Performance management practices and its impact on Banks’ performance in Pakistan

Abstract

Purpose-This descriptive research analysis the best performance management practice and its impact on employee motivation, loyalty, efficiency and effectiveness in banking sector of Pakistan and suggesting new methods for improving their performance management systems.Design/Methodology- Researcher has used the qualitative research methodology in which Content Analysis technique is being used to interpret data. Questionnaire and Semi-structured Interviews were also conducted from the middle management according to the needs and purpose of the research.Findings: Research findings shows that there is a positive relationship between Loyalty, Motivation and Effectiveness with true Performance Management Systems. Analysis of the data also shows that absence of guidance and feedback in current appraisal system leads to dissatisfaction amongst employees.Practical implications-Current research may be used by HR managers to identify and improve performance management systems to develop employee motivation and loyalty as well as they can build trust, believe in and support the current performance process by implicating new suggestions and solutions. It also provides the literature for future researches.