Outcomes of Employees’ Reactions towards the Characteristics of Performance Appraisal System: A Case of a Commercial Bank in Pakistan

Abstract

The purpose of this paper is to explore the four key characteristics (fairness perception, fulfillment of training and development needs, feedback and grievance mechanism) of the performance appraisal system and to know the relationship of these attributes with three outcome variables including overall performance appraisal satisfaction, work motivation and turnover intention. Respondents were the employees of a commercial bank in Pakistan and data was collected through questionnaire. Results of the stepwise multiple regression reveals that fairness perception and grievance mechanism are the most important predictors of overall performance appraisal satisfaction and turnover intention. Fulfillment of training and development needs and feedback were the important predictors of work motivation. The paper highlights the importance of an effective performance appraisal system and the outcomes associated with it. The findings may help the management in devising an effective performance appraisal system.

Keywords: Bank employees, Performance Appraisal, Turnover intention, work motivation, Pakistan.