Organizations are run and steered by people.

It is through people that goals are set and objectives are realized. The performance of an organization is thus dependent upon the sum total of performance of its members. The success of an organization will therefore depend on its ability to measure accurately the performance of its members and use it objectively to optimize them as a vital resource In the present highly competitive environment, organizations have to ensure peak performance of their employees continuously in order to compete and survive at the market place effectively (Prasad 2005). Performance of an individual can be defined as the record of outcomes produced as specified job functions or activities during a specified time period (Bernardin 2007). Appraisal is the evaluation of worth, quality or merit, so performance appraisal of employees means the evaluation of their performance performed during a certain period of time. In the organizational context, performance appraisal is a systematic

evaluation of personnel by supervisors or others familiar with their performance (L.M. Prasad). Performance appraisal is also described as merit rating in which an individual is rated as better or worse in comparison to others. This is one of the oldest and most universal practices of management As presented in paper of Malisetty Mahesh and Jim Lee, Engineering and Technology Management program at University of Louisiana Performance appraisal may be defined as an organized formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview, in which the work performance of the subordinate is examined and discussed, for identifying weaknesses and strengths as well as opportunities for improvement and skills development (Archer North, 2002). In other words, Performance appraisal is a formal system of measuring, evaluating, and influencing an employees job-related attributes, behaviors and outcomes to determine how productive an employee is, and to determine if an employees productivity can be improved (Konobear, 2002). Appraisal results are used in many organizations, either directly or indirectly, to help identifying the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. There are various appraisal methods are in usage today. The main aim of the assessment system is to identify the performance gap, and the shortfall that occurs when performance does not meet the standard set by the organization as acceptable. The main aim of the feedback system is to inform the employee about the quality of his/her performance

According to Ms. Leena Topo and Ms. Twinkle Prusty, faculty of Commerce, Banaras Hindu Uni. Performance appraisal and performance management were one of the emerging issues since last decade. Many organizations have shifted from employees performance appraisal system to employees performance management system. This paper presented by has focused to study the evolution of employees performance appraisal system, critics the system suffered and how the performance management system came to the practice. The main purpose of this paper is to differentiate these two systems, employees performance appraisal and management system. This paper uses a review of the literature to evaluate the development of appraisal system and argues the critic areas of appraisal system. The review identified as advancement in the management field and growing complexity in corporate sectors demand more capable HR, so mare appraisal of employees performance is not sufficient. Employees contribution should be aligned with organizational objectives and strategy. Performance management eliminates the shortcomings of performance appraisal system to the some extent. Published in IOSR Journal of Business and Management, vol.3 Issue 5(Sept-Oct 2012)

Performance

measurement

/management

is

comprehensive

programme

of

organizational development that affects the whole organisation and its policy cycle. We would contend that the strength or weakness of the performance measurement system and its integration and institutionalization in the managerial and policy systems determines the strength or weakness of the redesigned system. Having a range of new management practices in place with inadequate or even counter-productive performance measurement and management systems may be worse than no reform at all. It can provide a false sense of security and accomplishment. Performance management therefore becomes the Achilles heel of the modernization process itself and use of an appropriate method of measurement also performs major contribution in the performance of management and also that shows the effectiveness according industries and organizations nationwide. (Bouckaert and Peters, 2002) In todays competitive markets, manufacturers and distributors are challenged to achieve supply chain efficiencies that are on par with their rivals. To stay profitable, they must adopt key performance indicators (KPIs) to drive processes. But KPI-driven supply chain execution requires manufacturers and distributors to instrument, analyze, control, and optimize their endto-end supply chain processes.

Key performance indicators present mirror of the organization performance. Management in the entrepreneurial sector has many KPIs to choose but all of chosen KPIs must be connected to HR mission i.e. vision. The goal of presented research is to find and set the KPIs on HR level according to defined HR strategy and targets. The research also presented the strategy map which is a necessary part of the HR scorecard and serves as a base for specifying the KPIs. Next it has been scientifically proven and according to HR experience in production plant, in general, implementation of HR scorecard has same rules and steps among organizations in frame of entrepreneurial environment e. g. in business companies or in financial houses.Main aim of all organization should be to have a manageable and sustain-able HR scorecard with visible and measurable KPIs. Provided KPIs include all possible as-pects internal and external to HR strategy with aim to reach higher organization approach. However, continuous improvement in organization development can be supported by high level of organization culture which means better communication and stronger team work published by Iveta Gabanov of Tomas Bata University in Zln

So, in modern practices of HR within the organization their prior focus is upon the strategic planning of future course of action and also to be with organizations objectives and maintain and manage talent within the organization. In a competitive nature of market each and every organization wants to survive and perform at their best but its also important to analyse periodic performances and also organizations position with compare to their competitors and current market know how. In which practice of performance management and appraisal in organization with transparent system of evaluation gives significant future outcomes of organization and employees. KRA and KPA are the simply understood and applicable techniques of measuring and managing talent within the organization.