THE EFFECT OF PERFORMANCE APPRAISAL PRACTICES ON EMPLOYEE WORK MOTIVATION: THE CASE OF LION INTERNATIONAL BANK

Abstract

The purpose of this study was to examine the effect of performance appraisal practices on employee work motivation in Lion international bank. The study focused on six determinants namely; performance standards, continuous open communication, and measurement of performance, compare performance against standards, providing feedback and corrective measures. The study used quantitative research approach to have a better insight and gain a richer understanding about the effect of those factors on employee work motivation in Lion international bank and the researcher has employed explanatory research design to empirically answer the research questions. Both probability and non-probability sampling were used in the sampling technique. A purposive sampling technique, which is non-probability sampling, was used to select fifty branches among the total number of 250 branches and also to choice head office’s employee as respondent. Simple random sampling technique, which is probability sampling, was used to select the respondents among the selected fifty branch’s employee. For achieving the study objective, 450 sample respondents were selected and out of this 405 respondents are properly respond the questioner data and collected in 5 point Likert scale questionnaire with closer assistance of the researcher. The data, then, analyzed through descriptive and inferential statistics using linear regression. By the findings, out of the proposed six factors in affecting employee work motivation in case of Lion international bank, the whole factors namely; performance standards, continuous open communication, and measurement of performance, compare performance against standards, providing feedback and corrective measures were found to be positive and statistically significant. Furthermore, appropriate recommendations have been forwarded.