Effectiveness of Performance Appraisal System: A Case study of NESCO Routray Padmalita1,*, Mangaraj Sujata2,** 1Lecturer, department of Business Management, Fakir Mohan University, Balasore 2Dean, Management Studies, Regional College of Management Autonomous, Bhubaneswar-751023 *E-mail id: proutray2007@rediffmail.com
**drsujatamangaraj@yahoo.com
Abstract Reforms in the power sector have been global phenomena encompassing almost all developed and developing countries. The success in various countries through private participation was due to decision based on performance rather than political criteria. Again performance of the organization is very much dependent on how well the performance is managed. The study aims at reviewing the existing system of appraisal of performance of the distribution companies in post-privatization era. In specific the present research tries to answer the following questions: (1) What leads to performance appraisal system effectiveness in power distribution sector? (2) How can performance appraisal system effectiveness be defined in context of power distribution system. In the present study a case analysis of one of the Distribution company namely NESCO was done. Both primary and secondary sources of data are used. Primary data are obtained using convenience sampling. The organisation has adopted a traditional CCR system for appraising performance which was not accepted by the employees. Few good practices however have been adopted by the organisation like defining key result areas and setting objectives using SMART criteria. Factor analysing the data reveals two major factors which were identified as Performance Management Process and Performance Context. The implication is that in order to sustain high level of performance the organization should move from performance appraisal to performance management. Top Keywords Performance, Appraisal, Effectiveness, Power Sector. Top |