Abstract:
Evaluation of employees’ performance is an important yet crucial part of
management s job but still it is highly needed to assess if employee performance is on
track. Similarly, it is imperative to analyze and critically assess the evaluation system
itself. It is important because if there is a politicized or unfair performance appraisal
system in any organization, it can never assess the performance of employees in
transparent manner. Major aim of this research study was to assess the impact of
fairness in performance appraisal system on employee job satisfaction in banking
sector of Pakistan. Increased rate of employee dissatisfaction from management
practices and turnover in banking sector prompted to conduct this research study.
Descriptive study was conducted in this research by using quantitative search method.
Data was gathered with the help of structured questionnaire from calculated sample of
03 categorized banks (Faysal Bank Limited, National Bank of Pakistan & Bank
Island). Respondents of the study were middle level bank staff including employees
and middle line managers. Questionnaires were then compiled in Excel sheet to
compile all the data and then to analyze the data obtained from these 03 banks,
correlation tests were conducted by using SPSS.
Results obtained from responses and statistic analysis clearly stated that nearly every
individual employee in bank has an impact on their job satisfaction from fair /
politicized performance appraisal system. It was also concluded that there are
different factors related to performance appraisal system that have an impact on
employee job satisfaction like the perception an employee has regarding fairness of
system, manager’s attitude towards employee appraisal and involving employees in
the appraisal system by informing them with every happening.
Results obtained from this research study will benefit policy makers and management
of banks & other organizations as well to understand the impact of mishandled,
politicized or weak performance appraisal system on the job satisfaction of their
workforce. This study objectively stated that fairness in appraisal system and
employee job satisfaction goes hand by hand.
