Role of performance appraisal system and its effect on employees considering motivation

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Chapter - 1


This chapter will discuss the critical importance and understanding of performance appraisal systems in the banking industry of Pakistan. Moreover, this chapter will highlight the need of the study, aims and objectives of the study and also introduction to the key terms that has significant importance throughout the research paper.

1.1. Understanding Performance Appraisal:

In the past few decades, organizations were very concerned about the development and orientation of their employees and also pondering on performance management (Murphy & Cleveland, 1991). Now, Organizations are following the new patterns of working and doing jobs to adhere the aims and mission of it. To fulfil this new modernized concept of fast and technological revolution, they are realizing the importance and implementation of new methods of performance management (Cardy & Dobbins, 1994).

Organizations have indentified the importance of performance appraisal and it has been found in the cases of all big multinational companies that they have implemented the performance appraisal systems to enhance the productivity of their employees. There are varieties of different perspectives that evident the importance of performance management and its measurement (Whitney, 1994). Organization should present true and fair views of performance appraisal to gain trust of the employees, their loyalty and job satisfaction are the main core of any organizational success (Robinson & Rousseau, 1994). Through rational performance measurement, Organization's management can get the maximum reliance of employees.

This research papers aims to explore the performance appraisal system within the banking sector of Pakistan and its comparative study with JS (Jahangir Siddqui) bank. This research study will also explore the effects of performance appraisal on the employees considering motivation, job satisfaction and employee loyalty as key factors in HR functions.

1.2. The Research Topic:

To explore the role of performance appraisal system in HR function within the banking sector of Pakistan.

1.2.1. Aim:

This research aims to investigate the role of performance appraisal system and its effect on employees considering motivation, job satisfaction and employee loyalty as the key factors in HR function within the banking sector of Pakistan and comparative study with JS Bank.

1.2.2. Objectives:

  • What is performance appraisal?
  • What are different performance appraisal systems?
  • How appraisal system interlinked with motivation and employee loyalty within banking sector of Pakistan?
  • What are different problems with performance appraisal system?
  • What are different strategies in HR department to enhance productivity?

1.3. Rational of Study:

The system that identifies the Performance evaluation and review is called Performance Appraisal system. Performance appraisal system highlights the individual and group performance over the period of time and reviews for the promotion and raise in monetary funds.

To get the real meaning of performance appraisal system can be elaborated to the concept of performance management. Performance Management can be defined as:

“An approach to create shared vision of the purpose and aims of the organization, helping each individual employee understand and recognise their in contribution to them, and in so doing manage and enhance the performance of both individuals and the organization.” (Fletcher, 1992)

Performance management is a process where it describes the performance of individuals that shapes a group and become the collective success of the organization with the set of objectives, time period, reviewing the performance and recognition of the performance with rewards (Connock, 1991). The main objective of performance management is to show the real picture of the employees performance over a period of time and this can be achieved through framed standards (Beaumont, 1993).

In the Performance management, the appraisal system is the most significant part where it defines a structural and formal system that helps the manager and subordinate to interact with each other to evaluate performance. This interaction usually comes into process annually of semi-annually in shape of some structured interview or questionnaire. In this process, supervisor examines the performance of subordinate where supervisor identifies strengths and weaknesses and also highlights the area of improvements (Connock, 1991).

In different sectors of economy including banking sector, results of appraisal of employees are used for the future employee planning, their rewards management and promotion. These rewards are directly or indirectly linked with the recognition of employee's milestones in the personal and professional skills. Thus this identifies the rise in pay, cash bonuses, promotions and job satisfaction majorly (Beaumont, 1993).

1.4. Importance of Performance Appraisal:

The managers are aware of the importance and criticality of performance appraisal, and its ultimate affect on the motivation, loyalty, job satisfaction plus its has a big affect on the growth and success of the organization, so while documenting, communicating, and describing the job particulars, they are more concerned. It has been noticed that in the current time, job performance systems have improved a lot, but still the outcome shows that it has a negative impact on the job satisfaction and motivation of the employees if it is not appraised systematically (Robert, 2002). So, it results in counter of an organization that employees are demoralized and also lose their loyalty, which affects the organizational aims and objectives. Human resource officials use performance appraisal for decision making such as planning payments and salary scale of the employees, they also determine what professional developments are needed to equip their employees with a proper feedback. Performance appraisal can also help the officers to decide what are the factors that can be employed to increase the productivity of employees (Natalie & Ann 2005).

As performance appraisal encourages the good performers, on the same hand performance appraisal also highlights the poor performers and tells about their weak areas and it helps the management to remove the leaning hurdles and makes them to achieve the set objectives and aims. This system also identifies the employee who needs guidance and counselling from management to improve their performance at work. Organization believes that performance appraisal is the best tool to see the level of employees and their performances and making the decision about their rise in salary, promotions, demotions and penalties (March, 1982).

1.4.1. Factors of Performance Appraisal:

There are many factors influencing performance appraisals systems at work. Internal and external factors always play an important role in appraising the employees. Internal factors could be labour unions, management's attitude, the employee's behaviour and their stance in the direction of work. External factors are legislations in relation to the employees. Labour union always get into the matters of employees well being at work and also in their personal lives so that they can give their full at work. But some time it has a negative impact on performance appraisal and the management to give promotion or rise in the salary on the bases of seniority (Isaac, 2001). Internal factors can also affect the performance appraisal in shape of bad corporate culture that can be a big hurdle in the performance management. The main objective is to set specific goals and make framework of getting those objectives. For all this, management should inform the employees that what is expected from their jobs and what should they do to make hundred percent out of it. At the end management sees and evaluates on the whole performance and also communicates these efforts to employees. This communication also develops relationship between employees and supervisors (Isaac, 2001).

There are different techniques and methods used for the performance appraisal and it gives an outline to measure the performances that are in use of different organizational and it also varies from industry to industry. There is no hard and fast rule to use specific performance appraisal system, but it is always suggested to use the same performance criteria within one organizational and it applies to all of the employees. These models and techniques include, Six Sigma, Balance Scorecard, 360 degree feedback, etc. These models and techniques to measure the performance is widely in use of many MNC's and local organizations, in the banking industry of Pakistan and in JS bank. While designing performance appraisal, management should keep in view the nature and type of the business to conduct these performance management techniques. In the performance management, 360 Degree is common and Six sigma is the operational management technique; both leads to performance appraisal measurement where the HR function is able to appraise and it involves the motivational factors, employee loyalty, and job satisfaction aspects. Extensive and appropriate use of these techniques will make the appraisal much unbiased (Natalie & Ann 2005). Employee's motivation and job satisfaction can never push aside, as these are elementary aspects of any Job. In the process of appraisal system, an employee always expect some feedback from other employees which gives him motivation and the satisfaction from the job done, so these are the complementary part of any job. When any employee is appraised, then he always get the communication and feedback of that appraisal and it actually indicates the level of satisfaction of job the employee has plus the loyalty he has for the organization (Robert, 2002). In the banking industry, as the recession hits and many of the employees being fired, so at the time of performance appraisal, employees are so dissatisfied as they don't know when they are going to be part of sacked list of employees, keeping in this view, the performance appraisal system plays role in the Hr department to indicate the key factors such as motivation, job satisfaction and loyalty (Caruth and John 2008).

Chapter 2 -

Literature Review

This chapter will look into the supporting literature of performance appraisal systems and its importance. As in the recent Times research, in the area of performance and its technical justice and fairness should be categorised as all the decisions and producers for employees in their working capacity and the management should highlight the importance of performance appraisal and its different tools. Furthermore, this part of research study will stick the significance of banking industry and usage of different performance appraisal systems and what are the linkage of motivation, job satisfaction and employee loyalty and strategic importance of performance appraisal systems.

2.1. Performance Appraisal:

The process in which human resource management department obtains, analysis and makes decisions on the performance of an employee over a period of time is called Performance Appraisal Process and the methods which are used to appraise the employees are called Performance Appraisal Systems (Yee 2009). The main objective of performance appraisal system is to focus on the performance, key attributes of the job, what is the improvement in the performance and the proportion of the performance that the employee will make in future in the productivity of the organization. It aims towards the employee and it's his performance over the period of time (Dobbins, 1994).

In the field of human resource management a prominent name of Flippo (1999) says that

"Performance appraisal is the systematic, periodic and an impartial rating of an employee's excellence in the matters pertaining to his present job and his potential for a better job." (Flippo, 1999)

This systematic process allows the management to look into employee's activities in last fiscal year or the performance time periods and analyse where it is falling, what improvement has he made and what is the future planning regarding job and activities.

Management should educate the employees about their individual goals and share the aims and objectives with the organization. Employees should have the knowledge and freedom to participate in the decision making process. Here, if the management has the full corporation of the employees and on the same hand if employees coordinate with management then this performance and participation can actually helps in the appraisal for the next period. In all this, the right of expressing of opinion will certainly adds to their performance (Beach, 1995).

Performance appraisal systems are the powerful tool to measure the performance of an employee and to issue or offer the rewards on that quality performed job. This process allows the management to evaluate the achievements and contribution to the success and productivity of the organization to get the overall organizational aims and objectives (Dobbins, 1994). Moreover these systems are standardising for all the employees.

Performance appraisal is a system in which HR managers measures the performance of the employee, either he is performing his job rightly, is he achieving what organization wants from his job, what is his behaviour and attitude towards his job, either he is showing positivity towards his job, is he the right employee for the right job, as all this comes under the HR function of an organization (Randhawa 2007). The main objective of performance appraisal is to make sure that employee‘s performance is up to the mark, to communicate this job performance measurement makes the employee enable to enhance his productivity and cover his loopholes where he is lagging behind. The main idea behind performance appraisal is to insure that organizational goals are being met, because meeting organizational objective is an individual as well collective effort. Strategic objectives on banking sector and any financial institution are to multiply their profits by gaining the top performance from its employees. By monitoring employee's performance, they actually see what the criticality of the importance is and the effect that job is making on the organizational objectives. An effective performance appraisal must have collaboration between the management and the subordinates. An employee should work according to the job description, which is decided by the immediate manager. By doing this, there will be no conflict between the management and the employees (Propper, & Wilson, 2003).

