Abstract: This paper attempts to evaluate the performance of the employees in G. B. Engineering Enterprises [P] Ltd. Thuvakudi, Trichy, Tamil Nadu, India. For this purpose, a sample of 150 employees out of 500 employees was randomly selected. The statistical techniques such as chi-square test and Anova tests were used. Simple percentage method was also used to analyze the data presented in the table formats. The findings are that performance appraisal helps in job promotion, formulating a suitable Training and development program to improve the quality of performance, serves as a feed back to the employee, serves as a means for evaluating the effectiveness of devices used for the selection and classification of workers. But the appraisal of performance must be done carefully and cautiously. Otherwise, it may result in Halo or Horns effect, lenient effect etc.
Keywords: performance appraisal, Halo effect, Horns effect, perception, feed back