The intrinsic rewards of being recognised and congratulated for the good work that has been carried out are a very powerful and effective motivator, There are also negative rewards in that performance data can be the basis of disciplinary proceedings or an important part of the criteria for choosing employees to be made redundant.
Development can take two forms. The first is career development, where performance data can influence, often decisively, promotion decisions. The second is a PDP for the employee to help those areas where performance is weak. In other words, the performance management system acts as a training needs analysis.