The Impact of Performance Appraisal on Employee Performance in Banks Operating in the South of Jordan

Arwa Hisham Rahahleh, Zaid Ahmad Alabaddi, Monira Abdallah Moflih

Abstract


This research was about performance appraisal and its effect on employees’ work performance. The major aim of the research was to investigate the effect of performance appraisal on employees’ work performance of banks in the South of Jordan. This study also aimed at investigating the major elements of performance appraisal which included: establishing performance standards, establishing communication standards, measuring actual performance with established standards, discussing the appraisal with employees and giving feedback. In conducting this study, the required data was collected through a closed ended structured questionnaire. The questionnaire was adopted and adapted from many related studies. The procedures used to determine the comprehensive sample from a total population of 260 employees was the following: First, the target population was identified; second, the researcher used a formula based-sample size determination. Basically, a total of 260 questionnaires were distributed to the sampled employees and 260 were returned which represented a 100% response rate. The 260 returned questionnaires were then analyzed using smart PLS which is specially used for Structural Equation Modeling, path analysis, and confirmatory factor analysis. It is also known as analysis of covariance or causal modeling software. A descriptive statistics and correlation analysis was performed.

The results of the study showed that performance appraisal has a mainly positive effect on employee performance in the banking sector of the South of Jordan. There correlation analysis showed that there was a positive and some negative association (Very strong association) between performance appraisal and employee performance.


Full Text:

PDF

References


Acuff, F. L. (2008). How to negotiate anything with anyone anywhere around the world. Amacom.

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological bulletin, 103(3), 411. https://doi.org/10.1037/0033-2909.103.3.411

Armstrong. (2006). (Handbook of Human Resource Management Practice © Michael new york: Mc Graw Hill Book Co. ISBN 978 0 7494 6964. https://doi.org/10.1108/ijppm.2013.07962aaa.003

Cones, T. & Jenkins, M. (2000). Abolishing Performance Appraisals. San Francisco, CA:Berrett-Koehler Publishers, Inc. https://doi.org/10.1057/9781137347503.0005

Daoanis, L. (2012).Performance Appraisal System: It’s Implication To Employee Performance. International Journal of Economics and Management Sciences, 3, 55-62. https://doi.org/10.1108/ijppm.2013.07962aaa.003

De Waal, A. (2007). Strategic Performance Management, a Managerial and Behavioural Approach, Palgrave Macmillan. London p 120. https://doi.org/10.1057/9780230361553.0026

Falk, R. F., & Miller, N. B. (1992). A primer for soft modeling. University of Akron Press.

Foot and hook. (2011.) Introducing Human Resource Management: Pearson Education Limited.

Fornell, C., & Larcker, D. (1981). Evaluating structural equations models with unobservable variables and measurement error . Journal of Marketing Research, 1, 39–50. https://doi.org/10.1177/002224378101800312

Gaur, A., & Gaur, S. (2006). Statistical Methods for Practice and Research: A Guide to Data Analysis using SPSS. California: 1 ed, Thousand Oaks, Sage Publications. https://doi.org/10.4135/9788132108306.n2

Giangreco, A., Carugati, A., Sebastiabo, A., & Al Tamimi, H. (2012). War outside, ceasefire Inside: An analysis of the performance Appraisals system of a public hospital in a zone of conflict. Evaluation and Program planning, 1, 161-170. https://doi.org/10.1016/j.evalprogplan.2010.11.004

Gilliland, W., & Langdon, C. (1998). Creating performance management systems that promote perceptions of Fairness. In J. W. Smither (Ed.), Performance appraisals: A state of the art in practice, pp.209–243. San Francisco: Josey-Bass.

Girma, T., Solomon, L., & Gebre, S. (2016). The Effect of Performance Appraisal On Employee Performance: A Survey On Administrative Staff Of Hawassa University. IOSR Journal of Business and Management (IOSR-JBM), 3, 36-44. https://doi.org/10.1037/t46066-000

Gomez, M., David, B., &Robert, L. (2001). Managing Human Resources .prentice hall, 3th ed. pp: 621. https://doi.org/10.1201/9781420040593

Hair, J., Black, B., Anderson, R., & Tatham, R. (2006). Multivariate Data Analysis. NewJersey: Pearson Prentice Hall 6 ed.

Jabeen, M. (2011).Impact of Performance Appraisal on Employees Motivation. European Journal of Business and Management, 3(4). https://doi.org/10.12816/0019382

Judge, T. A., & Ilies, R. (2002). Relationship of personality to performance motivation: A meta-analytic review. Journal of applied psychology, 87(4), 797. https://doi.org/10.1037/0021-9010.87.4.797

Karimi, M., Hosseinzadeh, N., Hosseini, F., Kazem, N., & Kazem, H. (2011). Seismic Evaluation of Pipe Rack Supporting Structures in a Petrochemical Complex in Iran. IJASE, 3(1), 112.

Khan, A., Saha, G., & Pal, R. K. (2018). An approach for reduction of false predictions in reverse engineering of gene regulatory networks. Journal of theoretical biology, 445, 9-30. https://doi.org/10.1016/j.jtbi.2018.02.015

Kumari, N., & Malhotra, R. (2012). Effective Performance Management System for Enhancing Growth. Global Management Journal, 4, 77-85. https://doi.org/10.1007/978-3-642-29244-6_8

Mondy, & Noe. (2005). Smart Talent Management: Building Knowledge Assets for Competitive Advantage. prentice hall, ed9. p252, https://doi.org/10.1108/14754390580000819

Mufleh, M. (2016). Research Methods Review In The Knowledge Management(Km) and Total Quality Management(Tqm) Studies. IJRRAS,3,87-101.

Mwema, N., &Gachunga, G. (2014). The Influence of Performance Appraisal on Employee Productivity. International Journal of Social Sciences and Entrepreneurship, 1, 1-14.

Ramous Agyare, G. Y., Mensah, L., Aidoo, Z., & Ansah, I. O. (2016). Impacts of performance appraisal on employees’ job satisfaction and organizational commitment: A case of microfinance institutions in Ghana. International Journal of Business and Management, 11(9), 281-297. https://doi.org/10.5539/ijbm.v11n9p281

Roberts, G. E. (2003). Employee performance appraisal system participation: A technique that works. Public personnel management, 32(1), 89-98. https://doi.org/10.1177/009102600303200105

Sajuyigbe & Ademola, S. (2017). Impact of Performance Appraisal on Employee Performance in Nigerian Telecommunication Industry (A study of MTN, Nigeria). IIARD International Journal of Economics and Business Management ISSN, 1, 2489-0065. https://doi.org/10.18775/ijmsba.1849-5664-5419.2014.46.1001

Swanepoel, B., Erasmus, B. J., & schenk, H. W. (1998). South African Human Resource Management: Theory and Practice. South Africa: JUTA& Co. Ltd, 4th ed. https://doi.org/10.1108/ijppm.2013.07962aaa.003

Weick, K., & Sutcliffe, K. (2014). Managing the Unexpected: Assuring High Performance in an Age of Complexity. university of Michigan business school.




DOI: https://doi.org/10.5296/ijhrs.v9i4.15317

Copyright (c) 2019 arwa hisham rahahleh

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

International Journal of Human Resource Studies  ISSN 2162-3058

Email: ijhrs@macrothink.org

Copyright © Macrothink Institute  

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.

------------------------------------------------------------------------------------------------------------------------------------------------------