Volume 3, Issue 6 (June, 2014) Online ISSN-2320-0073 1 Available online on www.abhinavjournal.com Published by: Abhinav Publication Abhinav International Monthly Refereed Journal of Research in Management & Technology IMPACT OF PERFORMANCE APPRAISAL SYSTEM ON EMPLOYEE MOTIVATION Arvinder Kour Mehta Assistant Professor, Datta Meghe Institute of Management Studies, Atrey Layout, Nagpur, India Email : arvinderkour@yahoo.com ABSTRACT Performance appraisal is one of the main functions of human resource management. It is useful not only for Management but also for the employees so that they can know and understand about their performance from the Management Point of view. In this Paper researcher has tried to assess the relationship of Performance Appraisal system on the Motivation of Employees. For this purpose an empirical study has been carried out among the staff members of Cooperative Bank and data was collected through questionnaire. During the research it has been observed that the establishment of relationship between Performance Appraisal and Work Motivation depends on the type of performance appraisal system used in the particular sector and the transparency with which the whole process of Performance Appraisal was carried out. In the Cooperative bank where the survey was carried out are in practise of writing confidential report of employees and the data analysed gives very no significant relationship between performance Appraisal and Work Motivation. Keywords: Work Motivation; Performance Appraisal INTRODUCTION Human resource is vital for any organization it is one of the useful resources. If human resource or employees of any organization will be happy, they will do their best in organization and vice versa. So it is important to manage the human resource. Organization tries to satisfy and motivate employee to do their best by various means and the performance Appraisal is one of those. Employees of the Organisation work better when they get appraisal on their performance. They get motivated and when their performance evaluated and rewarded suitably by any organisation. Performance Appraisal is directly related to the job performance of the employees. If there are no appraisals given to the employees on their good performance then they will not do that much work again. Performance appraisal satisfaction is directly related to the job performance. In the relationship of performance appraisal and job performance, there can be mediator called intrinsic motivation. Intrinsic motivation can enhance the relationship; positive work performance can be taken into account due to motivation. This research has been conducted in order to find the relationship of performance appraisal with the work motivation. Relationship of Performance Appraisals and Motivation Ken Lloyd from Performance Appraisals and Phrases for Dummies has tried to establish the relationship and as per his opinion, Motivation is the process that that energizes employees and propels them to pursue their goals. Well-designed and well-executed performance appraisals have a strong