Abstract:
The objective of this study was to investigate whether Performance
Appraisal System significantly relates to Employees Commitment. To achieve this
objective, researcher has selected three branches of Peoples' Bank and BOC such as
Trincomalee Branch, Muttur and Kinniya Branch. To analyze the relationship, one
hypothesis was formulated for this research study. Researcher has selected the
Performance Appraisal System as an independent variable and Employees'
Commitment as a dependent variable. Sample size of this research was 85 from both
banks, which was selected by using simple random method. Structured questionnaire
used to get the primary data collection. The univariative analysis and bivariative
analysis were used to variable analysis through the SPSS (version 16.0) and Microsoft
excel 2007. The pie chart, table and graphs are used to present the collected data. The
study results revealed that, most of the employees agreed that, their commitment level is
moderate and also there is a significant positive relationship between Performance
Appraisal System and Employees Commitment. This study found relationship of
correlation coefficient was 0.564 and 0.412 for Peoples Bank and BOC respectively and
it was significant at 0.01 levels. This results implying that, though employees
performance appraisal system in high level, should adopt a more systematic system of
PA in the dimensions of policies of PAS, criteria and standards, forms and procedures,
decision making and storing, review and renewal in order to improve employees
commitment to very high level.
