Performance Appraisal Systems and Their Impact on Employee Performance

Abstract

The purpose of this study was to understand the relationship between employee performance appraisal systems, employee motivation, and employee job performance. A cross-sectional survey of 393 employees of an Indian service organization showed that the performance appraisal system has a direct impact on employee job performance, and that this impact is moderated by the employee's motivation. Respondents were asked about 36 appraisal system, performance, and motivation attributes. Implications of the findings for the future research directions and practice are discussed.