Impact of Performance Appraisal Errors on Organizational Performance: The Mediating Role of Employee Dissatisfaction

Abstract:

This study focuses impact of the performance appraisal errors on organizational performance by the mediating role of employee dissatisfaction. The performance appraisal is one of the significant components in human resource department for success or breakdown of the organization like public, private, or non-profit organizations. All assessments in career satisfaction of human capital and organizational performance are conducted in form of the performance appraisal. But when errors occur in performance appraisal process, it injures the employee satisfaction and performance, therefore, employee becomes dissatisfied and the dissatisfied employees cannot be productive. In this research paper essential efforts are taken into account to pinpoint viable correct rating errors which create problems for organization. Data has been collected through open ended questionnaires from the employees of Pakistan mobile operators, Hyderabad, Pakistan and data is analyzed in SPSS (v: 21) software. The reliability test, correlation coefficient and linear regression are applied to present the findings along with recommendations. This research study and explains mobile telecom operators that there is a negative impact of performance appraisal errors on the organizational performance through employee dissatisfaction.