Published Paper Details:

The core objectives of the study is to investigate whether Performance Appraisal (PA) significantly relates to business performance in Indian garment firms; to find out whether a significant difference exists between large garment firms and non-large garment firms with regard to perceived quality of PA and to reveal whether a significant difference exists between large garment firms and non-large garment firms with regard to business performance. Three hypotheses were formulated using deductive approach. The study was conducted by using a stratified random sample of 300 garment firms in India. But only 274 are are considerd for the study due to sampling error Type of investigation was correlation and it was cross-sectional in time horizon. The unit of analysis was organisational level: each firm. General Manager or Human Resource Manager served as the respondent on behalf of the firm. Measures of the study were of good quality after assuring reliability and validity. Data were possible to be collected from 68 garment firms-18 non-large firms and 50 large firms. In order to test the first that was concerned with relationship between perceived systematic use of performance appraisal system of a firm and perceived degree of business performance the Pearson Product-Moment Correlation technique was applied. The second hypothesis and third hypothesis were concerned with difference between large garment firms and non-large garment firms with regard to perceived quality of PA and perceived degree of business performance respectively and Independent Sample T test was the appropriate technique to test the validity of the two hypotheses. The results of the study showed a significant and positive relationship between perceived systematic use of PA system and perceived degree of business performance of garment firms in India. Business performance of large garment firms is significantly different from that of non-large garment firms.