Analyzing the Performance Appraisal System of a Public Sector Organization in India : The Case of Rajasthan State Mines and Minerals Limited

Performance appraisal is considered as a management tool which is often used for motivating and effective utilization of human resources. This tool is used for determining compensation, incentives, promotion, tenure, transfers, layoffs and development of potential employees in an organization. The basic objective of this study is to analyze the need for replacement of traditional Performance Appraisal System (PAS) in public sector enterprises by using a case study approach selecting a public sector company, the Rajasthan State Mines and Minerals Limited. The study highlights that employees perceive the PAS measures to be objective, accurate and unbiased, and the PAS system to be transparent, performance-based and linked to employee growth opportunities. Also, significant differences have been found in the perception of workers and managers on the given constructs of modified PAS