The objective of performance appraisal is to influence the employee's job performance with a systematic process appraisal, what are the major impacts on the employees to get the certain level of motivation to improve the productivity of the organization as well as the job satisfaction (Natalie & Ann 2005). In the past, the sole purpose of performance appraisal was just to calculate the financial position of the company, either it has made some progress in terms of monetary growth, what influence it has made on the department growth and what are the affects of performance on organizational objectives. But now, things have changed. Now researchers are seeing beyond the monetary terms, they are not discussing the financial aspect but they are measuring the job performance in terms of employee's job satisfaction and his level of motivation, because ultimately the manpower of an organization is its labour force. If this labour force is getting what they want, then they will perform according to the job description they have with them within their departments.

In the banking sector as credit crunch has been taken place all the investment and financing in Pakistan has stopped, it has very negative impact on the employees working in the banking industry, and the HR department of the banks are actually working on the moral and motivation of the employees.

2.2. History of Performance Appraisal:

Performance appraisal has a brief history starting from earth 20th century where the need of performance appraisal was felt and some measures developed. This history shows that Taylor (1964) who is the revolutionary person in times and motion studies brought the real sense of performance appraisal and performance measurement. But in the modern human resource management it can be seen that the thread of performance measurement is linked with the Second World War. This tells the history that it is not more than sixty years ago. Yet the guru of human recourses says that the art and procedures of performance measurement and appraisal is very ancient art and people of old times had some tools to appraise their employees on the basis of activities and job they performed. On these historical felt notes it can be said that performance appraisal management is the world's second oldest profession too. Here Dulewicz (1989) says that “It is a basic human tendency to make judgements about those one is working with, as well as about oneself."

If the management has a concept that performance and its appraisal is inevitable then it will be wrong that performance of an employee cannot be judge in advance. In the absence of a structured appraisal system then it will ultimately affects the performance of employees, the productivity of the organization and moreover the reputation of the organization in the industry. It will de-motivate the employees, they will lose satisfaction from their jobs and loyalty with the organization will be most likely finished and labour turn over will increase. One serious offence can be seen in the absence of appraisal system that organization can go unlawful, harassing the employee and unfair judgement on their performance. Consequently, it helps the management and employees to go lawful, fair and accurate with the performance over the period of time (Murphy, 1989).

2.3. Benefits of Performance Appraisal:

Where performance appraisal allows the employees to get the monetary and non monetary rewards from the management, here it also give the most significant benefit for employees that it gives the chance to get reasonable time for one to one discussion on the performance over the period of time. This discussion between employee and supervisor allows discussing the main issues that are hurdle in the performance and work concerns addressed. It can observe from all over the world organizations, the feedback of performance appraisal says that it creates a strong bond between subordinate and supervisor only if the appraisal is conducted properly and fairly. This process also gives the opportunity to employees to review their performances and discuss the issues and difficulties they are facing in the work and also it gives the path to gain the aims and objectives in the future time. This interaction of subordinates and supervisors give the opportunity to help the future goals. Therefore it enhances the productivity. So, this process gives the best time to employees to have chat with the supervisors without any hindrance and instruction (Orpen, 1997). The importance of this process should not be underestimated as this is the integral part of performance appraisal system. Moreover this process allows the supervisors and employees to discuss the future targets and, training and rotation need orientation and development, if needed. In this discussion, the supervisors and the subordinates discuss the various problems about the present as well as the absent working skills, career development and what is to be done in the future (DYCK, 1997). Here, supervisor highlights the key skills of the subordinate and makes or arranges for the future career inspirations. This discussion can be useful to measure the productivity of the organization, for the recruitment and orientation process. For example, the feedback can indentify how employees are performing those who hired in the past two years and so. Appraisal data can also tell how well the recruiting strategies are working, what developmental process are good enough and what the effectiveness of employees is. Performance appraisal process could be a data sheet highlighting the overall performance of all employees; telling has productivity improved, remains same or fall. Evaluation is the ongoing process and its run throughout the year but some clash can be noted in the evaluations and developmental process but in a nutshell it's a process of evaluating, analysing and giving feedback of that process (THOMPSON & DALTON, 1970).

2.4. Basic purpose of Performance Appraisal:

Performance appraisal systems have the two main elements in it; one is evolution of the performance and the feedback of the evaluated performance. The main objective of performance evaluation is to define the gaps in the actual job and job performed. This gap creates when the employee is not working on the standard level and doesn't meet the expectation of the organization (ANTHONY, 1986). The main objective of feedback is to inform the employee about his performance and the quality work he is producing but this feedback doesn't flow in a one direction and the supervisor of the appraiser also gets the feedback from the employee to resolve the job issues, if have. To get the real sense of performance appraisal system is to look at the whole process on different angles so that it can create a meaningful difference in the organization. These different angles could be: from employees point of view and organization's point of view (ANTHONY, 1986).

From employee's point of view it can be unfold as:

  1. What does the organization want me to do?
  2. What are my loopholes? And what I have done remarkably well?
  3. What help will be given by the organization for my own improvements?
  4. What is the reward of my good performance?

In the organization's point of view, it is mandatory to have an accountability and justice within organization so that all the employees get a fair compensation out of their performance and also to establish the repute of the organization. The research shows that organization fails when "non-alignment of responsibility and accountability occurs." These failures occur when the employees are given tasks but there is no check on the responsibilities and duties and how they are performing their jobs. Sometimes it happens when the employees are working in shape of group and teams so they pass on the work to each other but ultimately no one held accountable of any task so the rule of accountability fails (TOWNLEY, 1997).

Performance appraisal system has always an integral part of HRM and this research will highlight the main issues within the systems and the rating of employees. Rating the performance appraisal and giving the feedback is not an easy task for the HR department, as the criteria of apprising is a complex job. There are certain strategies underlying to make the traditional methods accurate than it had been in the past and therefore the likelihood of correct and affective appraisal will be increased (TOWNLEY, 1997). These strategies can be considered as a practical training to the HR officials. New learning techniques and methods should be true n fair for all set of employees, transparent and should be computerized so there are no chances on intermingled results which will remove the chances of favouritism. The main tactics and objective of the performance appraisal is that it should be conducted for the motivation of the employees with no negative aspect associated with it, as it will decrease the morale of the employees. There should be some reward or bonus announced so that this will be stimulation for other employees and they will try to excel their performance too. Proper communication and feedback session should be introduced so that the employees come to know their loopholes (Natalie & Ann 2005).

2.5. Objective of Performance Appraisal:

Followings are the main objectives of performance appraisal.

  • To review the performance of employees over the period of time.
  • This review of performance, evaluator judges the actual performance with the targeted performance standards and benchmarks.
  • It also helps the management to control the organization targets depending upon the performance of employees.
  • It also creates healthy environment between employees and supervisors.
  • It indentifies the strengths and weaknesses of employees and also suggests the various improvement plans by the management after performance appraisal process.
  • This process also allows the employees to get the proper training and orientation of skills where they are lacking.
  • To communicate the feedback with the employees.
  • Give all information regarding the tasks and job responsibilities and also clarifies all the tasks which are required from the employees.
  • One of the objectives of performance appraisal is to judge the HR function within the organization for smooth running of business.
  • It also tries to removes the complaints of employees about the function of organization, if have any.

2.6. Performance Appraisal &Employee Motivation and loyalty:

In the growing age of business and markets, human resource is the big asset of the organization; if the organization is not keeping well with its labour work force then it might get into trouble. As the employees are the main features of the progress of the organization. In order to have productivity, employee should be motivated and should be satisfied with their job and have loyalty with the organization (EPstein,1992). HR professionals are making it possible to motivate the employees with the performance appraisal systems by giving them fair appraisals as per their performance over a period of time. It has been noticed that there is a strong relationship between performance appraisal and motivation, job satisfaction and loyalty (bonnie, 2002). Keeping aside the main objectives of performance appraisal, it can be use as a mechanism to create a completion between employees to get the job done with all the linked targets and benchmarks (Robert, 1984).

It is also mandatory that employees gets the accurate performance appraisal results to get motivate, if the feedback of appraisal is according to their performance over the period of time that will be a great source of motivation to them. Inaccurate performance can create dissatisfaction from job and ultimately can affect the loyalty with organization. One employee always expects that evaluator recognise his efforts and achievement in the professional life and also support him to overcome on his failure and allows the opportunity to make improvements in his performance in future (bonnie, 2002).

If the performance appraisal has some shortcoming in it and is actually creating some discrepancy in the process, then it will affect the motivational level of the employees and ultimately it will affect their efforts and the risk taking ideas for the betterment of the organization. Also they will lose interest in the affairs of the organization (Robert & Kim, 2007). Plus this de-motivation leads the employees to the lack of loyalty and they will look other options of good job and hikes in the rewards (bonnie, 2002).

Accurate performance appraisal is always preferable but if there is any inaccuracy then employees always prefers to have accurate performance appraisal with no hikes in rewards but not an inaccurate system that never encourages or recognises their efforts. Employees who tend to receive accurate performance appraisal over the period of time and also have all the rewards associated with that appraisal is most motivated employee among all of them and similarly he tends to be more satisfied with job and more loyal to the organization. Therefore, the process should be fair as this is the ultimate system to motivate, satisfied with job and creates the loyalty (Storey & Sisson, 1993).

2.7. Different performance appraisal systems:

There are different systems and methods for measuring performance and appraising the employees. These methods and systems are categorised as the traditional methods and the modern methods.

