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Impact and Analysis of Performance Appraisal on Employee’s Motivation and Its Effects on Employee Retention in Banking Sector in COVID-19

Received: 26 July 2021     Accepted: 10 August 2021     Published: 10 September 2021
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Abstract

One of the core principals of Human Resource Management is Performance Appraisal and it basically is a win-win situation in both aspects because employee gains benefits in terms of rewards, bonuses and management targets and objectives are fulfilled. In this research we have analyzed performance in keeping in view of Management. For this purpose, we have conducted an empirical study of the staff members keeping in view of banking sector and data has been collected through questionnaire. We have established the relation between performance appraisal and work motivation which depends on performance appraisal types used in Banking sector and transparency of the process of performance appraisal, which is carried out are merely shared to employees only rating and appraisal letter is disseminated so therefore it impacts a downfall on employee engagement and employee gets demotivated if appraisal cycle is not conducted transparently which results in turn over. We have studied different performance methods which are implemented in organizations and tried to generate a new appraisal method keeping in view of COVID-19 and modern changes implemented in current era. We have reached out a point that employee should be educated about performance appraisal method so that it can be more effective and plays a positive role in building future leaders and increase organization profitability and maintain a healthy culture in an organization. Modern Banking has been digitalized and transformed in current era where technology plays a vital role and people get benefited in their homes due to advancement and current pandemic situation which arises it is important that smart work should be implement in combination of working from home and physical presence of employees so that organization work can be easily be done and more customer can be facilitated. We have reached at a point that employee training and education shall be prevailed related to digitalization and shall be aware about his JD and KPI’s respectively so that his appraisal can be done in an effective way which results in employee retention and organization profitability. It is concluded that combination of 360 degree appraisal and Human Resource Cost Accounting method shall be implemented as a new appraisal methodology which can be successful in keeping employee retention and playing a positive role in organization goals and objectives. If employees are not involved in financial benefit of an organization in that case we have to convert impact of his performance which results in achieving organizational goals and objectives.

Published in European Business & Management (Volume 7, Issue 5)
DOI 10.11648/j.ebm.20210705.11
Page(s) 133-151
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Performance Appraisal, Employee Engagement, Organization Goals and Objectives, Employees Motivation, Financial Objectives

References
[1] Gunkel, M., Lusk, E. J., Wolff, B., & Li, F. (2007). Gender-Specific Effects at Work: An Empirical Study of Four Countries. Gender, Work and Organization, 14: 56-79.
[2] Meier, Kenneth J. & Hicklin. Alisa. (2008). Employee Turnover and Organizational Performance: Testing a Hypothesis from Classical Public Administration. Journal of Public Administration Research and Theory, Vol. 18, Issue 4, pp. 573-590. https://ssrn.com/abstract=1271029.
[3] Adams, John, Khan, Hafiz T. A. and Raeside, Robert (2014) Research methods for business and social science. Sage, London, UK. ISBN 9788132113669. Management and Business Research by Smith and Thrope. http://www.uk.sagepub.com/books/Book242499.
[4] Mark Easterby-Smith, Richard Thorpe & Paul R Jackson. (2015). Management and Business Research. SAGE Publications.
[5] Joseph F. Hair (Jr.), Bryan A. Lukas, Kenneth E. Miller, Robert Bush, David Ortinau. (2011). Marketing Research. (2011). (3rd ed.).
[6] Ray R. Sturm. (2017). Journal of Economics and Finance. 41, pages 257–275.
[7] OECD. (2021). https://www.oecd.org/coronavirus/en/
[8] Saba Gulzar, Dr. Avinash and Dr. Tariq. (2017). Impact of performance appraisals on employee retention. Journal of Independent Studies and Research-Management, Social Sciences and Economics. Vol. 15. No. 1.
[9] R Pooja Dangol. (2021). Role of Performance Appraisal System and Its Impact on Employees Motivation. Vol. 2. No. 1.
[10] Anker, T. B. (2021). At the boundary: Post COVID business and management research in Europe and beyond. European Management Journal 39 (2) 171-178.
[11] Asfahani, A. (2021) The impact of COVID-19 on the decision making for the customer relation management in the middle east. Journal of Management and Information Decision Sciences. 24 (3) 1-11.
[12] Ranf D., Mănescu G., & Badea D. (2021). Specific Business Continuity Management Practices During the COVID-19 Pandemic Crisis. Revista Academiei Forţelor Terestre, 26 (1), 62–68. https://doi.org/10.2478/raft-2021-0010.
[13] SHRM (2020). Society for Human Resource Management Retrieved. https://www.shrm.org/pages/default.aspx.
[14] Anthony Michael Bennett. (2021). Journal of Human Resource Management. Vol. 9 (3): 58-63.
[15] Chyung, S. Y. (2005). Human performance technology: From Taylor’s scientific management to Gilbert’s behavior engineering model. Performance Improvement, 44 (1), 23–28. DOI: 10.1002/pfi.4140440109.
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  • APA Style

    Muhammad Faisal, Umar Faryaz, Qamber Ali, Sana Khan. (2021). Impact and Analysis of Performance Appraisal on Employee’s Motivation and Its Effects on Employee Retention in Banking Sector in COVID-19. European Business & Management, 7(5), 133-151. https://doi.org/10.11648/j.ebm.20210705.11

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    ACS Style

    Muhammad Faisal; Umar Faryaz; Qamber Ali; Sana Khan. Impact and Analysis of Performance Appraisal on Employee’s Motivation and Its Effects on Employee Retention in Banking Sector in COVID-19. Eur. Bus. Manag. 2021, 7(5), 133-151. doi: 10.11648/j.ebm.20210705.11

