The Effect of Performance Appraisal on Job Satisfaction and Organizational Commitment of Select Insurance Employees

Abstract

Purpose – The purpose of this research paper is to investigate the effect and impact of performance appraisals conducted for employees in the Insurance Sector on job satisfaction and organizational commitment. Design/Methodology/Approach – The sample size consists of 273 employees of insurance companies. SPSS version 22 was used to perform regression analysis on the obtained data. Findings – The findings supported the hypothesis that performance appraisal does have a significant positive impact on both job satisfaction and organizational commitment. The findings also supported the hypothesis that performance appraisal positively influences employee satisfaction and commitment to their job and organization. Research Limitations – The limited and selected sample of the research and the research context limit the scope to which the conclusions of this study may be generalized. Practical Implications – The organization must take measures to communicate and develop the existing models used in performance appraisals in order to boost productivity and motivation. Originality/Value – This study indicates the need to redefine the usage of performance appraisal and its relevance in the organization, understanding its influence on employees’ performance and their level of job satisfaction and commitment towards the organization in an industry with a huge proportion of workers.