Employee Reactions to Performance Appraisal System in Indian Banks

The present study assesses and compares the level of Performance Appraisal (PA) reactions among managers of public sector, private sector and foreign banks operating in India. The PA reactions were measured with respect to outcomes in terms of performance improvement and employee development; fairness of PA rating; accuracy of PA rating; providing feedback; explaining rating decisions; and overall satisfaction with appraisal system. The findings suggest that although all the seven dimensions of PA reactions were found at moderate level in the three banking sectors providing feedback and explaining rating decisions were found at significantly higher levels in foreign banks operating in India as compared to public sector and private sector banks.