Problem statement:

“How do the different appraisal systems of organizations effect the employee satisfaction”?

More satisfied employees will help the organization to grow fast. To satisfy the employees a fair
appraisal system must be followed. This satisfaction will motivate the employees and they carry
out tasks to accomplish organizational goals.

 How performance appraisal system can be applied in an organization?

 What are the factors affecting the employee satisfaction in an organization?
 Do satisfied employees help in organization progress?

Theoretical Framework:

Performance appraisal Satisfaction Organization commitment

Independent Variable Mediating Factor Dependent Variable

Employee engagement
Moderating Factor

Hypothesis:
 If the performance appraisal will be good then the organizational commitment will be
increased.
 Satisfaction of employees directly affect performance appraisal.
 Greater the employee engagement, higher the organizational commitment.
 Good appraisal system leads to the better employee engagement.
Introduction:
In today’s competitive business world, it is understood that organizations can only compete with
their rivals by innovating, and organizations can be innovative by managing their human
resources well. The human resource system can become more effective by having a valid and
accurate appraisal system used for rating performances of employees (Armstrong, 2003;
Bohlander & Snell, 2004)

The Human Resource Management is concerned with the management of an organization’s

workforce. They are responsible for the recruitment and retention of good employees and also
the training and development of employees to boost their productivity, efficiency and also their
satisfaction, and to resultantly promote the overall success of the organization (Paauwe & Boon,
2009).

Desirable performance of employees which an organization needs, however, is dependent on

positive job attitudes like job satisfaction and commitment. Thus, negative job attitudes pose a
threat to the attainment of organizational goals. Successful managers recognize that human
resources deserve attention because they are crucial in top management strategic decisions that
guide the organization's future operations.

Literature review:
Angelo S. De Nisi and Robert D. Pritchard (2006) define performance appraisal as a discrete,
formal, organizationally sanctioned event, usually not occurring more frequently than once or
twice a year, which has clearly stated performance dimensions and/or criteria that are used in the
evaluation process.

On the most basic level, (Borman & Motowidlo, 1993) distinguish between task and contextual
performance. Task performance refers to an individual’s proficiency with which he or she
performs activities which contribute to the organization’s objective

The literature reveals that fairness perceptions about various components of PAS have very
serious implications not only for employees, but also for an organization (e.g. Bernardin &
Beatty, 1984; Latham & Wexley, 1994).

Due to importance of PAS’s fairness, it is a significant topic of investigation among researchers

in the field of organizational psychology (e.g. Martin & Bartol, 2003; Stoffey & Reilly, 1997)