Performance Appraisal Systems and Their Impact on Employee Performance (A Field Study at Al-Sahari Bank, Zawiya Branch)

Abstract

This study aimed to identify the impact of performance appraisal systems on employee performance at Sahara Bank, Zawiya Branch. It sought to determine the effectiveness of the implemented performance appraisal system, measure employee performance levels, and reveal the nature of the relationship between the two variables. The study's significance stems from the importance of performance appraisal systems as a key function of human resource management, given their role in improving performance, identifying training needs, and supporting promotion and incentive decisions.

The study employed a descriptive-analytical approach. Data was collected using a questionnaire distributed to a simple random sample of 30 employees from a total population of 157 employees at Sahara Bank, Zawiya Branch. Data were analyzed using the SPSS statistical software, employing means, standard deviations, simple regression analysis, and analysis of variance (ANOVA) to test the study hypothesis.

The results showed that the sample viewed the bank's performance appraisal system positively, noting that the evaluation criteria were clear, fair, and transparent. Furthermore, the study indicated that employee performance levels were high in terms of performance quality, job commitment, and productivity. Regression analysis demonstrated a statistically significant positive effect of performance appraisal systems on employee performance, with a correlation coefficient (R = 0.741) and a coefficient of determination (R² = 0.549). This indicates that performance appraisal systems explain approximately 54.9% of the variance in employee performance. ANOVA confirmed the significance of the regression model at the 0.000 level.

The study concluded that developing performance appraisal systems contributes to increasing employee efficiency and improving their performance. It recommended updating the performance appraisal system periodically, adopting objective and clear criteria, enhancing transparency and feedback, linking appraisal results to training, promotion, and incentive programs, and training appraisers in modern appraisal methods and the use of electronic systems in managing the performance appraisal process.