Performance appraisal has distinct position in management procedures since from the time of World War II. It is one of the oldest disciplines. People do judge others as well as people judge themselves. With every passing day, business organizations are facing aggressive competition due to globalization; so, they need more competencies to meet with these challenges. According to Becker and Huselid (1998), human resource management can serve as key component of competitive advantage for any organization. In developing countries like Pakistan only technology intensive and knowledge based organizations focus more on effective human resource management. Telecom sector is one of the sectors which had exploited the benefits of competitive human resource practices to achieve the tremendous growth. Recently, in Pakistan telecom sector has gone through remarkable growth patterns and in these fastest growing markets, in order to be competitive and to enjoy benefits, it is necessary to implement innovative human resource practices (Marwat, Qureshi and Ramay, 2008).
Performance management is key area of human resource practices and Performance appraisal is a crucial part of performance management. Performance management is a system basically used by top management like executives, managers and supervisors in order to align employee performance with the firm’s goal. Performance management is used for different purposes like; to define measures of performance, monitor the employee performance, and to provide employees with feedbacks about their performance. Performance appraisal is used to define the extent to which an employee performs his/her work effectively. According to Ivancevich, (2007), different terms are used for performance appraisal as and when required; like performance evaluation, performance review, personnel rating, merit rating, employee appraisal and employee evaluation. Performance appraisal is a process of assessment individual employee performance and how it can be improved to contribute overall organization performance (Grubb, 2007). Performance appraisal is consider as critically important human resource function because performance appraisal results are used for managerial decision making and for variety of other purposes including administrative decisions, employee development and personnel research. Growth and enthusiasm of employees, human resource planning, legitimacy, employment planning, and communication are the different purposes served by welldefined performance appraisal system (Ivancevich, 2007). Because of its importance in organization and practical implications it is most widely research area. Moreover, Levy and William in 2004 stated that performance appraisal traditional concept is going to be broadened by including how ratee’s react towards performance appraisal. In 1995, it was concluded by Murphy and Cleveland that criteria of employee’s reaction towards effective performance appraisal as “neglected criteria” is considered to be important for determining the success of appraisal system.
Research methodology is designed according to the type of study. As the qualitative research study is conducted to identify the impact of perception of employees towards performance appraisal on employee motivation. Deductive research approach is used to reveal the answers of the research questions. Primary data collection method is used and well administered multi item scale questionnaire is used to collect the data.
Middle level managers are population of the study and sample is selected by using simple random technique. Appropriate data analysis tools and techniques are applied to reveal the results. Principle component factor analysis, cronbach alpha reliability analysis, descriptive statistical analysis, linear regression analysis, analysis of variance and analytical hierarchal procedure were selected to apply on the data collected from the respondents to reveal the results.
Performance appraisal related employee reactions or perception about performance appraisal is critically important aspect to achieve the attitudinal outcomes of performance appraisal which in turn lead to better organizational performance. This empirical research justifies the significant influence of employee’s reactions towards performance appraisal on employee motivation. Employee perceived reactions including perceived satisfaction, perceived acceptability, perceived utility, perceived fairness and perceived accuracy of performance appraisal are significantly important to determine the employee work motivation. While perceived ineffectiveness of performance appraisal has no significant influence in determining the employee motivation. Among all employee reactions perceived satisfaction and perceived acceptability has more strong influence on employee motivation as compared to other studied employee reactions of performance appraisal in scenario of telecom sector of Pakistan. While utility has less significant impact. This indicates that in telecom organizations in order to get employees motivated to perform on high levels, management should focus on behavioral aspects of performance appraisal. Moreover, there exists a remarkable difference in different telecom companies regarding the more significant reaction criteria to determine employee motivation. As in case of Mobilink perceived acceptability is most significant employee reaction in determining the employee action motivation while perceived utility is least significant reaction in determining employee action motivation. While in determining behavior motivation perceived satisfaction is more significant employee reaction while perceived accuracy is least significant reaction criteria. Whereas in case of UFONE perceived satisfaction and perceived acceptability of performance appraisal are more significant and important variables in determining employee action motivation and perceived utility is least significant while perceived ineffectiveness has not any significant impact on employee action motivation. On other side behavior motivation is greatly influenced by perceived satisfaction and less influenced by perceived utility among all studied measures of employee’s reactions towards appraisal of performance. In WARID, TELENOR and ZONG perceived satisfaction, perceived acceptability and perceived accuracy are dimensions of perceptions that determine motivation in these organizations. It is concluded that positive employee’s perceptions regarding performance appraisal have significant impact to enhance the employee motivation in Telecom sector of Pakistan. Furthermore, study concluded that among all studied dimensions of perceptions, perceived fairness is matter of critical impertinence which is assumed to be neglected dimension in telecom companies and this should be focused in order to get employees motivated to perform better.
This article has three parts. Summarize in your word in three line. (introduction in three line, methodology in three line and conclusion in three line).
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