AN ASSESSMENT OF EMPLOYEES’ PERCEPTION OF PERFORMANCE APPRAISAL SYSTEM AT AUDIT SERVICES CORPORATION

Abstract

The main purpose of this study was to assess the employees’ perception towards performance appraisal system of the Audit Services Corporation (ASC). The specific objectives of the study were: to examine the extent of awareness of appraisers regarding performance and appraisal objectives at ASC; to assess the employees’ perception of the performance appraisal system at ASC; and to identify the performance appraisal methods currently applied at ASC. The methodology used was descriptive statistics for survey data and semi-structured interviews. Both primary and secondary data were collected using questionnaires, interview and written materials. Simple random samplings were used to collect primary information through survey questionnaire and also interviews were conducted with key management members who have direct involvement in the performance appraisal system. The finding of the study revealed that ASC is engaged in performance appraisal. However, the study found out that the Corporation practice shows shortcomings in the use of appraisal objectives and in the application of appropriate appraisal techniques. Moreover, employees’ attitude towards the appraisal system was found to be at a medium level with respect to many attributes of performance appraisal. Hence, it is concluded that the Corporation should make its appraisal system: objective, fair, participatory, non-arbitrary, linked with employee performance and organizational goals, and also contribute to both the employees and the organization improvement. In addition, appraisers’ should also have a sense of adequacy about appraising subordinates. Furthermore, the Corporation should alleviate its weakness by implementing modern and up to date appraising methods such as MBO and actively participating its employees in the process.