ABSTRACT
Human resources are among the fundamental resources available to any organization.
Performance appraisal is a part of human resource management which is a formal system of
periodic review and evaluation of an individual’s job performance. This study therefore
investigated the effectiveness of performance appraisal systems in “Universal Heat Exchangers
Limited, Coimbatore”. The study was descriptive using both primary and secondary data. Data
were collected with the help of the performance appraisal systems. The study noted that there are
key performance criteria that have been developed and clearly identified in the appraisal system.
Findings showed that to a large extent the criteria have been developed in consultation with the
workers and appraisers. The study found out that most employees show cooperation in the
appraisal process. Again, most staff believes that feedback reflects their performance. The study
recommended the need to ensure that fairness is maintained in the appraisal process so that the
necessary trust and cooperation will be forthcoming from staff. Further, there is the need to
ensure regular feedback. The data gathered has been analyzed using the various statistical
methods.