PERFORMANCE APPRAISAL SATISFACTION OUTCOMES IN THE FMCG SECTOR IN PAKISTAN

Abstract

In the current business world characterized by fierce competition, performance appraisals are integral tools for evaluation of employee performance, feedback provision, and career advancement management. Nevertheless, there has not been adequate research on the effect of performance assessment in influencing employees in the long run, especially on the aspects of creativity and job satisfaction. The study investigates the reason why career development helps mediate the relationship between performance appraisal satisfaction and two important employee outcomes: creative behavior and job satisfaction. Data for the study was collected from a survey of 178 employees selected at random from several FMCG firms, using a structured questionnaire. Data analysis was done using structural equation modeling (SEM) with SmartPLS 3.0, where performance appraisal was found to have a positive effect on career development and that PAS, creative behavior, and job satisfaction related to career development fully mediated the relationships. Particularly, it has been shown that employees who are given appropriate feedback together with career advancements are likely to take part in creative activities and to be content with their jobs. The study explains Self Determination Theory (SDT) which is the theory that focuses the fulfillment of the needs of the source of motivation to the employees which s in most cases considered as their autonomy, competence and connections. The findings of this study indicate that in order to increase creative levels and job satisfaction of employees, organizations need to include constructive performance appraisal procedures together with career development opportunities such as training, mentoring, and career maps. The study underscores the necessity of performance appraisal systems that evaluate performance but also enhance the professional development of employees resulting in improved employee engagement, innovativeness, and overall success of the organization. This study contributes to the literature on performance appraisal satisfaction and its consequences by examining how career development is significant for employees.