THE IMPACT OF PERFORMANCE APPRAISAL ON PRIVATE SECTOR EMPLOYEE MOTIVATION IN SAUDI ARABIA

Abstract

Performance appraisal is an important and effective tool for the administration and the employee to improve and develop their performance in the workplace. Thus, this work has evaluated the relationship and impact of performance appraisal on the employee motivation in the private sector companies of Saudi Arabia. Quantitative method was used for this work. Survey questionnaires were utilized to investigate the impact of performance appraisal on employee motivation. The survey was distributed to 100 employees of different private sector. The result showed that about 44% of the respondents agree and 22 % strongly agree that the company applying performance appraisal system. As for employee motivation, 30% of the employees agree and 26% of the employees strongly agree that appraisal system designed to motivate employees. Furthermore, 40% agreed and 15% strongly agreed that there is relationship between their motivations and how manager assess the employee’s performance. In terms of effectiveness, 38 % of the employees agree and 18% strongly agree that appraisal system is effective in encouraging employees to work hard.