|Performance refers to the degree of accomplishment of the tasks that make up an individual’s job it indicates how well an individual’s fulfilling the job demands. When properly conducted performance appraisals not only let the employee how well he is performing but should also influence the employee’s future level of effort, activities, results and task direction. It provides information about the performance ranks basing on which decisions regarding salary fixation, confirmation, promotion, transfer and demotion are taken. It also provides feedback information about the level of achievement and behavior of subordinate. This information helps to review the performance of the subordinate, rectifying performance deficiencies and to set new standards of work is necessary.
The study focuses on to find out the impact of performance appraisal on employee’s performance and also analyses that motivation affects the relationship of performance appraisal and employee’s productivity. An employee’s performance appraisal can act as motivation for an employee to improve his productivity. When an employee sees his goals clearly defined, his performance challenges identified and career development solutions in place to help advance his career, the effect is to motivate the employee to achieve those goals. Creating a comprehensive plan for employee development and giving an employee achievement to strive for will inspire a higher level of efficiency. Employee’s performance is the major issue in an organization.