Is performance appraisal an effective tool for employee motivation

The reward system of many organizations depends on performance appraisals, made by the managers. Certainly, appraising an employees performance is often more difficult than people think. The manager gives a performance appraisal with a subjective view, which affects the self-awareness of the employee and the perception of the manager's ability to evaluate performance. It is a tool to appraise the employee's strength and weaknesses and provide helpful measures to overcome weaknesses. Motivated employee will improve his workings to be more effective in terms of quality and quantity, so he can participate efficient to achieve the objectives of the organization. This thesis is going to analyse the relationship between performance appraisal and employee motivation. It will also expand performance appraisal systems and the challenges of designing a fair system that can prove to be a beneficial tool for managers to retain employees and simultaneously to provide a healthy work environment in order to motivate employees.