The Impact of Performance Appraisal on Employee Performance in Banks Operating in the South of Jordan

Abstract

This research was about performance appraisal and its effect on employees’ work performance. The major aim of the research was to investigate the effect of performance appraisal on employees’ work performance of banks in the South of Jordan. This study also aimed at investigating the major elements of performance appraisal which included: establishing performance standards, establishing communication standards, measuring actual performance with established standards, discussing the appraisal with employees and giving feedback. In conducting this study, the required data was collected through a closed ended structured questionnaire. The questionnaire was adopted and adapted from many related studies. The procedures used to determine the comprehensive sample from a total population of 260 employees was the following: First, the target population was identified; second, the researcher used a formula based-sample size determination. Basically, a total of 260 questionnaires were distributed to the sampled employees and 260 were returned which represented a 100% response rate. The 260 returned questionnaires were then analyzed using smart PLS which is specially used for Structural Equation Modeling, path analysis, and confirmatory factor analysis. It is also known as analysis of covariance or causal modeling software. A descriptive statistics and correlation analysis was performed. The results of the study showed that performance appraisal has a mainly positive effect on employee performance in the banking sector of the South of Jordan. There correlation analysis showed that there was a positive and some negative association (Very strong association) between performance appraisal and employee performance.