22 Finance, Accounting and Business Analysis Volume 1 Issue 1, 2019 The Influence of The Performance Evaluation on Salary Dhiaa Shamki1, Aisha Al Shehemi2 Department of Accounting, Komar University of Science and Technology, Sulaymaniyah-Kurdistan Region-Iraq1 Ministry of Social Development in The Sultanate of Oman, Muscat2 Info Articles Abstract History Article: Received 30 May 2018 Accepted 4 December 2018 Published 29 January 2019 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. . Keywords : Employee’s Salary, Extra Amount, Performance Evaluation, The Sultanate of Oman. Address Correspondence: E-mail : dhiaa.shamki@komar.edu.iq1, rafef.alro7@gmail.com2 mailto:dhiaa.shamki@komar.edu.iq1 Dhiaa and Aisha / Finance, Accounting and Business Analisys 23 1. Introduction Previous studies examined the relationship between employees’ salary and their performance and demonstrated that it is influenced by many factors. These factors include position and gender (Ohlott et al., 1994; Bateman and Snell, 2004; Shrum, 2007; Nazrul, 2009; Mphil et al., 2014; Ufuophu-Biri and Iwu, 2014) and education (Caruth and John, 2008; Surina et al, 2015). There is a limited research on the relationship between the employee’s salary and performance evaluation and to what extent that the salary and rewards will be influenced by the performance evaluation in presence of different factors such as position, gender, education and experience. The current study examines the influence of performance evaluation alone and linked collectively and simultaneously with position, gender, education and experience on salaries and extra amounts received by employees in Ministry of Social Developments. The study attempts to answer questions of; does employees’ performance evaluation influence their salaries and the extra amount? Could this evaluation regarding employees’ position, gender, education and experience influence their salaries and the extra amount? The objectives of the study are to indicate whether the employees’ salaries and the extra amount in public sector are influenced by their performance evaluation linked collectively and simultaneously with position, gender, education and experience. The study’s results will be useful in examining the influence of performance evaluation on their salaries that is not well examined before. This will assist to improve the performance of employees based on their salaries. Also, this study provides an empirical evidence on how to increase employees’ salaries in the public sector based on their performance evaluation. Consequently, this might be assistant in presenting a guide to strengthen the performance evaluation form and its contents to be different according to the position and experience of the employee in public sector. In addition to this introduction, Prior research reviewing the relationships among study variables will be in the second section. The third section presents the hypotheses and methods employed in the study while the fourth section reveals the finding. Finally, discussion, contributions and calling for future research are stated in the last section. 2. Literature Review 2.1. Salary and Performance evaluation Performance is the implementation of the work in a manner and at a certain level of quality to achieve the desired goals. Changes in the public sector require attention to job performance and how employees perform the required work. The employee performance is a process of understanding the workforce indicating what needs to fulfill the organizational objectives based on measures of employees’ skills, competency requests, employees’ enhancement steps and delivering the best outcomes. Therefore, a job evaluation process has been developed to improve the performance of employees in the public sector (Dart, 2004; Igbojekwe and Ugo-Okoro, 2015; Mollel et al. 2017). The most efficient employees are like to be motivated to perform their duties since they will receive the rewards and bonus (Mphil et al., 2014). The highly motivated employees obtain advantages for achieving their organizations objectives (Rizwan and Ali, 2010). According to Mphil et al., (2014), the job satisfaction influences the employee performance level. One of main issues that drives the job satisfaction is the suitable and sufficient compensations and incentives of employees which supports the organization objective. Since salaries for their expected efforts are allocated to fixed rate, employees’ performance related to bounces is to improve the productivity. Many organizations use bounces pay as monetary reward giving to employees in addition to their fix compensation as the extra amount (Heneman and warner, 2005). Commonly, this pay plan is frequently employed in evaluating employee performance (Mphil et al., 2014). The relationship of pay and performance is directly associated since employees receive a constant salary in a time period and in addition to bonus as reward for the ideal