Impact Of Performance Appraisal On Employees Motivation

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Impact Of Performance Appraisal On Employees Motivation


Appraisal is very significant tool inside the man supremacy management, stipulation it is conduct properly along with reasonably, it can carry out the organization to their ambition and the employees determination accomplish their wellbeing. Within this manuscript I study the sound possessions of concert assessment consequences taking place the staff enthusiasm.

“The aptitude to craft superior verdict Vis-à-vis populace corresponds to solitary of the preceding steadfast foundation of workforce assessment, while exceptionally hardly any association is good by the side of it.” Peter Drucker.

Chapter One


1.1 Background of the Study

Performance appraisal refers to a process, which studies and evaluated the job performance. Appraisal is an effective instrument in the human resources management, which if performance correctly and logically used, the organizations will achieve their interest (Rezghi Ros tami, 2000). The act of motivating the employees is in the heart of the organizations. Success in every organization depends upon the personnel motivation conducted by their directors (Abedinirad & Hazer, 1995).

Identifying the proficient employees and presenting them rewards (bonus) as a sign of motivation, in order to improve their performance are among the essential factors in performance appraisal (loker,1977).

KavussiShal (1999) believes that the appraisal system is a good instrument to improve the quality and quantity of the manpower’s performance. Nowadays, performance appraisal is considered as an important aspect in human resources management and a part of the control process in administration (KavussiShal, 1999). Planning the appraisal process is an important subject in the government’s official system which is annually conducted in the governmental organizations, spending a large amount of time and expenditures to reach the objectives like: manpower development, including improvements, promotions and assignments in managerial positions, persuasion and punishment, salary increase, personnel’s performance feedback and determining their educational needs. In order to reach the objectives of an organization, every person must have sufficient awareness of his/her position with such as awareness, the employees will detect the strong and weak points of their performance and behavior, so that they will probably resolve the problems and deficiencies and will turn them into more efficiency and effectiveness.

Therefore, appraisal can be considered as an important factor in identifying the people’s talents and capacities and its results can make them aware of advancements, plans and goals. An organization, itself, needs to detect the employees’ efficiency to improve the manpower’s status, for the purpose of increasing the volume of the production and services and making positive changes in its trend (KavussiShal, 1999). In spite of the permanent efforts in planning more effective system for performance appraisal, there is convincing evidence of the authority’s dissatisfaction of the appraisal methods (Fox, 1987).

The appraisal systems are usually involved with the following problems: the lack of adequate support by managers, impracticability, the appraiser’s failure in conducting a right and fair appraisal, and the lack of accordance with realities (Lures, 1980).

Performance appraisals are indispensable for the effectual supervision and costing of staff. Appraisal help to enlarge individuals, perk up secretarial routine, and nourish into dealing development. Ceremonial performance judgment is commonly conducted per annum for each and every one workforce in the organization everyone is appraised by their line supervisor. Performance appraisals are also crucial for career and succession development. Performance review designed for workforce inspiration, position and conduct improvement, converse directorial aims, along with nurturing optimistic associations between supervision and workforce. Performance appraisals provide a recognized, recorded, customary assessment of an individual’s routine, and a sketch for potential enlargement. In diminutive, performance and career judgment are crucial for administration the performance of natives and organizations. (Panagar 2009) Performance evaluation ought to be treated as an enduring developmental progression to a certain extent than a prescribed once-a-year review. It ought to be intimately monitored by both worker and assessor to guarantee that targets are mortal achieved. By preparing physically conscientiously and signifying a keenness to work together with your reviewer to enlarge your responsibility, you will craft an encouraging consciousness. Worker act, in common, submit to behavior with the intention of applicable to directorial goals and with the intention to organize entity workforce (J.P et al. 1993) Performance assessment are perchance the preponderance vague along with ill-treated administration means in the times of yore. While raise, the mainstream of individual director will pledge canopy with the intention of their mass crucial means for analysis constituent of the section. The authenticity is that, on the whole, managers, supervisors, and employees abhorrence the inference for them and they hardly ever obtain complete. Individual reserve specialized squander an assortment of moment trouncing lay people into doing them, while managers appear for a diversity of motivation to wildcat strike the sequence. The intention for this is that it’s consistently an abrasive follow to clutch out, group get on performance assessment for the erroneous grounds and from the erroneous summit of view. This can ending up put the administrative and the employee on sundry “sides”. Assessments are worn for influential disburse boost, who acquire let go, who acquire sponsor. Nearly everyone frequently, they are worn to hub on what populace contain invalid. (Jr 2009). Provides management with decision-making information on human resources expand and progress report with employees erect stronger working relationships Identifies performers needing enhancement for coaching/guidance support taking responsibility for their performance and improvement.

(Armstrong 2005).According to Kewin Dwyer Performance Appraisal should be the Opportunity for an organizer in an organization to set the enlargement opportunity for their workforce flaming it should be a revitalizing invigorating juncture. Admittedly sometimes it may be tough practice as some home truths are formally collective about performance and leadership but it should never, never be a flabbergasted.

