The Impact of Performance Appraisal on Employees’ Job Satisfaction in INGOs in Yemen

This study aims to gain a better comprehension of how employees in INGOs in Yemen perceive performance appraisals and their role in job satisfaction through exploring the impact of performance appraisal and its five constructs namely: direction and objectives to staff, performance appraisal process, communication between managers and subordinates, transparency of performance appraisal outcomes, and fairness of performance appraisal process on employees' job satisfaction in INGOs in Yemen. A quantitative method was used, and relevant questionnaires were distributed to these employees. The findings of the study show that there is a positive significant relationship between job satisfaction and performance appraisal and its above-stated five constructs. They also reveal that performance appraisal and four of the aforementioned constructs have significant positive impacts on employees’ job satisfaction. It is also found that the fifth construct, transparency of performance appraisal outcomes, has no significant impact on job satisfaction due to the limited transparency practiced in Yemen compared to better practices of such transparency in other countries. Moreover, the high R2 of 82% is an indication of the high explanatory power of the test. The above findings are consistent with similar studies referred to hereunder. This study suggests that decision-makers in Yemen's INGOs should improve the clarity of directions and objectives, the transparency and fairness of performance appraisals, and ways of communication for employees to express their concerns. Such improvements are critical since they may result in increasing the employees’ job satisfaction and consequently lead to a better humanitarian service delivered by the respective INGOs through accomplishing more and better work in less time and with fewer resources. The proposed framework is developed based on previous literature on performance appraisal emphasizing that no previous study used all the above constructs together to measure their impacts on job satisfaction of employees working in INGOs in Yemen