Employee Performance Appraisal Process and Its Impact on Employee Satisfaction

Appraising employee performance can lead to improving employee engagement and satisfaction and eventually improves their work performance. In the present study, the impact of the employee performance appraisal process on employee satisfaction and business performance has been explored. It has been observed that appraising employee performance has a direct positive impact on job satisfaction and work performance, which eventually provides effective benefits to the organisation. A secondary qualitative data collection method has been followed in the study and reliable and valid data has been gathered from various journals, marketing websites and newspaper articles. The results have been illustrated by conducting a thematic analysis and the findings indicate that performance appraisal has been identified to be a vital approach for employees as well as business organisations. Additionally, several types of performance appraisal have been addressed and their potential impact on the workplace has been illustrated. These types include self-appraisal, the traditional approach of performance appraisal, upward appraisal, 360-degree reviews and performance appraisal of groups. An effective correlation between these performance appraisal processes and employee satisfaction has been observed along with evaluating its positive impact on the organisation. Thus, this study has provided efficient insights and details associated with the impact of the performance appraisal process on employee performance, satisfaction and business success.