An Exploratory study of Appraisal Techniques from Pakistan ...7)/4.pdf · An Exploratory study of Appraisal Techniques from Pakistan Telecommunication Company Limited (PTCL)

Arabian Journal of Business and Management Review (OMAN Chapter) Vol. 1, No.7; February 2012

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An Exploratory study of Appraisal Techniques from Pakistan Telecommunication Company Limited (PTCL).

Amir Shafique Khan Comsats Institute of Information Technology, Abbottabad.

Farooq Anwar*

(Corresponding Author.)

Asst. Professor. Azra Naheed Center for Research and Development.

Superior University, Lahore.

Abstract.

Performance Appraisal has drawn an unparalleled and unprecedented attention of researchers over more

than last three decades. Selection of an appropriate and suitable performance appraisal technique has all the

times been a point of concern for most of academicians as well as managers. The idea to do this study is to

find the most effective and appropriate performance appraisal method from manual/traditional and computer

based appraisal technique. Numerous Secondary data sources were explored and reviewed from different

sources. The results showed that the employees consider online based performance appraisal system to be

more beneficial and accurate. Moreover, the study revealed that employee job satisfaction and retention can

also be enhanced by applying the right kind of appraisal method from the two above mentioned techniques.

Moreover software based performance appraisal system supports management and employee participation,

and brings greater consistency and accuracy thus ensuring equity within the organization among its

employees. By abandoning ineffective, paper-based processes, the company can ensure tighter links

between employee and organizational goals thus producing stronger performance evaluations that integrate

more closely with compensation, employment planning, retention, and more.

Key Words. Paper Based Appraisal Technique, Computer Based Appraisal Technique. Retention


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INTRODUCTION

Performance appraisal is a significant element of performance management. Performance appraisals are

form of providing feedback, deciding promotions or termination, determining compensation, identifying

strength and weakness or areas for change and identifying development needs that can help with career

planning. It is a tool that both the appraiser and the appraisee can use to enhance performance of employee

and the organization. However, the type of appraisal used must be in line and congruent with the

requirements and structure of the organization in order to reap the benefits (Appelbaum et-al, 2011).

It has been felt as an enhancement for decades. From previous different researches (Jafri, 2009; Murray,

2009; Payne, 2009; Dominic, 2008; Shrestha, 2007; Bilgin, 2007; Raymond, 2006; Dessler, 2005, Turban,

2005; Brumback, 2003, Gail, 2001 and Gioia, 1994), it is evident that measuring efficiency and

effectiveness of an employee is the primary issue for the growth and productivity of any organization. An

efficient and effective employee especially in telecommunication industry must ensure the quality work in

order to increase the productivity level of its organization. In the light of above discussion, the current study

will utilize a comparison of Traditional paper pencil based Performance appraisal system with Computer

Software based Performance appraisal in Pakistani context. Organizations have not, however, always

constructed the ability for measurement that can underline both evolution and the need for significant

investments to a variety of stake holders (Nyhan, 1995). Performance appraisal can be defined as a periodic

evaluation of the output of an individual measured against certain expectations (Yong, 1996). Additionally, the issue of the applicability of performance appraisal in the organizations exists. On the other

hand, in quest of an answer to this problem, one should prefer to extend lucid performance-enhancing

policies in communal supervision (Hatry, 1992) because those tactics are largely ashore in healthy

developed literature on performance measurement. Furthermore, the most inventive and dynamic

organizations, as supported by the cases portrayed afterward, do not only carry out one superior agenda.

Somewhat, they incorporate sophisticated administration procedures into an inclusive approach to yield

advancement.

