Impact of performance evaluation on employees motivation and productivity - Literature review Example

Performance evaluation is an aspect of organizational progress that facilitates productivity and innovation. Performance evaluation looks at the issues that lead to progress in the daily activities of employees. Performance evaluation links the goals and objectives of an organization with the individual actions and behavior. Organizations set standards for measuring performance evaluation against performance (Armstrong 2006). Such standards guide the daily performance of employees and give a level ground for measuring success.

Performance evaluation aims at enabling employees to follow procedures and guidelines that are in line with the aims and objectives of an entity. Such conduct gets looked at by evaluating the conduct of employees alongside set organizational standards. Performance evaluation in many entities determines the punishment and reward that gets accorded to employees. This shows that individuals have to behave in a certain manner in order to realize the diverse performance measures set by their entity.

Failure to obey the rules may lead to loss of job, lack of bonuses, stagnation, and demotion at the work place. This indicates that performance evaluation has the ability to influence motivation and productivity in the workplace (Waal 2007). Moreover, the human resource function uses performance evaluation as a tool of ranking the level of employees in the entity. Organizations must have the capability to objectively distinguish employees in relation to performance. This should happen to al employees in an organization.

Employees who are underperforming should get the assistance and opportunity to progress. Leaving poor performers in the entity sends incorrect signals to other individuals who are performing well. Successful employees should be recognized for the effort put in daily operations. Performance evaluation is a critical facet of the human resource function (Bohlander, Snell, & Sherman 2001). As a result, employees should be subjected to reasonable appraisal methods. These methods must be understandable in terms of their relevance to all individuals in the entity.

This will make workers behave in a way that is pleasing to the organization. However, this does not signify that things go as intended in performance evaluation. Organizations have been blamed of not following the correct process in guiding the actions of employees. This in turn influences motivation and productivity in the organizational context (Waal 2007). In conclusion, performance evaluation has led to the success of numerous organizations.