2.7.1. Traditional Methods:

In the traditional methods there are various systems to measure the performance employees. In the traditional method of measurement Behaviourally Anchored Rating Scale is widely used by many organizations across the globe. In this system it focuses on specific behaviours, either affective or ineffective performance is given by the employee. It involves critical incident technique (CIT) and different combinations of rating scale. However, in Graphic Rating Scale supervisor or evaluator simples checks the different blocks in the appraisal form to measure the performance. Though this a old technique to appraise the employees but broadly used method. Unlike scaling system, in Essay Evaluation Method asks the managers, supervisor and evaluators to write an essay or a descriptive narration about the strength and weakness of the employees and also the overall behaviour towards the job. This is a qualitative measure to appraise the employees. Another ranking system is Performance ranking Method in which evaluator or supervisor rank the performance of employee from best to worst. This method differs from other methods as it compares the employee to employee but not with the standards and benchmarks for performance measurement. In Critical Incident Method (CIT), evaluators appraise the performance depending upon the critical incident and the positives and negatives behaviours occur in the period of time to measure the performance (Dessler, 2000). Like other ranking and scaling methods in Weighted Checklist Method evaluator makes a checklist of all the job responsibilities and all the narrative statements about the effective and ineffective attitude or behaviour of job. As weighted method weights the narrative statements, in Paired Comparison Analysis, it weights the relative importance of the different options available and listed. Every option is compared with all the option listed (Mondy, 2008). After comparison of all option, the one with most weight is preferred option for the performance measurement. In the traditional methods qualitative methods and systems have more frequency of usage, here another method of Behavioural Observation Scale evaluates the performance with negatives and positives happens on workplace and also the critical incidence the employee has performed. In the tradition method there is a quantitative method called Forced Distribution or Forced Ranking, unlike other method it involves the percentages. In the top category it ranked from 10 to 20 percent, middle category ranges from 70 to 80 percent and it ranked employees with worst performance 10 percent in the bottom line (Mondy, 2008).

2.7.2. Modern Methods:

There are different methods of performance measurement in the modern times, 360 Feedback System and Management By Objectives (MBO). 360 degree feedback:

360 Feedback is a systematic technique which also known as the multi-rater feedback system. In this method evaluator or the appraiser takes feedback from all the people who are inter-linked with the person to be appraised. The 360 Feedback can be defined as:

“The systematic collection and feedback of performance data on an individual or group derived from a number of the shareholders on their performance.” (Ward , 1997)

This method of performance appraisal is detailed and comprehensive where evaluator asks from all sources about the performance of the employee. In this method all the sources are involved as: customers, suppliers/ vendors, team member and colleagues, superiors, juniors, subordinates and all the other parties who has link with the particular employee. These sources provide all the information that is significant in the performance appraisal process (Anderson, 1987).

There are four main parts of 360 feedback appraisal system:

  1. Self appraisal
  2. Superior's appraisal
  3. Subordinate's appraisal
  4. Colleagues' appraisal

The 360 Feedback systems can be an ongoing process throughout the year to keep an eye on the performance and other's perception about the employees and also it can be measured that how well employee is keeping with its required tasks and responsibilities (Natalie & Ann, 2005). 360 Feedback is also helpful for the managers and leaders to insight of their leadership and managerial styles. 360 feedback systems are widely used across the globe for the effective appraisal of employees (Anderson, 1997). Management by Objectives' (MBO):

Performance appraisal's history can be trace from the guru of organizational management, Peter Drucker on 1954. He has given the different theories of management and introduced the main theme of Management by Objectives (MBO). A process whereby the superior and subordinate managers of an organization jointly indentify their common goals, define each individual's major areas of responsibility in terms of the result expected of him and use the measures as guide for operating the unit and assessing the contribution of each of its members.

This is a participative technique where the supervisor and subordinate set the goals, different methods to do the job and most importantly the decision making at the end. Here, the most important element of MBO is to evaluate the performance and comparison of actual performance with the benchmarks. Subsequently, this process or method allows the employees to set up their goals and objectives, their path of tasks in addition to their job responsibilities (Natalie & Ann 2005).

2.7.3. Process of Performance Appraisal:

Performance appraisal follows the systematic method to appraise the employee so that it becomes a rationalize and fair process for employee (Caruth & John 2008).

It has six main areas to look on, which are:

  • Performance standard
  • Communicating the standards and expectations
  • Measuring the actual performance
  • Comparing the actual performance with benchmarks
  • Discussion on results
  • Decision making. Performance Standard:

This is the first step in performance evaluation process. It is mandatory to make or set some standards and targets for the employees so that performance can be measured and compared with the standards. This step allows the supervisor and performance evaluator to make the criteria's to judge the employees and keep an eye on the qualifying factors for those set standards. Setting up performance standards is also mandatory to look on the organization goals and objectives for the productivity of business (Caruth & John 2008). Communicating the standards and expectations:

After setting the performance standards and expected outcomes, the next integral part of the Performance Appraisal process is to communicate those standards to employees and educate them as to how to achieve the bench marks. It is mandatory that employees should know the standards clearly and have the idea on how to meet those. These standards will educate the employee about their main responsibilities and job roles and what is expected out of them. These standards should be communicated at the start of the year so that employees should know what to do in future. Management can modify or edit some of standards from the time to enhance the productivity but employees consent will be taken by the management to do so (Caruth & John 2008). Measuring the actual performance:

After communicating the bench marks and required performance standards to the employee, the most important step is to measure the performance according to the set standards over the period of time. However, this is a difficult task for the evaluator but it has to be done. Measuring performance is a ongoing process throughout the year and the supervisors evaluates the performance and also keep an eye on the tasks and job responsibility. By defining performance in terms of desired results is how managers and supervisors make their work assignments operational. Here, it is mandatory that choice of measuring performance method or technique should be appropriate that personal grudge does not affect the outcome of the process and help the employees rather than creating problems for them (Caruth & John 2008). Comparing the actual performance with benchmarks:

Here, the next step is comparison of actual measured performance with the standards and benchmarks. This step is sensitive as it is dealing with the yardsticks to compare each task with the set targets, here the employee and supervisors should agree with the process. Comparison shows how employees have achieved the set targets and what divergence has been made to the benchmarks. This comparison tells either the performance is according to standards, above standards or below the standards. Measuring performance, evaluation, comparison and analysis are integral part of this step (Caruth & John 2008). Discussion on results:

As in process, management sets up standards and communicates those benchmarks to employees similarly after getting the performance appraisal, results should be communicated to the employees and they should be briefed about the standards and the actual performance they have give. There should be a One to One discussion on the results. The purpose of this feedback or discussion is to make the employees aware of his performance, achievements and short falls over a period of time but with a positive attitude. This step also contains the notion of motivation and encouragement to employees so that are loyal to organization and satisfied with the job as well (Caruth & John 2008). Making:

The last step of performance appraisal process is making the decision on the bases of results taken from the evaluation step. This decision is about the improvement of employees, training on different tasks which are lagging behind, corrective actions, promotions and rise in salary, rewards, transfers and demotions (Caruth & John 2008).

Selection of Performance Appraisal systems is the main part of the performance management and measurement. The literature shows that motivation, job satisfaction and employee loyalty with organization is directly linked with the Performance Appraisal systems. In the chapter, research has thrown light on performance appraisal and its different methods widely used across the globe, performance appraisal process and linked strategies. By the side it has also heighted the different performance appraisal problems that often occur in the process or performance measurement.

Chapter 3 -


In this chapter researcher will develop all the methodology for the research study. This part of paper will discuss the research plan, how to conduct research, what will be the research design, what methods will be used by the researcher and what different sources will be used for the data collection for the research. For any research study methodology chapter is very importance and have it significant value. Hart (2001) describes the importance of methodology as systems of all methods and rules that supports the study with the analysis and data collection. Any research study never put down the importance of research design and methodology, as it plays a integral part throughout the process and also the success of the study depends upon the research plan. Trauth (2001) says that research design and research philosophy should be according to the needs and purpose of the research study.

3.1. Research Question:

To explore the role of performance appraisal system in HR function within the banking sector of Pakistan.

3.2. Objectives:

  • What is performance appraisal?
  • What are different performance appraisal systems?
  • How appraisal system interlinked with motivation and employee loyalty within banking sector of Pakistan?
  • What are different problems with performance appraisal system?
  • What are different strategies in HR department to enhance productivity?

3.3. Research Paradigm:

A paradigm is a structure that helps the researcher to construct a frame work of study. This frame work tells how to see the world and create a link within the perspective and shape the different elements together to conduct a research (Guba & Lincoln, 1994). Research paradigm has three types into it.

  1. Ontological question (form and nature of reality)
  2. Epistemological question (basic belief about knowledge and relationship)
  3. Methodological question (how to go about finding the beliefs)

Ontology describes the reality that researcher wants to investigate in the study and also it takes some assumption based on the reality and develops research study. Epistemology describes the linkage and a strong relationship in between the reality and the research study moreover epistemology has some set of assumptions where it tells the different techniques and methods to enquire about the reality in the real world (Guba & Lincoln, 1994).

Here researcher has defined the ontology of the conducted research as:

“In reality, performance Appraisal systems and it feedback and results has effect on the job satisfaction, employee loyalty and motivation towards the job.”

In contrast to the epistemology, this variable will be “analysis key factors (job satisfaction, employee loyalty and motivation) and the different performance appraisal systems are linked together and have strong relationship”.

Here researcher is going to describe the whole methodology for the research study through the help of research onion. This research onion tells the research philosophy (phenomenology, systems thinking and positivism) Research approach (Deductive and Inductive) Research strategy (Experiment, survey, ground theory, case study, ethnography, action research and exploratory research) Time horizon (longitudinal and cross sectional) date collection method (literature review, interview, questionnaire, survey, focus group and reflective diary).

Research Framework (Saunders, Lewis, Thomhill, 2003)

3.4 Research Philosophy:

In the research philosophy, there are different types of philosophies: phenomenology, systems thinking and positivism. Research philosophy can be describe as “All research is interpretive; guided by set of beliefs and feelings” (Denzin and Lincoln, 2000). It tells the different sets of assumptions and believes that are linked to the world, i.e. how the researcher understands the different aspects of the study and what the perspective of the research conducted is. This approach philosophy helps the researcher to study the different small elements in to details and filter the information into a different angle. Research philosophy also helps the researcher to understand the real meanings of the research study (Klein and Myers, 1999).

