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Practice and Problem of Performance Appraisal Management

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Submitted By Dereje
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Chapter one 1. Introduction
1.1 Background of the study
Organizations are created by people who decide to work together in order to attain their specific objectives functioning through the division of labour and on a hierarchy of authority. People and business processes are structured to achieve organizational objectives. Mullins (2005: 114) describes an organization as “a consciously, coordinated unit created by groups in Society to achieve specific purposes common aims and objectives by means of planned and coordinated Activities”. Achieving the organization goal without people’s participation and interest is unthinkable. In addition to these they have to know how to create mutual understanding according to the programmed plan, strategy with in organization as whole and between the employee and employer.

Because of this Senyucel (2009:9) say “Organizations depend on people. We can even be more direct and say, there can be no organization without people. Organizations do what people do. An organization behaves the way its employees behave, the way its managers direct it.” “HRM is a distinctive approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an array of cultural, structural and personnel techniques.” Storey (1995: 5). Among the personnel technique used to deploy a highly committed and capable workforce doing performance appraisal periodically is the vital one.
The well known Management writer BRECH (1975:693) states the following about performance appraisal and organization objective
Performance appraisal is periodically assessing the performance of individual against predetermined standard; identifying personal strengths and weakness determining training needs. The good performance by individual in his/her role should

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