A Study on Fairness of Performance Appraisal Practices with Reference to Manufacturing Sector in Maharashtra

Abstract

The base of the field study is primary data from a sample of 75 respondents and the objective of the study is to study the fairness of the procedures used for rating the employees' performances in the manufacturing industry of Maharashtra. The study is descriptive and analytical, using structured questionnaires and statistical analysis like percentage, chi-square analysis, ANOVA and correlation analysis. From the value obtained, it can be said that there is a correlation between the two variables, namely appraisal and employee satisfaction (welfare) and it comes to the conclusion that the perceived fairness of appraisal positively affects the employee satisfaction (welfare). Demographic variables - age, knowledge of assessment standards- were shown to have an impact on impressions of fairness. Important factors contributing to acceptance were good communication and an open procedure. It's not just a fairness of the assessment process question, it's a strategy and it could be a key component in increasing motivation, reducing turnover and creating commitment within organizations. The study adds to the literature on HRM in the manufacturing industry in India for the identification of existing gaps in the appraisal system and offers insightful suggestions to build a fair appraisal system.