| Title : | Performance appraisal and its effect on organizational commitment in Nepalese commercial banks | | Material Type: | printed text | | Authors: | Nirjana Bhatta, Author | | Publication Date: | 2018 | | Pagination: | 85p. | | Size: | GRP/Thesis | | Accompanying material: | 9/B | | Languages : | English | | Descriptors: | Performance standards
| | Class number: | 658.312 | | Abstract: | Performance appraisal utilized to track individual contribution and performance against organizational goals and to identify individual strengths and opportunities for future improvements. Performance appraisal is concerned with the clarification of employees’ work expectations, helping with individual employee growth and the collective growth of the entire workforce, as well as ensuring that pay structure designing incorporates performance. It ensures that employees have an awareness of how organizations expect them to perform in relation to organizational goals after their performance are evaluated (De Wall, 2004).
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 et al. (2011) 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).
Daoanis (2012) revealed that performance appraisal system strongly affects the commitment of employees in both positive and negative ways. Taylor and Kalliathan (2001) examined the training programs and their effects on the performance of staff. The study emphasized the need for on-job training, short seminars and team building workshops as programs that increase the employee performance. Similarly, the performance appraisal process offers employees the opportunity to receive structured, constructively framed feedbacks about their work and growth potential (Berman, 2005). Roberts (2002) asserted that accurate and reliable performance appraisal help organizations to support and reward their most capable employees. When used in conjunction with performance improvement systems, a structured performance appraisal system conveys meaningful feedback in a useful format, helps refocus employees who are performing below expectation and facilities career development plans for all employees.
Employee perception of fairness of performance appraisal is a significant factor in employee acceptance and satisfaction of performance appraisal. A good perception will create a positive working environment in the organization, while a negative perception will affect the company performance Ahmed, Ramzan, Mohammad, & Islam (2011).
Many of the definitions of organizational commitment focus on commitment-related behaviors and in terms of attitude (Mowday et al., 1979). According to Mowday et al, (1979), the organizational commitment is defined as the relative strength of an individual’s identification with and involvement in a particular organization. Employees who have strong organizational commitments are characterized as having strong belief in the values and goals of the organization, willing to step up efforts in the interests of the organization and have a strong desire to remain in the organization. This model of commitment is also known as affective or attitudinal commitment that explains the organizational commitment from the perspective of the employees’ attitude towards the organization (Mowday, 1998; Allen et al., 1990, Mathieu et al., 1990).
Another popular definition is based on the model of organizational commitment developed by Allen et al., (1990), which consists of three dimensions i.e. affective, continuance and normative commitment. They also used the term affective commitment to characterize Porters’ views of the construct (Panggabean, 2001). Authors such as Cullen, et al., (2003) and Elliot (1994), claim that organizational commitment is related to the organizational phenomenon such as citizenship behavior, achievement and productivity. For instance, Elliot (1994) stresses that organizational commitment will affect productivity because employees are willing to work hard and Riketta (2002) argues that committed employee is assumed to be more determined to work with and has a low turnover intention (Elliot, 1994 and Sarminah, 2006). As a result of low turnover, organizations are more capable in reducing operational costs in managing human resources in terms of recruiting, retaining and training. Committed workers are also more ethical as they are not missing from work (Mathieu et al., 1990) and more supportive of the organizational values (Randall et al., 1997).
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Performance appraisal and its effect on organizational commitment in Nepalese commercial banks [printed text] / Nirjana Bhatta, Author . - 2018 . - 85p. ; GRP/Thesis + 9/B. Languages : English | Descriptors: | Performance standards
| | Class number: | 658.312 | | Abstract: | Performance appraisal utilized to track individual contribution and performance against organizational goals and to identify individual strengths and opportunities for future improvements. Performance appraisal is concerned with the clarification of employees’ work expectations, helping with individual employee growth and the collective growth of the entire workforce, as well as ensuring that pay structure designing incorporates performance. It ensures that employees have an awareness of how organizations expect them to perform in relation to organizational goals after their performance are evaluated (De Wall, 2004).
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 et al. (2011) 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).
Daoanis (2012) revealed that performance appraisal system strongly affects the commitment of employees in both positive and negative ways. Taylor and Kalliathan (2001) examined the training programs and their effects on the performance of staff. The study emphasized the need for on-job training, short seminars and team building workshops as programs that increase the employee performance. Similarly, the performance appraisal process offers employees the opportunity to receive structured, constructively framed feedbacks about their work and growth potential (Berman, 2005). Roberts (2002) asserted that accurate and reliable performance appraisal help organizations to support and reward their most capable employees. When used in conjunction with performance improvement systems, a structured performance appraisal system conveys meaningful feedback in a useful format, helps refocus employees who are performing below expectation and facilities career development plans for all employees.
Employee perception of fairness of performance appraisal is a significant factor in employee acceptance and satisfaction of performance appraisal. A good perception will create a positive working environment in the organization, while a negative perception will affect the company performance Ahmed, Ramzan, Mohammad, & Islam (2011).
Many of the definitions of organizational commitment focus on commitment-related behaviors and in terms of attitude (Mowday et al., 1979). According to Mowday et al, (1979), the organizational commitment is defined as the relative strength of an individual’s identification with and involvement in a particular organization. Employees who have strong organizational commitments are characterized as having strong belief in the values and goals of the organization, willing to step up efforts in the interests of the organization and have a strong desire to remain in the organization. This model of commitment is also known as affective or attitudinal commitment that explains the organizational commitment from the perspective of the employees’ attitude towards the organization (Mowday, 1998; Allen et al., 1990, Mathieu et al., 1990).
Another popular definition is based on the model of organizational commitment developed by Allen et al., (1990), which consists of three dimensions i.e. affective, continuance and normative commitment. They also used the term affective commitment to characterize Porters’ views of the construct (Panggabean, 2001). Authors such as Cullen, et al., (2003) and Elliot (1994), claim that organizational commitment is related to the organizational phenomenon such as citizenship behavior, achievement and productivity. For instance, Elliot (1994) stresses that organizational commitment will affect productivity because employees are willing to work hard and Riketta (2002) argues that committed employee is assumed to be more determined to work with and has a low turnover intention (Elliot, 1994 and Sarminah, 2006). As a result of low turnover, organizations are more capable in reducing operational costs in managing human resources in terms of recruiting, retaining and training. Committed workers are also more ethical as they are not missing from work (Mathieu et al., 1990) and more supportive of the organizational values (Randall et al., 1997).
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