Abstract:
The general objective of the study was to determine the effect of performance
management practices on employee performance in state banks (Bank of Ceylon and
People's Bank). There are few number of research been conducted related to the
performance management practices applied in banking sector. This research study
carried out with the intended to full fiIl the empirical gap in such research areas.
The study applied quantitative approach to investigate the research objectives.
Primary data were collected from randomly selected sample of 237 employees in state
banks (Bank of Ceylon and People's Bank) out of the study population, and data
collected via structured questionnaire. Collected data were analyzed using descriptive
analysis, correlation analysis and regression analyses.
The results of the study indicated that there is a strong positive relationship between
hailing and development and employee performance and moderate positive
relationship between performance appraisal and employee performance. And the
study recommended that proper training and development program leads to improve
the neatness of the employee works, timeliness of the work completion and employee
motivation. And performance appraisal involving to improve the employee motivation
for better performance and increase employee ability to perform in key areas in his /
her career.