Exploring the Role of Performance Appraisal, Organizational Commitment, and Citizenship Behavior

Abstract

This study investigated the impact of perceived fairness of performance appraisal (PFPA) on organizational commitment (OC) and organizational citizenship behavior (OCB) in the banking sector of the district of Vehari, Punjab, Pakistan. Data were collected from 250 bank officers through a self-administrative questionnaire. PLS-SEM was employed to validate data and examine the hypothesized relationships. Results revealed that OC mediates the relationship between PFPA and OCB. More specifically, drawing upon the OC perspective documents the importance of the PFPA relationship with OCB. The study highlighted that employees’ positive perception of performance appraisal is the confluence with OC, which is central to enhancing employee productivity and maintaining good organizational citizenship. Fair appraisal structures and relational collaboration among workers are essential business components that boost the workforce’s devotion to the workplace. This study is the first to document the significance of performance appraisal in banking. It provides valuable insights for the business organization to strengthen citizenship behavior by emphasizing the value of fair performance management conducive to fostering personnel productivity and firm performance.