Rating inflation in performance evaluation affects the motivation and performance of employee

Abstract

The research was primarily focused to observe and measure the changes occurred in performance and motivational level of employees, as result of employees performance evaluation process. As result of extensive survey, it has been successfully proven that inflated performance reporting affected the performance of employees positively. Performance Appraisals and reviews were done in organizations to reward those who had performed well, usually accomplished by Managers and Peers. For research purpose The Bank of Punjab was selected for data collection. Questionnaire was devised which acted as primary tool to gather information. 60 employees of Bank of Punjab were selected as research sample. The employees belonged to different departments. Questionnaire was built on the principles of simplicity and preciseness, ensuring authentic and correct data collection from the employees. The conclusions reported after this research would facilitate us to determine the fluctuations prevailed in motivation level after performance review were completed, especially when appraisal were inflated and exaggerated. Not much work has been done on this topic since organizations never wanted to discuss/acknowledge that their managers over rate their subordinates, which is basically a flaw in itself. This usually was an outcome of poor management training, which again fall under the responsibility of the organization. It was expected that with the compilation of this report, organizations and other researchers can be benefited and also improved the standards of the performance appraisals conducted in organizations. It was also aimed to support and aid all the human resource management students who wish to explore the psychological effects of different variables on employee motivation.