Purpose: The purpose of this research work is to check the impact of performance appraisals (incentive practices and benefits provided by the organization) on employee motivation.
Importance: Performance appraisals are very important tool in Human resources management to retain efficient employees whose commitment level with the organization is relevantly high from others. Working with motivated employees actually increases the performance of the organization. The present study is about the performance appraisals that incentives and benefits increase the morale level of employees and stimulate them towards work. Employees who are compensated with appraisals and appreciations, they have done their work well.
Design/methodology/approach: Quantitative study was conducted in banking sector of Pakistan. 200 self-administrated questionnaires were distributed in different banks of Pakistan. 182 questionnaires were returned with 92% respond. Confidentiality of response is secured.
Findings: The statistical analysis told that incentives and benefits have very positive and significant impact on employees’ motivation. Limitation and guideline for future research is also provided.
Research limitations/implications: Sample size of the study was limited and only two variables related to performance appraisals were taken. Sample size can be increased for future research and the effects of other variable nature of the task, promotions as a variable, organizational environment, can be studied in the future.
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