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A key element of human resource management, performance appraisal systems (PAS) have a big impact on both organizational success and personnel performance. In the fiercely competitive and performance-based Fast-Moving Consumer Goods (FMCG) sector, where productivity of human capital and operational efficiency are essential to success, performance appraisal plays an even more important role. Comparing the effects of different performance review systems on worker productivity across a subset of FMCG companies is the goal of this study.
Employee motivation, engagement, work satisfaction, and performance results are all examined in relation to various assessment techniques, including 360-degree feedback systems, Management by Objectives (MBO), and classic rating scales. Employing a mixed-method approach, standardized questionnaires and interviews with HR managers and staff from top FMCG companies were used to collect both quantitative and qualitative data. The research was further supported by secondary data from performance records and HR policy documents.
The results show that contemporary, feedback-oriented, participatory assessment techniques, such as continuous performance management systems and 360-degree feedback, typically have a greater beneficial impact on worker productivity than traditional top-down appraisal techniques. Higher levels of enthusiasm, ownership, and dedication to company goals were shown by workers operating under clear and goal-aligned assessment frameworks. On the other hand, it was discovered that performance and morale were adversely affected by appraisal methods that were thought to be biased or infrequent.
According to the results, companies who implemented 360-degree feedback systems reported a 19% increase in team productivity and a 24% increase in employee engagement when compared to those that used traditional annual reviews. In a similar vein, companies using MBO frameworks saw a 22% boost in individual performance and a 17% rise in goal alignment. Traditional rating-based systems, on the other hand, had a 9% effect on productivity and frequently caused over 35% of employees surveyed to be unhappy since they were opaque and did not provide feedback.
According to the study's findings, contemporary, interactive appraisal techniques greatly increase worker productivity in the FMCG industry. It highlights how crucial it is to implement ongoing, open, and feedback-rich evaluation procedures that are in line with corporate objectives. The study makes insightful suggestions for HR professionals looking to revamp appraisal frameworks that empower staff members in addition to evaluating them, which would result in a more driven and productive workforce.
"A Comparative Analysis on the impact of Performance Appraisal Systems on Employee Productivity across FMCG Industry ", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 6, page no.b181-b184, June-2025, Available :http://www.ijrti.org/papers/IJRTI2506125.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator