Cyber Times International Journal of Technology & Management

Change, Innovation and Competition - The three terms that are correlated with each other. In today’s scenario intense competition is forcing companies to develop innovative strategies to capture customer needs and improve customer satisfaction. This demand of external business environment is further forcing the industries to bring a transformational change in their internal business scenario. But this is all what is apparent in the private sector, while, the public sector has always remained absconding when it comes to introducing a change. But now for the first time in the last two decades the Public Sector Undertakings have initiated to remove the tag of being inexorable and static by bringing a drastic change in their HR Policy. Among all the functions of the Human Resource Management, Performance Appraisal is high on the agenda. But this concept was completely ignored over decades in the Public Sector Undertakings. But now in order to survive in this complex and competitive environment the Public Sector Undertakings have undergone a complete transformation i.e. from a System of Annual Confidential Report to a complete Transparent System – Performance Management System. RITES being PSU is not an exception to this.

The paper attempts to study firstly, the reasons behind introducing this change, secondly, its impact on the employees and the problems faced by them & lastly, strategies to enforce effective implementation of the above change.