Please use this identifier to cite or link to this item: http://hdl.handle.net/1946/6341
Performance Reviews’ Effectiveness as a Tool for Evaluating Achievement of Goals and Motivating Employee Performance
The objective of this Bachelor of Science (BS) dissertation is to discuss whether performance reviews are effective as both a control tool for management and a motivation tool for employees.
The dissertation consists of two sections. The first discusses theory and methods of performance reviews and looks at factors that influence employees’ behavior and job performance. The second part consists of interviews with three managers of three local companies and their empirical observations on the effectiveness of annual performance reviews.
The interview results clearly reveal that management does not find annual performance reviews to be sufficiently effective. The managers felt that for the performance reviews to yield better results, the follow-up frequency needs to be on a monthly basis at minimum; however, the employees’ field of work factors into that. If the career is an aggressive one like marketing or sales the employee needs to be kept motivated. The managers also felt that with good follow-up and encouragement, employees could be better guided to stay motivated and achieve the organization’s objectives or goals. Employees’ work ethic also improved, and they perform better. The desire to perform better, as well as the motivation to achieve individual, and therefore company, objectives increased. The managers achieved a better connection to and improved relations with those employees who received frequent reviews and prompt feed-back. The employees felt like part of the team and that their contribution mattered to the company.