The purpose of this paper is to estimate the employees’ perceptions of a big Greek corporation, about the upcoming introduction of a performance appraisal system. Two methods are used in order to perform this research. First, an interview with the HR director of the company and second a questionnaire survey on the employees. By combining these two methods the following research question is going to be answered: “Which are the employees’ perceptions for an upcoming introduction of a performance appraisal system?”
The research is conducted in the Greek industry MEL (Macedonian Paper Mills), located outside Thessaloniki. The results of the research show that the organization faced some problems in the past with the HR department and its concentrated functions. The employees of the company are not aware of the organizational goals and targets and are not aware of what a performance appraisal system is. The relations of the employees with their supervisors can be characterized as sufficient at this point. However, this relationship needs improvement. Additionally, enhancement of the role of managers in the organization is needed, in order to have a well-functioning performance appraisal system. Finally, the perceptions and preferences of the employees between financial and non-financial incentives are highly depended on their job position and their educational background. It is also recommended to the company to improve the communication of its culture and create awareness of such systems before and during the introduction. In this way, and by creating an effective reward system that detects also the specific needs for each job position, the company will apparently improve its HR function and its overall performance. Moreover, this paper can inspire other researchers for further expansion of the research on a bigger number of companies of different fields and locations.
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