Performance appraisal is one of the globally accepted tools in the field of human resource management for managing human resources within an organization to the end that welfare and professional growth of staffs are given full consideration .
Dessler (2005),defines performance appraisal as “evaluating an employee’s current and past performance relative to his/her performance standards”. In general, performance appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics.
The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth. Hence the outcome of effective performance appraisal leads toimprovement in the accuracy of employee performance and establishing relationship between performance on tasks and a clear potential for reward (Hafiz et al,2009) .
It is clear that PA remains a practical challenge to managers and employees because of cognitive,motivational and behavioral factors that are not accurately measured often time during theprocess.
Wendy et al (2000) identified two typical performance appraisal uses namely: evaluativeand developmental. The evaluative function of performance appraisal includes salaryadministration, promotion decision, retention-termination decisions, and recognition ofindividual performance, layoffs, and the identification of poor performance.
The evaluativefunction is similar to Ostroffs (1993) conceptualization of administrative performance.
Thedevelopmental function of performance appraisal includes the identification of individualtraining needs, providing performance feedback, determining transfers and assignments and theidentification of individual strengths and weakness.While the ultimate purpose for conducting performance appraisal is for staff development, it is important that the employees are satisfied with the appraisal system so that it can positively relate to better work performance.
This is because performance appraisal can have a positive influence on workers performance just as they can have a negative impact on their motivation,9
role perceptions, and turnover especially when they are poorly designed or administered.
Well-designed and well-executed performance appraisals can also have a strong motivational impact. Numerous researches in performance appraisal have recognized several problems associated with the system. For example DeNisi and Kluger (2000) during their research concluded that rater’s decisions are often subjectively biased by their cognitive and motivational states and supervisors often apply different standards with different employees which results in inconsistent, unreliable and invalid evaluations.
Performance appraisal is a very sensitive process as employees understand that any negative evaluation will lead to poor rating and hence might even lead topay-cut, demotion or eventual sack .
As such it could end up demotivating the employee psychologically. Most times, this negative feelings may arise especially when its is evaluative in function.
During performance appraisal process, feedback between the managers and employee can positively influence future performance of employee.
Levy and Williams(2004) also concluded that reactions such as satisfaction, acceptability and motivation to use feedback were cited as an important tool that positively affect employee motivation.
Thus to better understand the role that Performance appraisal plays in workers motivation, it is important that administrators have the knowledge of their staff perception towards Performance appraisal as it relates to their job in the organization. Therefore, this research explores the impact of performance appraisal on workers motivation and will relate to work performance in an organization.
I hope this article helps some of my blog visitors in the field of business administration.
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