performance or additional efforts (Bandiera et al., 2007). When the employees receive unsuitable salaries, their dissatisfaction will be occurred and achieving goals will be minimized and deteriorated (Mphil et al. 2014). It is hard to decide that the approach of pay-related-performance is completely assisting the enhancement of employees’ performance and their stimulation in the public sector (Cardona, 2006). Performance in prior research has been contradictorily affected by paying salary and extra amount for performance. They have a positive influence on the performance in study of Lazear (2000), while a negative one is found by Frey and Jegen (2001). The marks of the annual reports for performance evaluation will be used as proxy for that evaluation in this study. Consistent with previous studies (Rizwan and Ali, 2010; Mphil et al., 2014), it is expected for this study that performance evaluation has a positive influence on the salary. Dhiaa and Aisha / Finance, Accounting and Business Analisys 24 2.2 Salary, Performance evaluation, Position and Gender The employee’s position is the key motivational rewards to influence performance (Mphil et al., 2014). It is familiar for employees to take higher positions with same organization or with different ones for many reasons especially if this position leads to maximized the salaries and benefits (Bateman and Snell, 2004). It is found that women are fewer than men in developing job opportunities during their profession. This issue is examined by Ohlott et al. (1994) who found that men experience is greater task-related developmental challenges than women who have experience greater developmental challenges that stem from hurdles appearing in their jobs. This is the cause that indicating why senior management positions are promoted for few women. Consistent with previous studies (Bateman and Snell, 2004; Mphil et al., 2014), it is expected for this study that employees’ performance evaluation moderated by their position (hereafter PERF-POST) influence the salary positively. Some jobs look to be more suitable for females, while others for male (Ufuophu-Biri and Iwu, 2014). It means that the gender has an important role in employees’ performance and their motivation. Positions associated with the gender factor may lead the organization’s outcomes at its different levels. (Ufuophu-Biri and Iwu, 2014). In this study, managers forms 38.1 percent of the sample. Managers for department and above level will be measured as a position for the purpose of the study. Indicating whether that employee’s gender associated to his/her performance in the public sector could enhance employees’ performance and productivity that will help organization’s staff to attain satisfaction in the workplace (Ufuophu-Biri and Iwu, 2014). It is found in previous research that that employee’s gender has a significant influence on employees’ performance in some professions (Shrum, 2007; Nazrul, 2009). Burleson and Samter (1992) found that this factor is a significant determinant for employee’s performance in their organization. They concluded that a specific gender could be the best for a performance in particular professions than the other gender. Aremu and Adeyoju (2003) found that gender has a significant effect on employee’s performance in Nigeria, while it is found that there is insignificant relationship between employees’ performance and their gender in that country (Ufuophu-Biri and Iwu, 2014). Determining whether that employee’s performance evaluation moderated by gender (hereafter PERF-GNDR) influences their salaries and extra in the public sector in Oman will be examined in this study. The women in this study form 29.3 percent of the sample, while the rest percentage is for men. This study examines the employee’s gender as the state of being male or female. Consistent with previous studies (Burleson and Samter, 1992; Aremu and Adeyoju, 2003; Shrum, 2007; Nazrul, 2009), it is expected that the employee’s gender linked with performance evaluation has a positive significant influence on the employees’ salary and the extra amounts. 2.2. Salary, Performance evaluation and education. There is a certain need to improve evaluation process of employee performance based on their education levels in an organization. Performance evaluation has influence on the job satisfaction and the trend of employees’ performance based on education level (Caruth, and John, 2008). Different benefits and compensation packages are designed to attract employees with higher education as possible. It is right that most employees with higher education believe that when they perform best abilities, their salaries can be maximized (Surina et al, 2015). Examining the education level in this study is determined based on the education degree of an employee. The study sample is divided into different education levels. Those levels are middle school, high school, general education diploma, bachelor, higher diploma, master’s and doctorate certificate forming 2.6%, 69.9%, 2.9%, 12.9%, 0.5%, 9.1%, and 2.2% of the study sample respectively. Consistent with previous studies (Caruth, and John, 2008; Surina et al, 2015), the study expects that the performance evaluation moderated by education (hereafter PERF-EDCT) has a positive significant influence on the salary and extra amounts. 