Performance Appraisal and Employee Motivation

1.1. INTRODUCTION: Organization is run and steered by people. It is through people that goals are set and objectives are realized. Today’s working culture demands a great deal of commitment and effort from the employees, who in turn naturally expect a great deal more from their employers. The development of much more participative style of management in many organizations is a positive step towards meeting such heightened expectations. This participative style can be expressed in a variety of practical ways. For e.g.: work teams, quality circles, and of course regular performance appraisals. The performance of the organization is dependent on sum total of the performance of its employees. Thus the success of the organization will, therefore depend on its ability to measure accurately the performance of its members and use it objectively to optimize them as a vital resources. Performance can be measured by some combination of quantity, quality, time and cost. Performance thus refers to the degree of accomplishment of the tasks that make up an individual job. It indicates how well an individual is fulfilling the job demands. And on the other hand success of any organization can almost always be tracked back to the level of motivation among its employees to whom its success can be accredited to, without a doubt. Motivation is must for the employees, because it converts ability to work into will to work or in other words contributes to high level of performance. Presence of effective motivational policies in the company leads to job satisfaction and consequent benefits of higher commitment and loyalty. Keeping in mind the growing attrition rates and the employee dissatisfaction among the employees, the HR professionals are approaching and using the performance appraisal as a fuel to motivate employees. The latest trend being followed by the HR professionals is to use the performance appraisal and review