Abstract:
Employees are big asset of the organizations and their performances are the biggest issues for then organization but there is an HR tool which is performance appraisal which is used to solve the performance issue. This study is about the impact of performance perception on the employee performance and also check that job satisfaction as moderator effect on the relation of performance appraisal and employee performance. The purpose of this study was to determine how the appraisal system influence the employee performance and what the employee perceive from the appraisal result and how performance appraisal system helps the organization to build their employees. The quantitative research approach used in this study. The sample size of this study was 200 employees and the non-probability convenience sampling technique was used for this sample. The instrument that was used in this study for collecting the data was the questionnaire because it is the easy way to collect the date from the respondents. The scale used in the questionnaire was Likert scale because this scale explains the positive and negative responses of the statements that are given in the questionnaire. The descriptive statistics, correlation analysis, regression analysis, multiple regression analysis and reliability were done for the analysis the data through the SPSS software. This study revealed that there is the significant positive relationship between performance appraisal and employee performance, significant positive relationship between performance appraisal and job satisfaction, significant positive relationship between job satisfaction and employee performance and job satisfaction as moderator effect the relationship between performance appraisal and employee performance. All hypothesis has positive value and at significance level. The result of the findings of this study conducted from the employees of nonprofit organization in Islamabad and Rawalpindi, showed that the nonprofit organizations in Islamabad and Rawalpindi take performance appraisal system is an important and motivated tool to improve the employee performance. The result of this study showed that the performance appraisal system is very important for nonprofit organizations because it helps them to identify the gaps in the actual performance of the employees, improve the weak areas of the employees by give them training to increase their performances and give them promotions and rewards to increase satisfaction level about the job
