A Study on Effectiveness of Performance Appraisal at Mark Formulations Pvt. Ltd. Nepal.

Abstract

Performance Appraisal process followed in Mark Formulations is a review process wherein manager gives feedback to his group members. Based on this, rating is given and hike in pay is decided accordingly. The entire process begins with the goal-setting followed by a Mid-year review and later an Annual review During the Mid-year review, progresses on achievement of goals are discussed with manager and necessary plan of action is also discussed if required. During annual review actual performance is compared with expected standards and ratings are given which will reflect on hike in pay of an employee. The study mainly focused on effectiveness of above review process and employee’s satisfaction towards current review system. It was found in survey that with existing system most of employees are satisfied but there are percentages of employees who are dissatisfied it as they feel that is one-way feedback and employees have no much to say in review process. A 360-degree feedback can be implemented gradually in organization so as to ensure fairness in performance evaluation process as they have great impact on motivation level of employees which in turn affects their performance.