Abstract:
The main idea of this research is to observe and examine the in/effectiveness of the
current evaluation system and to study the relationship between performance
evaluation system and employee motivation. Study also determines the impact of
various factors of evaluation system on the motivation level of employees.
Performance evaluation system is a systematic method looking into the following
steps; set up performance standards, communicating these expectations to employees,
measuring actual performance, comparing actual performance of an employee with
the set benchmarks and timely and accurate feedback on the performance and results.
The aim of the research is to highlight the impact that evaluation systems have on
employee motivation, for this purpose research will utilize tools like data collection,
analysis and interpretation to come up with a better understanding of this
phenomenon. Performance evaluation system is studied through three dimensions;
goals setting, evaluation method used and performance feedback. While employee
motivation is studied by applying Herzberg’s two-factor theory.
For this purpose SNL Financials was chosen. It is a quantitative research conducted
with the help of a closed-ended structured questionnaire, to gather information from a
sample of 50 employees. Correlation and regression analysis was carried out with the
help of SPSS 21 showing a positive relation between the two variables. The analysis
revealed that the evaluation system followed by SNL is ineffective, leading to a
decrease in the motivation level of employees. Consequently research examined
which aspects of the evaluation system have significantly influenced employee
motivation. As a result of which recommendations were put forward to overcome the
flaws in the current forced distribution system by the introduction of an absolute
measuring method. Implications and future research directions serves as a spring
board for the researchers for further and detailed research covering more variables and
constructs of performance evaluation systems and its various outcomes.
