Performance appraisal and employee performance among hotel industries: The role of employee commitment, Central Region

Abstract

The management of the hotel industry faces challenges in meeting employees’ logistical needs and other requirements for their well-being, which negatively impacts employee performance. This study aimed to examine the role of employee commitment in the relationship between performance appraisal and employee performance within the hotel industry in the Central Region. The three main specific objectives were to: (1) examine the effect of appraisal quality on employee performance, (2) analyze the effect of performance appraisal fairness on employee performance, and (3) investigate the role of employee commitment in the relationship between performance appraisal and employee performance. A descriptive survey design was employed, utilizing a quantitative research technique. Data were collected from 289 employees in the hotel industry through a self-administered questionnaire and processed using Statistical Product and Service Solutions (SPSS) software. The findings indicated that performance appraisal quality significantly affects employee performance. Additionally, performance appraisal fairness was found to have a moderate and significant impact on employee performance. Furthermore, employee commitment plays a crucial role in the relationship between performance appraisal and employee performance. Based on these findings, it is recommended that hotel management adopt effective appraisal systems that ensure both quality and fairness in performance appraisals to enhance staff performance.