THE IMPACT OF APPRAISAL MANAGEMENT ON EMPLOYEE PERFORMANCE IN PAKISTAN’S BANKING SECTOR: INVESTIGATING THE MEDIATING ROLE OF EMPLOYEE MOTIVATION

Abstract

This research explores the influence of appraisal management on employee performance in Pakistan’s banking sector, with a specific focus on the mediating role of employee motivation. Drawing on data from 3,666 respondents across major banking institutions, the study employs a quantitative design and SmartPLS-based Structural Equation Modeling (PLS-SEM) to test the conceptual framework. Findings reveal that appraisal management directly impacts employee performance and indirectly affects it through enhanced motivation. These results highlight the strategic significance of motivational mechanisms within performance appraisal systems, offering actionable insights for banking sector HR practices.