| Investigating the online performance appraisal for sustaining employee motivation and organizational performance in multinational corporations: Hierarchical component model |
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Authors: M.A. Zaheer 1,2 1 University of Rome “Tor Vergata”, Rome, Italy 2 PMAS-Arid Agriculture University, Rawalpindi, Pakistan Abstract: Nowadays, organizations are facing challenges regarding employees' performance in a competitive globalized environment due to advancements in technology. The purpose of this study was to investigate the relationship between online performance appraisal and organizational performance with the mediating role of employee motivation; performance appraisal that includes rater accountability, goal setting, appraisal satisfaction, quality evaluation, perceived utility, salary, performance reward, and participation in appraisal that ultimately associates with employee motivation, which is further aligned with organizational performance. Methodologically, the research relies on Adams’ equity theory, Vroom’s expectancy theory, and Locke and Latham’s goal setting theory. The study was quantitative in nature, and a deductive approach was used to test the developed hypotheses. Methods included a reflective-reflective high-order hierarchical model, which was performed through SmartPLS in structural equation modelling. Empirical evidence included a sample of 327 employees collected from multinational financial services provider firms that were using online appraisal software to evaluate the performance of their staff. Research findings revealed that online performance appraisal has a significant positive relationship with employee motivation and organizational performance. Moreover, employee motivation also has a significant positive association with organizational performance and demonstrates partial mediation. Theoretically, this research extends the equity, expectancy, and goal-setting theory from the perspective of appraisal and employee motivation, and practical implications are provided for sustainable organizational performance. Keywords: online performance appraisal; employee motivation; organizational performance; multinational corporations; 360-degree feedback appraisal. For citation: Zaheer M.A. (2026). Investigating the online performance appraisal for sustaining employee motivation and organizational performance in multinational corporations: Hierarchical component model. Upravlenets / The Manager, vol. 17, no. 5, pp. 101–123. DOI: 10.29141/2218-5003-2026-17-5-7. EDN: UQFXOM. |
