Empirical analysis of the impact of Performance Appraisal System on employee's productivity: A study of Pakistan Telecommunication Limited (PTCL): Non-managerial employees' perspective

Abstract

Organizations are acknowledging the importance of employee performance appraisals as an important measure for enhancing productivity in an organization. To evaluate the impact of performance mechanism for measuring employee performance was the main objective of this study, with a focus on Pakistan Telecommunication Limited (PTCL). The independent variable in this research is the Performance appraisal system, and the dependent variable is employee productivity. The research design used in this study was a descriptive survey. The structured questionnaires for this study were adapted and developed on a five-point Likert scale and distributed randomly to non-managerial employees. The number of respondents in this research study is 210 non-managerial employees and their responses are analyzed in Smart PLS 3 software. The study concluded that an effective performance appraisal system allows employees to share their thoughts and expectations for achieving the company's strategic goals. The ability of a company to achieve its objectives and improve its workers' productivity is influenced by its performance appraisal system. Employee productivity may increase if evaluation feedback is effective. Both measurement and structural model assessments and P-values are considerable, and the results demonstrate significant and favorable results so the study concluded that an effective performance appraisal system improves employee productivity in an organization.