PERFORMANCE APPRAISAL PRACTICES IN BANKING SECTOR OF PAKISTAN

Abstract

Purpose: The purpose of this paper is to investigate the performance appraisal practices in banking sector of Pakistan. Data was collected by standard questionnaire and non random (convenient) sampling from four banks of Pakistan. Correlation and regression analysis were used to explore the relationship between them. Methodology: Banking sector competes by innovation and development of the core competencies of their human resources. In order to make human resource system effective there should be valid performance evaluation system which also acts as a true motivator. The performance evaluation’s success not only depends on its implementation that how effectively it is executed but also depends on how well the employees have understood and how positively employees are leaning towards the performance evaluation system. Results / Findings: Pakistan’s fastest growing sector is banking sector. With rapid expansion in the number of branches and the new functions assigned to them, banks are feeling a new pressure on their organizational abilities i.e. the processes of recruitment, placement, training, promotion and appraisal, in order to ensure that the right numbers of staff with the right capacities are available at the right time and for the right places. Appraisal is one of the key factors of organizational ability which is the focus of this study. Implications: The results of the research will be helpful for the banking sector in better understanding of the performance appraisal system and HR managers can use this research to recognize and resolve the performance appraisal challenges. The research also provides the literature for future researches and researchers may use the steps of performance appraisal system (recognized in this research) and apply on other organizations to resolve their performance appraisal associated problems.