A hypothesis can be defined as a
logically conjectured relationship between two or more variables expressed in
the form of a testable statement. Relationships are conjectured on the basis of
the network of associations established in the theoretical framework formulated
for the research study. By testing the hypotheses and confirming the
conjectured relationships, it is expected that solutions can be found to
correct the problem encountered. (Sekaran.U, 2003, P 103) 

According to the research
objectives, literature and research variables following hypothesis have been

H1- There is a
significant relationship between performance appraisal and employee performance.

Individual attention that given to
employees on their performance led them towards the goals of the organization
and it is the major fact that directing employees in organization. (Lathman,
2003). Wood, (1974) examined the relationship among employee’s job performance,
actions and motivation by using 290 skilled and semi- skilled workers. And the
finding was that highly involved employees were fundamentally focused on toward
their jobs and did not have clear satisfaction with organization evaluation of

(Egwuridi, 1981) carried out
motivation among Nigerian employees high and low by using their occupation as a
sample. He did not mention clearly about low income employees but high income
employees have higher value on their basic job factors.


H2- Motivation
positively affects the employee performance


McShane & Von Glinow (2003) said
that motivated employees are the ones who work according to the clearly define
goals and take their actions to achieve that goal, which means that motivated
employees are the ones who are going to accomplish organization goals
ultimately. Guay (2000) argued that motivated employees are highly involved and
engaged in their job and they try to make their performance better. This shows
that there is a major impact on employee performance by motivation. 

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