Positivistic philosophy refers to the quantitative and some kinds of scientific experimental tools and methods, and talks about the quantitative research, by keeping in view the research objectives positivistic approach is appropriate to follow as it is talking about the behaviours and then measurement of feedback of the employees and its effects on the employee's job satisfaction. The other PhenomenologicalIn this approach talks about the qualitative research basis, and it interprets the research results in a qualitative way. Again, here research felt the sensitivity of research objective so it has been suggested to take the Phenomenological approach to carry the research. This research is middle of the two approaches so both philosophies are been used in the methodology design.

In the research method researcher refers to method of reasoning as there are two types of research approaches, Deductive and Inductive Methods. Deductive Method: This method takes the research from very general or broad topic to a very narrow and specific title. This approach usually refers as top to down method, and concludes this research based on the rational facts. Inductive MethodThis approach enables the research to get his research program from very specific to a generalized aspect, in the beginning researcher focus on the very primary and elementary facts but as the research goes on then researcher starts focusing on the broader aspects for the analysis and his expected outcomes. This approach usually refers as bottom up method, but these methods holds the degree of uncertainly. In the underlying research it has been felt that inductive method will be more appropriate to use, as the its main objective is to see, what effects performance appraisal system has on the employee's job satisfaction, loyalty and his motivation level. In the banking industry as the recession hits this has been observed that performance of the employees was affected as the employee's morale was low. The researcher aims to investigate the role of performance appraisal system and its effect on employees considering Motivation, Job Satisfaction and employee loyalty as the key factors in HR function within the banking sector of Pakistan and comparative study with JS Bank.

In the research plan another research is being followed Grounded theory approachthis research approach used to when; there is no literature available for the research objectives. This approach helps the researcher to get information from the participants. Another approach in which researcher involves in the research process itself, in the Action Research Approach, research tries to be a part of the research program. In the research program, when the organization is developing some change into the particular process, then it leads to a research plan where he becomes the part of the organization and been a observer to all the process and comes with the new research idea, this Approach calls Ethnography Approach. Getting into research program it is always recommended to process your research in such a way that answers the question asked by the researcher. Research approaches included the, case study approach.

3.5Case Study Approach:

A number of approaches are undertaken by a researcher to make the research work more accurate and practical. One could use various research approaches available like the: Action Research, Case study, Ethnography and Grounded theory Project approach.

The researcher feels that case study approach is most applicable as connection between texts and information collected can be easily obtained. It would focus on understanding in depth the research question and at the same end it conceptualises the various links present inside a particular frame work. Case study approach also takes up use of entrenched designs such that various studies can be used within a single research (Strauss and Corbin, 1990).

The approach would highly correlate with the research carried as it would allow predicting the approach performance appraisal systems in JS Bank and at the same time allow the researcher to understand the job satisfaction of employees in the bank. Specific information related to the bank could be gathered using the said approach as compared to the overall working of the bank. A single case study was deemed suitable for research as the research question surrounds the single notion of performance appraisal system in JS Bank. Even the time frame associated with the research would work well with a single case study in hand, thereby making the researcher to understand in depth the research topic at the same time provide a more efficient and well build framework (Strauss and Corbin, 1990).

Three major reasons could be further identified to stress on the importance of case study approach i.e. “to study the phenomena in its natural settings, asking how and why questions and where very few studies have been previously been made” (Benbasat et al., 1987). The researcher understands that all the suggested points have been incorporated in the research and at the same end applied over the bank under consideration such that relevant data can be obtained. Specific information related to JS Bank in relation to performance appraisal system could be well obtained by keeping these points in mind. Yin (1994) further suggests analyzing in depth the “research question, current position, methods of analysis, linking of data to theories, and principles on which result are observed” as being fundamental to research being carried on JS Bank (Yin, 1994). Further to this explanatory case study approach has been used by the researcher owing to the fact that detailed information regarding performance appraisal of JS Bank is needed. Further to this it would allow the researcher to conceptualize well all the data collection methods applied i.e. both qualitative and quantitative frameworks in a more prudent manner.

3.5.1 Case study of banking industry of Pakistan:

Every country has a main financial regulatory body to cycle all financial institutions; like the State Bank of Pakistan (SBP) is the regulatory body and integral part of financial services. Vision Statement:

“Our vision is to develop the SBP BSC (Bank) into a strong and dynamic institution, equipped with an efficient and professional human resource base, having the requisite technology and fully capable of providing quality service to stakeholders, while complementing the State Bank of Pakistan in achieving its objective”. (SBP, 2011) Mission Statement:

“To provide reliable banking services to the Government, financial institutions, public and to act as an operational arm of the State Bank of Pakistan”. (SBP, 2011)

The State Bank of Pakistan is taking effective supervision of all financial institutions. This sector comprises of different categories like; commercial banks, non commercial banks, scheduled and non scheduled banks, micro and macro finance banks, development financial institutions, leasing and investment banks, agro-finance institutions, brokers and discount houses, venture capital companies, mudaraba and musharaka companies (Islamic banking), stock exchange and insurance companies. Thus, SBP is carrying all the financial services within its umbrella (SBP, 2011).

As a central financial body of a developing country, it has many economic, traditional and developmental functions to gain the macroeconomic goals. Traditional functions are categorized as: issuance of currency, regulating the interest rates (IRR), balance of payments, keep an eye on inflation and deflation, supervision of all other sub-financial institutions, lender and last resort, regulating the monetary policy, banker's bank, government banks and other functions are: management of foreign exchange, public debts, government debts and also to understand negotiations with international financial bodies i.e. International monetary fund (IMF). SBP is also making frame work for saving and investment patterns. All interest rates (six month KIBOR, nine Month KIBOR) will also be monitored by SBP. The main developmental function that SBP is performing in current time is the Islamization of all banking infrastructure (SBP, 2011).

Being an integral part of Pakistan's economy, SBP is trying to regulate all its departments in most effective and professional way. Insight to SBP's Human Resource Department:

The State Bank of Pakistan always give confidence to fresh banking graduates to be a part of its operations to get wide knowledge of banking sector. It also offers its employees the chance of endorsement and rotation within the bank by posting internal jobs. This opportunity enables the employees to meet their personal aims and objectives in their banking career (SBP, 2011). Quite few units are working under the HR department of SBP.

The Performance Management Unit (PMU) is the main authority for carrying performance measurement and appraisal process and suggests the employees to increase their annual goals that will definitely smoothen their progress to get promotional objectives and also rise in their salaries (SBP, 2011).

The Reward & Recognition Unit (RRU) is the main unit that gives the notion of recognition of personal and professional milestones of the employees and also acknowledge the services within the bank by giving ground-breaking business practices. This unit encourages the employees to take part in the decision making process to increase their trust on organization and they are held responsible for enhancing the corporate name in the public. To bring about this recognition and admiration, letters are being issued by RRU and also some monetary rewards (SBP, 2011).

The Succession Planning Unit (SPU) weighs up and measures the employees performance and their skills through different tools and also tries for the development, orientation and training needs of new employees and the potential successors (SBP, 2011).

There is a separate unit called Employee Motivation & Retention Unit (EMRU) that is responsible for conducting different surveys to check the level of employee's motivation, their job satisfaction level and also the loyalty of employees with SBP. This unit also works on the frame work of different strategies to get the maximum efforts from employee by polishing their skills (SBP, 2011).

The Job Evaluation Unit (JEU) measures the job posts and also the position and its structure to ensure that the job is done by a capable person and it is performed well with certain grade points (SBP, 2011).

The amalgamation of all units working under HR department makes it a well functioned department. Following part will throw light on JSBL bank and its operations:

3.6. JahangirSiddiqui Bank Limited (JSBL):

Jahangir Siddiqui is the merger of two giant banks of Pakistani banking industry; Jahangir Siddiqui Investment Bank Limited and American Express Bank Limited of Pakistan (JSBL, 2011).

3.6.1. Vision Statement:

“To provide quality and innovative range of banking services and products to our customers by a highly motivated team of professionals whilst maintaining high ethical and regulatory standards thereby, generating sustainable returns to our shareholders.” (JSBL, 2011)

3.6.2. Mission Statement

“To be a preferred partner of our customers by providing complete financial solutions exceeding service expectations, though a single relationship via conventional and non - conventional, conveniently accessible distribution channels.” (JSBL, 2011)

JSBL is a big wing of Jahangir Siddiqui investment and securities and an association of two banks. It had started its operation as a scheduled bank with SBP on December 2006 with an innovated investment practices. The JS bank is one of the premiers in the brokering and discounting license from the State Bank of Pakistan. Besides the banking services, the primary objective of JS bank is to provide quality financial solutions to all common customers of the bank. They are issuing new and innovative products for the customers to give them maximum ease in modernised banking (JSBL, 2011). The JS bank is performing multiple services and activities which can be categorized as follows:

  • Retail and Consumer Banking
  • Treasury - Securities
  • Corporate & Commercial Banking
  • Investment Banking (JSBL, 2011)

These departments are providing innovative solutions with technological ease to final customer. JSBL is also opening its branches all over the country and will be international in the next few years (JSBL, 2011).

3.6.3. Insight to JSBL's Human Resource Department:

JSBL is one of the renowned banks within the banking industry of Pakistan. It is famous for the modern technologies, customarily services and retaining of employees. HR department is very efficient and working according to the need of the organization and also fulfilling needs of employees. Below part will discuss the HR department, its processes, developments and also the performance appraisal systems of the bank(JSBL, 2011).

3.6.4. Human Resource Planning:

For the purpose of decision making about the human resource JSBL has categories its planning into three main steps:

Step 1. On the first place it indentifies its main organizational needs and then tries to make activities about it, what are the different possibilities to achieve those targets and solution to all problems about work force.

