IMPACT OF PERFORMANCE APPRAISAL SYSTEMS ON EMPLOYEE PRODUCTIVITY

Performance Management system is now widely recognized as a significant vehicle for improving performance and productivity of both employees and organizations. Therefore many organizations are reexamining their current performance management systems. This research evaluates the efficacy of current performance appraisal systems and then identifies the significance and implications of the introduction of 360 degree feedback as a form of appraisal and its impact on the productivity of employees in Pakistan’s Banking Sector. For this purpose, qualitative research was conducted through questionnaires. The findings of the survey revealed that ranking method and management by objectives are the two most commonly used appraisal systems in the industry, but a strong preference has been observed for implementation of the 360 degree feedback system. However, most of the respondents felt that 360 degree feedback will lead to no or very small increase in productivity.