The Impact Of Performance Management And Motivation

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Coordinated association of aims, purpose and values amongst staff, teams and organization is the basic aspect of motivation. The better the association and personal coordination with organizational aims, the better the motivation.

Where it's tough to maintain association with organizational aims, then most motivational ideas and activities will produce low success level.

Motivational and rousing speech marks, poems, posters, motivational speakers and stories, team building games and activities, all develop employee motivation for sales and business staff in all kinds of organizations. These improve employee's attitudes, poise and presentation.

Motivation is a behavior that is directed with certain goal or goals, which are governed by the societal, emotional and rationality factors (Metsala & ehri ,1998).Motivation makes the person to act in a specific order or behavior and it is being marked with the level of commitment towards a particular goal or task.(Rabin,2003)

Two types of motivations

Intrinsic motivation and extrinsic motivation

Intrinsic motivation is concerned with the motivational activities related with the self-determination. The individual in this kind of a motivation takes the activity as a personal task and challenge. The own desires of that individual make that activity interesting and worthy to accomplish. (Sternberg, 1999)

Extrinsic motivation is controlled by the external environmental factors in which an a individuals is motivated by rewards, accomplishments, gifts, or any other thing which that individual is striving to achieve. (Sternberg, 1999)

A satisfaction in the employee performance appraisal process is usually linked with the employee performance and its outcome towards the goal and objectives of the organization. However, the process picks up the pace when this process is being mediated with the intrinsic motivation of the employees. Therefore, the intrinsic motivation is the factor that can further boost the satisfaction of the performance appraisal satisfaction finally resulting in prime outcome yield by an employee. (Kuvaas, 2006)

On the basis of employee outcomes are what all the organizations all around the world operate. However, employees are being constantly evaluated through performance appraisal programs in order to assess their potential and contribution given to the organization.

Usually a satisfaction in terms of performance appraisal systems helps to yield the prime outcome from the employee. But on the other hand intrinsic motivation is also another factor that is really associated with the performance outcome of the employees as well. Therefore, it's very valuable to study and to identify how performance appraisal satisfaction and employee outcome are being linked together with the presence of intrinsic motivation of an employee within the organization.

Aims and objectives:

Performance appraisal satisfaction from an employee's point of view is one of the key ingredients for that employee in terms of yielding the outcome for the organization. Motivation as always is strongly associated with the output and performance of the employee also. Even without the performance appraisal the intrinsic motivation can still be having the final impact on the employee outcome.

This study will help to identify the behavior of intrinsic motivation as an extra attribute with the presence of two working phenomena performance appraisal satisfaction and employee outcome.

Similarly this study will also help to evaluate how these three variables intrinsic motivation, performance appraisal satisfaction and employee outcome are being interlinked with one another.

Objectives of the study

To identify relationship in between the performance appraisal satisfaction and employee outcome.

To assess the relationship between performance appraisal system and employee turnover intensions.

To evaluate the behavior of the intrinsic motivational factor with respect to performance appraisal satisfaction and employee outcome.

To assess the link between employee commitment with the performance appraisal satisfaction

Research methods:

The research is conducted in order to examine the impact of performance appraisal system on employee satisfaction and performance. The study focuses on key variables including employee satisfaction, work performance and employee commitment, turnover intensions which are the dependent variables and is influenced by the Performance appraisal system the independent variable. Performance appraisal system is directly related with employee satisfaction.

Data will be collected from both the secondary sources as well as from the primary sources. In terms of primary sources of data questionnaire will be used as an instrument. Which will comprises of attributes of performance appraisal satisfaction, employee commitment, work performance and employee turnover intensions and employee intrinsic motivational levels.

The secondary sources of data upon which my literature review will be based from the online published research papers, online books and magazine articles available on Ebsco, Springerlink, Blackwell synergy etc.

Researcher will be focusing on Deductive research approach mainly; as he feels that by this method he can explain and figure out the problematic area in an enhanced approach.

Data will be collected trough qualitative methods however for case study quantitative data will also be utilized where required.

Literature review:

Amongst various behavioral theories Frederick Herzberg (1923 - 2000) and Abraham Maslow are considered most in business literature

Herzberg 1959, a psychologist in his book 'The Motivation to Work' proposed theory about motivation hygiene (two factor theory). He performed studies to conclude, what factors is involved in satisfaction or dissatisfaction of an employees in his work environment.