Step 2. In the step two JSBL tries to remove all the huddles in the processes and motivates the employees to achieve those targets and gives them maximum reward in return of their efforts. Here, it makes the targets according to their job responsibilities and requirements.

Step 3. It makes reasonable linkages between the employee goals and targets and organizational aims and objectives (JSBL, 2011).

3.6.5Job Description

A Job description document refers to a form where all of the job requirement and responsibilities are stated. This document also contains the future perspective job activities also. Here the sequence of job description form is mentioned below:

  • Job identification and job details
  • Job summary
  • Duties to be performed
  • Immediate manager and supervision & received (JSBL, 2011)

3.6.6.Recruitment and Selection

JSBL is recruiting main five categories of employees for the services:

  1. Higher management
  2. Middle management
  3. Trainee and internees
  4. MTO's
  5. Clerical staff

3.6.7. Training and Development

Training and development & orientation to all process and activities are always an important part of any HR department and JSBL is investing huge capital amount on work force. This training and development consist of different steps as follows:

3.6.8. Training:

In the first step of training, it has different activities in it:

  1. After the performance appraisal, the evaluation chart shows the different areas of employee's performance and it also indicates the areas where employees need training and development. This step makes improvements in the employees performance in the future time period (JSBL, 2011).
  2. Each time management reviews the performance of employees and suggests the training n development HRD department for the training of employees. It also tries to make their employees capable enough to pursue the activities in the future time and enhances their abilities. These reviews are normally on quarterly basis.
  3. Operation support division always make it assure that what type of training and orientation is needed for the employees and also whether this training will be given by the internal staff or that have to hire external bodies for developmental activists(JSBL, 2011).

3.6.9. Development:

  1. Management training orientation
  2. special training for new projects and improvement plans

3.7. Performance Appraisal:

Performance appraisal is structural framework allows the management to measure the performance off the employees and suggest the improvement plans for next time period. It's a relationship between the evaluator and employee. It's a opportunity for the employee to shows it's all abilities in this process and if the management and supervisor is recognising the effort then he will tend to receive the monetary and non monetary rewards from the organization. This rewards and recognition increases the moral and job satisfaction and good relation with organization (JSBL, 2011). Here JSBL management makes job targets and aims and employees try and make efforts to achieve those targets. In the performance appraisal process JSBL have different approaches as follows:

3.7.1. Traditional Approach:

The traditional approach concerned with the past performance and overall organizational development. In the main head office all the performance at local and regional branches is being reviewed. Every branch has its own targets and object set by the main branch and liable to perform on those notes (JSBL, 2011).

3.7.2.Expansion Approach:

Under the expansion and developmental approach, every employee is asked to make a Performa of his tasks and objective during the performance appraisal time. This approach viewed the goal setting. Every employee is liable to work on those targets and all the performance targets are reviewed on annual bases in December (JSBL, 2011).

3.7.3. Performance Appraisal Process:

Performance appraisal process of JSBL consists of four main parts.

Step 1. Create mutual understanding of organizational goals and individual aims & objectives between employees and the evaluator. What are the targets for the following periods, how to accomplish them and how the work will be evaluated?

Step 2. Ongoing employee performance assessment throughout the year.

Step 3. In this step evaluators measures the actual performance.

Step 4. After measuring the actual performance, evaluator compares this performance with the bench marks.

Step 5. After comparison, management allows employees to discuss this performance appraisal with the evaluators to removes the doubts, if any. Here final decision is made by the evaluators about the appraisal and also sets the reward systems based upon performance made throughout the year (JSBL, 2011).

3.7.4. Methods for Data Collection:

The researcher inclined the research to make use of both primary and secondary form of data. Primary data such as structured and unstructured interviews would be used clubbed with questionnaires, focus groups, surveys etc. Use of both structured and unstructured interviews would be obvious, however unstructured interviews would be taken up primarily as they would further pave way for structured interviews to take place (Miles & Huberman, 1994). However the criticality of primary data would make it mandatory on the researcher to focus heavily on it. On the other hand Hakim (1994) describes secondary data as an “reanalysis of data collected by another researcher including the analysis of data sets from varied sources to create area based data sets”. Thus such an data would refer to data or information generally gathered from previously available information such as published works, books, journal articles, organizational related document's, web based documents etc. The researcher would strongly focus on such kind of data, collected from documents or information published by the organization in consideration, journals, web based information, books etc which would eventually aid in forming a strong base for the overall research (Hakim, 1994).

The initial focus would however be on primary data which would depend on both qualitative and quantitative form of data collection which could imply that mixed method of data collection would be used which is generally also referred to as mixed form of data collection method. The quantitative research method would suggest analyzing the natural phenomena through experiments, questionnaires, surveys etc. however qualitative would enable the researcher to examine the social and cultural attributes of the organization undertaken by observing and interacting with the management and work force in the organization. Structured and unstructured interviews are generally prevalent in such a form of data collection and are highly inclined to case study approach undertaken. It is important to state here that amalgamation of both qualitative and quantitative method would provide a real picture of the organization and also increase the overall accuracy of data obtained (Palmerino, 1999).

3.8. Mixed data collection method:

The researcher has thought of taking up mixed method of data collection involving both qualitative and quantitative such that detailed information is obtained and in depth analysis can be taken up. Mixed method tends to reject dogmatism and would allow the researcher to be more expressive and resourceful (Hakim, 1994). Mixed method is adapted owing to the fact that it is inclusive and pluralistic such that a diverse approach to the overall research is undertaken. The research question would however, further allow collecting and determining some constructive conclusions.

3.8.1. Mixed method designs:

Creswell and Clark (2007) suggest embedded, exploratory, explanatory and triangulation design methods as four types of mixed method design and it would be feasible to take up one of these four while doing the research (Creswell and Clark, 2007).

The researcher however understands that triangulation method would be more appropriate for the research as it would allow the researcher to use in depth both qualitative and quantitative information and make a better use of such data (Creswell and Clark, 2007). The triangulation method would further be subdivided into four sub headings i.e. 1) Data triangulation 2) Methodological triangulation 3) Investigator triangulation and 4) Interdisciplinary Triangulation. However the research could be carried forward by use of methodological triangulation method which seems to be more appropriate for the research. It would also allow using qualitative and quantitative approaches to be incorporated in a more lucid manner (Creswell and Clark, 2007).

3.8.2. Interview:

Interviews would generally involve individual interviewing such that small number of respondents could explore the perspective of a specific situation. It is a main part of qualitative research method in which researcher would put forward questions for various individuals associated with the research area in mind which would allow the researcher to comprehend preferences and viewpoint of the person being interviewed. Telephone, web based and face to face interviews could be used while collecting such form of qualitative data, however researcher would incline the research to use telephonic and video conferencing (web based) interviews to understand the organizational working and perspective of people running the organization. The major advantage attributed to interviews is that further detailed information could be sorted and a more congenial feeling could be created such that better information is achieved as compared to surveys etc which sometimes tends to be boring (Layder, 1993).

3.8.3. Questionnaire:

Questionnaires tends to be one the most feasible method of collecting data/information from large chunks of individuals covering a wider area of analysis and sometimes are attributed as being better than interviews where verbal or visual expressions could resist actual information to come out. Another advantage associated with it is the use of both qualitative and quantitative methods by using questionnaires ((Layder, 1993). A series of questions are constructed as per the subject area chosen and is put forward to a wide range of individuals to understand and comprehend their viewpoint on the research by use of various constrained questions. The researcher simultaneously would use questionnaire to get the overall outlook of the employees working with JS Bank and what they feel about the current appraisal systems being used by the bank (JSBL,2011:SBP,2011).

3.9 Data Analysis

The researcher aims to use the concurrent data analysis method to analyse the data that would be collected. Separate analysis and collection of qualitative and quantitative data would be incorporated which would further be combined to be used in a more prudent way for the research. This is because of the different paradigm of data collection methods (qualitative and quantitative) that is being used (Gummesson, 1991).

Structured and unstructured interviews both would be used for the management of JS Bank to obtain the critical perspective on performance appraisal system and how it is benefiting them in terms of boosting the morale and motivation of employees or vice versa. The human resource departments of organizations like JS Bank, and IGI Investment Bank were approached and accordingly data gathering methods where used.

3.10. Research methods and Narrative Analysis:

It generally would refer to approaches to various texts which have a common alignment. Various texts or information is attributed as narrative owing to chain behaviour and outcome of the text under consideration (Marshall & Rossman, 1989). Such researches which incorporate narrative analysis tend to involve a life story research and generally are adaptive to qualitative approach stressing the use of semi structured interviews as compared to other means and researcher tends to be a observer; listening and comprehending the information. The narratives need to be re constructed even if things are imaginative or concerned with the researcher itself (Riessman, 1993). The data thus needs to be re aligned and processed again such that it suits the research being undertaken (Marshall & Rossman, 1989).

Models of Narrative Analysis: There has been a wide categorisation of approaches used for oral narratives of individual experiences; and Mishler (2000) describe a range of typologies that exists for narrative analysis. It is often observed that such typologies are not aligned or looked at hierarchically and a combination of various typologies may be used which might not be equally restricted (Marshall & Rossman, 1989).

Thematic Analysis: Thematic analysis differs from narrative analysis as in the thematic analysis approach more focus is laid on the actual content of the data collected. Stress is laid on what text is obtained rather that how or where it is obtained, however viewpoint of language is heavily attributed to the approach (Taylor & Bogdan, 1984). This sort of analysis could be widely applied qualitative form of data collection and would involve making sense of associated text or information, observing various situations surrounding the research, organizations and various cultures and behaviours observed. Such an analysis would enable useful involvement of knowledge and help in establishing enhanced communication. The researcher could also plan their research criteria's and build a basis for carrying out a research further (Taylor & Bogdan, 1984). Thematic analysis is seen based on research design, themes and information collected. Validation and utilisation of information collected is also critical part of overall thematic analysis. It would however further involve sensing the themes collected and recognising patterns observed (Taylor & Bogdan, 1984). Researcher would then explain the overall information gathered and further deduce the themes observed in light of theoretical facts keeping in view the research topic undertaken. Focus would be on developing knowledge and merging the whole knowledge gained in a more subtle, comprehendible and approachable manner.Here, researcher is going to conduct a research through case study approach and following the inductive and deducted approach. While for the data collection method qualitative and quantitative methods are under use. Researcher is using mixed method approach to analyse the data. Narrative analysis and thematic analysis will be used to for the finding and analysis.

