Impact of Performance Appraisal on Employee Productivity in IT Industry

Abstract

This research article aims to “To measure the impact of performance appraisal determinants on employee productivity”. The paper applies data reduction using Exploratory Factor Analysis (EFA) on a sample of 324 respondents drawn from 7 IT companies in the Bengaluru and condenses a set of 18 performance appraisal statements converted into a six determinants. The present study proposes a model of the impact of performance appraisal determinants on the employee productivity. The study found that compensation, easiness, relatedness, objectivity, growth and rewards and evaluation are impacting significantly the employee productivity. Therefore, IT companies’ enterprises should focus on the above factors to provide enrich employee productivity. The study investigated the impact of performance appraisal determinants on the employee productivity, concluded that growth and rewards had the highest impact on the employee productivity followed by compensation, easiness, relatedness, objectivity and evaluation.