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The Impact of Performance Appraisal on Employee Motivation

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The Impact of Performance Appraisal on Employee Motivation:
The Case of United Group’s Power Sector in Bangladesh

i
 Executive Summary

Beginning with a few tiny businesses in the beginning, United Group has grown into one of
Bangladesh's greatest socioeconomic infrastructure-based conglomerates. Early in the 1980s,
the Group engaged in bartering with Bulgarian businesses, exchanging radio transmitters and
related equipment for some of the country's main radio stations of the time. The Group has
been expanding into a variety of new businesses as time has gone on, succeeding in nearly
every one of them. Power production, healthcare, education, real estate, construction, ports,
yarn spinning, specialized services, shipping, and logistics are just a few of the many
investment opportunities it possesses.

The company has over 12,000 employees working and to manage this huge number of
employees is important to get the best output. To utilize this vital resource, the human resources
department has been working very hard efficiently and effectively ensuring maximum output.
This department has ensured a healthy work environment and leeside a gap between employees
and management.

The main focus of this report is to present the relevant information on the initiatives in order to
ensure a standard performance appraisal system and impact on employee performance and
motivation.

ii
 Contents
Chapter 1 .................................................................................................................................... 1
Introduction ................................................................................................................................ 1
1.1 Background of the study ............................................................................................. 2
1.2 Problem Statement of the Report ................................................................................ 2
1.3 Objective of the Study (Major Objective) ................................................................... 2
1.4 Specific Objectives .......................................................................................................... 3
1.5 Scope and Limitations...................................................................................................... 3
Chapter 2 .................................................................................................................................... 4
Literature Review of the Study .................................................................................................. 4
2.1 Literature Review............................................................................................................. 5
2.2 Performance Appraisal..................................................................................................... 5
2.3 Employee Motivation....................................................................................................... 5
2.4 360 degree appraisal ........................................................................................................ 5
2.5 Bias .................................................................................................................................. 6
Chapter 3 .................................................................................................................................... 7
Organizational Profile ................................................................................................................ 7
3.1 Background of the organization ....................................................................................... 8
3.2 Mission............................................................................................................................. 8
3.3 Vision ............................................................................................................................... 8
3.4 Organizational Values ...................................................................................................... 9
Chapter 4 .................................................................................................................................. 10
Methodology ............................................................................................................................ 10
4.1 Research Types .............................................................................................................. 11
4.2 Data Types ..................................................................................................................... 11
4.3 Population parameters .................................................................................................... 11
4.4 Sampling Design ............................................................................................................ 12
4.6 Data processing and analysis/data analysis plan ............................................................ 13
Chapter 5 .................................................................................................................................. 14
Performance Appraisal System and Impact on Employee Motivation .................................... 14
5.1 Performance Appraisal and Its Impact ........................................................................... 15
Chapter 6 .................................................................................................................................. 21
Study Results and Findings...................................................................................................... 21
6.1 Positive effects of Performance Appraisal ..................................................................... 22
6.2 Negative Effects of the Performance Appraisal............................................................. 23
6.3 Findings from employee’s job expectation .................................................................... 24
Chapter 7 .................................................................................................................................. 25

iii
Conclusion and Recommendations .......................................................................................... 25
7.1 Introduction .................................................................................................................... 26
7.2 Summary of findings...................................................................................................... 26
7.3 Limitations of Study ...................................................................................................... 26
7.4 Recommendations .......................................................................................................... 26
7.4.1 Employee Motivation and Performance Appraisal Process........................................ 26
7.4.2 Performance evaluations' impact on staff motivation ................................................. 27
7.4.3 Challenges in Appraising Employee Performance ..................................................... 27
7.4.4 Recommendations for Further Studies........................................................................ 27
7.5 Conclusion ..................................................................................................................... 28
References ................................................................................................................................ 29

iv
 List of Tables

Table 1. Total Population Distribution .................................................................................... 11

Table 2. Performance Appraisal Format .................................................................................. 16
Table 3. Appraisal System (Comments' Part) .......................................................................... 17
Table 4. Detail rating points of the selected employees .......................................................... 19
Table 5. Summary of Performance Appraisal Process ............................................................ 20

v
 List of Figures

Figure 1. Values of the Organization ......................................................................................... 9

