Performance appraisals and its’ impacts on employee motivation: A study with special reference to Sri Lankan licensed commercial banks in Kandy District
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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Uva Wellassa University of Sri Lanka
Abstract
Performance Appraisals System (PAS) is a well-established way of providing milestones, feedback,
guidance and monitor employees (Weightman, 1999) and it is a formal, structured system of
meaning and evaluating an employee’s job related behaviors. Further outcome to discover how and
why the employee is presently performing on the job and employee can perform more effectively in
the future, Therefore the employee, organization and society will be beneficiaries (Muhammad,
2013). Literature revealed that employee participation in the appraisal process was fairly very high
and this positively affected employee motivation and perception of fairness. Consequently,
organizations are advised to adopt participatory PAS in order to motivate employees and reduce
biased considerations in both the process and outcome (Kofi, 2012). However, Douglas Mc Gregor
(1957), Mushin Lee and Wonjun Shin (2000) said that conventional performance appraisals do
more harm than good. Further the employees in Korean federal agencies believed that performance
appraisals which are based on extrinsic factors influenced more to the employee motivation
(Senong and Gregory, 2009).Nevertheless the transportation department in Iranian Esfahan
province employees’ performance affected on their intrinsic motivation (P-Value <0.05) and the
effectiveness is positive, equals to 0.414 (Shaemi Barzoki Ali et al, 2012). In order to above
researcher gapes, three objectives were employed based on licensed commercial bank sector. Frist
one was to identify the relationship between PAS and employee motivation. Second one was to
determine the most effect dimensions of PAS for the employee motivation. Third one was to
identify the current PAS which extent suit to motivate the employees.
Methodology
The population belongs to the research is all employees of both public and private sector who
provide licensed domestic commercial banking service in Kandy district. For that, 84 employees
were considered from the selected five licensed domestic commercial banks which have provided
highest density of branches in Kandy district by using Stratified sampling technique and simple
random sampling technique. Data was collected through a self-administered questionnaire from
managerial level and non-managerial employees in the selected five licensed domestic commercial
banks. The Cronbach Alpha reliability test shows that the Alpha value is 0.764. It is exceeded 0.700
level. Therefore it reached the acceptable level in the questionnaire.
Results and Discussion
Based on the results (see table 1) below, the procedural approaches are highly significance to
improve employee motivation though the PAS in licensed domestic commercial banking sector.
According to mean value of extrinsic motivation factors is emphasized that there is a significant
impact of current PAS to increase the employee motivation of the commercial banking sector.
Therefore it highly correlates with the employee motivation. Besides, intrinsic motivation factors
also have moderate significant to create employee motivated PAS within the commercial banking
sector. That reflected that extrinsic motivation factors have more influence in current PAS than
intrinsic motivation factors.
Description
Keywords
Entrepreneurship and management, Management, Human Resource Management, Financial Management, Banking