Employees Perception on Performance Appraisal System in a public limited company in Pakistan

Abstract

The Performance Appraisal system is now a common phenomenon in Pakistan. It is a major tool for most of the organizations to evaluate various aspects of their employees. Majority of the organization has implemented this process and is a regular feature for evaluation of their staff. Ample literature is available which has discussed the performance appraisal process at length targeting various dimensions of it. Although in the last few decades many studies are done and sufficient  international literature on performance appraisal  is available (Landy and Farr, 1980),  however very  limited research is done in Pakistan in this area .To analyses the perception of employees regarding the performance appraisal system implementation a public limited company in energy sector is selected .The company which previously used to undertake employees evaluation through the Annual Confidential Report (ACR) system introduced Performance appraisal system in 2001 in order to comply with the new vision of the company.

In order to analyze the perception of employees regarding the new system and its implementation, 33 item questionnaires consist of 4 independent and one dependent variables was distributed among 150 management position employees   who were acquainted with the Performance appraisal procedure. The questionnaire has 4 independent variable which are Procedural justice, Goal setting, feedback and Pay for performance and one dependent variable, the employee perception towards Performance appraisal process.  The instrument used was a likert scale questionnaire with the scale of 1 for strongly disagree to 5 for strongly agree. Factor analysis and regression analysis was done through SPSS19 .The result shows the process was implemented as per organization guidelines to the overall satisfaction of employees. There are however some areas of improvement which have been noted in the conclusion. The results and outcome are in line with international published data.