International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064 Index Copernicus Value (2013): 6.14 | Impact Factor (2013): 4.438 Volume 4 Issue 4, April 2015 www.ijsr.net Licensed Under Creative Commons Attribution CC BY The Impact of Performance Appraisal on Organizational Commitment of Bank Employees Prof S. P. Singh 1 , Shikha Rana 2 1 Professor, Faculty of Management Studies, Gurukul Kangri University, Haridwar, Uttarakhand, India 2 Research Scholar, Faculty of Management Studies, Gurukul Kangri University, Haridwar, Uttarakhand, India Abstract: The present study investigated the impact of performance appraisal on the organizational commitment of 172 bank employees randomly selected from 10 public sector banks of Uttarakhand state in India. The results of the study concluded that performance appraisal has a significant and positive impact on the organizational commitment of employees. The awareness of performance appraisal, fairness in the appraisal & performance based payment practices significantly predicted the organizational commitment of bank employees. Keywords: Performance Appraisal, Organizational Commitment 1. Introduction Performance appraisal is one of the oldest and most ubiquitous practices of management and it includes all the systematic procedures used in organizations to assess the performance of employees (P.C.Tripathi, 2010). Performance evaluation has been considered as an important foundation of human resource development as it is used for taking important decisions like training & development, promotion (Subba Rao, 2009). As it is an important aspect of human resource management many researchers studied this concept from different angles like Whiting, Kline & Sulsky, 2008 studied performance appraisal in context with the perception of fairness, objective of appraisal, rater. Performance appraisal have also been associated to distributive justice as Berrin Erdogan (2002) concluded that distributive justice in performance appraisal has a positive relationship with the perception of accountability. Additionally procedural & interactional justice were found to have a positive relation with appraisal satisfaction and motivation to improve performance (Selvarajan & Cloninger, 2011). Contemporary research studies have also linked performance appraisal to performance of employees as Resella, 2011; Rosemond Boohene, 2011; Liza Daoanis, 2012; Warokka, Gallato & Moorthy 2012 revealed that performance evaluation practices have a significant and positive impact on the performance of employees. Former studies have also reported that performance appraisal is positively related to productivity. Doris Resella Senyah, 2011; Anne Wanjiru Gichuhi, Owili Abaja & Isaac Ochieng 2013 concluded that productivity is significantly and positively affected by performance appraisal’s criteria, frequency and feedback system. Performance appraisal has been found to have significant relationship with promotion, rewards, bonus & salary increments (Horsoo,2009; Femi,2013). Further, performance appraisal has been studied in relation to job satisfaction as reported by Monis & Sreedhara, 2010; Karimi, Malik & Hussain, 2011 that performance appraisal positively and significantly predicts the satisfaction of employees. Several studies have been done linking human resource management practices like recruitment & selection, training & development, performance appraisal & pay practices etc with organizational commitment. M.G. Shahnawaz & Rakesh C. Juyal (2006) found that performance appraisal is the significant predictor of organizational commitment. It has both administrative as well as individual development inclination and organization’s sincerity towards performance appraisal helps in enhancing commitment and trust among employees. Further, Yasemin Bal, Serdar Bozkurt & Esin Ertemsir (2014) revealed that along with various other human resource functions performance appraisal too has a positive & significant relationship with affective & normative commitment. Munir Salleh, Aziz Amin, Shaladin Muda1 & Muhammad Abi Sofian Abdul Halim (2013) concluded that perceived fairness of performance appraisal has a positive influence on the employee commitment towards organization through the mediating factor of satisfaction. In spite of these studies, very few studies have been conducted predicting the impact of performance appraisal on commitment of bank employees. Hence, to bridge this research gap this study was conducted linking performance appraisal with organizational commitment of employees in the banking industry. 2. Research Methodology The main objective was to examine the impact of performance appraisal on the commitment of bank employees of public sector banks situated in two districts of Uttarakhand. 2.1 Research Design This study employed the ex-post-facto survey design. This design is suitable for the study as it sought to examine the impact of performance appraisal on the commitment of employees of public sector banks. Sample and Sampling Technique A sample of 172 bank employees of scale 1 to scale 4 categories of ten public sector banks was randomly selected from the two districts of Uttarakhand region i.e., Dehradun & Haridwar. Paper ID: SUB153899 2964
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International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064
Index Copernicus Value (2013): 6.14 | Impact Factor (2013): 4.438
Volume 4 Issue 4, April 2015
www.ijsr.net Licensed Under Creative Commons Attribution CC BY
The Impact of Performance Appraisal on
Organizational Commitment of Bank Employees
Prof S. P. Singh1, Shikha Rana
2
1Professor, Faculty of Management Studies, Gurukul Kangri University, Haridwar, Uttarakhand, India
2Research Scholar, Faculty of Management Studies, Gurukul Kangri University, Haridwar, Uttarakhand, India
Abstract: The present study investigated the impact of performance appraisal on the organizational commitment of 172 bank
employees randomly selected from 10 public sector banks of Uttarakhand state in India. The results of the study concluded that
performance appraisal has a significant and positive impact on the organizational commitment of employees. The awareness of
performance appraisal, fairness in the appraisal & performance based payment practices significantly predicted the organizational