Productivity Implications of Employee Performance Appraisal System (Full Version)

51 Pages Posted: 12 Mar 2021 Last revised: 8 May 2021

Date Written: January 19, 2021


[enter Abstract BodyPast correlation researchers have proved that Goss Domestic Product (GDP) is part of the human development index and has a positive relationship with a better domestic quality of life, better health, education and overall increased happiness. The prime contributor to the output GDP is the domestic corporate Production and Services input. The measure and optimisation of this relationship between these is the “Productivity”. Productivity index has a direct impact on lowering the Cost per unit of the Output product, and indirectly improves the profit per unit of that product at a constant price.

The closed cycle economic concept has confirmed that the manpower is the key contributor to the corporate performance, irrespective of the politico-financial methodology. The innovations in the world originates from the thinking ability of the manpower. Hence, high performance manpower in any corporate unit should directly reflect a high productivity end result.

The performance of manpower is assessed through a “Manpower performance appraisal system”. In 1961 Peter Drucker popularised the Management by Objectives (MBO) method. The MBO is thus a performance oriented system. An integrated Performance Management system is essential to get the best out of its people.

Hence in this doctoral research work, the Preliminary Hypothesis was coined as “Productivity is directly linked to the Performance Appraisal system” or Productive persons are always good performers.

]In order to establish the hypothesis, samples were chosen from 4 different type of corporate units, with 10 sectors in each. In order to be realistic, 25 top performing (A – Grade) employees were drawn from each of the sample organisations. They were randomly sampled and normally distributed sectarian survey to provide a least-error probability. The total samples, then were, 10 organisations X 4 typess x 25 employees = 1,000 top performance employees.

The standard for criteria and contents of the performance appraisal method was also pre established. The total production data from January to December 1974 was used to test the validity of the preliminary hypothesis.

From 12 diversified organisations spread over 4 types, Productivity had a positive relation for 300 Performance Appraisal Toppers, subject to the correct and up to date Sector Management Information System (MIS). From 28 diversified organisations spread over 4 types, Productivity had a negative relationship for 700 Performance Appraisal Toppers, because of inadequate Sector Management Information System (MIS).

The preliminary hypothesis was hence considered “null”. The hypothesis was revised as “Productivity (Pr) is linked to the Performance Appraisal System (Pa) through the corporate Management Information System (MIS)” or Productive persons are good performers, only with the support of the MIS. Mathematically Pr ≈ (Pa)◄MIS, which means that, Productivity is proportional to the Performance appraisal grading, moderated by the sector MIS.

The hypothesis was well propagated through multi-fold presentations, methods, media, evaluation and viva voce. The hypothesis utility spreads to 6 different practical management decision orientation. Based on all these, the University of Bombay (India) accepted the thesis as the first in the subject of management studies, under the faculty of arts. Awarded a Doctor Philosophy (Ph.D) degree, with a Doctoral Merit Certificate for special recognition.

Keywords: [comma separateappraisal, commercial, employee, economics, gdp, hypothesis, innovation, mahabharatha, manpower, material, mbo, mis, motivation, performance, production, productivity, prosperity, service, technology, thesis, university of bombayd]

JEL Classification: A13, B41, C52, C67, D78, D84, M21, M33, P27

Suggested Citation

Subramaniam, Viswanatha Sankara Rama, Productivity Implications of Employee Performance Appraisal System (Full Version) (January 19, 2021). Available at SSRN: or

Viswanatha Sankara Rama Subramaniam (Contact Author)

Intellectual Consultants ( email )

Tirunelveli District
Tamil Nadu
919094321160 (Phone)

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