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    AMA Style

    Muhammad Faisal, Umar Faryaz, Qamber Ali, Sana Khan. Impact and Analysis of Performance Appraisal on Employee’s Motivation and Its Effects on Employee Retention in Banking Sector in COVID-19. Eur Bus Manag. 2021;7(5):133-151. doi: 10.11648/j.ebm.20210705.11

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  • @article{10.11648/j.ebm.20210705.11,
      author = {Muhammad Faisal and Umar Faryaz and Qamber Ali and Sana Khan},
      title = {Impact and Analysis of Performance Appraisal on Employee’s Motivation and Its Effects on Employee Retention in Banking Sector in COVID-19},
      journal = {European Business & Management},
      volume = {7},
      number = {5},
      pages = {133-151},
      doi = {10.11648/j.ebm.20210705.11},
      url = {https://doi.org/10.11648/j.ebm.20210705.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20210705.11},
      abstract = {One of the core principals of Human Resource Management is Performance Appraisal and it basically is a win-win situation in both aspects because employee gains benefits in terms of rewards, bonuses and management targets and objectives are fulfilled. In this research we have analyzed performance in keeping in view of Management. For this purpose, we have conducted an empirical study of the staff members keeping in view of banking sector and data has been collected through questionnaire. We have established the relation between performance appraisal and work motivation which depends on performance appraisal types used in Banking sector and transparency of the process of performance appraisal, which is carried out are merely shared to employees only rating and appraisal letter is disseminated so therefore it impacts a downfall on employee engagement and employee gets demotivated if appraisal cycle is not conducted transparently which results in turn over. We have studied different performance methods which are implemented in organizations and tried to generate a new appraisal method keeping in view of COVID-19 and modern changes implemented in current era. We have reached out a point that employee should be educated about performance appraisal method so that it can be more effective and plays a positive role in building future leaders and increase organization profitability and maintain a healthy culture in an organization. Modern Banking has been digitalized and transformed in current era where technology plays a vital role and people get benefited in their homes due to advancement and current pandemic situation which arises it is important that smart work should be implement in combination of working from home and physical presence of employees so that organization work can be easily be done and more customer can be facilitated. We have reached at a point that employee training and education shall be prevailed related to digitalization and shall be aware about his JD and KPI’s respectively so that his appraisal can be done in an effective way which results in employee retention and organization profitability. It is concluded that combination of 360 degree appraisal and Human Resource Cost Accounting method shall be implemented as a new appraisal methodology which can be successful in keeping employee retention and playing a positive role in organization goals and objectives. If employees are not involved in financial benefit of an organization in that case we have to convert impact of his performance which results in achieving organizational goals and objectives.},
     year = {2021}
    }
    

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  • TY  - JOUR
    T1  - Impact and Analysis of Performance Appraisal on Employee’s Motivation and Its Effects on Employee Retention in Banking Sector in COVID-19
    AU  - Muhammad Faisal
    AU  - Umar Faryaz
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    AU  - Sana Khan
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    DO  - 10.11648/j.ebm.20210705.11
    T2  - European Business & Management
    JF  - European Business & Management
    JO  - European Business & Management
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    PB  - Science Publishing Group
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    UR  - https://doi.org/10.11648/j.ebm.20210705.11
    AB  - One of the core principals of Human Resource Management is Performance Appraisal and it basically is a win-win situation in both aspects because employee gains benefits in terms of rewards, bonuses and management targets and objectives are fulfilled. In this research we have analyzed performance in keeping in view of Management. For this purpose, we have conducted an empirical study of the staff members keeping in view of banking sector and data has been collected through questionnaire. We have established the relation between performance appraisal and work motivation which depends on performance appraisal types used in Banking sector and transparency of the process of performance appraisal, which is carried out are merely shared to employees only rating and appraisal letter is disseminated so therefore it impacts a downfall on employee engagement and employee gets demotivated if appraisal cycle is not conducted transparently which results in turn over. We have studied different performance methods which are implemented in organizations and tried to generate a new appraisal method keeping in view of COVID-19 and modern changes implemented in current era. We have reached out a point that employee should be educated about performance appraisal method so that it can be more effective and plays a positive role in building future leaders and increase organization profitability and maintain a healthy culture in an organization. Modern Banking has been digitalized and transformed in current era where technology plays a vital role and people get benefited in their homes due to advancement and current pandemic situation which arises it is important that smart work should be implement in combination of working from home and physical presence of employees so that organization work can be easily be done and more customer can be facilitated. We have reached at a point that employee training and education shall be prevailed related to digitalization and shall be aware about his JD and KPI’s respectively so that his appraisal can be done in an effective way which results in employee retention and organization profitability. It is concluded that combination of 360 degree appraisal and Human Resource Cost Accounting method shall be implemented as a new appraisal methodology which can be successful in keeping employee retention and playing a positive role in organization goals and objectives. If employees are not involved in financial benefit of an organization in that case we have to convert impact of his performance which results in achieving organizational goals and objectives.
    VL  - 7
    IS  - 5
    ER  - 

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Author Information
  • College of Business Management, Institute of Business Management, Karachi, Pakistan

  • Department of Mathematics, NED University, Karachi, Pakistan

  • Department of Business Administration, Iqra University, Karachi, Pakistan

  • Department of Business and Management Sciences, Superior University, Lahore, Pakistan

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