Performance Appraisal Practices: Quatitative Research and Framework for Future Development in SME Industries, India Mr. Kathiravan M*, Dr. Karthikeyan K**, Mr. Jasim Mohamed K***, Mr. Kingsley R**** *Research Scholar, Anna University, Chennai, India **Professor, Saranathan College of Engineering, Trichy, India ***Research Scholar, Bharathidasan University, India ****Research Scholar, Bharathidasan University, India Online published on 5 April, 2016. Abstract The Performance appraisal practices can be done using the technique, Performance Management System, which involves the process of recognizing, motivating, assessing, developing, and rewarding the employees for their job performance. A descriptive research was used for this study. The analysis was done with a self prepared 5-point likert scale rating questionnaire and it was pre-tested by distributing fifty numbers of questionnaires to the pilot group. A Random sampling technique using the lottery method was employed to collect the questionnaires from the sample of 2224 respondents. A reliability test was conducted and the reliability (Cronbach's alpha) was found to be 0.878, which confirms that the internal consistency reliability of the data is satisfactory. A conceptual framework model was developed and proved using AMOS package and R statistics. Also, many relevant results were shows that the following subsequent components such as goal congruity, experience of the appraiser, transparency and understand ability, validity, employee participation, fairness in the process and fairness outcome have a strong relationship with the Effective performance appraisal process in SMEs. This research paper is an effort to discover the impact of Effective performance appraisal in enhancing employees’ performance and further increasing their job contentment in the leading Small and Medium size Enterprises (SMEs). This research can be carried out further in other industries like software, banking etc. and this may be very useful to the Indian SMEs to cope up with the current trends in the industry. Top Keywords Performance Appraisal, SMEs, Employee Participation, transparency, job contentment. Top |