Performance Appraisal and the Quality of Working Life

Purpose. To identify the relationship between performance appraisal and quality of working life. Explicitly, investigate the effects of firms’ performance appraisal on quality of working life (QWL).Design/Method/Approach. The study is based on the three businesses data operating in the Republic of Kosovo with ninety-seven (n=97) individual respondents (employees). The study’s questionnaires of the study were prepared, the responses obtained, the econometric model was constructed to empirically test this relationship, and the questionnaires data were processed by the IBM SPSS v.25.0 program as a tool to provide the statistic findings. Results and proposals are brought forward by the matched t-test, independent t-test sample, ANOVA, and regression, which were applied for testing hypotheses.Findings. Econometric results suggested that applying performance appraisal in the correct way and for appropriate goals, improves job satisfaction, employees’ satisfaction, motivation to employees, and as a result the quality of working life.Theoretical Implications. The theoretical significance of this study is the increases of opinion and the change of judgment for the effects of performance appraisal on quality of working life.Practical Implications. The practical benefit of this study is that it can provide a guideline for managers to apply performance appraisal in the correct manner to increase the quality of working life, and as a result to improve their organization’s performance.Originality/Value. The importance of quality of working life has been recognized. It is the first paper that examines the relationship between performance appraisal and quality of working life and finds out their interactions using quantitative methods.Research Limitations/Future research. Predictions for further research are to analyze the relation of performance appraisal parameters and QWL, adding other variables that mediate or moderate the relation of these two variables