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1. Introduction
Human resources with knowledge and competencies are the key assets in assisting organizations to sustain their competitive advantage. Globally competitive organizations depend on the uniqueness of their human resources and the systems for managing human resources effectively to gain competitive advantages. Performance evaluation of the human resources is a vital issue in this regard. In creating and implementing an appraisal system, management must determine what the performance appraisal (PA) system will be used for and then decide on the process to implement the system. The methods chosen and the instruments used to implement these methods are crucial in determining whether the organization manages its performance successfully. These appraisal methods are based on quantitative techniques which provide a precise output defining the employees' performance. However, much of the information related to PA is not quantifiable and precise with crisp boundaries. Rather, this information is presented in expressions or words in natural language and without precision. For many organizations, the primary goal of an evaluation system is to improve individual and organizational performance. So it is needless to say, a properly designed system can help achieve organizational objectives and enhance employee performance. It is utilized to track individual contribution and performance against organizational goals and to identify individual strengths and opportunities for future improvements and assess whether organizational goals are achieved or serves as basis for the company's future planning and development. It has been proved by many research works that effective appraisal system is directly related to employee motivation and productivity. It is really difficult to consider many factors at a time to evaluate performance of employees in an organization. Fuzzy logic can consider multiple input parameters with uncertainty of each factor. This paper proposes a case study of performance evaluation system of employees working in an organization based on 20 specific performance evaluation criteria using fuzzy logic. This research calls attention to an alternative method of the performance evaluation system as opposed to the traditional quantitative methods.
2. Literature review
There exists a vast research works in PA field of personnel management. Many quantitative and judgmental methods evolve during the past years. However, this paper tries to cover some of the insights from those contributions. The importance of performance evaluation of personnel and...