A Model on Perceptional Variations of Different Age Groups on Performance Appraisal Outcome Impact on Employee in It Companies

Abstract

Performance appraisal, one of the crucial elements of the human resource management in recent days. The rapidly changing environment posed an open challenge to the organizations and employees to nurture their knowledge and talents to face the challenges. IT companies in India are constantly doing well for over a period of time and appraisal practice plays an important role in IT companies. My present study deals with the variation in employee opinions on performance appraisal impact on employee with respect to role clarity, training development, career planning, compensation & reward, employee motivation, work climate and employee commitment and engagement with respect to age. Data collected from 418 employees from IT companies located in twin cities Hyderabad and Secunderbad. To analyze the data initially Cronbach 's Alpha test used to measure reliability statistics of the sample. Later KMO ( Kaiser - Meyer - Olkin) test and Bartlett's test conducted to measure and Chi - Square significance value and to find whether the research can be proceed factor analysis to determine most influential factors. Pearson Chi Square test used to test the hypothesis. From the means a statistical decision tree model has been developed. The Hypotheses test and the decision tree model revealed that all the statistical mean values for the opinions of the employees categorized under the age groups 25-35, 36-45 and >45 supports the all the hypothesis. The major findings from the mean values we can observe that maintaining transparency in appraisal process will have incredible motivation on employee. Next we can also observe that respondents opinions reveals that employee commitment is the proximal outcome of performance appraisal. Means positive appraisal outcome will increase the employee commitment. Agreed and disagreed percentages of 36 -45 age group employees for the variables fair reward system and perception of fair treatment are almost equal i.e. 0.56( agree) and 0.44(disagree) and differ with the opinion of the other age groups. The reason for the variation is 36- 45 age group respondents will be with approximately >5yrs experience and for them increments and promotions will be some less comparatively who fall under 25 - 35 and >45 group respondents.