The Influence of The Performance Evaluation on Salary

Abstract

Objective: The purpose of the study is to indicate whether salary and the extra amount are influenced by performance evaluation linked collectively and simultaneously with position, gender, education and experience. It is found that the employee’s salary could be significantly and negatively influenced by performance evaluation, gender, education and performance evaluation moderated by gender, while the position, experience, performance evaluation moderated by position, education and experience have no effect on the salary.
Methodology: The study examines 27,522 observation and 11 variables for 417 governmental employees in Ministry of Social Developments in the Sultanate of
Oman within 2011-2016 using descriptive statistics, correlation and regression analyses Results: It is found that the employee’s salary could be significantly and negatively influenced by performance evaluation, gender, education and performance evaluation moderated by gender, while the position, experience, performance evaluation moderated by position, education and experience have no effect on the salary. Significantly, the extra amount has been positively influenced by position, gender, and performance evaluation moderated by position and gender and negatively by experience and performance evaluation moderated by experience. Other variables have insignificant effect on the extra.
Implication: The study’s results are beneficial indicator in improving the performance of employees based on their salaries and designing a guide on how to evaluate this performance related to position, gender, education and experience.