Abstract:

This study explores the criteria of evaluating performance in an oil and gas industry, the aim is to examine assessment of performance appraisal criteria, while the objectives was to determine the validity of the appraisal system and to also know if it could bring about a motivation or demotivation to the employees. Data was collected using a structured self-administered questionnaire through the use of google document. A total number of 291 copies of a questionnaire were administered to the staff in the headquarters. The respondents were selected using proportional sampling and simple random sampling technique because it is meant to be an unbiased representation of a group. The results show that there is a significant relationship between the performance appraisal criteria and employee motivation in the organization. In conclusion, the study validates existing knowledge and it was found that performance appraisal tends to motivate the employees in their workplace.  Therefore, the same performance appraisal criteria can recommended for both public and private sectors as a motivating factor for the employees towards achieving organizational goals.