There are numerous ways for performance appraisal which are appropriate for special organizations’

uniqueness in unusual circumstances, the foremost focal point of enquiry for many authors (i.e Freeman

2002; Seddon 2001; Western 2000; Randell 1994; Segall 1989; Long 1986) has been exploratory why, in

such a capricious environment, performance appraisal techniques lean not to slot in goals and the trend or

strategic needs of the business, or the personal ambitions of the employees. Employee performance is also

affected from the appraisal system of that particular organization as if the appraisal system process is not

exactly according to the expectations of the employee, employee satisfaction and productivity will definitely


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be low and vice versa (Sonne, 1998). Through the participation from the top management, it is extremely

simple to craft understanding amongst the employees on the subject that the triumph of the employee’s lies

in the success of the firm and this can only be done through implementation of best performance appraisal

system (Ikezawa, 1993; Dale, 1999).

Employee involvement and empowerment is a way to make your own employees feel good about working

with you as an employee. This can be achieved through keeping the employees inside the decision making

process and providing them autonomy to make on the spot decisions for certain critical process as well as

day to day routine process (Besterfield, 2004). This is one way to improve the quality of the products or

services offered. Negative feedbacks and bad remarks or bad comments can sometimes lead to losing of

interest by the employee (Dale, 1999; Bergman, 1994; Juran, 1993).

The commitment of the employees can be gained through treating all the employees equally and with justice

(Kolarik, 1995; Bergman, 1994). The employees can be made committed to their work by the assigning

responsibility to them and letting them feel they are an asset and are really important to the organization

(Ikezawa, 1993).

There is a very need of the recognition and reward system to be put in place in the organizations. It is also a

very critical component of the concept. This component should be in line performance appraisal with the

organizational goals and settings. By recognizing the efforts of the employees organizations can better

motivate the employees and also keep them committed to their work. This system should be specific and

should target objectivity and measurability. If this is not the case then it would be very difficult to measure

the performance and eventually give rewards and recognize the employees. (Ishikawa, 1985; Burril and

Ledolter, 1999; Cherrington, 1995; Kolarik, 1995).

Managing an organization without performance measures is like a pilot of a plane flying without navigation

instruments. Performance measures are basically the performance management of the organization in a 360

i.e. determining the overall performance of an organization working (Besterfield, 2004). The performance

appraisal is a communication tool, for full time and part time employees, which is designed to support each

individual’s contribution to the organization. It is about helping people become better at what they do. It

provides a way to measure skills and accomplishments with reasonable accuracy and uniformity. The

appraisal process provides the manager with a tool to help identify barriers to top performance and promotes

a mechanism for dialogue. (Maths, 2004)

History of Performance Appraisal

Performance appraisal roots in the early 20th century traced to (Gilbreth, 1994); pioneering Time and

Motion studies. Appraisal, it seems, is both inevitable and universal. It is also an important management tool


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to assess employees’ efficiency in the workplace (Armstrong, 1998). If an employee's performance was

found to be less than ideal, a cut in pay would follow. Little consideration, if any, was given to the

developmental possibilities of appraisal. The general model of performance appraisal, as it is known today,

began from that time. With the passage of time technology has great influence on our business environment.

In the past many organizations used manual based performance appraisal techniques and now with a

revolutionization and for the best results many organizations are switching towards online performance

appraisal techniques. The history of performance appraisal roots in the early 20th century traced to Taylor's

pioneering Time and Motion studies. Appraisal, it seems, is both inevitable and universal. Performance

appraisal techniques began as simple methods of income justification. The process was firmly linked to

material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow.

Little consideration, if any, was given to the developmental possibilities of appraisal. The general model of

performance appraisal, as it is known today, began from that time. With the passage of time technology has

great influence on our business environment. In the past many organizations used manual based

performance appraisal techniques and now with a revolutionization and for the best results many

organizations are switching towards Software based performance appraisal techniques.

Points out that some of the researchers have mentioned that employee performance appraisal is a subject of

great interest in most organizations. To deal with this performance appraisal business process, the authors

proposed a Decision Support System (DSS) which consists of a mathematical model to evaluate the

performance appraisal for individual and for departments in an organization.

