwe, Malawi
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Date
2025
Authors
Nagarajan, Sankara Nayagam
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Volume Title
Publisher
International Journal of Research Publication and Reviews
Abstract
In contemporary organizational settings, the performance appraisal system is widely recognized as a critical tool for managing human resources. It involves evaluating employees' job performance, providing feedback, and identifying areas for improvement. Performance appraisals are often seen as essential in shaping employee development and ensuring organizational growth. However, the effectiveness of performance appraisal systems in enhancing employee productivity and organizational effectiveness remains a topic of significant interest and debate. This research aims to explore the relationship between performance appraisal systems and two key organizational outcomes: employee productivity and organizational effectiveness. Understanding this relationship is important because organizations are increasingly relying on performance appraisals to make key decisions regarding promotions, compensations, and training programs. However, the effectiveness of these systems in achieving the desired outcomes—such as higher employee productivity and improved organizational performance—may vary significantly based on how these appraisals are designed and implemented. This research will investigate whether performance appraisal systems directly influence employee productivity and organizational effectiveness or whether other factors mediate this relationship.
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Keywords
Performance Management, Performance Appraisal, Employee Productivity, Organisational Effectiveness, Goal Setting Theory, Equity Theory, Continuous Feedback