ASIAN JOURNAL OF MANAGEMENT RESEARCH Online Open Access publishing platform for Management Research

Performance Appraisal System (PAS) has been observed by intellectuals and human resource professionals as a valuable implementation for human resource management (HRM). Hitherto effective PAS remains a hardheaded challenge to management and employees, due to reasoning, intuition, perception, motivational and behavioral factors. An ideal Performance Appraisal System should be free from prejudice and cronyism which can replace objectivity. A study through survey was conducted among executives and managers of Simbhaoli Sugar Limited. It is one of the biggest Sugar Mills in UP, and considered as an icon in the manufacturing capacity of sugar in northern India. A survey questionnaire was administered among 42 managerial and subordinate staff. Data collected were analyzed quantitatively using both descriptive and inferential statistical tools. Z-test was used to understand the impact of PAS on employee motivation and it was revealed that PAS has a significant impact on employees ’ motivation at Simbhaoli Sugar Limited. It was also observed in survey that Simbhaoli Sugar Limited put extra emphasis on setting Key Result Areas (KRAs) and performance of employee is measured based on the achievement of set KRAs. Emphasis on training is required after the completion of Performance Appraisal procedure at SSL. Some recommendations were also suggested for increasing the motivation level of SSL employees. Key words: Performance appraisal system, motivation, employees. 1