According to Beverly (1983), “Performance appraisal is to ensure that an organization is able to provide

high quality service to meet the service needs of the customers. This is achieved by promoting employee

competence and development. It should ensure that all new employees are competent to perform the basic

responsibilities of the job, held accountable for job expectations and that all current employees continue to

learn new information and develop new skills. Employee performance are linked with the Performance

appraisal system, if the system are up to the standards defiantly the employee will have positive attitude

towards his organization and if not defiantly his intentions will be negative for his organization. This

examines the role of appraisal system a way of improving productivity and effectiveness within an

organization. Computer software is one of the ways in which performance appraisals can be dealt with more

proficiently. This article evaluates the three leading software programs available currently and provides a

comparison of the features. It concludes that the products do not solve all the problems encountered in

performance appraisals, but do give structure to the process and make this sort of appraisal easier to

conduct” (Spinks et al, 1999). The purpose of next research paper which we relate to our research

was based on the key Performance Indicator showing, a method adopted by an organization to


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measure the performance of the organization and its staff. Automated Performance Review and

Information System (A-PRAISe) is a web application which was developed using Java and JSP for

the purpose of monitoring staff performance for University Technology Patrons (UTP). The paper

explains how the developer designed and implemented the application by combining the generic

three-tier logical architecture with the Model-View-Controller architecture and Command Design

Pattern. Then, the paper proposes two design improvements for the system and ends with the

conclusion of all the works that had been done (Rahim, 2007). The next related topic to my research is

about the software base performance appraisal system adopted by telecommunication industry to increase

their productivity and efficiency in their techniques. The progress towards online performance organization

persists to picking up the pace. Through online performance administration, hundreds of firms have

radically enlarged the efficacy of their present performance supervision development devoid of taking on an

exclusively fresh viewpoint. General reception fixed by means of escalating appreciation of whole

performance administration and growth as a vital feature in attaining company’s goals; craft it obvious with

the intention of online performance running is now to settle. In addition toward the inquiry of performance

stressed companies is not if, but when, they will put into practice this authorizing (Dulewicz, 1989).

Purposes of performance appraisal. Taylor and Wherry (1951) projected that ratings composed for directorial purposes would be extra lenient

than ratings collected for study or developmental reasons. Over the preceding years, there are no new

experimental facilities which have been carried out (Greguras et al, 2003; Harris et al, 1995) but a functional

analysis of it has been printed (Jawahar, 1997). While the mass of the research on performance appraisal

function has focused on the rater, some work has also been done on rater effects (Boswell & Boudreau,

2000, 2002). There are several schemes to assess employee’s performance appraisal but a few of these ways

are not appropriate in some cases. Effective appraisal techniques are supposed to address simplicity,

integrity and equality; identify efficiency through rewards; and be aware of evaluator management traits

(Winston, 1997). According to Cash (1983), the basic purpose of his research was related to illuminate that

how performance appraisal system evaluates employee performance and increase productivity of the

organization. In this study evaluation system is found to be affected mainly by standards set by organization,

where as cultural value is influenced by tangible indication of software performance appraisal system. This

system provides a new shape of “structural” relationship among five software appraisal system cues and five

types of organizational effectiveness.

Effective performance appraisal techniques contain two basic techniques operating in conjunction: an

evaluation system and a feedback system. The main aim of the evaluation system is to identify the


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performance gap (if any). This gap is the shortfall that occurs when performance does not meet the standard

set by the organization as acceptable. The main aim of the feedback system is to inform the employee about

the quality of his or her performance. (However, the information flow is not exclusively one way. The

appraisers also receive feedback from the employee about job problems, etc). Performance appraisal system,

being practiced in organizations in Pakistan is commonly known as Annual Confidential Report (ACR) and

is kept confidential from the appraisee. Appraisals of all employees are conducted once a year and mostly in

December (Ahmed et-al, 2010). In Pakistan, there has been immense realization of the impact of strategic

use of performance appraisal practices and visionary companies are setting the performance appraisals to

leverage this aspect for competitive advantage (Khan, 2010).

