Effect of Performance Appraisal on Employee Productivity and Job Performance: Role of Equity and Management by objectives as Mediators

Abstract

The study aims to discover the effect of performance appraisal on employee productivity and job performance with a mediating role of Equity and Management by Objectives in the banking industry of twin cities of Pakistan. In the current study, Performance appraisal is independent variables and Employee productivity and job performance are two dependent variables. Similarly, Equity and Management by objectives are the mediators. Performance appraisal is the process of identifying the strengths and weaknesses of the employee working in the organization. Employee Productivity is the measure of efficiency with which the employees are performing at work and Employee job performance is the behavior of employees with which they deliver over time in the organization. Performance appraisal is an important concept and can affect employee productivity and job performance significantly. Equity is very important concept to be considered while appraising employees. Management by objectives is a tool for performance appraisal to help appraisal system better and objective based. A number of 273 participants from various banks of twin cities of Pakistan responded to the survey items on a 5 – point Likert scale. The study is intended to fill the literature gap regarding the performance appraisal effect on productivity and job performance of employees and how equity and MBO mediates their relationship. The study conducted SPSS analysis using IBM SPSS-25. The results indicate that there is a positive and significant effect of Performance appraisal on employee productivity and Employee job performance and also proves that a partial mediation exists because of equity and MBO acting as mediators in the study.