Chapter 4:

Finding and Analysis:

Findings and analysis are the most important chapters and tell the whole research study along with the objectives of the research and data collected from qualitative and quantitative methods. In this chapter, researcher is going to analyze the structured interviews from the banking officials and questionnaire analyzes with the help of charts and graphical representation. This past of paper will review the whole study and gives the insight of the results after the laborious primary and secondary research.

Researcher conducted structured interviews from the officials of the Jahangir Siddiqui Bank (JSBL), The Bank of Punjab (BOP) and The United Bank Limited (UBL). Respondents shared their opinions and outlook on various aspects of the research study and answered the question asked. Following are the respondents in the interview panel.

Respondent 1: Fahim Javed - Manager Corporate Marketing - JSBL, 2011

Respondent 2: Kashif Ijaz, Manager Credits - JSBL, 2011

Respondent 3: Ahmed Sarfarz, Consumer Officer - UBL, 2011

Respondent 4: Malik Usman, Corporate Client Manager - BOP, 2011

Below part of the chapter will analyze the responses and it will highlight the findings of the study.

Question: What is the main objective of performance appraisal in an organization and what are the implications and relevance of performance appraisal with motivation, job satisfaction and employee loyalty?

The main objective of performance appraisal is to measure and improve the performance of the employees and increase their future potential and value to the company. There are other objectives like providing feedback, improving communication, understanding training needs & clarifying roles and responsibilities as well. Moreover, the respondents added that the performance appraisal is a tool to judge the performance of an individual with respect to his working capabilities, result orientation / target achievements, positivity towards his work & surrounding (which also includes peers / colleagues). It also identifies interpersonal skills, accuracy & thoroughness of work, punctuality, sense of commitment, cost consciousness, analytical thinking, initiative drive, adaptability / flexibility, communication skills, leadership, planning & follow through, decision making, delegation & staff development. Respondents gave a notion on the objectives of performance appraisal that it gives a clear idea for job succession of an employee in an organization. In the view of respondents, it can be assumed that this process evaluates the performance to motivate the employees and works as a supervisory body for the employees to see whether the Bank goals are met or not.

All the banking officials have illustrated the importance, main objective and purpose of performance appraisal system and it shows that in over all, banking industries are following the same measures towards this important part of an organization.

Question: What is the best method of measuring performance? What are the other methods of performance measurement used by other banks?

Here the respondents believe that the best method of measuring performance appraisal is to identify the strengths and the weaknesses of employees and to encourage them to improve their performance on the job and that is the annual performance review. However, it has been noticed that the respondents have accepted that the skill assessing criteria must have 4 to 5 fields (Interpersonal skills, technical skills and capabilities in relative to department management) with numeric rating range having top to bottom levels. One respondent argued on the importance of 360 degree feedback appraisal system as it gets the information about the employee's performance from all around the organization. Researcher has found that the banking officials mainly use the performance review method and some of them suggested that the 360 degree feedback, annual review system is the best method for performance measurement. It can be seen that in the banking sector, they are following the same methods and also know the criteria of other banks for appraisal system. In Overall, the banking industry of Pakistan is using the annual review performance system that allows the management to look into the overall performance of the employees for a specific period of time.

Question: What methods are used by your Bank for performance measurement?

Respondents from JSBL bank told that the JSBL is using the annual performance review system as it highlights all the achievement and key skills during the time of last assessment. However, one thing is important that the management allows the employee to review his performance review chart so that he can actually see the ups and downs where he has fallen over the period of time. The Annual Performance Review Method is used for the performance measurement. In this method, appraisee marks his points in Qualitative & Quantitative Assessment with his comments & achievements. Here, it is considerable that other banks are using the systematic methods of performance appraisal. Skills judgement grid have top to bottom levels and it tells the each grid in detail about the performance over the last period of appraisal. Most commonly performance ranking method is on front side. These methods allow the employees to see his performance and management can make decision on that performance for the reward and bonus, promotion and transfer from that aspects in all the banking industry.

The above conversation with the banking officials show that the banking industry is using performance review method on the whole and grading system to grid the skills into different framework to measure the performance of the employees. These methods ultimately are the source of motivation, job satisfaction and the employees become loyal to their organization if they are getting fair appraisal.

Question: Do you feel that the employees are happy with the current performance appraisal method?

Here, the researcher questioned the respondents that are the employees and the management of same mind and concluded from the conversation that the employees are satisfied with the performance appraisal system that the JSBL is using and is welcomed by all the employees. This process of performance measurement and appraising system is set in such a way that all the employees seem to be satisfied with the appraisal. Respondents believe that the best thing of any system is if nobody has any concerns and it is like that there is no problem in the appraisal system from the employees as the bank ever came across with any issues on the appraisal method. Researcher concluded from the conversation about the performance appraisal and found out that every employee puts his own efforts which are always there, so it will not be wrong to say that if one is doing best will get the best and he will be satisfied on those efforts and get motivated. It can be analyzed that all the employees feel that the management is using appropriate performance appraisal methods and all the employees are satisfied and contented with the performance appraisal that they are getting according to their expectations. Simultaneously they get motivated and become loyal to the bank.

Question: Job Satisfaction and Motivation are those factors which enable the employees to be loyal with the company; do you feel the employees are loyal to the organization?

Researcher tried to interpret the last question with some linkage to motivation, job satisfaction and loyalty. The respondent replied that the performance appraisal method of self-assessment which is used by the HR department results in job satisfaction of our employees and as a moderate evaluator, the organization always try to rate motivation, job satisfaction and employee's loyalty at the top in list so that they remain loyal and satisfied with their jobs. Researcher can say that the job satisfaction (in terms of nature of the work and monetary benefits) and the authority of power may lead to the loyalty with the organization. Some time employees prefer personal growth rather than loyalty with the organization.

Question: What is the criterion of performance appraisal? Monthly, semi annually or bi-annually.

The above answer can show that the banking industry is using the performance appraisal system on annual basis. But it can be said that if they are using monthly, semi annually and annually; will add to the efforts of the employees and it will enhance the productivity of the employees as it will linked them to get the targets and become the employee of the month and the employee of the year.

Question: Do you feel that the amalgamation of two methods is good for performance appraisal?

Respondents agreed on the statement that it is not a bad idea to adopt amalgamation process because it may involve external person to assess whether the employees are following performance appraisal method to fulfil the requirements of the HR Department or not. However, it is apparent that it can be more effective because the employee might be lagging behind with one method whereas he might have achieved the goals with the other method. But on the same hand, respondents believe that some of the employees think that the one method applied on annual basis can't judge the actual potential of the one and it will create complexity as every method has different judgement criteria. One method adopted should have clear purpose. Amalgamation and mixture of two performance appraisal systems is always good to see the actual performance, either this mixture of MBO or 360 degree feedback. Performance review grid or rating system will be appropriate to judge the performance, but on the same hand, one of the official has pointed towards the complexity of double measurement system as it will create fuss and confusion in employees about their performance measurement.

It is the demand of the time that old fashioned performance appraisal techniques like the Rating Scales, Checklists, Forced Choice Methods, Behaviourally anchored rating scales, Performance tests and observations are quite obsolete now. These days, as the HR department culture is increasing in every bank, different kind of modern Performance Appraisal Methods are being used whereas many other banks use managers and Reporting Officers for this particular purpose. The new methods are more precise and reflect the actual potential of an individual. After collecting appraisals from every department, the HR must consult the employees personally with confidentiality to avoid favouritism and take positive actions in favour of the employees if finds injustice in performance appraisal. Researcher concluded that the management should speak to all the employees after conducting the performance measurement so that the employees are being motivated by feeling that the management is considering their efforts.

4.1. Questionnaire analysis:

1. Do you believe Performance appraisal plays an important role in an organization's success?

It can be seen from the answers of the employees that they are agreed on the fact of importance of the performance appraisal system. If the employees of an organization are not satisfied with the performance appraisal, then it will ultimately affect the success of an organization.

The above chart describes that 66% bankers strongly agreed with the above statement and 32 % bankers agreed with the importance of performance appraisal in the success of the bank. Result identifies that the maximum portion of bankers and the other officials agree that the performance appraisal is an integral part of any organization and perform its role in the success of an organization.

The percentage of dis-satisfied employees is very small and they don't agree with the statement but approval and agreement covers this little percentage with its great influence.

2. Do you consider organization's reputation is affected by fair or un-fair PA?

Importance of the performance appraisal can be judged through the concept that it affects the reputation of an organization among the different competitors, as if the employees aren't satisfied with the performance appraisal, then they will be speaking about bad names in the industry and it will affect the reputation which will definitely going to affect the sales and business of it.

The above chart shows the positive response to the statement as 32% agreed with the statement and 58% of the bankers said that they are very much agreed that the organization is always on the stake if the employees are not satisfied with the performance appraisal system and it will ultimately affect the good name of the organization in the industry.

3. Do you know what PA methods are being used by the organization for performance measurement (MBO, 360, Traditional methods)?

It is essential that the employees should know the different performance appraisal systems which the management is using to measure their performances so that they can prepare themselves according to the set of system and can have scope to perform well. The above question has given the answer in a positive response as the maximum numbers of the employees know what type of performance appraisals are being used by the management. 76% employees replied in yes, as they know the Performance measurement and 24% are unaware of the management criteria of performance measurement.

4. Are you satisfied with the current PA system?

It is mandatory that the employees are agreed with the performance appraisal over the period and have satisfactory behaviour with all the process. This satisfaction will lead them to work hard and put their full efforts at work. If the employees are not satisfied with the performance appraisal system and they feel to use the other way of measuring their performance, then the management should review the methods of performance appraisal.