No empirical research has so far been undertaken to investigate the effects of HRM practices on firms’

performance in this industry. Thus a gap exists in the research in this area of strategic importance. The

present study is an attempt to address this gap. The present study will offer valuable insight to the

management of these organizations about the strategic importance of HRM practices for superior and

sustainable organizational performance.

Telecommunication Sector of Pakistan.

For years, Pakistan's telecom sector has plodded along seemingly jammed in the mid-20th century. From 2.1

phones per 100 Pakistanis in 1999, the number of fixed lines has increased to just 2.9 per 100 today. While,

cellular has been more vivacious, Just about 5% of Pakistanis have cell phones. The future of Pakistan

telecom is being considered seriously by the government, in order to free it from regulations. As a

consequence, scores of new rivals is gearing up. Since June, 2010 cellular subscriptions have amplified to

fifty six percent, raising revenue of seven million, making Pakistan one of the fastest-growing cellular

markets, more over in coming 18 months the number of phone lines (both fixed and mobile) is expected to

boost. The Pakistan telecommunication industry as a whole, coupled with its public policies went through

numerous changes. Recapitulating just the last time period, once a sophisticated commodity, the mobile

phone is now practically with in the reach of every segment of the society; and is believed to be a basic

communication requisite tool. In 2003 the key phase of transformation, sustained the de-regulation Policy.

This was followed by the sector liberalization in the subsequent years; through efficient and transparent

processes. The consequence of market liberalization was manifold, as it brought cheap and reliable

communication channels for the citizens, contributing heavily in the economic development and opening

plenty of job opportunities within Pakistan. The country’s mobile market today is the 10th biggest in the

world, penetration in South Asia.


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The telecommunication sector is contributing approximately 2% to GDP and is viewed as a major growth

engine for the country. Telecom sector is also a major contributor to national exchequer, depositing USD

1.3 billion during fiscal year 2008-09 and USD 0.5 billion during first half of fiscal year 2009-2010.

According to United Nations Conference on Trade and Development (UNCTAD) latest report on

Information Economy. Pakistan is among the five dynamic economies of developing Asia in terms of

increased penetration of mobile phones, internet and broadband. The following bar chart highlights the tele

density situation over last five years with respect to different telecom segments.

Figure 1. Teledensity growth of Pakistan

Source: PTA (2011)

Research and Development activities are measured as significant carry towards telecommunication

development in an economy. Conversely in Pakistan such telecommunication activities are insignificant.

There is a need for the development of the research and development culture for better groundwork

regarding upcoming telecommunication convergence arena. National ICT & Fund is expected to play an

important role; a faster approach may be adopted for establishment of national telecommunication &

laboratories. Cellular mobile handsets have rapidly changed the cultural barriers and have become a quick

selling commodity in the market. At present mobile handsets are being imported from all across the world.

The research and development labs would bring a positive sign for manufacturing of telecom handsets in the

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010

0.17 0.66 1.08 1.4 1.6 1.7

8.3

22.2

40.9

54.758.22

59.9

3.43 3.37 3.04 2.7 2.17 2

Wireless Local Loop

Cellular Mobile

Local Loop


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country to enhance employment and to restrict outflow of foreign currency. In view of a global trend

towards usage of mobile networks, offer various financial services. It is suggested that mutual efforts from

related stakeholders like State Bank of Pakistan, Mobile Operators, Financial Institutions,

Telecommunication Regulator and application providers may be instigated for promotion of mobile

commerce throughout the country. Future converged services will necessitate high speed connectivity at the

end-user locations. Broadband will play a pivotal role in upcoming ICT access and usage. It is suggested

that broadband may be kept as a top priority for future telecommunication roadmap. Telecommuting will

become more widespread, especially for knowledge workers who need to securely connect to information

sources on the move. To further push the growth of broadband, there is a dire need to develop local contents

for the better understanding and to cater needs of the majority. The most important proposition to continue

this telecom escalation is a continuous coordination among stakeholders from industry, government,

academia and the end-users. In order to achieve the target for coming era necessary suggestions and

recommendations from industry experts be gathered. Since July, 2003, regulators have handed out more

than 200 fixed, mobile, and long-distance licenses to some 50 companies. There will be a sure shakeout with

so many new entrants, officials believe operators will dispense as much as $8 billion into networks and

equipment over the next five years, compared with just $1.5 billion since 1999; .I.e. Karachi-based Tele

