Thursday, December 16, 2021

Impact of Performance Appraisal on Employees Motivation

What is Performance Appraisal?


Figure 1: Performance Appraisal ( Ingwersen, 2017)

Performance appraisals can be important tools to provide employees with feedback for their commitment and contribution to the productivity of the organization. Performance appraisal leads to enhance employee development and motivation.

"The term performance appraisal refers to the regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills, achievements, and growth, or lack thereof" (Hayes, 2021).

There is no common methodology for successful performance appraisal. It varies from organization to organization.

Performance Appraisal process 

Performance planning. 

Performance execution progress review. 

Performance assessment. 

Performance review.

Figure 2 : Performance Appraisal(AIHR, 2019)

The employee performance appraisal process is crucial for organizations to enhance employee productivity and improve their outcomes. Performance appraisal is the annual process by which an employee's performance and productivity are evaluated against a predetermined set of objectives . Performance appraisals are used to review an employee's performance over a period of time. These reviews are used to highlight the strengths, potential of the assigned role, skills and failures, and weaknesses to improve future performance in order to achieve the desired productivity of the organization.

  Benefits of appraisal to employee

Rewards and recognition

Increments, incentives, bonus 

Promotion 

Nomination for various training programs.

"Performance appraisals are designed to motivate employees to reach and/or exceed their goals. But they do come with a lot of criticism" (Hayes, 2021).

The employees of the organization expect to be properly evaluated for their duties, their contribution to the organization, and their ability, talents as well as the effective performance of their duties. By doing so, employee motivation occurs. They gain more confidence in the organization and increase their interest in the service and commitment they have to make to the organization. It brings many benefits to the organization Such as:

Utilization of resources 

Reduce wastage 

Reduce grievances, absenteeism, employee turnover, and Indiscipline 

Reduce conflicts 

Improve productivity 

Improve Cooperation

The employee appraisal should be evaluated according to the evaluation procedure of an organization, but the frustration of the employee when it is not evaluated enough. In such a case, the employee's demotivation is diminished.

Key objectives of Employee motivation 

To energize towards identified goals, outcomes.

Enable to achieve acceptable performance levels.

To realize the higher potential of individuals. 

Figure 3: Employee Motivate (Geropp, 2019)

Conclusion 

Performance appraisals can lead to unfair evaluations, and employees are judged by their will, not by their accomplishments. It can lead managers to give a scientific rating to weak staff to prevent their relationship from deteriorating. In such a situation employees' demotivation occurs and impact in many ways to overall productivity. Employee appraisals should take place within an organization and should be appropriately evaluated. Maintaining regularity and transparency in employee evaluations promotes employee efficiency and commitment within the organization as well as job satisfaction.

Referenses 

AIHR, 2019. You Tube. [Online]
Available at: https://www.youtube.com/watch?v=2Ww4KEnUhec
[Accessed 16 December 2021].
 

Geropp, B., 2019. Youtube. [Online]
Available at: https://www.youtube.com/watch?v=chpCYb52_wo
[Accessed 17 December 2021].

Hayes, 2021. Investopedia. [Online]
Available at: https://www.investopedia.com/what-is-a-performance-appraisal-4586834Companies use
[Accessed 15 December 2021].

 Ingwersen, H., 2017. Capterra. [Online]

Available at: https://blog.capterra.com/what-is-a-performance-appraisal-and-how-can-you-get-the-most-from-it/

[Accessed 16 December 2021].



4 comments:

  1. Motivation is important to a business and its employees. It helps an individual achieve personal goals. A motivated individual will have greater job satisfaction, heightened performance and a willingness to succeed, So the appraisal system provides the supervisor with an opportunity to indicate to employees that the organization is interested in their performance and development and companies should evaluate performance fairly.

    ReplyDelete
  2. Appraisal means Setting up a Goal for individual and once the KPI's met it's mean Job satisfaction, and leaders duty is to guide and drive them to complete a satisfied Appraisal on Mid year and year end.

    ReplyDelete
  3. An employee's performance might be used to motivate him to work harder and be more productive. When an employee's goals are clearly stated, his performance difficulties are identified, and career development solutions are in place to help him advance his career, it motivates him to attain those goals.

    ReplyDelete
  4. If an employee not motivated properly towards achieving given targets, you cannot expect a good end product.To motivate your employees, you need to assess them time to time evaluating their performances and reward upon them

    ReplyDelete

Teamwork

Teamwork enables you to accomplish tasks faster and more efficiently than tackling projects individually.   Teamwork is important in an orga...