The above chart shows that large part of the employees are quite satisfied with the current performance appraisal as 12% strongly agree, 60% agree with the methods and the process of the performance appraisal. As the chart also shows that 24% don't agree with the current process which management of the bank should consider and ponder on the results. It has been found that 4% of the employees strongly disagree with the performance appraisal method.

5. Do you think different PA methods have different elements in it and affect the appraisal itself?

There are different performance appraisal systems used by different organizations. Every organization has its own system to measure the performance of their employees but it can be said that every system of measuring performance has some merits and de-merits and it is essential to remove the entire drawback which leads to un-faire performance appraisal.

It is very much clear from the results and the above chart that huge number (96 %) of employees replied that different performance appraisal methods have different affects on the performance appraisal of each employee. Every system of measuring performance is different from other so bank should maintain one particular system of measuring performance.

6. If yes then, does it affect employee's performance and can it hide their best qualities?

As this has shown in last question that different performance appraisal systems has a different elements in it and have separate affects on employees. Some of the elements can be hiding through the different systems. As if the organization is using 360 degree and feedback from upper n down right and left has gain all the performance of the employee but it can be possible that all of them have not told the main merit of the employee and his all progress is been hide by the element. So every system has its own advantages and disadvantages.

This above chart shows this clearly that large part of employees' answers in positive to the question asked 26 % replies agreed with the statement and 62 % replied as strongly agreed with the question asked rest 12 % thinks that it does not matter if they are using any method for measuring the performance.

7. Do you believe PA feedback improves the performance?

Literature shows that performance appraisal and its feedback always a big source of improving the performance for the next period of time. If the organization is giving proper feedback on the performance measured and also telling about the shortcoming and flaws of the last period of time and highlights the room of improvement then it will create a sense of encouragement and employees will be perform the next job with more dedication and results of it will be improved for sure.

The above chart shows that employees are very much agreed with question asked and huge number of employees (44 % and 54 %) said that they are strongly agreed and agreed with the statement that feedback improves the performance for the next period and very nominal percentage (2 %) is not agreed with the question and says that it does not make any different in the performance of next time.

8. Do you think PA has any impact on personal and professional skills?

Performance appraisal have different element in it and this process is acknowledgement of all the personal and professional skills at work. Sometimes within an organization it can be happened where the management do not acknowledge the personal and professional skills of employees which are integral part of their work and these skills are being hide by the selection of performance appraisals. It is mandatory that management should check the professional and inter personal skills of every employee and results of performance measurement should be base on those elements. The above chart shows that large numbers of employees are agreed with the notion of influencing the Performance appraisal on the personal and professional skills. From the sample 38 % strongly agreed with the statement, 54% are agreed, only 8 % are not considering this fact that impact the performance appraisal.

9. Do you think promotion, de-motion, transfer and dismissal; all depends on PA?

Performance appraisal affects the different elements within the organization so management should be careful while doing the performance measurement of employees. If any employee wants promotion in his job line then he should perform well during the period so that in the process of performance appraisal he get promotion on his past working time, same is the case with the transfer. Promotion, increase in payments and transfer and turning round are always depends on the performance over the period of time. If management sees that one is not performing its job tasks then they have the right of de-motion and in a number of cases the sacking of that employee. So all these a variety of aspects depends on how one carry out.The above chart shows the agreement and disagreement with the question. 24 % employee are strongly agreed and 46 % are agreed on the fact of promotion, transfer, rise n salary and demotion are depends on the performance evaluation. Although some of the employees thinks that promotion and demotions is not depended on performance appraisal.

10. Do you agree that PA identifies strengths and weaknesses of employees?

The importance of performance appraisal can be measure with the different elements, that within a job it highlights the employee's personal and professional skills, it all developments and improvement over the past period of time. On the same hand it put in the picture the most important achievement s and also the loophole which the employee has in him. Management makes the performance appraisal in such a way that it indentifies all the strengths and weakness the employees has and it helps the employee to gain more in next time and improves the weakness that he has in his job tasks.

The over chart clearly tells that employees are agreed that performance appraisal shows the strengths and weaknesses of employees. From the sample 88 % of employees has replied to question as yes (agreed) and rest are not agree with the statement and believes in the materialistic approaches.

11. Are there any other boards or groups of people to review the PA?

Performance appraisal should be very much independent and nobody should influence the performance appraisal process. There should no undue advantage from anybody to influence this process otherwise this will not be a true and fair view of the past period of time. After the performance appraisal it should be mandatory that other board should check the process so they can cross check the performance made by the employee of there are no chances of false percentages has given to any employee to make his performance better than the other and he can takes any benefit of out it.

The above graphic representation demonstrates that employees has answered that JS bank has a separate board to review the performance measurement made by the management. From the sample 88 % employees knows that there is a separate board for it and some of (12 %) are unaware of this process and does not have any idea about the true and fair view of performance appraisal.

12. Are the PA's done periodically?

There should be pre announced period of performance appraisal, like semi annually or per annum so that all the employees are acquainted with that when this process is coming over so that they capable of do well at their job and get utmost reward of their efforts. If this process is conducted semi annually then the management is able to tell employees with reference to their strengths, weakness, their developmental areas, key improvement areas. So it will set aside the employees to get better by the time and they can actually perform better than the last period of performance measurement. Maximum employees (84 %) replied that in JS bank the performance appraisal process is being conducted periodically. And they knows about the time of this process.

13. Does management allow you to speak about or giving feedback of conducted PA?

It is always recommended that management should be very supportive and it allows their employees to be very much relax with the policies of the management and if anyone feels uncomfortable with the process then he should raise his voice so that management can hear his right to be heard and implement the policies on the subject of those complaints made. If the management allows the employees to speak in relation to the performance appraisal then they can look into the main issues with the performance appraisal method and if it's creating problem to every employee then they know how to change their systems to measure the performance.

This above chart shows that most of the employees believed that management allows them to speak about their performance appraisal. From the sample 68 % people replied in yes and 23 % refuse with the statement and believes that management not allows them to speak about the past performance appraisal.

14. Do you think management reviews your response?

Performance appraisal and all its system can be make more good and authentic when the management allows the employees to speak about the performance measurement they have made and all the employees believes that the management is carrying a factual and fair view of the performance appraisal and there is no undue advantage has been given to a few employees, it will create a trust gap between employees and management and employees will give the utmost efforts to job. An important part of this trust is that management is actually looking into the complaints, issues along with and right to be heard of the employees about the performance appraisal and making new recommended policies on the voice of employee to make more satisfied employees.

The above graphic representation shows that large part of employees believes that management is looking into their responses. From the total sample of population 10 % replied in strongly agreeing the statement, 62 % are agreed with statement but some of the employees thinks that management is not taking their complainants and issues into consideration.

15. Do you believe management takes any action on your feedback and responses?

As the above statement's analysis demonstrate that it is obligatory that management should takes action on the say-so of employees and to get the better view from employees about their performance appraisal and if they have in the least issues the length of with the process and system so that management should be able to remove those problems. Management should make a separate section where the employees can drop their problems and issues and management listens to them carefully and act upon the major issues. If the management is taking action and pondering on the responses from the employees then it will improve the standards of working of employees.

The above visual aid shows that enormous number of people responded as that they believes that management listens to their complaints and issues and moreover gives response to those complaints made. But here it can be seen that some of the employees thinks that management is not listening to them and it is a quite relation connecting managements and employees.

16. Does performance appraisal have any connection with Motivation?

Performance appraisal have different elements in it and all elements are inter linked, one performance appraisal is good when it covers all the respective elements and combines it for the good of the employee and employees can make a little of it. If the performance appraisal tells the employees about their performance over the period of time was good, in this way it will motivates the employees and they will make efforts to perform well in the future time. If the performance appraisal tells the employees in relation to their merits and strengths over the periods of time then it will certainly motivates them to do well in the next time and have the promotions and rewards. The chart shows that huge number of employees agreed with fact of linkage between performance appraisal and motivation. From the sample population 46 % are strongly agreed, 52 % are agreed and only 2 % are disagree with this and believes so as to performance appraisal have nothing to do with motivation of employees.

17. Do you think PA have any relation with employee recognition?

As demonstrated in the last analysis that performance appraisal has a solid relation and linkages with the motivational aspect same the employee recognition is very important with the notion of motivation. If the management recognising the performance of employee in the time of performance measurement then they should recognise the employee and its efforts it will give a boost to his tasks and it will give him motivation to perform well in the next tenure. Recognition of strengths compels the employees to do well in the job and get the maximum benefits from the management are shape of rewards.

The above clearly shows that employees believes that there is a strong relation between these two notions, 28 % employees are strongly agreed, 62% are agreed and very little percentage of employees thinks that recognition have no link with the performance appraisal and it will do nothing with the motivational factors.

18. Do you think employees loyalty can be achieved through fair PA?

Performance appraisal different element with its process which allows the employees to get motivated, employee recognition and making improvements out of that process, on the same hand it also allows the employees to be loyal with the organization. If the employees is performing well and management is recognising its efforts then he will be encourage with this recognition, it will lead him to be more loyal with the organization and he will put more efforts to do good at maximum level.

The above chart shows that employees are fully agreed with the linkage of loyalty with performance appraisal. 44 % employees said that if the performance appraisal is depicting a true picture of actual performance then it can be said that employees are more loyal to organization. 48 % are agreeing with the statement. Very small number of employees believes that it is nothing with the loyalty and performance appraisal. Every employee has its own views to be loyal with organization or not.

19. Do you believe bank should highlight the personal and professional milestones?

If the performance appraisal is depicting the true and fair view of the performance then it will create loyalty in employees and on the same hand if the organization is indicates and highlights the personal and professional milestones then it will certainly boost the morale of the employees and they will e more loyal with organization. Personal milestones could be if the employee got marries, had baby or some big achievement in his personal life is surely recognized by the management so he will do his best at work. On the same case with professional achievement i.e. if the employees has qualified another degree, then management should recognise his achievements and it will motivate him and also to be loyal with organization.

