Citation:

I-Chen Lai, Chi-Hsin Wu. "Exploring the Impact of Performance Evaluation Systems on Work Motivation: A Case Study of Local Administrative Agencies in Taiwan" International Research Journal of Economics and Management Studies, Vol. 4, No. 2, pp. 95-103, 2025.

Abstract:

This study investigates the impact of the public department performance evaluation system on work motivation, focusing on local administrative bodies in Taiwan. As critical human resources in governmental institutions, civil servants are pivotal in implementing policies that shape public sector efficiency and image. However, the design of personnel management systems in the public sector often lacks private sector systems’ core values and adaptability, emphasizing mechanical discipline over innovation and efficiency. The performance evaluation system, a cornerstone of personnel management, is crucial for determining promotions, transfers, and rewards. Its design and implementation have significant implications for employee motivation and organizational effectiveness. This research adopts a qualitative approach, employing semi-structured interviews with ten civil servants from various local administrative bodies. The findings reveal that key factors influencing work motivation include recognition and a sense of achievement, monetary rewards, and promotion and personal development opportunities. While performance evaluations are intended to recognize employee contributions and encourage high performance, systemic flaws such as rigid grading scales, limited supervisor objectivity, and the disproportionate influence of subjective factors undermine their efficacy. Additionally, restrictive policies, such as quotas for high-performance grades, exacerbate employee dissatisfaction and reduce motivation. The study highlights the dual effects of the current evaluation system. While positive recognition through high-performance grades can enhance motivation, perceived unfairness and a lack of alignment between effort and rewards detract from its effectiveness. Suggestions for reform include removing rigid grade quotas, integrating objective metrics into evaluations, and establishing mechanisms such as peer reviews and tailored evaluation criteria to reflect organizational goals and employee roles. This research contributes to understanding performance evaluation systems in the public sector and their critical role in shaping employee motivation. By addressing the identified limitations, policymakers can design more effective evaluation systems that enhance civil servants’ motivation, productivity, and organizational performance.

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Keywords:

Work Motivation; Public Department; Performance Evaluation System.