THE USE OF PERFORMANCE APPRAISAL AND REWARD SYSTEM IN ENHANCEING EMPLOYEE PERFORMANCE IN AN ORGANISATION

Employee performance has been awarded prime focus by human resource managers. As a result, a number of performance appraisal techniques have over time been worked up to help establish employee‘s performance. In the contemporary times, the use of performance appraisals has been extended beyond the rating of the employee‘s performance to aspects such as motivation. Accordingly, this study looks for further to investigate effectiveness of performance appraisal systems and its effect on employee motivation. The study‘s main objectives concern to establishing the moderating role of performance appraisal as a motivation tool as well as potential challenges. The study findings show the presence of significant positive outcomes when the organization uses performance appraisal as a motivation tool. Further, the study finds that the use of more than one appraisal techniques helps for greater satisfaction and consequently greater motivational levels. The specific aspects of performance appraisal systems (PAS) that help improve motivation include the linking of performance to rewards; using the PAS to help set objectives and benchmarks; as well as the use of PA to help identify employee‘s strength and weaknesses.