Factor Affecting Performance Appraisal of Employees: A Study of Life Insurance Company

This research is an attempt to explore the factors affecting the performance appraisal of employees. All measures were tested for reliability through computation of Cronbachs Alpha. The Alpha coefficient value was found 0.781 for performance appraisal variables like Education Experience, Targets achieved, Position in the organization, Influence of the senior, Targets achieved by the employee, Attendance & regularity of the employee, Vacant position if any to be filled, Rapport of the employer & employee and Past negative or positive experience of the employee etc. Factor Analysis was used to assigned loads to each factor that affects and has impact on the performance appraisal system. Further, the effect of age group and target achieved of the employees were evaluated using chi-square test and it was found that there is no association of targets achieved with the age of the employees. This shows that the performance/output of the employees is not affected by the age.