The Effect of Performance Appraisal on Productivity & Employees


Businesses rely on performance management systems to evaluate how well employees perform. Employee appraisal processes can provide useful information to employers, as well as positively and negatively impact employee productivity.

Performance Appraisal Process

Performance appraisals are completed by supervisors to score how well an employee performs throughout a designated review period. The scoring system is created to capture information about employee performance, behavior, ethical construct, job skills, competency and professionalism.

Appraisal Outcomes

Employees are privy to their appraisal scores because supervisors are required to share the outcomes of the appraisal. At this time, employees can see how well, or poorly, they scored. In turn, this will signify to an employee how his supervisor perceives him.


It is human nature for employees to be affected by how well they score on a performance appraisal. According to the June 2004 issue of “Community College Journal of Research and Practice,” depending on the outcomes, employees may feel motivated or deflated.

Negative Impact

If a supervisor gives an employee a poor score on her appraisal, the employee may feel a loss of motivation in the workplace. Consequently, this can impact the employee’s productivity and performance.

Positive Impact

Employees who receive good scores on their appraisals are generally motivated to perform well and maintain their productivity. Positive feedback on appraisals gives employees a feeling of worth and value, especially when accompanied by a raise.

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