Impact of the Employee Performance Evaluation System on Employee Performance with reference to Telecommunication Sector in Sri Lanka

Abstract

Human Resource is the valuable resource of an organization in order to achieve the goals and objectives of an organization. Therefore, it needs to plan, attract, retain, develop, reward and ally people towards the achievement of organizations’ goals and objectives. In as much, performance evaluation system within an organization is a must in developing employees into high-performing individuals. Hence, this paper demands impact of employee performance evaluation system on employee performance in Telecommunication Sector in Sri Lanka. In the way to answering the basic questions of the research, the study applied descriptive research design using mixed research approach. Data was gathered through questionnaire, interviews and document review. To collect representative data, a five-point Likert-scale is used and descriptive analysis with Frequencies and percentages were applied during data analysis. The finding of the research shows that perceived satisfaction is the most positively influencing employees’ variable towards PMS and perceived utility is negative towards the PMS. This explains Whether or not an employee has loyalty to the organization, have willingness to exert effort on behalf of the organization, degree of goal and value congruency with the organization, and a desire to maintain membership in the organization has a very limited effect on PMS as compare to the fairness, accuracy, acceptability, utility and perceived satisfaction. Based on the findings, the organization is recommended to improve the commitment level of employees, which can be best done by applying 360-degree evaluation that enables checking the managers’ perceptions for fairness, accuracy, acceptability, utility and satisfaction. In addition, it is better to conduct training need assessment in order to improve the responsiveness of employees to training and development programs included in PMS.