IMPACT OF EMPLOYEE PERFORMANCE APPRAISAL SYSTEM ON EMPLOYEE PERFORMANCE IN THE RESEARCH ORGANIZATIONS IN THE PLANTATION SECTOR IN SRI LANKA.

Abstract

At an organizational level, the employee performance appraisal system (EPAS) impacts other HR/ Administration Systems as well as organizational strategy. The effectiveness of the EPAS of an organization is dominant for ensuring the success of its recruitment, selection, employment, training, disciplinary management and employee motivational practices at a strategic level. This study aims to evaluate the existing EPASs in the semi govemment research organizations in the plantation sector of Sri Lanka. and to investigate its influence on employee performance. The EPAS is the independent variable and the dependent variable is employee performance in the selected organizations. Through the literature survey, eight important dimensions to compute independent variable and four dimensions to compute dependent variable have been identified and the hypotheses formulated for testing the relationship between the independent and dependent variables. II A sample of 68 managerial level employees who are engaged in evaluating performance of their subordinates have been randomly selected from the relevant research organizations, and a questionnaire used to collect primary data over a period from 02nd May 2015 to 03'd June 2015. Research questionnaire comprised of different types of questions for which scores were assigned according to five-point likert scale. Data analysis of this study has been carried out using the statistical package for social sciences (SPSS). The study reveals that, correlation between EPAS and employee performance in the selected research organizations is "Iow to moderate", yet significant. The results suggest that, the current EPASs of research organizations in the plantation sector of Sri Lanka, need to be revised and further improved for realizing the important purposes of employee performance appraisals and then for better employee performance towards better organizational productivity.