EFFECTS OF PERFORMANCE APPRAISAL SYSTEM ON THE JOB EFFECTIVENESS

Abstract

The basic objective of this research is to highlight the association between job satisfaction of employees and the organisational performance process in information and technology sector of Turkey. The review of literature showed that there is a lack of quantitative and empirical findings to reflect the requirement for change in IT sector of Turkey. This research is meant to find and present such data that help in understanding the linkage between the important drivers of success. This research also offered important insights to facilitate managers in efficient performance management of employees. Given the current significance of information technology sector and the relevance of human resources in SMEs, it is integral to measure the elements of employee management and satisfaction. A focus on performance appraisal process is made in this research to examine the efficiency of the PM for Turkish IT industry. The other objectives are to investigate the effect of performance appraisal process on employees‘ job satisfaction and to assess the extent to which performance appraisal influences employees‘ job satisfaction in IT sector SMEs in Turkey. The current research is also important for the domain of human resource development as the study will offer an analysis of important parameters of the performance appraisal process and the concepts about employees‘ job satisfaction in the organisations. Apparently, there is no adequate research available that has examined these associations. The research design was descriptive with the use of secondary data collected from relevant websites and company resources. The questions raised about challenges and opportunities to be faced by technology sector in managing employees‘ performance in Turkish Companies. The secondary data was retrieved from online academic research databases, web portals, and the internet sources on telecommunication industry. The two selected IT and telecom companies CMC and Etiya were used in the explanatory methodology based on secondary data only. The findings of the research revealed that the technology sector of Turkey is progressing and the companies are using latest performance management systems to manage and appraise performance of employees. The selected companies CMC and Etiya are also showing high progress due to their talented and qualified staff since he IT sector is highly human resource based industry. Moreover, the findings from the analysis interpreted that the companies are using latest state-of-the-art performance appraisal systems based on 360 degree appraisal. However, the participation of employees in the decision making and performance management is not found satisfactory since top management make all decisions of teams and projects. Mostly top management is responsible for decisions related to performance management system. The criteria of performance appraisal analysed in the secondary data also found to be acceptable by the employees and generally al four criteria congruence, acceptability, specificity, and validity, were found satisfactory. xii Limited access to companies‘ HR data and use of only two companies‘ comparative analysis was the basic limitation on this research. The results are also limited to the use of secondary data only. Future researches are recommended to use more companies and large sample size to increase the accuracy and generalizability of results. The research is a significant addition in the literature on performance management in IT sector of Turkey.