Figure 2. Sampling Design ...................................................................................................... 12
Figure 3. Degree Appraisal ...................................................................................................... 13
Figure 4. Performance Appraisal ............................................................................................. 15
Figure 5. Employee's job expectation ...................................................................................... 24

vi
 Chapter 1
Introduction

1
1.1 Background of the study

Without a question, effective management of human resources is essential to a company's

success in today's environment of fast change. Therefore, in order to acquire the finest results,
it is important to use this resource correctly. They should also routinely get training and
equipment. Issues to deal with include shifting skill needs, programs for continuous
development, a more diverse workforce, dispersed work sites, and employee participation.
Finding the best employees for the ideal role at the ideal moment is one of the most difficult
tasks for the human resources department, or "right person at the right place at the right time."
The United Group regularly maintains the standard performance assessment to uncover any
discrepancies between the standard and actual employee performance.

1.2 Problem Statement of the Report

People frequently hold the opinion that performance reviews have varying effects on how well
their employees perform at work. Many a time, it positively impacts the company’s entire
functioning. According to many research the importance of performance appraisal shows
crucial role in increasing employee performance. Many employees feel demotivated and
uninspired in the presence of poor performance appraisal system which eventually creates poor
performance. This raised concerns on how to form performance appraisal system such a way
that creates a positive impact on employee performance.

1.3 Objective of the Study (Major Objective)

The enormous number of employees at United Group contribute significantly to the business's
economic expansion. The main objective of the study is to present the impact of performance
appraisal system taken by the organization on employee motivation.

2
1.4 Specific Objectives

• To identify and show the performance appraisal process

• To define the positive impact of appraisal consequences
• To explore the motivation factors, arise by appraisal process

1.5 Scope and Limitations

The scope of this report is to study and discuss the changes in performance appraisal practices
in United Group elaborately and learn the practical knowledge.

Some limitations were faced while making this report are namely:
a) shortage of time frame
b) scarcity of resources
c) limitation of money

3
 Chapter 2
Literature Review of the Study

4
2.1 Literature Review

This part presents a review of some past information about performance appraisal procedures
and its impact on employee motivation as haul out from various articles and studies. The
literature review mainly focuses on the process of appraisal followed by human resource
department of United Group in its power sector that increases employee motivation.

2.2 Performance Appraisal

According to Stephen Bach (2005:3) in Managing Human Resources: Personnel Management,

the debate over the concept of HRM has mostly subsided compared to a decade ago. He muses
that, in part, this could be because HRM is defined in a larger and more comprehensive way.
However, by refuting Boxall and Purcell's (2003:1) assertion that HRM pertains to the human
resource management, Bach (p. 4) demonstrates that the dispute has not ended. According to
Bach, HRM differs from employee relations in that it places more emphasis on management
procedures and has a propensity to disregard workers' concerns.

2.3 Employee Motivation

Employee motivation is the level of dedication, zeal, and creativity that a company's staff
exhibits while at work. It's crucial but challenging to measure; maintaining and enhancing
motivation in the workplace can be a challenge for many companies as not every task will be
interesting. As a result, businesses must find ways to keep their employees engaged while also
monitoring and fostering motivation (Wright, 2001).
Singh S.K. (2008) mentioned in this study that employees should continue to be involved in
order to provide high productivity. Employee commitment enables him to meet his goals and
improves the quality of his job. The employer should aid the employee in receiving training to
hone his interpersonal abilities. The progress of the person should be supported equally by the
employer and the employee.

2.4 360-degree appraisal

It might involve a process where performance data, ratings, and feedback are gathered from all
interatomic groups of people who are relevant to the individual's work, including immediate
superiors, groups, peers, clients, subordinates, and oneself, with varying weights assigned to
each group of raters. This process has been discovered to be quite helpful and persuasive.
Degrees in interpersonal skills, customer satisfaction, and group-building skills are very

5
beneficial (Qureshi et al., 2007). This framework's key feature is that evaluations must appear
to be all-circular in execution and cannot be allowed to ignore any voting demographic. But on
the other side, receiving feedback from many sources can be time-consuming, expensive, and
frightening (Shaw et al., 2008).