2.3. Salary, Performance and Experience Changes in the abilities of employees are possible with continued work within similar conditions and lead to use different criteria to determine their salaries (Schuldes, 2006). Indeed, in the public sector, experiences and salary as pay-related-performance schemes are differently researched. Certainly, results of examining the relationship between experiences and salary are not proved. This pay approach can effectively assisted in improving motivation and performance evaluation based on experience in the public sector (Cardona, 2006). Paying for performance could significantly support employee’s works and tasks that request minimal investments for experts (Milkovich and Wigdor, 1991). In public sector, employees with low experience Dhiaa and Aisha / Finance, Accounting and Business Analisys 25 have greater opportunities in getting job less interesting than managers and consequently might be good candidates for pay-related-performance. The cause for this situation is that those tasks are not well rewarded (Buelens and Van den Broeck (2007). The results of these tasks are not difficult to be gauged than composite tasks that have less important role (Weibel et al., 2009). In accordance with Wright, 1990), the employee’s experience will be measured for this study as employment length (in years). The study sample is divided into different ranges for employees’ experience in years. The experience ranges in years are 1 – 5, 6 – 10, 11 – 15, 16 – 20, 21 – 25 and 26 years and above forming 25.1%, 6.7%, 14.1%, 20.1%, 13.2 and 20.89% of the study sample respectively. Although pay for performance is the key determination, experience rewards still are more complex and difficult to be measured (Mphil et al., 2014). Therefore, the study has no expectation for the influence of employee’s performance evaluation moderated by experience (hereafter PERF-EXPR) on the salary and the extra amounts. 2.5. Theoretical framework Stewardship theory is developed in line with agency theory. It presents a different view that the managers are motivated rather than employees since managers interests are with the owners of organization (Davis et al., 1997). Ouchi (1980) proposes that organization can proactively manage their selection and socialization practices so that employee interests are aligned with the firms not been based on the assumption that the goals of employer and employee diverge as in agency theory. Taylor’s theory has supported transform hourly jobs into positions where employees are received the suitable compensations for their skill or their performance (Schuldes, 2006). In opposite of pay for performance scheme, its opponents proved that agency and stewardship theories as self-interest approaches have no sufficient explanation for the employees motivation especially for who work in the public sector (Moynihan and Pandey, 2007). Whether pay-for-performance theory is built on controlling employees’ behavior related to their outputs, the purpose of this approach is to motivate those employees to maximize their individual performance (Deckop et al., 1999). Referring to Perry et al. (2006) who identify type of task as a moderator of the pay and performance link, this study associates the salary and the extra amount with their performance evaluation linked with position, gender, education and experience in the public sector. As theoretical framework, the links among employee’s salary, extra as depending variables (hereafter DVs), performance evaluation, position, gender, education and experience as independent variables (hereafter IVs) and performance evaluation linked with position, gender, education and experience as moderator variables (hereafter MVs) are illustrated in Figure 1. 3. Hypotheses development and research methods According to the mentioned theoretical and conceptual framework and based on the study’s problem, questions and objectives, our hypotheses are placed as follows: Hypotheses (1): The influence of employees’ performance evaluation on salaries is moderated by employees’ position, gender, education and experience such that the increase in salaries is greater for; performance evaluation with administrative position more than this without one; male more than this for female; high education more than this with low ones; and long experience period more than this with short ones. Hypotheses (2): The influence of employees’ performance evaluation on extra amounts is moderated by employees’ position, gender, education and experience such that this extra is greater for; performance