Effective Performance Evaluation in Theory. The value of workforce depends much on its members achieving adequate competences.

There is therefore a need to undertake evaluation of individuals. Theories of motivation go further to explain the ways individuals efforts to achieve effective performance can be achieved. According to the need theory, which deals with human behavior, there is a cause-and-effect process at work. The theory assumes that an individual does something because of a basic underlying reason which may sometimes be considered irrational or would be suggested as the motivator!. "rom this theory, individuals performance is an effect of motivation and commitment! of which the forces behind cannot be reduced to well known things like money, hygiene and self actuali#ation. This assumption brings us to an important conclusion that issues like communication, access to information, openness and understanding the aim and operations of the organi#ation may also have influence on individuals motivation and thus perform well. $owever, this theory underplays the role of performance evaluation in achieving what has been called motivation and commitment in the theory. According the %aslows $ierarchy of &eeds theory individuals have a hierarchy of needs in the relation that when one need is attained an individual will always go up the hierarchy for higher needs. The lowest level includes physiological needs including food, water, sleep, money and sex. Then security and safety, social needs, ego needs, and finally self-actuali#ation. This theory implies that whereas most of the individuals in most working places get salaries, they can afford getting the physiological needs, and at the second level security and safety are virtually intrinsic needs which make the workers continue working. The real motivators which can motivate and make individuals committed begins with social needs which call much for participation. 'hen these needs are achieved an individual will need ego status, recognition, respect, esteem! as motivators. The highest, which is also connected with esteem, is self actuali#ation where individual need independence of action, decision and self supervision or simply to become everything that one needs. "rom this theory, it is learnt that motivation should not be limited to physical or monetary terms. (omething that the theory overlooks is the fact that the sense of participation and openness is not only present at the higher stages of the hierarchy, but almost all the stages. This is simply because, in normal experiences some people who have not reached the second level of needs

tend to leave organi#ations paying well and )oin those not paying lower provided that they have a culture of participation, trust, openness and appreciation. Therefore, in the situation that there is no participation in setting the performance goals and evaluating them, employees are likely to continue working only due to lack of alternative way of satisfying their physiological needs. *n the two factors theory that was developed by $er#berg in the +,-.s, participatory and open evaluation of performance are considered as important aspects in both of the sets of needs. "irst, on the side of the extrinsic factors for commitment and motivation building, the theory emphasi#es on the quality of supervision, openness in communicating the policies and building an analogy between the health of the organi#ation and the health of an individual employee. $e also explains that wherever there is inadequate treatment of an employee in the above aspects, work output will also suffer. /n the other side, the theory recogni#es participation on the extrinsic factors as connected to the need for advancement of an individual. *t is thus clear that participatory goals setting and evaluation of results motivates an individual and can influence commitment and result into increased performance. A clear position that guides the understanding and assumptions under this study is the theory of 0ouglas %c1regor which is based on two side view of human behavior and attitude towards work. *t is from these attitudes where the way effective performance management for increased commitment and motivation is suggested as also assumed under this study!. The theory has two theoretical views, namely theory 2x and theory 2y. Theory 2x is rooted in the thinking of industrialist managers who saw workers as rational individuals who work to maximi#e their profit on the expense of the organi#ations. The theory assumes that the average man is by nature la#y dislikes work and will always avoid responsibility and work whenever possible. "rom this view, the emphasis is that3 an average individual has to work under strict supervision accompanied by coercion and threats. "rom such a point of departure, the management is not expected to encourage cooperative approach in setting performance goals and will always evaluate the performance of individual employees secretly. *n addition, as for the T4" the approach towards achieving improved performance will always become strict disciplinary procedures, control, up-down orders and commands rather than participation and open evaluation of performance. /n the other hand, theory 25 is based on %c1regors assumption on what is supposed to be the attitude of modern managers to the employees. This theory assumes that an average man likes

work. 6mployees are not supposed to be controlled or threatened since the efforts they put in work are as common as those they use in games. "rom this line of thinking, the theory emphasi#es participation and training of employees as a means of increasing their commitment to the )ob. %c1regor argues that employees have reservoirs talents, creativity and skills which they will release only if they are ensured that they are part of the organi#ation, they share decisions and plans with the management and they know well about what they are expected to do. *n this way, non participatory approaches to setting goals and lack of transparence in appraising employees is considered as factors for loss of commitment and demorali#ation, which in turn lead into poor performance of an individual.