Human resource managers have traditionally accorded employee performance as a prime focus. As a result, several performance appraisal techniques have been devised to help establish employee performance. In contemporary times, performance appraisals have been extended beyond rating the employee's performance to aspects such as motivation. Accordingly, this study sought to investigate the effectiveness of performance appraisal systems and their effect on employee motivation. The study's primary objectives pertained to establishing the moderating role of performance appraisal as a motivation tool and potential challenges. The study findings show significant positive outcomes when the organization uses performance appraisal as a motivation tool. Further, the study finds that more than one appraisal technique helps yield greater satisfaction and, consequently, higher motivational levels. The specific aspects of performance appraisal systems (PAS) that help improve motivation include linking performance to rewards, using the PAS to help set objectives and benchmarks, and using PA to help identify employees' strengths and weaknesses.

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