A Study of Employee Welfare and Performance Appraisal Practices in Relation to Organizational Climate in Public and Private Sector Insurance Companies of Central India

Employee welfare and performance appraisal practices play a very important role in the overall development of an organization. Success of HRD in an organization depends on the existence of a favourable organizational climate. The present paper aims to study the employee welfare and performance appraisal practices in relation to organizational climate of both public and private insurance companies. A sample of 300 employees (managers/development officers and office level personnel) working in different insurance companies of central India were administered the questionnaires which were supplemented by key informant interviews. Results of the study revealed that employees were satisfied with the current appraisal methods as they effectively contributed to employee development. Criteria used to evaluate the performance were clear, performance was noticed and rewarded. Majority of the employees were satisfied with the different types of employee welfare schemes provided by the organization. Further the research also revealed that HRD climate among the employees was found to be more important in facilitating the HRD practices.