Abstract:
This paper investigates to determine the impact of performance appraisal
system on employees* job involvement of an organization. Performance appraisal
provides a lot of information not only to solve the managerial problems, but also to help
in taking the decisions regarding to evaluate employees' performance level, identify the
relevant training needs, compensation management and promotion etc.. For this purpose
the researcher has selected two branches of Rainco Private Limited such as Mawanella
and Mountlavaniya branch with head office, the data were collected from employees
through the questionnaire and intensive interview. A simple regression analysis was
used to test the research questions. Analysis of the data indicated the following findings.
The results revealed that, most of the employees agreed that, their employees' job
involvement level is high and also there is a significant positive relationship between
performance appraisal system and employees' job involvement. The simple regression
analysis indicates the employees' job involvement is explained by performance
appraisal system. These results implying that, though employees performance appraisal
system in high level, should adopt a more systematic system of PA namely in the
dimensions of; policies of PAS, methods of PAS, forms and procedure of PAS, and
PAS review and renewal in order to improve employees' job involvement.
