Model Employee Appraisal System with Artificial Intelligence Capabilities

2.1. Genesis and Objective of Appraisal System

An appraisal process is a formal way of judging someone based on relevant parameters. It is a way to judge an employee on their performance, which benefits the organization. If organization changes its conditions and thus performance parameters will change and employees have to adapt to it as required. Appraisal systems are basic set of rules to which an employee has to adhere and such rules are set to help organization grow and in turn reward the employee.

Performance of a company depends on performance of employees. But if the business strategy is incorrect or business environment changes due to political changes or reasons which company cannot control then it affects all the employees. The job of a performance appraisal system is to address this before the business goes out of control. It is very important to identify the best and the worst performers in an organization. Managers play crucial role in this exercise. It is the responsibility of the manager to provide a fair assessment and give a rating that deserved by the employee. Employee aversion can occur if they receive an unfair rating. Human assessments are subjected to error and biases. Managers are also uncomfortable to show superiority and to judge worth of a fellow employee (McGregor, 1957). An appraisal system is used to assess employees of an organization and categorize them based on their performance. However, there is a probability of error in judgment and certain bias rendered towards an employee. We can address appraisal system issues with the use of technology and try to minimize mistakes that manager can commit intentionally or unintentionally.