Impact of effective performance appraisal system (PAS) on employees’ commitment in the selected branches of State Banks of Sri Lanka

Abstract

The objective of this study was to investigate the relationship between Performance Appraisal System and Employees Commitment in selected branches of state banks in the Trincomallee district of Sri Lanka. Primary data was collected using a structured questionnaire from 85 respondents from both People’s bank and Bank of Ceylon through simple random sampling method. The key constructs for this study were Performance Appraisal System as an independent variable and Employees’ Commitment as a dependent variable. A Hypothesis also formulated to test the relationship between the constructs. Data were analyzed using SPSS (version 16.0) and the interpretation made on using several statistical techniques. The findings of the study revealed that, most of the employees agreed upon, that their commitment level is moderate and also there is a significant positive relationship between Performance Appraisal System and Employees Commitment. Although employees performance appraisal system in high level, should adopt a more methodical system of performance Appraisal in the dimensions of policies of PAS, criteria and standards, forms and procedures, decision making and storing, review and renewal in order to improve employees commitment to very high level.