The Obstacles to Using Performance Appraisal and Reward Systems as Tools for Improving Employee Performance

Performance appraisal and incentive systems are one of the fundamental tools utilised by succeeding businesses, both public and private, in increasing employee performance, as they serve to keep employees on their toes and motivated to work for the organization's betterment. Personal bias, recent effects, spillover, and a lack of clarity in the job description are some of the characteristics that militate against using performance appraisal as a strategy for improving employee performance, according to the findings. The study suggested, among other things, the creation of a clearly defined benchmark for rewarding employees who perform exceptionally well in their job delivery. This is to ensure transparency in the process of rewarding employees for a job well done, as this will encourage others to perform better. Finally, a performance appraisal should not only be based on an employee's recent performance or spill-over, personal bias but the employee's overall performance over the period under review.