I strongly agree on the element of performance as the important factor for appraisal. We cannot ignore the fact that Frederick Herzberg's theory is still widely implemented even though the results vary from earlier performance.
Frederick Herzberg explored the question, "What do people want from their jobs?" He did this by asking various people about situations and events at work when they felt exceptionally good or bad about their jobs.
Herzberg's collection of information revealed that intrinsic factors are related to job satisfaction, while extrinsic factors create job dissatisfaction. In other words, when people felt satisfied and happy at work, the conditions present directly affected their inner feelings and self-esteem. Dissatisfaction was created by the job environment people worked in and the interactions within that environment.
As job satisfaction and job dissatisfaction are controlled by different factors, Herzberg concluded that job satisfaction was not the opposite of job dissatisfaction. In contrast to the accepted theories at the time, Herzberg believed that job satisfaction was a distinct and separate entity from job dissatisfaction.
The complete removal of job dissatisfaction will not necessarily cause an employee to feel job satisfaction. Similarly, job satisfaction does not necessarily eradicate all elements of job dissatisfaction. Herzberg, therefore, decided that the opposite of job dissatisfaction was simply a work environment containing "no dissatisfaction," and the opposite of job satisfaction was an employee feeling "no satisfaction."
As extrinsic factors do not motivate employees, Herzberg referred to these as Hygiene factors, and intrinsic factors were called motivators for obvious reasons. From the 1960s to the 1980s, Herzberg's theory of motivators and hygiene factors was widely popular. After that, other studies labeled it as simplistic, but its principles can still be found within other motivation theories.