Impact and Analysis of Performance Appraisal on Employee’s Motivation and Its Effects on Employee Retention in Banking Sector in COVID-19

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One of the core principals of Human Resource Management is Performance Appraisal and it basically is a win-win situation in both aspects because employee gains benefits in terms of rewards, bonuses and management targets and objectives are fulfilled. In this research we have analyzed performance in keeping in view of Management. For this purpose, we have conducted an empirical study of the staff members keeping in view of banking sector and data has been collected through questionnaire. We have established the relation between performance appraisal and work motivation which depends on performance appraisal types used in Banking sector and transparency of the process of performance appraisal, which is carried out are merely shared to employees only rating and appraisal letter is disseminated so therefore it impacts a downfall on employee engagement and employee gets demotivated if appraisal cycle is not conducted transparently which results in turn over. We have studied different performance methods which are implemented in organizations and tried to generate a new appraisal method keeping in view of COVID-19 and modern changes implemented in current era. We have reached out a point that employee should be educated about performance appraisal method so that it can be more effective and plays a positive role in building future leaders and increase organization profitability and maintain a healthy culture in an organization. Modern Banking has been digitalized and transformed in current era where technology plays a vital role and people get benefited in their homes due to advancement and current pandemic situation which arises it is important that smart work should be implement in combination of working from home and physical presence of employees so that organization work can be easily be done and more customer can be facilitated. We have reached at a point that employee training and education shall be prevailed related to digitalization and shall be aware about his JD and KPI’s respectively so that his appraisal can be done in an effective way which results in employee retention and organization profitability. It is concluded that combination of 360 degree appraisal and Human Resource Cost Accounting method shall be implemented as a new appraisal methodology which can be successful in keeping employee retention and playing a positive role in organization goals and objectives. If employees are not involved in financial benefit of an organization in that case we have to convert impact of his performance which results in achieving organizational goals and objectives.