Optimizing Work Productivity: The Influence of Digital Performance Appraisal on Job Satisfaction through ESG-Oriented Human Resource Practices

Abstract

With the rise of digital technologies, human resource management has also evolved, and among the various institutions of higher education, it is crucial to have efficient human resource management that fosters employee satisfaction and performance.Human resource management has changed dramatically with the widespread use of digital technologies, and in higher education organizations, HRM is vital to the success of the institution as well as to the satisfaction and performance of its employees. The purpose of this study is to analyze the impact of Digital Performance Appraisal on Job Satisfaction with the mediation of Environmental, Social, and Governance (ESG)-oriented Human Resource Practices. A quantitative research paradigm was employed and the primary data was gathered from 660 employees of higher educational institutions through the use of a structured questionnaire. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the proposed conceptual framework. The results show that Digital Performance Appraisal has a significant and positive influence on ESG-Oriented Human Resource Practices and Job Satisfaction. Moreover, ESHRP positively and significantly influence Job Satisfaction, and partially mediate the relationship between DPA and Job Satisfaction. The findings emphasize that digital performance management, in combination with sustainable HR practices, is vital to build transparent, ethical, and employee-centered work environments. The study also makes a contribution to the literature because it provides an integrated model that integrates digital HRM practices with ESG-related practices and employee outcomes in the context of higher education institutions. The results further provide practical guidance for institutional management and policy makers to improve employee satisfaction and human resources management effectiveness through digital transformation and sustainable HR strategies.