Impact of performance appraisal reactions on affective organizational commitment and work performance

Abstract

The objective of the study is to examine the relationship between performance appraisal reactions and employees’ outcome in terms of affective organizational commitment and work performance in Pakistan’s 5 largest banks, which is situated at federal capital city, Islamabad, by using a data of 101 banking employees. The results of the survey show that performance appraisal reaction has a positive impact on organizational commitment, while it has a significant impact on work performance only for those employees whom have been receiving a high level of perceived regular feedback. This positivity describes the importance of performance appraisal reactions in high level of work performance, which was mediated by regular feedback. The results suggest that formal performance appraisal cannot compensate for low levels of regular feedback. The results derive substantial evidence of work performance by organizational commitment and performance appraisal in banking sector.