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22 views4 pages

P2 Form

Uploaded by

krishanusingh6
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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IMPACT OF PERFORMANCE APPRAISAL

ON ORGANIZATIONAL STRUCTURE &


CLIMATE
LITERATURE REVIEW & SURVEY REPORT

BY KRISHANU SINGH

ROLL NO 21051111

BCOM HONS

Literature Review: Performance Appraisal, Structure, and Climate

Introduction
Performance appraisal systems, designed to assess and evaluate employee
performance, can significantly influence the overall structure and climate of an
organization. This review examines the intricate relationship between these three key
components.
Performance Appraisal and Structure
Organizational structure, the formal framework that defines how roles, responsibilities,
and communication channels are arranged within an organization, can significantly
impact the design and implementation of performance appraisal systems. For instance,
hierarchical structures, characterized by clear chains of command and centralized
decision-making, often employ top-down evaluation methods, where managers assess
their subordinates. In contrast, flatter structures, with decentralized decision-making and
increased employee autonomy, may utilize peer or self-evaluations, fostering a more
collaborative and empowering approach to performance assessment.
Performance Appraisal and Climate
Organizational climate, the shared perceptions of employees about the organization's
policies, practices, and procedures, can be significantly influenced by performance
appraisal systems. A positive organizational climate, characterized by factors such as
trust, fairness, and support, can enhance employee motivation, job satisfaction, and
overall performance. Effective performance appraisal systems that are aligned with
organizational goals, transparent, and fair can contribute to a positive climate.
Conversely, poorly designed or implemented appraisal systems can create a negative
climate, characterized by low morale, decreased employee engagement, and increased
turnover.
RELATIONSHIP
The relationship between performance appraisal, structure, and climate is not
unidirectional but rather a complex interplay. Effective performance appraisal systems
can contribute to a positive organizational climate, which in turn can enhance employee
motivation and performance. Conversely, a negative organizational climate can
undermine the effectiveness of performance appraisal systems, leading to decreased
employee engagement and reduced performance.
Conclusion
Performance appraisal systems can have a profound impact on organizational structure
and climate. Organizations should carefully consider the alignment between their
appraisal systems, structure, and desired organizational culture to achieve positive
outcomes. By designing and implementing effective performance appraisal systems that
foster a positive climate and support organizational goals, organizations can enhance
employee engagement, motivation, and overall performance.

SURVEY REPORT
20 Responses

 What is your current position in the organization?

Entry Level 10
Mid Level 6
Senior Level 3
Managerial 0
Executive 1
 How long have you been with the current organization?

Less than 1 year 12


1-3 year 5
4-6 year 2
7-10 year 0
more than 10 year 1
 How often are performance appraisals conducted in your organization?

Monthly 5
Quarterly 7
Half yearly 6
Annually 2
Never 0

 Do you believe the performance appraisal system is effective in your


organization?

Strongly Agree 3
Agree 9
Neutral 6
Disagree 1
Strongly Disagree 1
 To what extent do performance appraisals impact your motivation and
productivity?

Very High Impact 5


High Impact 11
Low Impact 1
Very Low Impact 3
No Impact 0
 Does the performance appraisal process influence your perception of the
organizational structure (e.g., hierarchy, communication)?

Yes 12
No 2
Maybe 6
 Do you feel the appraisal system is fair and transparent?

Yes 12
No 5
Maybe 3
 Do performance appraisals lead to changes in employee behavior and
attitudes?

Very Frequently 4
Frequently 5
Sometimes 9
Rarely 0
Never 2
 Do you believe the appraisal outcomes contribute to employee satisfaction and
morale?

Yes 14
No 3
Maybe 3
 Are you satisfied with the feedback and communication received during the
performance appraisal process?

Yes 15

No 4

Maybe 1

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