A STUDY ON PERFORMANCE APPRAISAL IN HONDA MOTORS

Abstract

Employee assessments, merit scores, and performance evaluations are various names for the same thing. It's a
method for systematically comparing an employee's actual output with predetermined goals. The degree to
which one performs their duties and lives up to the standards set by their employer is a good indicator of their
success. The notion that evaluating an employee's performance can lead to improved productivity is not novel.
It predates recorded history by an infinite amount of time. One's motivation increases after they learn their true
performance and accept responsibility for their past slip-ups. Depending on the circumstances, performance
reviews might be conducted monthly or annually. Typically, a worker's immediate supervisor conducts these
evaluations.
Annual performance reviews are quite standard, however they have been criticized for their perceived lack of
actionable criticism. Even proponents of performance reviews have been accused of doing more harm than
good. This section of the principle-agent paradigm discusses the two-way communication between the employer
and worker, as well as the immediate impact and response to a performance assessment. Employees might be
evaluated on their performance through a review, a rating, or a merit system. It's a method for systematically
comparing an employee's actual output with predetermined goals.