Impact of Performance Appraisal System on Employee Motivation at Karachi Port Trust (KPT)

Abstract

The aim of this study was to gauge the impact of Performance Appraisal (PA) system on Employee Motivation at Karachi Port Trust (KPT). Performance appraisal is one of the important HRM tools used to assess the performance of employees and accordingly take steps for their professional and personal development. For this study, four components of performance appraisal, including goal setting, feedback, learning & development, rewards & incentives were chosen to examine their influence of employee motivation. The research is explanatory in nature and deductive approach was adopted. Quantitative data were collected through a questionnaire survey method from 254 employees working in different departments of KPT. The same were evaluated through Correlation and Regression statistical tools. Findings of the study reveal that the existing PA is quite effective in raising the motivational level of the employees. Especially, the rewards & incentives and learning & development are the two very strong elements of PA which help in keeping moral of the employees at a high level, whereas goal setting also plays a vital role in increasing the motivation of workers. However, feedback is not contributing in employee motivation. Perhaps managers do not pay much attention to this aspect and do not provide a constructive feedback to the employees due to some communication gap. This study is expected to help the management of KPT in understanding the importance of PA system and also to know the weaknesses within the organization which may help to incorporate appropriate remedial measures. Other organizations may also benefit from findings of this study for enhancement of their PA system.