A Comparative Study of Banking Industry Based on Appraisal System, Rewards and Employee Performance
Purpose- This study was aimed to throw light on the appraisal and reward system, and its effects on job satisfaction and employee performance in the banking sector of Pakistan.
Design/Methodology- The research was based on primary data collected from the two major cities of Pakistan, Lahore and Kasur. A total of 250 structured questionnaires were rotated to Islamic and conventional banks in different parts of both cities. Out of these 222 questionnaires were returned and were in usable form. The data so collected was analyzed with the help of the Statistical Package for Social Sciences (SPSS). statistical techniques such as regression analysis, correlation analysis, descriptive analysis and t-test were used.
Findings- The results of the study revealed that appraisal was negatively correlated while the reward system was positively correlated to employee performance.
Practical implications- This research will help banks in reviewing their policies to make optimum use of their employees to meet certain goals of the bank. This research reveals that the appraisal system of the bank is affecting negatively on employees performance. This study will help in developing criteria which will help managers to appraise the employees in an effective way.
Ali, R., & Ahmed, M. S. (2009). The impact of reward and recognition programs on employee’s motivation and satisfaction: an empirical study. International review of business research papers, 5(4), 270-279.
Armstrong, M. (2010). Armstrong's handbook of reward management practice: Improving performance through reward: Kogan Page Publishers.
Bartel, A. P. (2004). Human resource management and organizational performance: Evidence from retail banking. ILR Review, 57(2), 181-203.
Bhatti, K. K., & Qureshi, T. M. (2007). Impact of employee participation on job satisfaction, employee commitment and employee productivity. International review of business research papers, 3(2), 54-68.
Cammann, C., Fichman, M., Jenkins, D., & Klesh, J. (1979). The Michigan organizational assessment questionnaire. Unpublished manuscript, University of Michigan, Ann Arbor.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. psychometrika, 16(3), 297-334.
Danish, R. Q., & Usman, A. (2010). Impact of reward and recognition on job satisfaction and motivation: An empirical study from Pakistan. International journal of business and management, 5(2), 159.
Garg, N., & Punia, B. K. (2017). Developing high performance work system for Indian insurance industry. International Journal of Productivity and Performance Management, 66(3), 320-337.
Güngör, P. (2011). The relationship between reward management system and employee performance with the mediating role of motivation: A quantitative study on global banks. Procedia-Social and Behavioral Sciences, 24, 1510-1520.
Katavich, K. M. (2013). The importance of employee satisfaction with performance appraisal systems: a thesis presented in partial fulfilment of the requirements for the degree of Master of Arts in Psychology at Massey University, Albany, New Zealand. Massey University.
Longenecker, C., & Fink, L. (2017). Lessons for improving your formal performance appraisal process. Strategic HR Review, 16(1), 32-38.
Mostafa, A. M. S. (2017). High-performance HR practices, positive affect and employee outcomes. Journal of Managerial Psychology, 32(2), 163-176.
Mount, M. K. (1983). Comparisons of managerial and employee satisfaction with a performance appraisal system. Personnel Psychology, 36(1), 99-110.
Mughal, F., Akram, F., & Ali, S. S. (2014). Implementation and effectiveness of performance management system in Alfalah bank. Journal of public administration and governance, 4(4), 111-122.
Nazir, O., & Islam, J. U. (2017). Enhancing organizational commitment and employee performance through employee engagement: An empirical check. South Asian Journal of Business Studies, 6(1), 98-114.
Pushpakumari, M. (2008). The impact of job satisfaction on job performance: An empirical analysis. Paper presented at the City Forum.
Rai, A., Ghosh, P., Chauhan, R., & Mehta, N. K. (2017). Influence of job characteristics on engagement: does support at work act as moderator? International Journal of Sociology and Social Policy, 37(1/2), 86-105.
Ramlall, S. (2004). A review of employee motivation theories and their implications for employee retention within organizations. Journal of American Academy of Business, 5(1/2), 52-63.
Roberts, G. E. (2003). Employee performance appraisal system participation: A technique that works. Public personnel management, 32(1), 89-98.
Sowmya, K., & Panchanatham, N. (2011). Factors influencing job satisfaction of banking sector employees in Chennai, India. Journal of law and conflict Resolution, 3(5), 76-79.
Walsh, M. B. (2003). Perceived fairness of and satisfaction with employee performance appraisal.
Zhang, Y. (2012). The impact of performance management system on employee perfomance-Analysis with WERS 2004. University of Twente.
Copyright (c) 2018 Ishfaq Ahmad, Dr., Rizwan Qaisar Danish, Dr., Syed Adnan Ali, Hafiz Fawad Ali, Asad Afzal Humayon, Dr.
This work is licensed under a Creative Commons Attribution 4.0 International License.