Influence of Employee Performance Assessment System on Motivation in Information Technology Industry

Journal of Critical Reviews

ISSN- 2394-5125 Vol 7, Issue 13, 2020

INFLUENCE OF EMPLOYEE PERFORMANCE ASSESSMENT SYSTEM ON MOTIVATION IN INFORMATION TECHNOLOGY INDUSTRY

T.S. Aarathy1, Dr.D. Venkatarama Raju2

1Research Scholar, Dept of Management Studies, Bharath Institute of Higher Education and Research, Chennai. 2Professor & Research Supervisor, Bharath Institute of Higher Education and Research, Chennai.

Received: 22.04.2020 Revised: 24.05.2020 Accepted: 19.06.2020

Abstract Evaluation of employee output is one of the major concerns of every management. Every organisation must have a well-developed performance management system that measures the performance of every employee within the organisation. This paper mainly deals with the influence of employee performance on motivation in the IT sector. Assessment of manpower achievement helps the supervisor to locate the issues of the human factor and improve employee productivity and motivation. The present research was based on the information gathered from one hundred worker force of IT sector using the convenience sampling method. It is concluded that effective performance appraisal system helps the organisation to motivate the employees. Keywords: Motivation, Performance Management System, Performance Appraisal.

INTRODUCTION Performance appraisal act as a motivational factor and improves payment and power can affect work motivation of employee. All the efficiency of employees. If an employee’s goals are well these variables have a positive influence on job performance. defined, implemented and monitored, his performance appraisal will be effective and productive. If the performance appraisal of Like motivation, job performance can be classified into work and employees is carried out well, that will motivate the work force related output. The outcome can be evaluated in the long term. to perform better. Performance appraisal is an essential factor in During the future times it may be verified whether the progress the motivation of employees. Motivation is a process that of the workforce is improved or not. The performance of initiates, guides, encourages and strengthen the behaviour of employees are increased when they are intrinsically motivated. employees. A well-motivated employee helps the organisation to At the same time when employees receive an extrinsic achieve their goals at the same time satisfy the individual needs. motivation like money or promotion their performance will also Performance of employees can be increased by motivating them. increase. Therefore, every supervisor in the organisation must encourage their subordinates to be accurate in their output because REVIEW OF LITERATURE contribution of manpower is based on the ability embedded in 1. Anjaneya Sharma examined the effect of achievement motivation. evaluation on worker productivity and inclination on our Steel companies. This study was based on one hundred and Motivation is the significant factor because it stimulates fifty employees in Indian Steel Industry. The finding employees to work and thereby increasing their performance in revealed that there is a highly significant difference sample organisation. It helps in the proper utilisation of resources, respondent with respect to the effect of performance increases the output and quality, labour problems are reduced appraisal on man power encouragement in Indian Steel and decreased turnover among the employees. companies. Results stated that it was a favourable and important relation between productivity analysis and Motivation can be classified into intrinsic and extrinsic. Extrinsic employee skill in the Industry. motivation is always based on external requisition, agreement or 2. Sanya (2014) in his paper analysed the consequences of compensation which is needed to achieve the target. appraisal and attempted to identify the results of that end final outcome on man power encouragement towards CURRENT SCENARIO OF MOTIVATION AND ASSESSMENT OF employee assessment. This study was conducted with MANPOWER IN THE WORK PLACE direct data from five hundred employees in nineteen Motivation is the crucial factor for a successful organisation. It is software companies. The research brings out the also proved that the best businesses have the best motivated significance of production personnel in the practise of workers. Well-motivated employees are said to be more evaluation system and also analysed various questions productive and perform quality work. However, it is a very relating to evaluation practise and human matters difficult task for supervisors to motivate their subordinates, as depending organisations strength, venture vision. everyone is unique. A supervisor should work with great effort to bring together both company’s goals and employee’s individual Objective goals through performance management. Moreover, the whole Following is the objective of the current research: performance appraisal process and its result can affect an To examine the relationship between motivation and employee employee’s motivation. When a performance management assessment. system is used for employee motivation, the appraisal information is used to guide the training that will lead to the METHODOLOGY development of employee capabilities. There are a lot of factors This study is organised by taking into account information that influence or create the work motivation within an collected from employees and existing literature. The data was organisation. For example, some aspects such as entertainment, gathered from one hundred employees of IT sector using the convenience sampling method.

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INFLUENCE OF EMPLOYEE PERFORMANCE ASSESSMENT SYSTEM ON MOTIVATION IN INFORMATION TECHNOLOGY INDUSTRY

ANALYSIS REFERENCES INFLUENCE OF ASSESSMENT OF Weighted Av 1. Anjaneya Sharma, Impact of Performance appraisal on EMPLOYEES ON THEIR MOTIVATION Score Employee Motivation, IOSR Journal of Business and 1 Performance rating leads to employee 4.01 Management, Vol-20, Issue-2, 2018. involvement in completion of job 2. Sanyal, Employee Motivation from Performance Appraisal 2 Influence of method of assessment on 3.28 Implications, Procedia Economics and Finance, Vol-11, employee involvement 2014. 3 Performance appraisal system helped 4.16 3. Durga Devi, Impact of Performance Appraisal on Employee to improve job Motivation, International Journal of Pure and Applied 4 Increased employee rewards and 3.85 Mathematics, Vol-118, Issue-15, 2018. recognition increases the morale of the employees. 5 Providing employee training and 4.04 development 6 Increased internal engagement and 3.18 feedback scores 7 Improved employee attitude and 2.81 morale 8 Reduced complaint clearing time and 2.89 service gap of employees 9 Performance appraisal help employee 3.79 for the career growth

Inference The above data shows that performance appraisal of an employee will influence their motivation in the following order: 1. Assessment method contributes for the work effectiveness. 2. Providing employees training and development 3. Assessment scale depends on employees work performance. 4. Increased employee rewards and recognition 5. Performance appraisal help employee for the career growth 6. Influence of method of assessment on employee involvement. 7. Increased internal engagement and feedback scores However, few motivational factors are not much influenced by the performance appraisals: 1. Reduced complaint clearing time and service gap of employees 2. Improved employee attitude and morale.

CONCLUSION Performance appraisal is a major factor in every organisation, which motivate the employees and increase their productivity. Appraisal helps the managers to let the employees know how they are doing their duties. In order to accomplish this, each and every organisation must have a well-developed performance management system that accurately evaluates the performance of every individual within the organisation. If the performance appraisal system is effective then it leads to better motivating tool.

SUGGESTION The research reveals that employee assessment is inevitable for the man power engagement. The assessment technique will enhance the worker commitment and output. Performance of employees should be evaluated continuously to improve employee satisfaction enhance. The appraisal process should be transparent. The supervisor must be specific and objective in assessing the employees, which may increase their motivation.

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