Motivation signifies a worker yearning and obligation, which is marked as effort. Some populace wishes for to absolute project excluding efficiently distracted or dejected. They have greatest point but diminutive guarantee.

Other hoof next to with splendid principle, but there is effort unimaginative. This populace has elevated pledge but little need (KAMAL1 et al. 2005). According to Luthans with the intention of inspiration this is the procedure which arouse, stimulate, leads, and with position manners and concert

1.2. Statement of the Problems

The problems of what motivates workers into improving their work performance for an efficient organizations operation have undergone a very big strain given to writer of motivation series.

In most cases, workers in some manufacturing companies do not receive adequate bonus and incentive which could contribute immensely to inactive performance in their job or work. However, the problems in question can be highlighted viz:

  1. Low productivity and profitability in a manufacturing company.
  2. The production of inferior goods and rendering of poor services
  3. Negative attitudes of workers in carrying out assigned duties
  4. There seem to be an insatiable demand from some employees in an organization.

1.3. Objectives of the Study

Although, there is a general believe that appraisal as a techniques, motivate employees towards greater productivity and therefore, it increase profit.

However, the objectives of this study are to:

  1. To examine the relationship between Performance Appraisal and Employees motivation.
  2. To determine the effect of high and low workers appraisal that motivate employees in an organization.
  3. Finally, to contribute to the existing stock of knowledge in this specific subject area.

1.4 Research Hypotheses

Hypothesis One
  • HO there is no relationship between Performance Appraisal and Employees motivation
  • HI: there is relationship between Performance Appraisal and Employees motivation
Hypothesis Two
  • HO: there is no effect of high and low workers appraisal that motivates employees in an organization.
  • HI: there is effect of high and low workers appraisal that motivates employees in an organization.

1.5. Significance of the Study

There is a great need of a research of this kind at a time when questions are being asked to the practical and theoretical foundation of performance appraisal on employee’s motivation in an organization.

However, this study shall provide new and avalanche knowledge to the following categories of people:

  1. Professional Secretaries in an organization
  2. Employees in an organization
  3. The government
  4. Trade Union
  5. Scholars in this particular topic
  6. Society at large

1.6 Scope and Limitation of the Study

This research work “impact of performance appraisal in motivating workers” covers operations of First Bank plc, Nigeria. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

1.7. Definition of Terms

The terms used in this study (though might have different meaning to different people), are simple and unambiguous statement which are in one way or the other related to the topic sentence viz.


Production as used in this study simple means the creation of goods and services.


Profit as used in this study is the amount by which output is greater than the input after expenses have been duly deducted


This is used here as money added to employees wage or salary especially as a result of good job performance.


Incentive is used in this study as the kind of compensation given to workers of an organization designed to influence the employees performance.


This is used in this study as the regular amount an employee receive monthly for service rendered.


Performance is the act, process or manner of functioning well in an organization.


This is used in this study as the combination of human and material effort gained towards the achievement of certain objective.


It is used in this study as persons who are paid for the work they carried out for their organizations.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain impact of performance appraisal on employee’s motivation. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of performance appraisal on employee’s motivation

5.2 Summary

This study was on impact of performance appraisal on employee’s motivation. Four objectives were raised which included: Low productivity and profitability in a manufacturing company, the production of inferior goods and rendering of poor services, negative attitudes of workers in carrying out assigned duties, there seem to be an insatiable demand from some employees in an organization. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of first bank, Enugu state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, human resource managers, accountants and marketers were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

5.3 Conclusion

From the findings and discussion the first bank had adopted performance appraisal as a means of motivating employees. A comprehensive performance appraisal policy needs to be established in order to link pay to performance since the current policy has room in dealing with underperformers. In order to manage poor performance feedback id required throughout the appraisal period and there is need to look into what employees need to overcome problems in performance; and of more importance how the management can help and support the employees and the organization at large. The study also established that performance appraisal system provides employees with self-rating, and performance standards. Effective performance system provides behavioral standards. During performance planning processes both behavioral and results outcomes should have been seen so as to ensure an ongoing feedback in the performance appraisal process.

5.4 Recommendation

From the findings and conclusion, the study recommend that organizations should appraise their employees to enhance employees’ productivity The management should therefore utilized targets, accomplishments, organization goals, time management and efficiency for performance measure purposes and the appraisal process as this would lead to increased in employee’s productivity. From the findings, the study recommend that organizations should establish and adopt performance appraisal systems that would enable effectively appraisal of the employees and therefore providing opportunities to the management in identifying staff training needs, identify performance targets, improve employees performance and helping employees on time management through planning and setting of deadlines. From the findings the study recommends that firms should adopt behavioural performance appraisal system and management by objectives as the appraisal systems were found to be statistically significant in influencing employee’s relationship and improving employee’s productivity

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