2.5 Bias

Fundamentally, bias is a personality-based propensity for something, either in favor of or

against. Predisposition in the execution assessment case is either in favor of or against a person
represented. All humans are biased, but managers in particular should avoid allowing their
biases to influence how they evaluate their staff members (Kumbhar, 2011). It's often extremely
easy to say but quite challenging to really perform. Evaluation becomes subjective because of
biasness. Therefore, to avoid bias, the appraiser should be impartial and refrain from letting
their feelings of admiration or contempt for the subject affect their evaluation.

6
 Chapter 3
Organizational Profile

7
3.1 Background of the organization

A group of friends came together in 1978, gathered their resources, and established United
Enterprises & Co. Ltd. (UECL) as their business. Their goal was to build a distinctive company
that would prosper for many years. United Enterprises & Co. Ltd., today more often known as
United Group, has gone a long way to become one of the most prominent and recognized
conglomerate local companies in the nation after almost four decades from its founding day.

Beginning with a few tiny businesses in the beginning, United Enterprises has grown to become
one of Bangladesh's major socioeconomic infrastructure-based businesses.
Power production, healthcare, education, real estate, construction, ports, yarn spinning,
specialized services, and shipping make up its wide investment portfolio across the nation.

3.2 Mission

Mission supports the vision and serves to communicate purpose and direction to employees,
customers, vendors and other stakeholders; to be a socially responsible corporate entity by
supporting community development activities.

3.3 Vision

Vision is one of main elements for a company because it denotes what the company will be in
the long-term future. The vision of United Group is to be the best brand committed to
excellence in all our endeavors.

8
3.4 Organizational Values

The collection of guiding principles and essential ideas known as company values—also
known as corporate values or core values—helps a group of individuals operate as a team and
pursue a single business objective. These principles are frequently connected to client
interactions, business partnerships, and business expansion. United Group's core principles are:

Trust Integrity

Responsibility Creativity

Figure 1. Values of the Organization

9
 Chapter 4
Methodology

10
4.1 Research Types

This report has been based on qualitative research that seeks to describe the present status of
an identified variable. The researcher does not usually begin with a hypothesis, but is likely to
develop one after collecting data. Conducting the qualitative research, this report used one-to-
one interview, and record keeping.

4.2 Data Types

All data in this report mainly collected from both primary and secondary sources. Several
certain questions to support the study’s goals. Questionnaires, in-person interviews, are among
some common methods have been used. Questionnaires have been taken from 30 respondents.

4.3 Population parameters

Population is the entire collection of individuals or entities from whose information is needed,
according to Cooper and Schilndler (2006). The 714 workers of United Power Ltd., a subsidiary
of United Group, Bangladesh, make up the population of interest. The target population
respondents were full-time, regular workers of the business, making them well-suited to
participate in the study.

Category Total Population Percentage

Assistant Manager 2 6.67
Senior Chemist 1 3.33
Senior Engineer 2 6.67
Engineer 4 13.33
Assistant Engineer 10 33.33
Sub Assistant Engineer 11 36.67
Total 30 100

Table 1. Total Population Distribution

11
4.4 Sampling Design

Purposive sampling was used for this report's design in order to achieve its goals. Purposive
sampling, often known as "judgmental sampling," is a form of non-probability sampling
technique that enables you to use your judgment to choose examples that will help you achieve
your goals and provide the best possible answers to your research questions. When dealing
with relatively small samples, such as in case study research, and when attempting to choose
certain instances that are particularly instructive, this sort of sample is commonly utilized
(Neuman 2005). Your research questions and objectives should inform the reasoning behind
your technique for choosing cases for a purposive sample.
Purposive sample was chosen for this research in order to concentrate primarily on a limited
group of important personnel.

Figure 2. Sampling Design

4.5 Methods of data collection and instruments used in data collection

The study concentrated on using a qualitative technique to gather information and assess how
performance reviews affected workers' productivity at work. Both primary and secondary
sources of data have been used to gather the information, which has subsequently been
presented in a variety of tables, explanations, etc. Some of the information was gathered from
earlier documents. Additionally, a variety of techniques have been used to collect data,
including one-on-one interviews, focus groups, historical records, and more.

