Abstract: This study explores the impact of performance appraisal systems on employee motivation through a comparative analysis of the State Bank of India (SBI) and HDFC Bank. Performance appraisal is a crucial tool in assessing employee performance, providing feedback, and influencing motivation levels. The research highlights key differences between the public and private sector banks' appraisal mechanisms and their effect on employee morale, productivity, and job satisfaction. While HDFC Bank’s structured, reward-linked appraisals lead to higher motivation and engagement, SBI’s appraisal system faces challenges like delayed feedback and lack of recognition, resulting in lower employee motivation. The study suggests that for both banks, refining appraisal processes to include timely feedback, clear performance metrics, and aligning appraisals with career development can significantly enhance employee motivation. The findings provide valuable insights for both public and private sector banks to optimize their appraisal systems and foster a more motivated and productive workforce.

Keywords : Performance Appraisal, Employee Motivation, State Bank of India, HDFC Bank, Public Sector Banks, Private Sector Banks, Employee Engagement, Job Satisfaction, Reward Systems.