evaluation with administrative position more than this without one; male more than this for female; high education more than this with low ones; and long experience period more than this with short ones. Dhiaa and Aisha / Finance, Accounting and Business Analisys 26 Independent Variables Moderator Variables Dependent Variables Figure 1. Conceptual framework Note: Extra is the additional amount received by the employees for ideal performance and distinguished efforts. PERF-POST, PERF-GNDR, PERF-EDCT and PERF-EXPR are MVs reflecting the correlated performance evaluation with position, gender, education and experience respectively. The study examines the influence of performance evaluation, position, gender, education and experience as IVs, performance evaluation linked collectively and simultaneously with position, gender, education and experience as MV on the employee’s salary and the extra amounts as DV. The strategy of the study is collecting archival data for period 2011-2016 from the systems and records of the Ministry of Social Developments (MOSD) in the Sultanate of Oman. To conduct the results, this study employed observations about 417 persons (managers and employees), 11 variables for each person (2 DVs, 5 IVs, and 4 MVs). The number of observations for a year is 4,587 and 27,522 observations for the period 2011 – 2016 as illustrated in Table (1). Table 1 Size for study’s sample, variables and Observations within 2011-2016 # Term No. 1 Sample size 417 persons 2 DVs per person 2 Variables 3 IVs per person 5 variables 4 MVs per person 4 variables 5 Total variables (2 + 3 + 4) 11 variables 6 Observations per year (1* 5) 4,587 observations 7 Observations within research’s period (6* 6 years) 27,522 observations 8 Pooled observations 27,522 observations Via SPSS outputs, ANOVA presents values for sum of squares, F, and significance. The significance with F indicate the significant values of study’s model (Pallant, 2010). From the regression analysis of the study, the betas values show the power of each IVs (and MVs) to explain the DV variance. The t-test and p- values indicate whether a resulted coefficient is significantly different from zero. They will be used to accept or reject our hypotheses. Dhiaa and Aisha / Finance, Accounting and Business Analisys 27 4. Findings The examining for the assumptions of regression analysis is required to indicate the suitability of this analysis. These assumptions are correlation, linearity, multicollinearity, and homoscedasticity (Pallant, 2010). It is found that salary, extra and performance evaluation have non-normal distribution. Therefore, they are transformed to new variables by adopting Square root, inverse and logarithm processes respectively. 4.1 Descriptive statistics As appeared in Table (2) and after transformation process, salary is the highest value (150) and performance evaluation is the lowest one (0) among salary, extra and performance evaluation. The means of position, gender, education and experience are 38%, 71%, 24% and 54% indicate that 38% of study’s sample is managers, 71% male, 24% graduates and 54% experience with more than 16 years. Table 2 Descriptive statistics N Minimum Maximum Mean Std. Deviation Skewness Kurtosis Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error Salary 2502 59 150 104.06 18.976 .197 .049 -.660 .098 Extra 1041 1 3 2.07 .386 -.065 .076 -.473 .151 Performance evaluation 2502 0 2 .97 .240 -.079 .049 .418 .098 Position 2502 0 1 .38 .486 -.489 .049 -1.762 .098 Gender 2502 0 1 .71 .455 .912 .049 -1.168 .098 Education 2501 0 1 .24 .430 -1.188 .049 -.588 .098 Experience 2502 0 1 .54 .489 .427 .049 -1.819 .098 Valid N (listwise) 1041 In descriptive statistics, standard deviation is used to measure the deviation of a data values from its mean. Its values have to be not more than 3 to guarantee that the data has no outliers which could significantly influence the regression analysis and its results. As it shown in Table (2), standards deviation values are less than 3 except salary after transformation process. Skewness and kurtosis scores have to be between ±2. It means that it is acceptable for normal distribution of study’s data. Values above or below the majority of other observations are outliers and extremes. The skewness and kurtosis scores for our study data are between ±2, then they are acceptable since this data has the normal distribution and the regression analysis can be operated. 