Impact of Performance Appraisal on Employee Job Satisfaction with the mediating effect ofJustice and Fairness in the Automobile Industry

Abstract

Purpose: The main aim of this study was to investigate the effect of performance appraisal on employee job satisfaction with the mediating effect ofjustice and fairness in the automobile industry. The main contributing factors such as feedback, final evaluation, participative goal setting and periodic review have been evaluated in terms ofjob satisfaction prospect. Methodology: The deductive approach was adopted whereby hypotheses were first formulated after studying literature, followed by preparation of questionnaire. The sample size selected was 210. The participants have been selected on the basis of non-probability convenience sampling technique. The primary means of data is collected by using questionnaire. The regression and correlation is used to determine the impact of performance appraisal on employees’ job satisfaction in the presence of justice and fairness in automobile industries of Pakistan. Findings: The main findings include that all the four factors linked with the performance appraisal format very effective in increasing the scope of employee satisfaction. There is positive significance impact of participative goal settings, periodic review, feedback and final evaluation on job satisfaction of employees and overall hypothesis model is accepted with 5 percent level of significance with significance value 0.000. The limitation ofthe study is there are many more factors which effects the job satisfaction of an employee which are not covered by this research paper and this research is just limited to the automobile industry. TWs°™udylpreserlts some recommendations which can help the companies to increase job satisfaction Of its employees Companies should understand that the performance and the growth of any company . T? ' tu_ J,tiqfaction of an employee. Therefore, to be successful company, needs to keep depend highlym the ta yee satisfacti0„ and make good policies with the help of "ceTfn <£ presence ofjustice and fairness to improve the structure and increase the motivation and satisfaction ofthe employees.