In the market driven economy, achieving the business goals involves uncertainties. This has necessitated shift from command and control organizations to learning organizations which makes people in organization most important. Along with many other HR practices, Performance Appraisal System is one of the most important systems that help the organization to navigate to goal attainment. During the last few years, the number of studies which examined the effects of PAS satisfaction on employee outcomes in form of work performance (WP), Affective organizational Commitment (AOC), Turnover Intentions (TI) etc. which has direct bearing on achieving organizational goals in competitive environment has increased. Bank of India, one of the leading nationalized banks in India introduced performance linked PAS in the year 2008 to use human resources effectively in facing ever increasing competition by the Bank. The present study is conducted with the aim to explore the relationship that exists between satisfaction with PAS and employee outcomes as WP, AOC and TI. The study also makes an attempt to examine the influence of intrinsic motivation in mediating the relationship between performance appraisal system satisfaction and the above employee outcomes. Data were collected from 100 officers and managers from Bank of India, South Gujarat Region by way of structured questionnaire. Results of the study show that a positive relationship exists between PAS satisfaction and the employee outcomes in form of WP and AOC and negative relationship with TI. IM does partially affect the employees outcomes of WP, AOC and TI but PAS satisfaction also has partial influence on the same. Therefore, the results indicate that the launching of performance linked PAS has worked in favour of the Bank. The paper concludes that  providing extrinsic motivation through performance linked appraisal system has lot of scope and therefore, based on frequent feedback of present PAS, Bank should update the system with changing time and expectations of banks executives and managers to keep the PAS effective.

Keywords: Collegial organization behaviour, HR practices, Learning organizations, Organizational goals.