12
4.6 Data processing and analysis/data analysis plan

In this investigation, descriptive statistics were employed. Descriptive analysis is the process
of turning a large amount of raw data into various forms. Tables and figures were used to show
the data in order to quickly paint a clear picture of the research findings. Themes were used to
display primary and secondary qualitative data. The reader will comprehend how the 3:1 and
360-degree approaches identify employee performance after a performance assessment
method. The 360-degree assessment procedure incorporates comments from all

Figure 3. Degree Appraisal

13
 Chapter 5
Performance Appraisal System and Impact on Employee Motivation

14
5.1 Performance Appraisal and Its Impact

The phrase "performance appraisal" describes the routine evaluation of a worker's productivity
and overall value to a business. A performance assessment, sometimes referred to as a yearly
review, employee appraisal, performance review, or evaluation, assesses the abilities,
successes, and growth—or lack thereof—of an employee. Performance reviews are used by
employers to provide workers with comprehensive feedback on their work and to support
choices on salary raises, incentives, and termination. Although they can be carried out at any
time, they usually happen annually, semiannually, or quarterly. J. Paauwe (2009).

Figure 4. Performance Appraisal

Performance reviews guarantee that employees are performing their jobs effectively and work
to close the performance gap between expected and actual employee performance. The human
resources department's job is to make sure the aforementioned process proceeds without
hiccups, achieves organizational objectives, and aims to satisfy both employers and workers.
The United Group's human resources department uses a 3:1 framework to carry out the
assessment method. This 3:1 structure primarily refers to two components: the year's top three
accomplishments and the area of personal growth.

15
The second section is mostly used to pinpoint performance gaps that require filling through
more training or other means.

There are three major sections in the first part.

To be filled up by employee Specific achievement

KRA Deadline
Individual target (KPI) /Failure (if any):

Goal-1

Goal-2

Goal-3

Personal Development-1

Table 2. Performance Appraisal Format

Above three goals are the major KRA and any inefficiency creates during the attainment of
these KRA shall be mentioned in the second part namely Personal Development. Later, further
training or assistance will be provided on the basis of the mentioned weakness or development
in the second part. Basically, these two parts are the foundation of the entire appraisal format
that has been using by human resource department of United Group.
The global standard time spent for performance management process is 210 hours. (Chellappa,
2023). Performance appraisal should be carried out from a neutral side and the post process of
appraisal should be implemented as earliest possible time in order to sustain employees
motivation.
In the last part of the appraisal form used by the human resource department of United Group
illustrates why it is called 360 degree appraisal format. In this section, individual comments
are taken then comments from line manager, second level supervisor comments and then
forwarded to HR department for further procedures.

16
 Please write down summary of your Supervisor’s Plant In-Charge Comments:
year’s performance (60 words): Comments:

Second Level Supervisor’s Comments: Functional Head To be filled by HR Department:

Comments &
Approval :

Table 3. Appraisal System (Comments' Part)

Throughout the whole year employees try to fulfill their targets and on the basis of those targets
they are being appraised commonly at the end of each year. Similarly, each year human
resource department of United Group conducts appraisal for the employees of power sector.
Total selected number of employees of this research is 30 (thrity) and the total population is
714 (seven hundred forteen). The following table has shown in details the employee names,
their joining date and service length, rating point and grading. Final decision of increment or
promotion are mainly depend on the rating point and grading as well as service length
sometimes.

