Management research has shown that the following factors influence whether the appraisal ultimately results in increased motivation and productivity:

i. The appraisal should be based on standard.

ii. Employee should have input into development of the standard.

iii. Employee must know standard in advance.

iv. Employee must know sources of data gathered for the appraisal.

v. Appraiser should be someone who has observed employee’s work.

vi. Appraiser should be someone the employee trusts and respects.