Efficacy of Performance Appraisal Systems in Enhancing Employee Engagement

Abstract

The study explores the efficacy of performance appraisal systems in enhancing employee engagement, a critical concept in Human Resource Management (HRM) and organizational behavior. Through a comprehensive review of literature, including examples from the USA, Canada, Europe, and Africa, the study examines the relationship between performance appraisals and employee engagement. Findings indicate a positive correlation between effective performance appraisals and higher levels of engagement. Factors such as feedback quality, leadership behavior, transparency, goal alignment, and continuous feedback processes emerged as critical components in enhancing engagement. The study contributes to Self-Determination Theory (SDT) by demonstrating how appraisal systems can satisfy employees' psychological needs for autonomy, competence, and relatedness. From a practical standpoint, organizations can benefit from recommendations such as training for managers on feedback delivery and ensuring transparency in appraisals. Policy implications suggest the need for guidelines on leadership behavior and alignment of performance objectives with organizational goals. Overall, the study bridges theory and practice, offering insights for organizations to create a culture of engagement through effective performance appraisal systems.