The Role of Performance Appraisals in Motivating Employees

19 Pages Posted: 5 Jun 2018

See all articles by Jurjen J.A. Kamphorst

Jurjen J.A. Kamphorst

Erasmus University Rotterdam (EUR)

Otto H. Swank

Erasmus University Rotterdam - Department of Economics; Tinbergen Institute Rotterdam (TIR)

Date Written: Summer 2018

Abstract

Workers' rewards and career perspectives often depend on how their supervisors perceive their performance. However, evaluating a worker's performance is often difficult. We develop a model in which a worker is uncertain about his own performance and about his supervisor's ability to assess him. The supervisor gives the worker a performance appraisal aiming to affect both the worker's self‐perception and his own credibility in assessing the performance. We examine how performance appraisals affect the worker's future performance. Our model's predictions are consistent with empirical findings. Supervisors give, on average, “too” positive appraisals, and both positive and negative feedback can (de)motivate workers.

Suggested Citation

Kamphorst, Jurjen J.A. and Swank, Otto H., The Role of Performance Appraisals in Motivating Employees (Summer 2018). Journal of Economics & Management Strategy, Vol. 27, Issue 2, pp. 251-269, 2018, Available at SSRN: https://ssrn.com/abstract=3189123 or http://dx.doi.org/10.1111/jems.12241

Jurjen J.A. Kamphorst (Contact Author)

Erasmus University Rotterdam (EUR) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Otto H. Swank

Erasmus University Rotterdam - Department of Economics ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Tinbergen Institute Rotterdam (TIR)

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 10 4081448 (Phone)
+31 10 2120551 (Fax)

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