Digitalizing Performance Appraisals in State Bank of India: Effects on Appraisal Accuracy and Employee Outcomes

Abstract

The current research analyzed the role of digitalized performance appraisal systems on the accuracy of the appraisal and the employee performance in the State Bank of India. Primary data were used to conduct research with the help of a quantitative research design, and 412 employees of the chosen regional branches were taken into account. The correlation between Digital Appraisal System Effectiveness, Appraisal Accuracy, Perceived Fairness, and Employee Outcomes was analyzed with the help of SEM. The results found out that digital appraisal systems had a great impact on fairness that was perceived (b = 0.58, p 0.001) and accuracy in appraisal (b = 0.64, p 0.001). The two variables were greatly affecting employee outcomes that comprised of engagement, motivation, and productivity and accounted 56% of its variance. The mediation analysis proved that the relationship between digital systems and employee outcomes was partly mediated by appraisal accuracy and fairness. The outcomes show that IT-based appraisal systems enhance the effectiveness of performance management with managerial competency and clear implementation practice underpinning these systems. The research paper adds to the body of literature on digital HRM and organizational justice by empirically supporting socio-technical role of technology-based appraisal reforms within a large government-based banking organization.