Card Ltd., in January launched a $200 million fixed-wireless network, and expects to have 2 million

subscribers within three years. Adding to the competition will be a privatized Pakistan Telecommunications

Co., the state-controlled carrier that had a monopoly until last year. After four years of often rancorous

discussion, Islamabad in November finally settled on a plan to sell off a controlling 26% stake to investors

by mid-2005. Current management is already gearing up to take on the new rivals. The company plans to

add 2.4 million lines by June, increasing its capacity by 50%. And over the past year, PTCL has cut rates

twice, though new entrants have proposed prices that are even lower.


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Figure 2. Telecom Revenues of Pakistan

Source: PTA (2011)

The telecommunication industry of Pakistan has shown a enormous growth; now it calls for the attention of

decision makers on affairs that may well lead to further progress of the sector. An important factor combines

to present taxation on the telecom services and equipment, plummeting could help the telecom operators in

minimizing the cost of the service ultimately encouraging more telecom usage, benefiting the Government

to earn more taxes on these services. Telecom operators may be given tax subsidies and waiver in rural

areas to make investment in rural areas of the country which eventually would help in bridging the digital

divide.

Additionally, the present electricity crises necessitates some Government tax subsidy on import of alternate

energy resource like solar energy and wind turbines to assist telecom operators in business continuity. Rural

areas are generally neglected, by the investors. As a return, investment is near to the ground as compared to

urban areas. Though general provision of mobile service is adequate in rural areas, nevertheless efforts are

required to fill in the basic telephony and Internet gap in such geographies. To achieve it, Universal Service

Fund utilization for provision of access in un-served areas may be stretched and made prompt. Furthermore,

Public-private initiatives for establishing Internet KIOSK, ICT community centers, may also assist to

improve the situation.

235,613

278,509

333,182352,010

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2007-08 2008-09 2009-10 2010-11

Rs.

Mill

ion

Year


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Figure 3.

PTCL

Pakistan Telecommunication Company Limited (PTCL) is the leading telecommunication corporation

in Pakistan. Telecommunication companies have the most up to date and advanced Online Performance

appraisal techniques used to evaluate their employees.

This co-operation delivers telephony services to the state and still grasps the grade of pillar for country's

telecommunication setup, in spite of appearance of a dozen other telcos including telecom hulks like

Telenor and China Mobile (Zong). The company entails about two thousand telephone exchanges all over

the country providing largest permanent network. GSM, CDMA and Internet are added means of PTCL,

making it an immense organization. The Government of Pakistan sold 26% shares and control of the

company to Etisalat in 2006. The Government of Pakistan reserved sixty two percent of the shares whereas

the remaining twelve percent are owned by the general public. PTCL is also part of the group of three

main Submarine communication cable networks: SEA-ME-WE 3, SEA-ME-WE 4 and I-ME-WE. On the

mobile communications side, the second main cellular provider in Pakistan, Ufone, is also a solely

possessed subsidiary of PTCL.


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Comparative Analysis of both Ways to conduct Performance Appraisal There are two specific ways using which an organization can conduct the performance appraisal process.

These two ways are as follows:

1. Manual Performance Appraisal System

A performance appraisal is an evaluation of an employee's performance of allocated tasks and jobs. The

appraisal relied on outcomes gained by the employee in his/her work, not on the employee's character

distinctiveness (Levy and Williams, 2004). The appraisal assessed abilities and activities with rational

precision and consistency. It presents an approach to help recognize areas for performance improvement and

to facilitate in professional development. It should not be considered the manager’s only communication

device. Unwrapping the modes of communication all through the year assist to build useful functioning

associations.