Joining Rating
ID Name Designation Job. Prd. Grading
Date Point
364 Md. Shakil Islam Assistant 15-Nov-11 9 Y, 1 M, 3.32 Very
Manager 17 D Good
1281 Md. Sohel Rana Assistant 1-May-18 2 Y, 8 M, 3.39 Very
Manager 0D Good
566 Rais Uddin Ahmed Senior 1-Jan-15 6 Y, 0 M, 3.91 Very
Chemist 0D Good
1356 Md. Eleas Senior 23-Jul-18 2 Y, 5 M, 3.37 Very
Engineer 9D Good
506 Md. Habibur Senior 1-Nov-14 6 Y, 2 M, 3.18 Very
Rahman Engineer 0D Good

17
1397 Sujon Mondal Engineer 1-Sep-18 2 Y, 4 M, 3.08 Very
0D Good
1809 Md. Delwar Hossain Engineer 1-Jun-20 0 Y, 7 M, 2.95 Good
0D
1427 Md. Emdadul Haque Engineer 18-Sep-18 2 Y, 3 M, 2.25 Poor
14 D
1330 Md. Jahid Hossain Engineer 6-Jun-18 2 Y, 6 M, 3.12 Very
26 D Good
608 Mohammad Siamon Assistant 1-Nov-14 6 Y, 2 M, 3.20 Very
Hasan Engineer 0D Good
570 Md. Kamar Ali Assistant 5-Nov-14 6 Y, 1 M, 3.00 Very
Engineer 27 D Good
702 Abdullah Al Akram Assistant 1-Jul-16 4 Y, 6 M, 2.31 Poor
Engineer 0D
975 Md. Hossain Assistant 1-May-17 3 Y, 8 M, 3.23 Very
Engineer 0D Good
1102 Emran Hossain Assistant 15-Oct-17 3 Y, 2 M, 2.54 Good
Engineer 17 D
1307 Md. Ariful Haque Assistant 1-May-18 2 Y, 8 M, 2.73 Good
Engineer 0D
1351 Md. Nazmul Kabir Assistant 24-Jul-18 2 Y, 5 M, 3.20 Very
Engineer 8D Good
1127 Md. Sulaimun Assistant 1-Jan-18 3 Y, 0 M, 2.53 Good
Hossen Engineer 0D
1431 Jahangir Alam Assistant 3-Sep-18 2 Y, 3 M, 2.58 Good
Engineer 29 D
1471 Md. Mehedi Hasan Assistant 12-Oct-18 2 Y, 2 M, 3.11 Very
Engineer 20 D Good
1121 Md. Rasel Miah Sub 13-Dec-17 3 Y, 0 M, 2.81 Good
Assistant 19 D
Engineer

18
 1332 Md. Asif-Ul-Haque Sub 16-May-18 2 Y, 7 M, 3.08 Very
Assistant 16 D Good
Engineer
1657 Abdullah Al Nayem Sub 1-May-19 1 Y, 8 M, 2.10 Poor
Assistant 0D
Engineer
11280 Md. Rafiqul Islam Sub 25-Apr-18 2 Y, 8 M, 2.60 Good
Assistant 7D
Engineer
10781 Md. Habibur Sub 1-Feb-14 6 Y, 11 2.50 Good
Rahman Assistant M, 0 D
Engineer
11311 Abdul Gafur Sub 16-May-18 2 Y, 7 M, 2.85 Good
Assistant 16 D
Engineer
11827 Asaduzzaman Sub 1-May-19 1 Y, 8 M, 3.25 Very
Assistant 0D Good
Engineer
10507 Md. Ohidur Rahman Sub 14-Jul-11 9 Y, 5 M, 2.80 Good
Assistant 18 D
Engineer
11444 Md. Moshiur Sub 1-Oct-18 2 Y, 3 M, 2.80 Good
Rahman Assistant 0D
Engineer
11112 Akter Hossain Sub 16-Sep-17 3 Y, 3 M, 3.10 Very
Assistant 16 D Good
Engineer
10787 Md. Omar Sany Sub 3-Apr-14 6 Y, 8 M, 3.25 Very
Assistant 29 D Good
Engineer

Table 4. Detail rating points of the selected employees

19
Summary of the grading state:

Particulars Grading Percentage (%)

Very Good 14 46.67

Good 13 43.33

Poor 3 10

Table 5. Summary of Performance Appraisal Process

Here all the components have different meanings. The top performers are notified by obtaining
very good grade which represents employees who added value by exceeding on target
achievement. Secondly, employees who achieved all KPI’s satisfactorily get the grade of good.
Lastly, those who get poor they need further efforts to meet the target, position reassessment
and disciplinary action required in this regard.

