THE IMPACT OF PERFORMANCE APPRAISAL PROCESS ON EMPLOYEE JOB SATISFACTION OF EXECUTIVES: EVIDENCE FROM A MOTOR COMPANY IN SRI LANKA

Abstract

Employee job satisfaction is one of the critical factors in an organization that allows gaining a competitive advantage in the long run. The reason is, the satisfied employee will be the motivated and the engaged employee who will add productivity to the business process. If the management can ensure that employees are satisfied they can push the employees to be engaged and add value to the organization. In the ABC Motor Company Ltd, they have implemented a Computerized Performance Appraisal system recently with the intention of enhancing the organizational performance. But, informal discussions with them provided evidence that the employees have issues with the new change in the status quo. Therefore, the purpose of the study is to identify the relationship between Performance Appraisal process and the job satisfaction among the executives in the ABC Motor Company Ltd. Sixty executives in the company have been selected as the target population and the data were collected from them and directed them for analysis. Within the scope of this study, Performance Appraisal process and factors that lead to job satisfaction have been discussed in the review of the literature. The study analyses the five major factors related to Performance Appraisal process that triggers the employee job satisfaction as performance standards setting/goal setting, regular feedback, and coaching, supervisory support, computerizing the performance appraisal process and the planning personal development and expected to identify the significance of each factor towards the employee job satisfaction.