Content area
Full text
Abstract: Human resources management (HRM) practices such as performance appraisal system (PAS) will affect the employees in a positive and negative ways from the aspects of performance, motivation and satisfaction. Thus, the purpose of this research is to measure the level of employee performance, motivation and satisfaction and to determine the effect of performance appraisal system towards employee performance, motivation and satisfaction at ABC Sdn. Bhd. that located at Selangor. Quantitative research approach along with cross-sectional research design has been used to collect data from 177 employees in the target population through a self-administered and online platform. The return rate of this research from the respondents was 98.30%. The results of the current study provide empirical evidence on key issues related to PAS of employees at ABC Sdn. Bhd. Main finding of this research showed that the employee performance, motivation and satisfaction were in a high and moderate level and there is positive relationship between the performance appraisal system and employee performance (r=0.719), motivation (r=0.836) as well as satisfaction (r=683). This study also proved that performance appraisal system has significant effect towards employee performance (r2=0.508), motivation (r2=0.663) and satisfaction (r2=0.522). This research gives clear directions to stakeholders on the existing performance appraisal system for improvement of the employee performance, motivation and satisfaction at LSF or other private sectors.
Keywords: Performance Appraisal System, Employee performance, Employee Motivation, Employee Satisfaction.
1. Introduction
Human Resource Management (HRM) is one of the methods that designed to improve the efficiency of a company and resolve the personnel or organizational issues systematically. According to Azwir and Kalinggo (2019), human capital plays an important in determining how the organizations operate in order to achieve their objectives. There are study shows that performance appraisal system plays a vital roles in human resource management practices as it is designed to monitor, motivate and enhance employees' performance in the future (Kampkötter, 2016). Moreover, the performance, motivation and satisfaction level of the employees will be affected by the performance appraisal system that will be conducted by the supervisors. Based on Wahjono, Marina, Perumal and Wardhana (2016), the supervisors play an important in evaluating the performance and behaviors of the employees. Supervisors who are responsible for the performance appraisal should be observed fairly towards all the...