Impact of Performance Appraisal System on Employees Motivation at Karachi Port Trust (KPT)

Abstract

Purpose: The purpose of writing thesis on the topic was to gauge the effect of Performance Appraisal (PA) System on Employees’ Motivation at Karachi Port Trust (KPT). PA is an important HRM instrument utilized in an organization to assess the working of their manpower and accordingly take steps for their professional and personal development. Methodology: Since the research was explanatory in nature which warranted collection of quantitative data, for that, questionnaire method was used. Accordingly, 357 survey forms containing various questions, were circulated amongst the employees working in various departments of KPT, as per the sample size. However, due to ongoing commitments and other obvious reasons feedback from 254 respondents was received back. The same were evaluated through various statistical tools like reliability test, demographic analysis, descriptive analysis including regression test, correlation test etc. with the help of IBM SPSS (version 22) software. Findings: The examination and analysis of the results revealed that the overall PA System enforced at KPT is quite effective in raising the motivational level of the employees. Specially, the rewards & incentives and learning & development are the two very strong elements of PA System, which helps the managers to keep the moral of the employees at a high level, the motivation of workers.whereas goal setting also play a vital role in increasing However, most important factor of PA System i.e. feedback is almost missing. Managers do not give much attention to this aspect and does not provide a constructive feedback to the employees due to some communication gap. Implications: The findings/outcomes of this research are expected to help the management of KPT in understanding the importance of PA system and also to know the weaknesses within the organization which may help to incorporate the appropriate remedial measures. Positive increase the motivation of workers as a result the same will improve thefeedback can efficiency of all business ventures. Although periodic meetings are held with workers to discuss various performance issues, however, the frequency of such meetings needs to be increased and element of positivity is also to be emphasized in these feedbacks for further improving the overall system. Other organizations may also utilize this study for the enhancement of their HR setup. Moreover, academic institutes may also get benefit out of this study as it can help to improve their teaching methodology related to this subject.