Tata Steel Case Study

Almost every organization in one way or another goes through a periodic ritual, formally or informally, known as performance appraisal. The formal performance appraisal has been called a tool of management, a control process, an activity and a critical element in human resources allocation. More Abruptly it can be said that, Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron, 2000). Uses for performance appraisal have included equal employment opportunity considerations, promotions, transfer and salary increases. Performance appraisal has also been called an audit function of an organization regarding the performance of individuals, groups and entire divisions. It may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. The basic purpose of performance appraisal is to facilitate orderly determination of an employee’s worth to the organization of which he is a part.

RATIONALE OF PERFORMANCE APPRAISAL

There are mainly two purposes for which performance appraisal is used by an organization:

1. To improve the work performance of employees by helping them realize and use their full potential in carrying out the firm’s missions; and

2. To provide information to employees for use in making work related decisions, More specifically, appraisals serve the following purposes.

• Appraisals generate information to support administrative decisions. Promotions transfers and reassignments, demotions and termination’s are action based at least...