Appraisal System People who work in an organization always want to receive the payment from their performance.

Every company also rewards the good employee working in a year for motivating and satisfying them. These reasons create the performance management system to ensure employee getting reward based on their performance. According to Mondy R., Noe R., and Premeaux S. (2002, p. 280), performance management is a business process that significant affects organizational success by having manager and employees work together. Performance appraisal is the unique technique designed to strengthen performance management because the primary goal of an appraisal system is to improve performance. The purposes of appraisal system of AB Pharmacy Company are to evaluate the task outcomes and improvement potential each employee. Based on the global process, the company will drive the individual and team to achieve the goals. This appraisal system is controlled by managers who enable employee to enhance more distinctively and competitively. To evaluate the employees performance, AB Pharmacy Company uses two tools: - Management of Objectives - 360-degree evaluation Each tool has advantage and disadvantages For advantage of Management of Objectives: - Employees know what they have to achieve for their development and career in company. They also know what the company expects from them. This enables employees to create their motivation for working. - This system is used by other corporations because it is more objective to evaluate one employee. - On the system, managers and supervisors track the staff performance for supporting them. If their employees are low performance, they try to boost and help them going right. - Targets or objectives for each person can changed depending on their ability. - Management of Objectives can see who the good employee, who is low performance worker. - The target will give to every employee and they understand what they will do cleanly. - Through the appraisal form, managers can know staffs needs and satisfy them. - Person who is categorize into the outstanding group or improved requirement group will have a 360-degree evaluation for receiving reward or punishment.