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This paper examines the employees’ perception on performance appraisal and their work outcomes in Nepalese service sector. The aim of this paper is to aid service sectors in Nepal to evaluate their existing performance appraisal systems, by identifying the perceived satisfaction of employees towards their current performance appraisal process. It can provide and promote excellent feedback towards their employees thus enhancing employees’ work performance, affective commitment, employee engagement while reducing employee turnover intentions. This paper emphasized on one independent variable employees’ perception of performance appraisal and four dependent variables work performance, affective commitment, employee engagement and turnover intention. The data are collected from the questionnaire and were analyzed and interpreted through the help of different statistical tools. The result highlighted that there is significant (positive) relationship of performance appraisal with work performance, affective commitment and employee engagement and a (negative) relationship between performance appraisal and turnover intention.

Employees’ Perception on Performance Appraisal and Their Work Outcomes in Nepalese Service Sector