He analyzed that job satisfaction factors were different from those causing job dissatisfaction.

Whereas Abraham Maslow, in his book 'Motivation and Personality' 1954 developed theory about rank and contentment of various human needs and how people practice these needs.

If unsatisfied needs leads to motivation, then its worthwhile for a manager to understand which need are more important for individual employee.

So in this regard Maslow presented a model in which basic, low level needs such as physiological requirement and safety must be satisfied before higher level needs such as self-fulfillment are practiced. In this model when a need is satisfied it no longer motivates and next level need takes its place.

Maslow hierarchy of needs are

Physiological needs:

Air, water, nourishment, sleep

Safety needs:

Living in a safe place, medical insurance, job security, financial reserves.

Social needs

Needs for friends, needs for belonging, needs to give and receive care.

Esteem needs:

Confidence, accomplishment, concentration, acknowledgment, character.

Self Actualization:

Legitimacy, fair dealing, good judgment, meaning.

Adams equity theory on job motivation calls personal efforts, hard work and rewards and other similar, give and take issues at work respectively inputs and outputs.

Inputs are what we give or put into our work and outputs are everything we take in return.

Equity theory thus gives us idea why pay and conditions alone do not conclude motivation. It requires fair balance, what we put into our jobs and what we get out in return of it.

Douglas Mcgregor's Theory X Y According to Douglous Mcgrere's Motivation theory (X,Y). The theory Y oriented people are the one with higher intrinsic motivation and people who became the basic component upon which the organizations achieve competitive advantage .Intrinsic motivators are factors such as opportunities for creativity, opportunities to use your initiative, and how you perceive the importance of your work in the outside. Only a motivated person sets goals, which also leads to positive consequences of him achieving them successfully at the workplace. Motivation is an energy booster at work performance as it takes best out of employee because he is willing to put that extra yard into his work. Therefore, there are more chances that a satisfied performance appraisal which is comprised of goals and objectives as well as mediated with the intrinsic motivation which serves as synergizing effect at the outcome in any given working conditions. (Early, Northcraft, Lee and lituchy, 1990).

As we compare Maslow and Herzberg's theories the similarities which came across are, both used hierarchical scales, both are based on the argument our behavior depends on desire to fulfill internal needs, both specify criteria what motivate people, both are inclined by environmental conditions, worker approach and as a result their motivation.

Differences we found are Maslow says each stage of 5 attributes must be complited fully before advancing to the next stage, however Herzberg suggested 2 stages hygiene and motivators.

Maslow said that gratifying each stage is a motivation, however Herzberg view is, satisfying hygiene stage only result in employee being in neutral state and contentment. Where as motivation comes from 2nd stage.

People will not normally and sustainably improve their performance or approach when they are shouted at or given kick up the back side. People will on the other hand generally improve their presentation if empowered to expand their own planned ability and liability with in organization.

However Herzberg, Adams, Handy, Maslow and Mc Gregor and even other management and motivation experts confirmed all this long ago.


The study had only one independent variable and three dependent variables which were work performance, employee commitment and turnover intensions. We analyzed the impact of performance appraisal. Performance appraisal system has an impact on employee outcomes in terms of commitment, performance and in case of dissatisfaction from the appraisal system can lead to turnover.

Employees agree that the appraisal is conducted for future developmental purposes rather than criticizing the poor performance. This indicates a positive relationship between the performance appraisal satisfaction and employee outcomes and vice versa if the satisfaction falls.


Since there is always a room for improvement in the organization within the light of new concepts and new analysis the following procedures can further boost the process of performance appraisal satisfaction and employee outcomes. These include

Performance appraisal should be implemented regularly in the organization not only on yearly basis. There should be continuous feedback provided by supervisor to appraise and the appraisal should be quarterly conducted to improve communication and eliminate element of surprise when annual appraisal is conducted this would further enhance to the Employee satisfaction and performance.

The performance appraisal should be goal oriented .It shouldn't be about criticizing the negative aspects of the employee's performance. Furthermore, management as well as employees should communicate together to set such goals and objectives.

The design of the performance appraisal should involve all the participants of the organization.

Coaching and Counseling should be provided to employees to guide them how they are performing.

Performance management system should be fair and consistent throughout the organization. It should be transparent. The employees should be involved in the performance appraisal system. Employees should be given a chance for the self assessment of their performance.