Consequences of performance appraisal can be either positive or negative influences on

employees motivation. If the performance appraisal is positive then employees feel motivated
automatically, but if it is negative then there may be bad impact on the employees motivation
as well as the productivity will be decreased.

Throughout the whole year employees work as much as can and they also want a positive return
from the organization. During the time of performance appraisal process employees feel that
they are going to have something positive regarding the increase of their salary sometimes
position too.

20
 Chapter 6
Study Results and Findings

21
6.1 Positive effects of Performance Appraisal

The performance review has both sides (good and bad), just like every initiative. Both
consequences materialize following the implementation of the decision based on the United
Group’s human resources department’s performance evaluation. Employee loyalty,
commitment, and sincerity toward the accomplishment of their organization’s goals increase
as a result of the company’s strong return on investment. Below are a few examples:
a) Increase in Commitment: Employee commitment to accomplishing corporate goals is
greatly influenced by performance evaluation.
b) Determine Training & Development Needs: A key part of a worker's professional
development is career advancement. However, the majority of employees lack a
comprehensive knowledge of their advantages and disadvantages. Employees learn more
about their performance and contribution to the organization during the assessment process.
This guarantees that workers may work on the areas that need improvement for the
advancement of their careers.
c) Sincerity: The problems and successes of the full review period are shared with
management when an employee's performance is evaluated.Because they are more self-
aware, workers are more likely to acknowledge and address their performance concerns.
As has been mentioned, progress begins with awareness. Employees become more
responsible for their activities as a result, and they become more motivated to boost
productivity.
d) Clarify Objectives: Rather than focusing on difficult tasks, employees work to the best of
their abilities when they are aware of the end goal and how their efforts are advancing the
business. The optimum chance for managers and staff to evaluate job descriptions and
categorize anticipated performance results that are in accordance with corporate goals is
provided by performance appraisals. This gives workers a clearer understanding of their
position within the company, the influence they are having, and the standard of
performance required of them. Employee engagement and motivation with the greater
organizational purpose increase when they can perceive this alignment in a transparent
goals-based framework, which improves performance.

22
6.2 Negative Effects of the Performance Appraisal

Many a time, it has become very that after the implementation of the appraisal procedures there
creates demotivation among many of the employees. When employees feel that they are not
being properly evaluated and benefitted, the productivity will gradually be slower down
ultimately their level of commitment and loyalty towards the organization will be decreased.

Some of the common effects in the context of United Power Sector’s employees are discussed
below:
a) It has increased turnover: In the presence of bad appraisal procedure, employees will
be demotivated and ultimately, they will quit from the current organization and look for
other organization. In power sector of United Group in 2022 the total turnover was 70
out of 714 and it was higher than the previous year. Turnover rate of 2022 was higher
from the previous year, the main reasons extracted from the exit employees was less
salary increase.
b) Misleading Information: Sometimes it is seen that in the private sector to motivate
employees, employer promise to create career growth but in reality, it is very slow
which in result creates demotivation.
c) In order to analyze task execution and employee motivation, performance evaluation
framework constantly searches for better, more accurate, and more affordable methods.
d) A crucial technique aimed at improving a worker's performance inside the business may
be the performance appraisal evaluation framework (Vasset, Marnburg, and Furunes,
2011).

23
6.3 Findings from employee’s job expectation

After the performance appraisal results implementation in 2022 by the human resource
department of United Group upon the Power sector’s employees’ the categories of the
following figure are some of the feedbacks from employees which denote the level of
employees’ job expectation how much they are satisfied with the current job. It has been
observed that most of the employees are satisfied with what they are doing their daily tasks and
rest are in average.

Figure 5. Employee's job expectation

24
 Chapter 7

Conclusion and Recommendations

25
7.1 Introduction

The analyst discusses the research's conclusions in relation to the writing audit in this part.
With the specific inquiry about aims in intellect, the summary, conclusion, and
recommendations about the influence of execution examination on worker inspiration are
thoroughly reviewed.

