The impact of performance appraisal system on the productivity and its mediating role of motivation on the employees of the private banks

Abstract

This research paper has been prepared on appraisals and its impact on productivity of five private banks. Performance appraisals are a very significant part of Human Resource Management and if implemented properly can be a source of competitive advantage for the firms by increasing the productivity of the employees. This research paper focuses on the correct implementation of the variables of the performance appraisal system including the methodology, time frame, system of reward and punishment to motivate the employees which in turn leads to a more efficient performance by the employees increasing productivity. The basic purpose of this research is to find out how effective appraisals can contribute to high productivity of organizations and goal attainment. It is a common independent variable that affects the productivity of employees in organizations. The research aims to analyze how appraisals contribute to high productivity and at times lead to low productivity. In today’s competitive world organizations can be innovative by managing their human resources through using an appropriate and effective appraisal system to improve the productivity of employees but if not implemented properly may de-motivate the employees leading to low productivity. Research will study different methods used for conducting appraisals in different organizations to measure employee performance and the results will provide an impact these methods have on productivity of employees and guidelines to improve the system of performance evaluation. All the firms today observe the performance appraisal system but many fail to achieve the means of efficiency and effectiveness. Throughout this report, our intention will remain to provide a collection of best practices that can be employed by all the organizations while developing their performance appraisal system. The fundamental discussions presented in this report will deal with the debate on how appraisals can have an effect on productivity of the employees, which method is best and most frequently used by the organizations and the pros and cons of the system. Therefore we hope that this paper will lead to a better understanding of the effective appraisals on the productivity of the employees.