From the selected sample 84 % employees believes that management should recognise personal as well as professional achievements and 16 % employees thinks that it is nothing to do with achievement and recognition of milestones.

20. Does recognition of personal and professional milestones affect the performance?

Performance appraisal plays a vital role towards the improved productivity of employees and it can be judge from the notion of recognising the personal and professional milestones in the organizational life, by this performance of employees will be increased and it will add improvement to their working. Employees will be much satisfied with the job and the management itself for recognising their contribution at work and also appreciating their personal achievements. If the organization is keep an eye on their personal and professional skills subsequently employees can have the trust of being good at work and in their personal lives.

The above chart shows that large number of employees is agreed with the concept of recognition of personal and professional milestones can help to improve the performance at work. From the chosen sample 42 % are strongly agreed with the statement, 50 % are agreed and a number of them are contradicting the statement thinking that it is nothing to work with the personal and professional achievement and it will not add up to the performance of the employees.

21. Do you think these recognitions have some connection with the job satisfaction, motivation and loyalty?

After analysing all the aspect of performance appraisal it can be seen that all of the elements are very much inter linked and each element has its own importance. If the management is recognising the efforts and the performance made by them over the period of time then it will increase the motivational level of employees that will add up to the satisfaction level and employees will be more satisfied by means of the organization and management itself. When the motivation level, job satisfaction will be there ultimately it will put in to the loyalty of employees with organization and they will not leave jobs and stick to the organization. It will definitely less the labour turnover rate and increase the productivity of employees.

The above chart shows that most of the employees from the chosen sample of population believe that the linkage of recognition of performance gives the level of job satisfaction, motivation to employees and also the loyalty with the organization. 42 % employees said that they are strongly agree with the statement, 54 % agreed and only 4 % thinks that it will not add up to the performance of employees and nothing to do with motivation, loyalty and job satisfaction.

Chapter - 5

Recommendations & Suggestions

All the objectives of this research study have been accomplished and this part of research paper will discuss some of the recommendations towards the JS to improve the performance appraisal system and its importance towards the employees and altogether for the banking industry.

Some of the recommendations are as follows:

5.1. True and Fair View of Performance appraisal System:

JS bank is working closely on its performance appraisal system and introducing some of the modern methods for appraising the employees but the researchers have felt that the need of true and fair view should be in front of the employees to get the real sense of performance management. Only when the management is presenting honest performance measurement, the employees will be happy with the management and will try to put efforts to make the organization better and to enhance the productivity.

5.2. Intrinsic and extrinsic rewards:

To highlight the importance of performance appraisal, it is mandatory to motivate the employees by giving them monetary or non monetary rewards. If the employees are working hard and meeting their targets, then the bank should announce special performance awards or some monetary reward to encourage them for working hard in future. This will also increase the motivational level in employees.

5.3. Recognition of personal and professional milestones:

Researchers here feel the great importance of personal and professional milestones in an employee's life. It is mandatory for the management to recognize the achievements of the employees in their personal or professional lives, if they have got something in their personal life i.e. marriage, birth of baby and any professional qualification or they have done something worthwhile in their professional life, then the management should highlight it for their encouragement, recognition and most of all, it will create loyalty towards the management and the organization.

5.4. Separate HR Department:

It is advisable that there should be an HR department or a small wing of its department in every branch so that the employees can discuss their issues with the management closely. It will allow the employees to be in direct relations with the management and so will help to increase the motivational level and job satisfaction as well.

5.5. Training and development needs

It is mandatory for the management to provide job trainings and developmental courses for the employees to retain them with the organization ensuring that they become loyal to it. The bank should offer its employees to get the IBP (Institute of banking Pakistan) new modern qualifications, new banking tools and also personal developmental plans for employees to get promotions and hike in salaries.

5.6. Job rotation and job enrichment needs:

It is also advisable that the management should allow the employees to opt for some job rotations so that they learn other skills which would maintain as well as increase their interest. This exercise will also ensure their loyalty with the organization. The management also makes some plans for the job enrichment for employees so that they can benefit the maximum from their present job as well as profile which in turn increases the productivity of the employees.

5.7. Periodical appraisal

It is recommended for the bank to make some planned schedule for performance appraisals so that the employees get to know about the process and can perform well. Also it should be an announced process so that there are no hidden methods to implement on.

5.8. Minimize the gap between employees and management:

To create a friendly and pleasant working environment, there should be fewer gaps between the employees and the management. It will bring the management and the employees on a single platform to understand each other and will also help them in doing their tasks effectively and efficiently. It is also advisable that the management should create congenial upbringing involving both the workforce as well as the senior management.

5.9. Integration of individual goals and organizational objectives:

If the employees and the organization are sharing the same objectives and goals, then the organization is on a successful road map. So, it is mandatory for the management to achieve trust of the employees so that they can share the common goals and objectives. This will ultimately create the sense of loyalty with the organization and morale of the individuals will increase which is an integral part of the long term organizational goal.

5.10. Employee of the month and year:

To motivate the employees to work hard at work, it is prudent that the management should develop such system so that the employees are encouraged and they get a sense of achievement once they are through with their job. For this, management of JS bank can introduce targets to achieve and whoever achieves those targets will be entitled as “The Employee of the Month” and similarly “The Employee of the Year”.

The above recommendations are merely based upon the findings and analysis from the interviews taken as well as the questionnaires filled by the employees of JS Bank. These suggestions may have critical importance towards the bank and its progress and will also to help the HR department to improve the performance appraisal system.

Chapter - 6

Conclusion and Discussion:

Performance appraisal has its integral importance within any organization and it is mandatory to use the different performance measurement systems in an appropriate way to get the real sense and sagacity in the organization. Banking sector of Pakistan is evolving with time; by using different tools to make its operation more sophisticated, they are pleasing the employees as the workforce of any organization is the main asset towards a successful road map. To get the maximum productivity from the employees, it is advisable that JS Bank should use the performance measurement system to maximize the performance. No hidden system or tool that overlaps the performance of any employee should be used by the organization. If the organization is not using appropriate systems for performance management, then it will affect its reputation in the market. Also the bank needs to remember that if the performance appraisal system is important for the employees, it is very important for the bank as well to be successful in the long run. Here it is mandatory that employees should know the different methods of performance measurement and organization should let them know the various tools of or performance appraisal and educate them about those systems.

Employees should know the methods of performance measurement they will be assessed on, so that they get the idea of this process and can be prepared for it. Every appraisal system is different from other method so it should make clear that every employee is being appraised by a same method so there is no unfair and influenced appraisal of any employee. Every employee should have the equal opportunities for expressing himself and his performance shouldn't be hide due to any influential method or tool.

It is mandatory that employees should know the time period of performance measurement so they are mentally prepare for those processes and meeting should conduct for the ease of employees. Feedback of performance appraisal is necessary, so employee come to know about their capabilities & strength and also the loopholes and demerits. This will certainly improves their performance in next period of time. Performance appraisal always affect the personal and professional skills of the employees as this is the integral part of any job and it influence the current and future performance. it can be seen that majority of the employees said that motivation, job satisfaction and employee loyal comes from the performance appraisal. If the employees is making good performance then management will motivate the employee through some monetary and non monetary rewards, this will ultimate create the loyalty with the organization. There should be a separate board and team to review the performance appraisal so that there is no clue of being prejudice and biased.

Here, management should allow the employees to speak about the performance appraisal and tells the management whether they are happy with the results or not and where they are finding the problems. Feed back of questionnaire shows that's there is strong linkage of performance appraisal with motivation, job satisfaction and employee loyalty. If the management is recognising the efforts of employees and acknowledging it simultaneously management creates a loyalty image for the employee to stay with the organization.

Hence, it has proven that there is strong relation among performance appraisal systems, motivation, job satisfaction and employee loyalty. In the banking industry of Pakistan and JSBL are using the performance appraisal systems and these systems are

Reflecting Summary

MBA from University of Huddersfield has been in itself a very enriching experience. With my previous degrees in Commerce and subtle experience in banking sector, MBA was just the only thing left out. Completing my master level education in Commerce from Pakistan, and reluctance to get that international exposure motivated me to take up MBA as my next stepping stone. MBA at University of Huddersfield has been an altogether an amalgamation of rich theoretical and practical learning's and various modules covered gave a new vision to my overall thinking.

The Banking sector experience somehow paved way for the current research that I undertook. A rich learning experience clubbed with development of various interpersonal qualities was carefully observed. Performance appraisal system has allowed me to conceptualize various other factors which are very important for an organization like motivation, job satisfaction etc among employees in an organization like JS Bank (on which research is based). Theoretical concepts where well understood and critical analysis was carried out based on data available from various journals, books, internet etc. I strongly believe that the whole research was taken up as a challenge and it has given me new directions to excel rationally.

The time frame associated with the research was quite restrained, however intense hard work and support from my tutor and JS Bank made it possible for me to complete the work in stipulated time. Time management was greatly observed and learnt from the overall research. Networking was yet another significant process that was observed throughout my course at University of Huddersfield and during my course of completion of this Research. Networking with various tutors, guest speakers and students from various backgrounds from all across the world was very enriching and a learning experience in itself. Similarly networking proved to be very beneficial while finalising the research. The research could not have been possible without making use of past social contacts at Pakistan and with the management of JS Bank. This allowed exchange of idea and concepts clubbed with present working at JS Bank to be incorporated in the Research in a more stipulated manner.

Thus Reflecting back on my MBA at University of Huddersfield has greatly enhanced my skills and morale. My confidence and eagerness to keep on researching on things even in future life has amplified. Finalising my MBA from UK now has bought out a changed person in me and it seems inappropriate to me if I don't once again emphasize the contribution of my family and friends, which has been immense in the past and during the undertaking of this course from University of Huddersfield.