7.2 Summary of findings

The study's overarching goal was to determine how performance reviews affected workers'
motivation. The study's particular goals were to define the beneficial influence of evaluation
consequences, investigate the motivational variables brought on by the assessment process, and
identify and demonstrate the performance appraisal process.

7.3 Limitations of Study

The study is prepared to run into the restriction of incomplete questionnaire forms. This is due
to the fact that the intended respondents are workers. As a result, individuals could have hectic
work schedules that make it difficult to gather data within the allotted time span. The researcher
will request consent to collect data two weeks prior to the start of data collection in order to
give respondents time to plan a convenient time for filling out questionnaire forms.

7.4 Recommendations

7.4.1 Employee Motivation and Performance Appraisal Process

The research suggests that a key factor in representational inspiration is the performance
examination framework. Worker execution and inspiration at work are improved by the
performance evaluation system. To increase their motivation, execution should be regularly
evaluated. Measuring work execution and representational inspiration should start with an
execution evaluation methodology. The performance metrics must be tied to an individual's
actual performance because this is essential for motivating employees. To increase the
representative's productivity and motivation, the assessment approach should be exact and take
into account current job depictions.

26
7.4.2 Performance evaluations' impact on staff motivation

The study recommends that the rater aid representatives in comprehending what they must do
to enhance their execution and inspiration. According to the study, using a diversity of raters
will raise execution assessment accuracy and employee decency recognitions, both of which
will boost staff morale. Diverse raters are able to assess each component of a work where the
supervisors might fall short.
Customers' perceptions of the company's personnel could be quite important for enhancing
their performance and revealing insightful data about representative inspiration. Evaluations of
subordinates should be utilized to provide essential information on boosting an employee's
motivation. Peers are also better suited than supervisors to assess the performance of another
employee since they can provide a more accurate picture of that employee's actual
performance.

7.4.3 Challenges in Appraising Employee Performance

According to the research, managers should either be slightly lenient or strict when assessing
employees' motivation and work performance. Directors need to take immediate action to fill
any skill gaps that seriously affect an employee's motivation. Regular evaluations based on
upcoming positive or negative occurrences should be used instead of reviewing an entire year's
worth of work. The chief is in a position to assess the workers in this scenario with precision
and logic. An employee's motivation may increase if their performance is fairly evaluated.
Additionally, managers need to be aware that performance evaluation is a constant process for
decreasing conflicts between the raters', ratees', and preparers' goals.

7.4.4 Recommendations for Further Studies

The United Group's workers were the only ones studied regarding the impact of performance
reviews on employee motivation. In order to get a deeper understanding of the organization,
the researcher advises that similar study goals be used in the future to examine how
performance reviews affect employee motivation across all crucial United Group businesses.

27
7.5 Conclusion

Performance appraisal is best way to conduct the workers appropriately. It can discover out the
shortcoming of the workers and preparing needs of the person to form them created, persuaded
to perform best by giving ceaseless input and remunerate. Performance appraisal persuades the
workers and makes them fulfilled and reach accomplishing the objective. Best workers and a
neighborly working environment can be kept up by utilizing execution evaluation. It makes a
difference the administrator to preserve everything opportune and discover out the execution
of the representatives and in the event that they discover any crevice there they can to prepare
the representatives accordingly and it makes a difference them to discover out the most
excellent representatives to allow remunerate and advancement. So, it can be said that
performance appraisal is inevitable for the organization to be fruitful.

28
 References

United Group. (2003, February 12). About us – United Group.

Paauwe, J. (2009). HRM and Performance: Achievements, Methodological Issues and

Prospects. Journal of Management Studies, 46(1), 129–142.

Chellappa, S. (2023, March 3). 10 Characteristics of the Most Effective Performance

Management System. Engagedly.

Wright, B. E. (2001). Public-Sector Work Motivation: A Review of the Current Literature and
a Revised Conceptual Model. Journal of Public Administration Research and Theory, 11(4),
559–586.

Boice, F. D., & Kleiner, H. B. (2007). Designing effective performance appraisal

systems, Work Study 46 (6), 200-201.

Francis, X. G., & Brian, H. K. (2004). Factors that Bias Employee Performance
Appraisals. Work Study 43 (3), 10-13.

29

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