Nexus Of Performance Appraisal, Organizational Trust And Organizational Performance: An Empirical Evidence From Academicians

Abstract

Every organization, whether public or private, including higher educational institutions, needs effective human resource management. The success of these organizations depends heavily on a few effective human resource management techniques that are widely accepted for the betterment of organizations to achieve the required targets. In recent years, considerable attention has been diverted towards testing the expected association of HRM practices with organizational performance. Despite of all these, there are some other factors, which catalytical role, cannot be ignored in the said association like organizational trust. The organizational trust is one of the additional elements that are thought to be essential to the success of any organization.  The main purpose of the current study is to critically examine direct association of performance appraisal (PA) as HR practice with organizational performance as well as indirectly through organizational trust as mediator. Stratified random sampling was used to select 322 respondents from public and private HEIs in Khyber Paktunkhwa (KP). The relationship between these variables was estimated and tested using simple linear regression. The results revealed that Performance Appraisal and Organizational Trust have positive and statistically significant effects on Organizational Performance. In addition, OT also plays statistically significant role in mediating the relationship between Performance Appraisal and Organizational Performance. In light of the above findings, HEIs can enhance their performance by amplifying their HR practices and by fostering trust among their employees.