Impact of performance appraisal system on the individual efficiency of the employees in manufacturing companies Greater Chennai

The main aim of this paper is to measure the components of performance appraisal system in manufacturing companies and to find the influence of performance appraisal components on individual efficiency of the employees. It also tested the hypothesis that there is no significant influence of performance appraisal system on individual efficiency of the employees. This study is empirical in a nature and leans upon the primary data. The primary data emerged out of collecting the information from the employees of manufacturing company. The researcher circulated 250 questionnaire, 50 each from all the five companies and able to obtain only 231 responses. Hence the sample size of the research is 231. The researcher used cron bach alpha coefficient method for reliability, KMO and Bartlett’s test of sampling adequacy. The subsequent application of factor analysis and linear multiple regression analysis derived the predominant factors of performance appraisal and its impact on individual efficiency of the employees. The results proved that there is a significant influence of performance appraisal system on individual efficiency of the employees.