| Abstract: | The purpose of this study was to examine Effects of Performance Appraisal System on Employee
Motivation in Dashen Bank S.C. The study used quantitative research approach with
Explanatory and Descriptive research design methods to objectively answer the proposed
research questions.162 sample size were selected using stratified random sampling techniques by
classifying homogeneous employees from different braches position as strata. Structured
questionnaires consisted of 26 statements with five point Likert scale were used to collect the
data. Statistical Package for Social Science (SPSS) 25 software was used to analyzing the
questionnaires. Descriptive statistics was also used to measure the central tendency through use
of mean scores, percentage and presented in tables and graphs. Correlation analysis was used to
establish the relationship between the study variables. The study revealed that there is
statistically significant positive relationship between the Performance Appraisal parameters and
employees’ motivation. The result of multiple regressions analysis revealed that 91.1% of the
variation of employees’ motivation can be predicted by the independent variables i.e.
performance standard, Communication, Measurement of performance, Compare performance
against actual standard, providing feedback and Corrective measures are significantly affects
employees’ motivation at 95% confidence level. Performance standard and Communications
specifically exhibit the strongest correlations, suggesting their substantial impact on motivation.
The reliability test conducted to check the dependability and consistency of the instrument
showed, a Cronbach Alpha of 0.950 which is most relevant for the study. All the hypothesis of the
study showed that the six independent variables have statistically moderate significant
relationship with employee motivation based on their corresponding Pearson correlation and
Beta Coefficient with sig.00 (2-tailed) and P-value(<0.05). Finally, the finding of the study
showed that performance standard, Communication, Measurement of performance, Compare
performance against actual standard, providing feedback and Corrective measures are
significant drivers of employee motivation and the study recommended that the bank should
compare the employee performance with the stated standards |
