Effect of Performance Appraisal on Employees Motivation

Abstract

Effective PAs are a vital assessment tool for gauging the state of workers' performance and that of the company. They are also the internal motivators that propel workers to meet organizational and personal goals. This study aims to investigate the impact of performance reviews on worker motivation. The epistemology used in this investigation was positivist. This study used a descriptive and causal research design. Regression, correlation, ANOVA, and T-test have also been applied. Utilizing questionnaires, this study evaluated the efficacy of PA in EM on the commercial banks in the Kathmandu Valley. The findings demonstrated a substantial relationship between the PA and the EM and the importance of PA characteristics including fairness, appreciation, and compensation in inspiring workers to do better job. Additionally, the bank workers acknowledged that receiving fair salary and awards for their efforts encourages them to work more productively. Nonetheless, disparities in perceptions of PA are observed amongst age groups, genders, occupations, levels of education, monthly income, and years of experience. Key word: Performance appraisal, Employee motivation, Nepalese commercial bank