The Effect of Performance Appraisal on Job Satisfaction and Employee Intention: A Case Study of National Life Insurance Company Ltd in Nepal

The objective of this study is to find out the effect of performance appraisal on job satisfaction and employee intention in National Life Insurance Company Ltd in Nepal. Job satisfaction and employee intention are independent variables while performance appraisal is dependent variable. The main objective of this study is to investigate the effect of performance appraisal on employee satisfaction and employee intention. Primary data were collected by means of structured questionnaire from 150 employees of Nepal the questionnaire is a five-point Likert scale. The study is done by using the SPSS software. SPSS is used for reliability analysis, correlation analysis, regression analysis and descriptive analysis. From the analysis found that performance appraisal is highly positively correlated with job satisfaction (r = 0.799 <0.01) and employee intention (r = 0.666 <0.01). Also, from regression analysis it is found that performance appraisal is a significant predictor of job satisfaction (β = 0.799 < 0.001), and employee intention (β = 0.666 < 0.001). The analysis concludes that performance appraisal is an important tool in enhancing employee satisfaction and reducing employee intention. From the analysis it is found that performance appraisal is an important tool in raising the employee motivation and organizational performance in insurance companies.