Abstract:
The objectives of this study were to investigate whether Performance Appraisal (PA)
significantly relates to business performance in Sri Lankan apparel firms; to find out
whether a significant difference exists between large apparel firms and non-large
apparel firms with regard to perceived quality of PA and to reveal whether a significant
difference exists between large apparel firms and non-large apparel firms with regard to
business performance. Three hypotheses were formulated using deductive approach. The
study was conducted by using a stratified random sample of 274 apparel firms in Sri
Lanka. Type of investigation was correlational and it was cross-sectional in time horizon.
The unit of analysis was organisational level: each firm. General Manager or Human
Resource Manager served as the respondent on behalf of the firm. Measures of the study
were of good quality after assuring reliability and validity. Data were possible to be
collected from 68 apparel firms-18 non-large firms and 50 large firms. In order to test
the first that was concerned with relationship between perceived systematic use of
performance appraisal system of a firm and perceived degree of business performance
the Pearson Product-Moment Correlation technique was applied. The second hypothesis
and third hypothesis were concerned with difference between large apparel firms and
non-large apparel firms with regard to perceived quality of PA and perceived degree of
business performance respectively and Independent Sample T test was the appropriate
technique to test the validity of the two hypotheses. The results of the study showed a
significant and positive relationship between perceived systematic use of PA system and
perceived degree of business performance of apparel firms in Sri Lanka. Found
relationship was strong (correlation coefficient was .826 that was significant at .0005)
implying that an apparel firm, though it is large or non-large, should adopt a more
systematic PA system so as to improve its business performance. However the study
revealed no statistical evidence to claim that the degree of perceived quality of PA of
large apparel firms is significantly different from that of non-large apparel firms and that the perceived degree of business performance of large apparel firms is significantly
different from that of non-large apparel firms.
