PERFORMANCE APPRAISAL SYSTEM AND ITS INFLUENCE ON SATISFACTION OF EMPLOYEES OF SELECT PRIVATE SECTOR BANKS IN COIMBATORE

Abstract

Human resources are considered as capital for any commercial / business related activity beneficial in economic realization. Hence, there is a need to maintain appropriate plans to increase the value of this resource. The banking sector plays a significant role for smooth as well as efficient functioning of an economy. The banking industry contributes 19% ($407 billion) of the Indian GDP (Gross Domestic Product). Among these, private sector banks in India contribute significantly to the GDP. Performance appraisal sounds simple but researches tell us that it is commonly used in performance feedback and identify individual employee’s strengths and weaknesses (Ruddin, 2005). The use of performance appraisal system by business and industry has been counted between 74 to 89 percent (Murphy & Cleveland, 1991). In this regard, it is important to know that ho far the employee perceive the effectiveness of performance appraisal system exists in the select private sector banks and it has any influence on their satisfaction levels? Simple random sampling method was adopted to collect the data from the select private sector banks located in and around Coimbatore District Nadu. The total sample identified for the study is 180 employees. Statistical tools used are Simple Percentage method, Garrett Ranking Method, Correlation and Regression Analysis. Result shows positive significant relationship exists between Goals and Performance Appraisal Satisfaction which means, a unit increase in goals increases the satisfaction of employees by 0.198 units. Likewise significant positive relationship found between Criteria and Performance Appraisal Satisfaction signifies, a unit increase in Criteria increases the satisfaction of employees by 0.258 units. Finally, significant positive relationship observed between Feedback and Performance Appraisal Satisfaction signifies, a unit increase in Feedback increases the satisfaction of employees by 0.180 units. It is concluded that the management shall consider promoting additional activities that includes play area, game centre, mini-theatre and few other recreational supporting activities that helps employees to release their stress to an extent in their workplace.