THE IMPACT OF PERFORMANCE APPRAISAL SYSTEMS ON EMPLOYEE MOTIVATION: A COMPARATIVE STUDY OF PUBLIC AND PRIVATE COMPANIES IN KARACHI

Organisational Success depends on motivated employees who drive workplace productivity levels while improving workplace engagement and performance. Performance Appraisal Systems play a vital role in motivating workers; however, they represent divergent levels of success when used between Public and Private organisations in developing economies, i.e., Pakistan. The current research analysed the effect of PAS systems on the motivation of workers in Public and Private businesses running their business in Karachi. A quantitative research design is adopted to distribute structured survey questions to collect data from 100 business personnel working in Public and Private-sector companies. The research applied regression and analysis of variance (ANOVA) statistical techniques to evaluate the interdependence among PAS variables, motivation and classifications of employees, and duration of work experience of the workers. This study showed that Performance Appraisal Systems have a positive and significant effect on employee motivation of employees working in Private and Public-based firms. Moreover, the study reveals that the duration of Years of Experience has an insignificant relation with employee motivation. The study recommends that Public organisations should improve PAS systems through modernisation efforts that have a focus on fairness, employee development, and transparency. The study suggests that combined routine feedback systems and manager educational programs act to increase the effectiveness of PAS operation. This research helps to understand the different features of the Private sector workplaces in a very meaningful way, which are useful for better HR management in various corporations running in Karachi.