If you have the practice of appreciating good work more than criticising an improper work, the individual will be having interest on the job. This will translate into increased performance.

Even there are some suggestions, to focus on the occasions where individuals do a good job and appreciate them, than looking for occasions to criticize them. A deserving appreciation to the individual will make the individual that he is important. But a false appreciation will be counter productive.

This practice of appreciating at suitable occasions more frequently, will keep up the motivation level of the individuals. There is also a chance for the employee to improve his performance level.

The effect of increased performance through appreciation and motivation is called Pygmalion effect.