TO STUDY THE EFFECT OF APPRAISALS ON EMPLOYEES’ LONG TERM COMMITMENT TO COMPANY ABSTRACT Performance appraisal is an effective method for the companies who wish to evaluate and develop the performance of their employees



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Performance appraisal is an effective method for the companies who wish to evaluate and develop the performance of their employees. The performance management system is an important part of any organization to motivate, measure, and improve the performance of the entire organization. The process of performance appraisal which is the part of performance management system is a formal system that can help to evaluate the performance of the employee. It helps to focus on the goals of the organization towards its objectives for an organizational culture. The performance of an employee can be measured on the factors like dependability, judgment, leadership, supervision, taking initiatives, quantity and quality of work, versatility and many others. In this report, I have tried to find out whether the performance appraisal has its effect on employees’ long term stay in the company and also how it motivate the employees to work willingly. I have also tried to find out how appraisals affect the employee’s future performance. Performance appraisal is a basic step where the management finds out how effective it has been at hiring and placing employees. Firstly, problems are identified, then the immediate steps are taken to resolve those problems.

The performance appraisal has its roots from the early 20th century that can be traced by Taylor’s pioneering Time and Motion Studies, but it was not so beneficial for the same in the field of human resource management. There is a structured formal interaction between the employer and his/her employer, in which the performance of the work done by the employee is examined and discussed by the employer which is further used in view to identify the weakness and strengths as well as improvement and development of skills in the process of performance appraisal. In many organization, appraisals are used, directly and indirectly to determine the outcome of the reward. The result of performance appraisals can be used to identify the better performing employees who should get a pay increase or bonus or promotion. By the same results, the poor performers can also be identified who may require some kind of training or counseling, or in extreme cases, demotion dismissal or decrease in pay.

The main objective of this study is to understand the importance of performance appraisal in employees intend to stay in the company for long and how employees get motivated to work willingly. The factors considered in this project are age, gender, marital status of employees, process knowledge of performance appraisal, motivation, scheduled intervals of performance appraisal in the company, employees’ belongingness to the company, emotional attachment of the employees with the company, how much the company means to the employees and some others that will determine appraisal process and its impact on employees’ long term commitment to the company.


Performance management has become an important part of every organization. The performance management is the process of , giving the feedback to the employee and counsel the employee to improve his performance.
It is sometimes also called performance development and performance appraisal is one and the same because of which many companies retain to its old practices of performance appraisal. The performance management process is closely related and concerned with the organizational culture and is clearly linked with the objectives of the organization. It is also related with the human resource management. As these employees are appraised by their appraisers for the performance, they are highly motivated to work further with a lot of zeal and enthusiasm. Since, the employees are motivated to work for their organization; there is higher increase in their individual performance which leads to the raise of the organizational performance. Also, the performance appraisal has an effect to increase the employees’ intent to work in the company.

In this project, we have discussed performance appraisal can influence an employee and motivate him to work intentionally in the company for long period of time. The factors taken under considerations are a good source to know the motivation level of the employees varies from one another depending upon their gender, marital status, date of joining, department, designations or any other personal reason for staying in the company for long. Since the study is brief and depends on many factors it is tried to find out how the employees long term commitment is effected by the above mentioned factors.. Such as, one could study about different reasons to stay in an organization for years. The study of employees long term commitment could be understood by the effect performance appraisal. It can be studied which gender is more interested to work in the company for longer time period than the other. By the use of Allen and Meyer organizational commitment form, the factors could be studied by using a more detailed in the form of the questionnaire which gives an insight and helped to explore more about performance appraisal and its role to make employees stay for a long period of time in the same organization.