The Role of Performance Appraisal and Performance Management in Promoting Employee Satisfaction, Motivation and Commitment

Abstract
Performance appraisal (PA) and performance management (PM) are the fundamental preoccupations of human resource management in the 21st century. Globally organizations big and small, simple and complex require robust PA and PM systems to operate effectively. PA and PM answer critical questions, they specifically address the type of job required from employees, the measurement of performance in these jobs, and designing appropriate systems which match the job requirements and reinforce standards. It is also noteworthy to mention that the majority of workers today are knowledge workers whose skills must be built over time and an effective system must be focused on to produce continuous development of capabilities. In this context, human factor has become as increasingly as important as technology, strong capital structure, low cost, quality and innovation for any type and size of organization. This research paper aims to explore the literature, practice and the extent to which performance management systems and performance appraisals are able to effectively manage people performance outcomes to gain competitive advantage in the Lebanese market. An empirical study was performed using a survey questionnaire, which was distributed to over 3,500 Lebanese professionals from different occupations and business sectors. Out of the questionnaires distributed, through professional Linked-in accounts and facilitators such as Browse Arabia, 260 were returned. Statistical analyses conducted using SPSS Version 20 include Reliability Test, Factor Analysis and Regression Analysis. Empirical evidence from this study shows that PA and PM practices have a significant positive relationship with Satisfaction, Motivation to Improve Performance and Commitment to Company. The study recommends managers of Lebanese private companies to better leverage their instituted PA and PM systems, which used adequately, play a central role in motivating the employees to improve their performance and commitment to their companies.
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Citation
Keurkunian, A. (2016). The Role of Performance Appraisal and Performance Management in Promoting Employee Satisfaction, Motivation and Commitment (MBA thesis, Haigazian University)