4.2. Correlation analysis The correlation test after transformation process indicates that the type and sign of the relationships among the study variables. According to Table (3), there are significant positive and negative relationships at .01, .05 and .10 levels among the study’s variables except education with extra. Table 3 Correlation analysis results Salary Pearson Correlation 1 Sig. (2-tailed) N 2502 Extra Pearson Correlation -.131** 1 Sig. (2-tailed) .000 N 1041 1041 Performance evaluation Pearson Correlation -.142** -.067* 1 Sig. (2-tailed) .000 .030 N 2502 1041 2502 Position Pearson Correlation -.475** .110** .229** 1 Sig. (2-tailed) .000 .000 .000 N 2502 1041 2502 2502 Gender Pearson Correlation -.160** -.100** .074** .201** 1 Sig. (2-tailed) .000 .001 .000 .000 N 2502 1041 2502 2502 2502 Education Pearson Correlation -.338** .018 .113** .254** .035 1 Sig. (2-tailed) .000 .554 .000 .000 .084 N 2501 1041 2501 2501 2501 2501 Experience Pearson Correlation -.605** .115** .110** .430** .229** .042* 1 Sig. (2-tailed) .000 .000 .000 .000 .000 .036 N 2502 1041 2502 2502 2502 2501 2502 Dhiaa and Aisha / Finance, Accounting and Business Analisys 28 4.3. Empirical results Based on what our first hypothesis stated, Table (4) shows that salary, performance evaluation, position, PERF-POST, gender, PERF-GNDR, education, PERF-EDCT, experience and PERF-EXPR variables entered the regression analysis and no variable has been removed. The total variation in salary has been accounted via the model summary. The information from Table (4) is about the ability of regression line. The R2 value is 0.535 meaning that 53.5 percent of the total variance in the salary can been explained. The significant F statistic in ANOVA results indicate that the model is significant as a whole for our study. The relationship between salary, performance evaluation, position and PERF-POST can be noticed from Table (4). The coefficients on performance evaluation (β1 = -.114 and t-test = -4.193), gender (β4 = -.864 and t-test = -4.550), PERF-GNDR (β5 = -.862 and t-test = -4.488) and education (β6 = -.505 and t-test = -2.437) are negative and significant at .05 level, while the coefficients on position, PERF-POST, PERF-EDCT, experience and PERF-EXPR are insignificant. The coefficients β1, β4, β5, and β6 demonstrate that performance evaluation, gender, PERF-GNDR and education could significantly and negatively influenced their salary. Other variables have insignificant effect on the salary. Table 4 Regression analysis results for salary Model / variable Regression outputs Values Model R .731 R Square .535 Adjusted R Square .532 F Sig. 219.857 .000 Variables Beta t-test Sig. (Constant) 11.946 .000 Performance β1 = -.114 -4.193 .000 Position β2 = .092 .379 .705 PERF-POST β3 = .263 1.074 .283 Gender β4 = -.864 -4.550 .000 PERF-GNDR β5 = -.862 -4.488 .000 Education β6 = -.505 -2.437 .015 PERF-EDCT β7 = -.240 -1.156 .248 Experience β10 = -.147 -.419 .675 PERF-EXPR β11 = .147 .418 .676 Note: DV: Salary IVs: Performance evaluation, position, PERF-POST, Gender, PERF-GNDR, Education, PERF-EDCT, Experience, PERF-EXPR. PERF-POST: The influence of employees’ performance evaluation moderated by position on salaries. PERF-GNDR: The influence of employees’ performance evaluation moderated by gender on salaries. PERF-EDCT: The influence of employees’ performance evaluation moderated by education on salaries. PERF-EXPR: The influence of employees’ performance evaluation moderated by experience on salaries. Based on what the second hypothesis stated, Table (5) shows that extra, performance evaluation, position, PERF-POST, gender, PERF-GNDR, education, PERF-EDCT, experience and PERF-EXPR variables entered the regression analysis and no variable has been removed. The total variation in extra has been accounted via the model summary. The information from Table (5) is about the ability of regression line. The R2 value is .090 indicating that 9.0 percent of the total variance in the extra can been explained. The significant F statistic in ANOVA results indicate that the model is significant as a whole for our study. Dhiaa and Aisha / Finance, Accounting and Business Analisys 29 Table 5 Regression analysis results for extra amount Model / variable Regression outputs Values Model R .246 R Square .090 Adjusted R Square .049 F Sig. 5.079 .000 Variables Beta t-test Sig. (Constant) 1.297 .195 Performance γ1 = .010 .168 .866 Position γ2 = 1.460 2.227 .026 PERF-POST γ3 = 1.382 2.085 .037 Gender γ4 = .781 1.657 .098 PERF-GNDR γ5 = .938 1.969 .049 Education γ6 = -.711 -1.180 .238 PERF-EDCT γ7 = -.725 -1.202 .230 Experience γ8 = -2.186 -2.817 .005 PERF-EXPR γ9 = -2.314 -2.964 .003 Note: DV: Extra Other variables are defined before. The relationship between extra, performance evaluation, position, PERF-POST, gender, PERF-GNDR, education, PERF-EDCT, experience and PERF-EXPR can be noticed from Table (5). The coefficients on position (γ2 = 1.460 and t-test = 2.227), PERF-POST (γ3 = 1.382 and t-test = 2.058), gender (γ4 =.781 and t- test =1,657), PERF-GNDR (γ5 = .938 and t-test = 1.969) are positive and significant at .05 level except on gender at .1 level, while the coefficients on experience (γ8 = -2.186 and t-test = -2.817) and PERF-EXPR (γ9 = -2.314 and t-test = -2.964) are negative and significant at .05 level. The coefficients γ2, γ3, γ4 and γ5 demonstrate that position, PERF-POST, gender and PERF-GNDR could significantly and positively influenced their extra, while experience and PERF-EXPR could significantly and negatively influenced their extra. Other variables have insignificant effect on the extra. 