Effects of Performance Appraisal System on Employees’ Performance in the Joint Venture Banks of Nepal

Abstract

This study examines the effects of performance appraisal systems on employees’ performance in joint venture banks. It focuses on the employees’ awareness of the appraisal system and their knowledge of the appraisal system and performance appraisal management, leading to effective employee performance in joint venture banks. This was a research project that was meant to be descriptive. Questionnaires were the methods of data collection and 100 respondents from Everest bank, Himalayan bank and NABIL bank were studied. Moreover, the collected data were analyzed and processed using a computer program (excel) and indicated clearly on tables. The study results exposed that employee performance appraisal at Everest bank, Himalayan bank and NABIL bank is not effective and not very well utilized. The mainstream employees were unaware and were absent knowledge of the performance appraisal practiced in their organizations. They were not involved in an argument with supervisors and were not given sufficient time to organize for the meeting as an outcome; there’s no feedback delivered to employees afterwards appraisal. These banks do not use the available appraisal system for making important employee decisions. Employee performance appraisal should be implemented properly to meet a certain organization’s context, according to the recommendations, communication between employees and management decisions like disciplinary actions, promotion and training.

Investigating the Effectiveness of Employees' Performance Appraisal System: Kuwait Case Study

“…The impact of performance appraisal extends beyond individual employee attitudes to organizational outcomes. (Kandel, 2021) performance appraisal systems on various aspects of organizational and employee outcomes, including job satisfaction, morale, commitment, and financial capability. These findings highlight the critical role of performance appraisal in shaping employee attitudes and organizational effectiveness.…”

“…Performance appraisal plays a significant role in increasing productivity by providing timely feedback to employees and guiding organizational decisions regarding employee pay, retention, transfer, professional development, and promotion (Abdullah & Malik, 2022). Additionally, the study of (Kandel, 2021) reveals that the impact of performance appraisal systems on employees' performance in the banking sector highlights the importance of assessing employees' progress and making necessary adjustments accordingly. As a result, employees' opinions of performance appraisal forms are influenced by various factors, including the perceived accuracy and fairness of the appraisal system, the method of appraisal used, the clarity of performance feedback, and the overall effectiveness of the system.…”

“…Among them, item 13, which states "The organization clearly defines goals and plans for employees", placed last with a mean value of 3.22 out of 20. When considering the assessment of employee performance, this statement indicates that the organization has implemented precise and transparent goals, targets, or strategies for each employee, including but not limited to the following: goal clarity; performance expectations; alignment with organizational objectives; periodic monitoring and evaluation; and feedback mechanisms (Kandel, 2021). Likewise, with a mean score of 3.22, item 10, "There is no biasness in the performance evaluation", was positioned at number 19.…”