Every employee is unconstrained to a considerate and vigilant appraisal. The triumph of the procedure

depends on the supervisor's enthusiasm to complete a positive and purposed assessment and on the

employee's eagerness to retort to constructive propositions and to toil with the supervisor to achieve future

goals.

Literature revealed following features that can damage the effectiveness of performance appraisal: immunity

to the highly noticeable employees, carrying out performance appraisal to penalize the low performers,

rewards on good performance, uncertainties in the psyche of performers about appraisal’s results,

organization’s affairs that lead to agitate performance of targeted employee (Deluca, 1993); use of primarily

defective appraisals, focus on cheering individual, which automatically depresses teamwork/collaboration,

contradictions in setting and pertaining appraisal criteria, spotlighting on edges (exceptionally good or poor

performance), appraisal’s hub on accomplishment of short-term goals, propping up the autocrat supervisors,

biasness of appraisal results and formation of emotional agony in employees (Segal, 2000); use of hazy

qualities and unrelated measurement criterion, use of futile checklists for assessment, monologues as a

replacement of dialogues in feedback meetings, lack of enthusiasm of appraisers to proffer feedback,

supervisor’s misguidance to evaluator (Nurse, 2005); wrongness at supervisor/organization’s end (Horvath

and Andrews, 2007).

2. Computer Software based performance appraisal system: Modern Approach


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With the introduction of new IT techniques for managing information allow the organizations to

development of online organizational techniques that can play an important role in the advancement of an

organization (Alexouda, 2005). One of the most modern human resource technologies is the implementation

of a Human Resources Information System (HRIS); this incorporated system is premeditated to help give

information used in HR decision making such as management, selection, pay roll, training, and performance

analysis. Kavanagh, (2008) define HRIS as “the system used to acquire, store, manipulate, analyze,

retrieve, and distribute information regarding an organization’s human resources”. According to Strauss,

(2006) in his article related to HRIS execution in organizations is a fundamental requirement in today’s

competitor market.

Human Resource Information System (HRIS) is the combination of human resource management with

information technology to not only simplify the decision making process, but also aid in complex

negotiations that fall under the human resource umbrella. The four principle areas of HR that are affected by

the Human Resource Information System (HRIS) include; pay roll, time and labor management, employee

benefits and HR management. A Human Resources Information System (HRIS) thus allows a user to see

online a chronological history of an employee from his /her position data, to personal details, pay roll and

benefits information.

With online performance appraisals, hundreds of firms have spectacularly improved the usefulness of their

accessible performance supervision procedure with no adaptation of totally latest idea. Extensive reception

joined with the growing acknowledgment of entirety performance supervision along with expansion as

major feature in attaining business objectives; formulate it obvious that online performance assessment is

now to reside. In addition to the issue for performance-focused organizations is not if, but when, they will

implement this empowering (Dulewicz, 1989). A modern technique of using online related methods which

assists in solving a lot of the queries and questions of manual assessing methods, and maintains finest

observations which effects in greater productivity and worker agreement. Company’s at present with

automatic evaluation methods account almost hundred percent of managers absolute analysis on precisely.

According to Gail, (2001) “Online Performance appraisal rationalizes the evaluation process, lessens paper

work, promote objectivity and decrease the communication fissure between the supervisor and employee”.

Performance Appraisal describes a social-psychological form of the appraisal process that lay stress on the

goals pursued by raters, ratees, and variety of users of performance appraisal. The author applies this goal-

oriented viewpoint in mounting, executing, and calculating performance appraisal techniques” (Murphy,

1995).

