The impact and effect of performance appraisal on employee motivation - the case of Turkish non-governmental organizations

For any model of human performance, motivation is an integral component and has remained a core focus of organizational psychology since many years. Performance appraisal is regarded as one the most complicated and troublesome areas in human resource management, however, it is crucial for developing employee motivation and retention. Performance appraisal is a way of allowing employees and their employers to be able to define their goals, review their expectations from one another, communicate and move forward to be able to achieve the organizations strategic objectives. The focus of the present dissertation is on evaluating the role of performance appraisal strategies for developing the employee motivation at Turkish NGOs. The conceptual framework and hypothesis of the study have been developed based on extensive review of past research literature on the subject. The primary study was conducted on the employees of Turkish NGO who were selected using simple random sampling. A total of 200 respondents were selected to administer a structured questionnaire survey. Majority of the employees were found to be satisfied with the performance appraisal strategies of the NGOs as they are linked with the reward & recognition and compensation & benefits. On the negative side, the employees in majority were not satisfied with the frequency of the performance feedback they receive and they also reported that the organization do not involve in formal testing for the processes of hiring and promotion of employees. Based on the insight developed as a result of literature survey and employee responses, recommendations have been suggested for the Turkish NGOs to further improve their performance appraisal process and the resulting employee motivation.