A Comparative Study of Employees’ Perception Relating to Performance Appraisal Practices in the Public and Private Banking Sector of Sindh

Abstract

Performance appraisal is a key human resource practice and source of a motivation for an employee and its success depends on justice perception of an employee towards performance appraisal system. Pakistani banking sector is playing a vital role in the economic growth of the country. Private Banks are innovative and effective in their approach as compared to the public banks. Past studies have compared the public and private banks and found that new private banks are more effective than public banks in terms of technical and economic efficiency. However, there are meager studies available in the context of justice perception of performance appraisal practices in the public and private banks. Data were collected through five-point Likert scale and analyzed with SPSS 24.0 versions. In the result difference of justice is measured by mean differences and independent sample t-test. However, it is found that employees of private banks perceive greater justice as compared to public banks. This study emphasizes the importance of fairness perception of employees in the context of performance appraisal practices and could be used to better understand the problems associated with appraisal practices in public and private banks.