An online performance appraisal system is software program that smoothes the progress of the completion

of performance evaluation online. It can be a managerial self service tool such that just managers have

access to this system or it can be a combination of managerial self service or employee self service, in which


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employees also have access and can endow with information into the system. An online performance

appraisal system can be more than the traditional paper and pencil form sited on the web in that it may be

incorporated with an employee position description component, allowing managers to pull data from the

employee’s position description and put in this information into the evaluation (Admin, 2006). Further, it

can act as historical annals, storing past evaluations and permitting comparisons between evaluations

overtime. The prime advantage of these techniques is the ease of access of the data any time from any

computer with internet access as well the ease and speed with which they can generate correct HR-related

reports (Kavanagh, 2008). Such techniques also offer HR managers the chance to readily observe the level

to which supervisors complete their employees’ performance appraisals on time, in addition to making it

easier for them to look at trend in performance ratings. The aim of using online performance appraisal

system is to prevent favoritism, corruption and bribery, and to give added importance to equality,

impartiality, merit, career and efficiency. If the managers are provided with online Human Resource skills

and up to date tools it will really help in assessing the performance of the employees, the computerized

performance evaluation structure eliminates a lot of the hurdles which have conventionally destabilized the

performance appraisal procedures. Information technology is expected to drive Human resource’s transition

from a focus on Human Resource Management to Electronic Human Resource Management (eHRM).

Determinants of Computer based performance appraisal system

Online based performance appraisal system determinants differ from employee to employee. Some

employees are satisfied by the quality and competence of the system and some are satisfied by the feedback

response from the organization. As previous researches we all cannot limit our research by pointing out a

statement or attribute which represents the employees’ performance. Although some of the determinants

have a strong affect on employee as well as organizational effectiveness.

In the literature there has been some confusion over the relationship between Web-base performance

appraisal system and organizational effectiveness. Some researchers state that web-based appraisal measures

the same under lying concept and therefore are the same as mentioned above, there are no specific terms

defined as the determinants of organizational effectiveness but we can say that the five dimensions of

software based appraisal system which was proposed by (Smith, 1998).

Decision Support System.

Intense competition is forcing companies to develop innovative strategies to capture customer needs and

improve customer satisfaction in the external business environment. A lot of efforts have been made to

fabricate appropriate Performance appraisal software tools, which can act as consultants for managers. The


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developments in computer technology and computer based procedures for handling information permit the

development of decision support techniques that can play a critical part in the development of an

organization. (Alexouda, 2005). Decision support techniques are specific category of computer based

information techniques those sustain business and organizational decision making activities. An effectively

planned decision support system is an interactive software based system projected to assist decision makers

accumulates helpful information from raw data, documents, personal knowledge and business models to

classify and resolve complexities and make decisions. It is an enormously extensive with various forms and

can be used in several ways (Power, 2007). It is an interactive, supple, and adjustable computer based

information system, especially developed for sustaining the answer of a non-structured management

difficulty for enhanced decision making. A decision support system (DSS) is a computer-based information

system that supports business or organizational decision making activities. Decision Support Techniques do

help in gathering data, investigate and figure out the data that is collected, and helps in making bold and

useful decisions (Neubert, 2009). DSS serves the management, operations, and planning levels of an

organization and help to make decisions, which may be rapidly changing and not easily specified in

advance. A properly designed DSS is an interactive software-based system intended to help decision makers

compile useful information from a combination of raw data, documents, personal knowledge, or business

models to identify and solve problems and make decisions.

According to Keen (1978), the concept of decision support has evolved from two main areas of research: the

theoretical studies of organizational decision making and the technical work on interactive computer

techniques.

Conclusion

A software based performance appraisal system can ensure that your organization’s performance

management is built around world class best practices, encourages management and employee participation,

operates more efficiently, and brings greater consistency to the entire review process. By abandoning

ineffective, paper-based processes, a company can establish tighter links between employee and

organizational goals and produce stronger performance evaluations that integrate more closely with

compensation, employment planning, retention, and more. Furthermore, the satisfaction level of the

employees with the computer usage can also be seen from the literature. Their ease to cope up with the

technology tools will be a great source in changing the trends of the appraisal. The results reveal that this

is thing is important for a company to monitor the appraisal process and there should be a check

on the rater’s evaluation. The quality of online based performance appraisal system is better than


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the quality of the manual based performance appraisal system. It can also be seen that employees

feel more satisfied with the new online based performance appraisal system instead of manual

based performance appraisal system.

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