Performance Appraisal Systems, Productivity, and Motivation: A Case Study

Abstract

One would expect a valid, reliable performance evaluation system to give employees and managers data about employees' strengths and needs for development. If these data are used to reinforce employees' strengths and to plan and provide developmental assignments in areas of need, then one might also expect improvements in morale, motivation, and productivity. This paper explores employees' and administrators' perceptions of a system with these goals, a system specifically designed to appraise performance of North Carolina “Subject to the Personnel Act” (SPA) employees at East Carolina University. The data show that a large proportion of employees, but no supervisors, are dissatisfied with the system; that neither the number of subordinates nor the time spent evaluating employees under the system affects supervisors' satisfaction with the system; and that employees' perceptions of the fairness of the system is related to trust and satisfaction with their supervisors but not with compliance with the program's procedures. Although various factors motivate employees and supervisors, pay is very important. So the legislature's failure to appropriate funds to reward employees who excel undermines the system's effectiveness. There is a need for further research to explore the relationships between employees' ratings and their race and sex. Introduction