5. Discussion and conclusions 5.1. Salary and performance evaluation According to Hypothesis (1), the study result is consistent with the previous studies of (Frey and Jegen, 2001), while it is inconsistent with others that found positive relationship between performance evaluation and salary (Lazear, 2000). The result is not completely supported by Mphil et al. (2014) who concluded that pay plan is commonly employed to evaluate employee performance. The insignificant results of position and PERF-POST are inconsistent with previous studies (Bateman and Snell, 2004; Mphil et al., 2014). This means that determining salary is not influenced by the position. Despite the gender and PERF- GNDR have significant influence on the salary, the results are inconsistent with Burleson and Samter (1992), Shrum (2007) and Nazrul (2009) because of the negative sign and others who concluded that this influence is insignificant (Ufuophu-Biri and Iwu, 2014). Accordingly, the PERF-GNDR is not indicator for his/her salary. This might be explained by the small percentage of women in our sample. Despite that the influence of education and PERF-EDCT is significant results, it is inconsistent with previous studies (Caruth, and John, 2008; Surina et al, 2015) because of the negative sign. The insignificant results of those variables are not conformed by previous studies (Buelens and Van den Broeck, 2007). This might be explained by lacking of conclusive empirical evidence for effect of performance evaluation based on experience in the public sector (Cardona, 2006). Based on the study’s results, Hypotheses (1) has been rejected for all factor except the experience. 5.2. Extra and performance evaluation From testing Hypothesis (2), the result of the study is conformed to Cardona (2006) who resulted that no conclusive empirical evidence that proved the influence of performance pay approach on the performance evaluation. This is occurred in line of lacking the employee dissatisfaction with the compensation leads to achieving lower objectives of the organization (Mphil et al. 2014). Since the position Dhiaa and Aisha / Finance, Accounting and Business Analisys 30 and PERF-POST have positive influence on extra, they are consistent with previous studies (Bateman and Snell, 2004; Mphil et al., 2014). Also, the result of the study regarding the gender and PERF-GNDR are consistent with previous studies (Burleson and Samter, 1992; Shrum, 2007; Nazrul (2009), while it is inconsistent with Ufuophu-Biri and Iwu (2014). The insignificant results of education and PERF-GNDR are not conformed by previous studies (Caruth, and John, 2008; Surina et al, 2015). Despite the experience and PERF-EXPR have significant influence on the extra, the results is inconsistent with Buelens and Van den Broeck (2007) because of the negative sign. This might be explained by lacking of conclusive empirical evidence for effect of performance evaluation based on experience in the public sector (Cardona, 2006). Based on the study’s results, Hypotheses (2) has been accepted for the influence of position, gender, experience and performance evaluation moderated by those factors, while it is rejected for performance evaluation, education and PERF- EDCT. 6. Contributions and future studies The contributions of the study can be noticed in different ways. Firstly, in indicating the influence of employees’ performance evaluation on their salaries that is not well researched before. Secondly, in improving the performance evaluation of employees by linking it with salaries. Thirdly, in providing new evidence on how to improve the employees’ performance by increasing salaries in the public sector. Fourthly, in presenting a guide for public sector on how to strengthen the evaluation form to be different according to the position and experience of the employee. Consistently with previous studies that examined data from other countries, our results will be strengthened and generalized. Accordingly, these results can be added to the materials of performance and performance evaluation courses theoretically and practically. We suggest that next studies may extend this study by employing different factors such as employee’s age and sectors in addition to our study’s factors. Future studies are called to use larger sample size or long periods to exam same variables or different ones. Future studies are encouraged to compare our findings with other for organizations in the sultanate of Oman, or those from Gulf Cooperation Council, Middle East or different regions. Dhiaa and Aisha / Finance, Accounting and Business Analisys 31 References Aremu, A.and Adeyoju, C. (2003). Job commitment job satisfaction and gender in the Nigeria Police. International Journal of Police Strategies and Management, 26(3), 377-385. Bandiera, O., Barankay, I., Rasul, I. (2007). Incentives