Motivation is defined as “the desire to achieve a goal or a certain level of performance” (Bauer & Erdogen, 2009, p.97). Motivation theories are useful tools that organizations can use to energize employees and promote an inspiring work environment. These theories are classified as content or process theories. Today, Bauer and Erdogen (2009) state that many organizations have applied theories of motivation, such as goal setting theory and reinforcement theory, in order to change the behavior of their employees in the workplace through goals and reward systems. According to reinforcement theory, rewarded behavior is often repeated. As a result, many organizations have used this theory by tying rewards to performance (Bauer & Erdogen 2009). Goal setting theory used to improve performance through goal setting has been incorporated into daily practices by organizations such as Coca Cola, Intel Corporation, and Microsoft Corporation. However, Bauer and Erdogen (2009) argue that simple goal setting alone does not motivate individuals. According to goal setting theory, goals must be “specific, measurable, aggressive, realistic, and time-bound” to be effective (Bauer and Erdogen, 2009 p.129). Effective goals motivate employees because they give direction, energize people, offer challenges, and allow people to think outside the box. However, Bauer and Erdogen (2009) believe that goals are only effective when employees receive feedback on their progress towards achieving them. Therefore, many organizations have developed performance appraisal systems to facilitate formal feedback to their employees on their progress. Achieving goals is linked to rewards such as bonuses, salary increases and… half of paper… An example of this is the use of the performance appraisal system. Performance reviews are a useful tool for motivating employees. However, it is important for managers to acquire the skills necessary to conduct effective performance appraisal interviews. Works Cited Bauer, T. & Erdrogen, B. (2009). Organizational behavior. Nyjack, NJ: Flat World Knowledge Inc. Fallon, L. F., & McConnell, C. R (2007). Human resources management in healthcare: principles and practice. Sudbury, MA: Jones and Bartlett.McConnell, C.R. (2006). Umiker management skills for the new healthcare supervisor (4th ed.). Sudbury, MA: Jones and Bartlett Publishers Nickols, F. (2007). Performance evaluation. Journal for Quality and Participation, 30(1), 13-16. Retrieved from EBSCOhost.Segal, J. A. (2011). The Dirty Dozen of Performance Evaluation Errors. BusinessWeek.com, 2. Retrieved from EBSCOhost