Impact of Performance Appraisal, Compensation and Promotional Practices on Employee Perceived Performance

Abstract

In the current scenario, HR practices play an important role in organizations to increase the employee perceived performance. The purpose of this study is to examine the relationship and between the employees perceived performance and compensation, performance evaluation, and promotion practices in the banking sector of Nuwara-Eliya District, Sri Lanka. The destination of this study is to imply the repetitive activities performed in the context of an organization’s normal, everyday operations. It’s all about the use of employee perceived performance to design, analysis, and manage human resources and where possible, to improve these practices. Survey of 200 banking personnel was conducted through personally administrated questionnaire to investigate the impact of compensation, performance evaluation, and promotion practices on employees’ perceived performance. The relationship is calculated by applying the Spearman’s correlation matrix and multiple regression analysis. The Spearman’s correlation results demonstrate that, the employee perceived performance and compensation, performance evaluation, and promotion practices has the positive and significant relationship. The regression results indicate that the performance evaluation and promotion practices are significant but the compensation practices are not significant. Moreover, this study provides help for top-management of banking sector to design or revise their HR policies and make practices to attain high employee performance.