for managers and Inequality among workers: Evidence from a firm level experiment. Quarterly Journal of Economics, 122, 729-773. Bateman, T.S., & Snell, S.A. (2004). Mangement: The new competitive landscape, 6th Ed. New York: McGraw-Hill. Buelens, M. and Van den Broeck, H. (2007). An analysis of differences in work motivation between public and private sector organizations. Public Administration Review, 67(1), 65-74. Burleson, B. and Samter, W. (1992). Are there gender differences in the relationship between academic performance and social behavior? Human Communication Research, 19, 155–175. Cardona, F. (2006). Performance related pay in the public service in OECD and EU member states. Seminar on Remuneration System for Civil Servants and Salary Reform. Vilnius, Lithuania: Sigma Program, OECD. Caruth, D. and John H. (2008). Performance appraisal: Essential characteristics for strategic control. Measuring Business Excellence, 12(3), 24-32. Dart, R. (2004). Being ‘‘business-like’’ in a nonprofit organization: A grounded and inductive typology. Nonprofit and Voluntary Sector Quarterly, 23, 290–310. Davis, J., Schoorman, F. and Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management Review, 22: 20-47. Deckop, J., MANGEL, R. and CIRKA, C (1999). Getting more than you pay for: Organizational citizenship behavior and pay-for-performance plans. Academy of Management Journal, 42(4), 420-428. Frey, B. and Jegen, R. (2001). Motivation crowding theory: A survey of empirical evidence. Journal of Economic Surveys 15 (5), 589–611. Heneman, R. and Werner, J. (2005). Merit pay - linking pay to performance in a changing world (2nd Eds.). Greenwich, CT: IAP. Igbojekwe, P. and Ugo-Okoro, C. (2015). Performance evaluation of academic staff in universities and colleges in Nigeria: The missing criteria. International Journal of Education and Research, 3(3), 624-640. Lazear, E. (2000). Performance pay and productivity. American Economic Review, 90, 1346–61. Milkovich, G. and Wigdor, A. (1991). Pay for performance: Evaluating performance appraisal and merit pay. Washington, D.C. The National Academy Press. Mollel, E., Mulongo, L. and Razia M. (2017). The influence of performance appraisal practices on employee productivity: A case of Muheza District, Tanzania, Issues in Business Management and Economics, 5 (4), 45-59. Moynihan, D. and Pandey, S. (2007). Finding workable levers over work motivation: comparing job satisfaction, job involvement, and organizational commitment. Administration and Society, 39(7), 803-832. Mphil, A., Ramzan, M., Kashif Zubair, H. and Ali, G. (2014). Impact of compensation on employee performance: empirical evidence from banking sector of Pakistan. International Journal of Business and Social Science, 5(2), 302-309 Nazrul, J.K.K. (2009). Use of ICTS in gender equalization. USTC Teachers Annual (USTA-2010). Ohlott, P., Ruderman, M. and McCauley. C. (1994). Gender differences in managers' developmental job experiences Academy of Management 37(1), 46-67. Ouchi, W. (1980). Markets, bureaucracies, and clans. Administrative Science Quarterly, 25, 129-141. Pallant, J. (2010). SPSS survival manual. 3rd ed. McGraw Hill Education. Perry, J., Mesch, D. and Paarlberg, L. (2006). Motivating employees in a new governance era: The performance paradigm revisited. Public Administration Review 66, 505–14. Rizwan Q. and Ali U. (2010). Impact of reward and recognition on job satisfaction and motivation. An empirical study from Pakistan. International journal of business and management, 5(2), 159- 167. Schuldes, C. (2006). Employee preferences for pay system criteria: A pay system survey. PhD Dissertation. Capella University Shrum. L. J. (2007). The implications of survey method for measuring cultivation effects. Human Communication Research, 33(1), 64-80. https://www.researchgate.net/profile/Marc_Buelens https://www.researchgate.net/profile/Herman_Broeck http://www.emeraldinsight.com/author/Caruth%2C+Donald+L http://www.emeraldinsight.com/author/Humphreys%2C+John+H http://journals.sagepub.com/author/Moynihan%2C+Donald+P http://journals.sagepub.com/author/Pandey%2C+Sanjay+K Dhiaa and Aisha / Finance, Accounting and Business Analisys 32 Surina, N., Pangemanan, S. and Tumiwa, J. (2015). The effect of job design and compensation toward employee satisfaction at PT Bni Tbk, Manado. Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 3(3), 630-638. Ufuophu-Biri, E. and Iwu, C. (2014). Job Motivation, Job Performance and Gender Relations in the Broadcast Sector in Nigeria, Mediterranean Journal of Social Sciences, 5(16), 191 – 198. Weibel, A., Rost, K. and Osterloh, M. (2009). Pay for Performance in the Public Sector: Benefits and (Hidden) Costs. Journal of Public Administration Research and Theory, 20:387–412. Wright, P. (1990). Monetary incentives and task experience as determinants of spontaneous goal setting, strategy development, and performance. Human Performance, 3:237–58.