The effectiveness of performance appraisal system on employee motivation: druk green power corporation, Bhutan.

Abstract

This paper attempts to study the effectiveness of PAS on employee motivation in Druk Green Power Corporation Ltd, Bhutan. The research study examines the rationale of implementing performance appraisal system, how the system is linked with reward and recognition, promotion, employee training and development, performance feedback and its motivational impact. A qualitative method was used to collect data through semi-structured interview of five employees from different departments. The study found that the company is using PAS to motivate people to deploy their full potential by directly linking the system with reward & recognition, annual target setting, performance feedback. However, it was examined that the evaluation result was moderately used for training and development. Accordingly, the recommendation is provided to integrate PAS results with employee training and development.