Impact of performance measurement on employees’ motivation and remuneration

KPI or Key Performance Indicators which are applied to the employees to measure their yearly or quarterly performance has always been an argumentative topic.From the very early stage of planning and goal setting of a department as a collective or as an individual employee with the endpoint of checking how well each employee performs compared to the goals which were set.One of the debatable aspects is how realistic are these goals to be achieved or if the individual goals are related to the overall goal of the entity.Therefore, this paper will study the effect of performance indicators on employees’ motivation, satisfaction, and collaboration within a team.This study will be conducted based on the case of a National Bank with a distinguished history in a 3rd world country with a huge population. The paper will rely on interviews and the observation of the author who worked for five years in this national bank.The interviews will take the shape of nine questions about performance measurement, and it will be done with seven employees from different departments and managerial levels. Answers of these interviews will be analyzed to ascertain the common positives and negatives of performance measurements from this sample of employees’ experience and point of view.