The Impact of Performance Appraisal and Reward System on Employee Productivity: The Mediating Effect of Work Environment

Abstract

This study investigated the effect of performance appraisal and reward system on employee productivity: the mediating role of work environment. The study was conducted at Komfo Anokye Teaching Hospital, Kumasi. The sample comprised of 350 employees from whom they were selected purposively from a population of 2800. The study adopted a descriptive survey and analysis such as exploratory and confirmatory factor analysis, discriminant validity and reliability analysis from Cronbach Alpha was estimated using SPSS (version 23) and Amos (version 23). From the hypothesis, the study concluded that performance appraisal and work environment have a direct positive effect on employee performance. The study also found performance appraisal to having a partial mediator to employee performance in the work environment. However, the work environment showed no mediating effect between reward system and employee productivity. The study investigated the mediating effect the of reward system which was found to be insignificant. This is an imperative for further study to critically analyzed it effect on other antecedents. Keywords: Reward System, Performance Appraisal, Work Environment, Employee Productivity. DOI: 10.7176/JRDM/87-04 Publication date: September 30 th 2022