EMPLOYEE PERCEPTION OF PERFORMANCE APPRAISAL : A CASE OF KERETAPI TANAHMELAYUBERHAD.

by

ROSENA BINTI MOHD.ALI Supervisor DR RADUAN CHE ROSE

Project paper submitted in partial fulfilment of the requirements for the degree of Masters of Business Administration in the Malaysian Graduate School of Malaysia, University Putra Malaysia.

May 2001

ACKNOWLEDGEMENT

In the name of ALLAH, the most beneficient and the most merciful. I am utmost thankful for the strength that He gives me throughout the period of completing this
project and MBA programme.

My deepest gratitude goes to my advisor, Dr. Raduan Che Rose for his patience and assistance, advice and guidance. My profound thanks also goes to all lecturers who taught the MBA programme. Thank you for the knowledge and experience that you have imparted to me
throughout the programme.

My sincere appreciation is dedicated to my ex-employer, Keretapi Tanah Melayu Berhad for giving me the opportunity to obtain the information and for the

support that I received from my ex-colleagues.

My word of thanks goes to the respondents who have honoured me with the interviews. Thank you for your kind co-operation, time and effort Last but not least, my appreciation is dedicated to my husband for his valued guidance and my six children who has sacrificed tremendously in putting up with me during the whole period of this programme, mere words could not describe my thanks.

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ABSTRACT

Performance appraisals and reviews have become a necessary part of most work environments, and -or better or worse - a reality in most organizations. However, as many companies are learning, traditional performance appraisals fail miserably in positively influencing employee behaviour in today's organization.

In today's dynamic workforce, enlightened companies recognize that employees want an environment that encourages constant dialogue between the employer and employee. Employees want to be recognized, rewarded for their accomplishments and need continuous performance feedback. Most employees want frequent feedback and just annually if their performance is missing the mark so they can

make appropriate changes.

In KTMB's case, the performance appraisal is not used for developmental purpose where the Human Resource Department treat it as an annual or once-a-year process. Once the forms are filled in, then it is kept aside and most of the time no
action is taken on it More than half of employees surveyed agree that performance

appraisal rarely as accurate as they claim to be , hence, they manifest

disappointment with the practice.

To

be truly successful, a performance appraisal system should involve their

employees in the design and later - required revisions of their performance appraisal. Feedback must be clear, objective and constructive by telling both sides

of the performance story - the positive and negative which will make the feedback
to be more credible, palatable and useful.

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ABSTRAK Penilaian prestasi dan kajian semula telah menjadi perkara penting dalam persekitaran pekerjaao samada untuk kebaikan atau keburukan telah menjadi gagal dalam suatu kenyataan didalam kebanyakan organisasL Bagaimana pun, organisasi masih dalam process mengkaji, penilaian prestasi tradisi telah mempengaruhi secara positif tingkah laku pekerja.

Dalam sumber tenaga pekerja yang dinamik hari ini, organisasi sedar bahawa

kakitangan memerlukan persekitaran yang menggalakkan dialog diantara kakitangan dan majikan. Kebanyakan maklumbalas

yang kerap mahukan

kakitangan

yang kerap dilakukan bukan hanya setahun sekali, sekiranya

prestasi mereka tidak baik supaya mereka dapat melakukan perubahan.

Di KTMB

peniiain prestasi bukan

di gunakan untuk

tujuan pembangunan

somber tenaga manusia malah ia nya di anggap sebagai kerja-kerja tahunan atau
proses untuk setahun sekali. Apa yang berlaku di KTMB, bila borang telah di isi

maka di simpan sahaja dan tidak ada tindak balas dibuat keatasnya. Mengikut
kajian atas perkerja, lebih daripada separuh kakitangan setuju bahawa penilian

perstasi ini jarang memberi keputusan yang tepat, dan tidak saperti yang di harapkan.

Keberkesanan dalam peniiain prestasi sepatutnya melibatkan kakitangan dalam

proses design dan kemudian menkaji semula peniiain prestasi tersebut Maklumbalas mestilah tepat dan di fahami olih kedua-dua pihak mengenai aspek positif

and negatif.

Kerjasama yang

rapat diantara kedua-dua pihak yang mana

kakitangan memahami kehendak penilaian dan pibak majikan pula mem puny a i amanah dalam melaksanalcan tugas amat lah penting dalam peniiain pertasi ini.

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LISTS OF ABBREVIATIONS

KTMB HRM
PA

: :
:

Keretapi Tanah Melayu Berhad Human Resource Management

Performance Appraisal

LISTS OF APPENDICES

Appendix 1
Appendix 11

Organization Chart
Questionnaires

Appendix HI

Performance Appraisal Form

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TABLE OF CONTENTS

CONTENTS

Page

ACKNOWLEDGEMENTS ABSTRACTS
LIST OF APPENDICES LIST OF ABBREVIATIONS

ii iii
iv iv

CHAPTER ONE

INTRODUCTION

1.0
1.1

Introduction
Role of HRM and Performance

1
2

Appraisal Towards Achieving

1.2
13 1.4

Organizational Objectives Problem statement

Research Objectives Significance of the Study

3
4 4

1.5

Hypotheses

1.6

Limitations and Scope of the research

1.7

Background of research

6-8

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CHAPTER TWO

LITERATURE REVIEW

2.0
2.1

Introduction
Performance Management

9
9

2.2

What is Performance Appraisal

10-13

2.2.1 Employee Viewpoint

2.2.2 Organisational Viewpoint

23

Relationships of Performance Appraisal

To other functions of HRM. 2J.I Training and Development

14

2*3.2 Career Development 2.4

2*5

Performance Appraisal Systems

Who Should Do the Appraising 2.5.1 Manager/Supervisor Appraisal 2.5.2 Superior's Superior 2.53 Peer Appraisal 2.5.4 Team Appraisal 2.5.5 Customers Appraisal

14-15
15-17

2.6

Problems in Performance Appraisal

2.6.1 Problems of pay and performance 2.6.2 Appraiser Problems

17-20

2.6*3 Appraisals and rewards 2.6.1 Benefits of Performance Appraisal 20-21

VII

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CHAPTER THREE
RESEARCH METHODOLOGY

3.0 3.1
3.2 3.3

Introduction Population, Sampling & Confidence Level

Research Methodology Analytical Framework

22 22
22 22

3.4
3.5 3.6

Data Collection Method

Questionnaires Design Data Analysis

23
24 24

CHAPTER FOUR

FINDINGS DATA ANALYSIS 4.0 4.1

4.2

Introduction Performance Appraisal Forms

Data Analysis

25 25
26

4J 4.4 4.5 4.6

Demographic Profile Findings on Individuals Perception towards Work diagnosis Findings on Perception towards Organization. Success of Performance Appraisal

26-28 29-36 36-41 41-46

CHAPTER FIVE

CONCLUSION

5.0

Conclusion

45-46

vin

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CHAPTER ONE INTRODUCTION 1.1 Introduction

In today's world, managers face complex and challenging pressures and opportunities. Companies that seek to gain competitive advantage through employees must be able to
manage the behaviour and results of all employees especially in an increasingly complex
environment and the rapid change of technology which have created some new challenges to many organizations. Management and human resource managers must be
equipped to address the changes in developing the employee's competencies and skills in response to customers* needs and competition. Although performance management has

been of concern recently in managing and integrating reward performance, most

organizations still use the performance appraisal as a tool to measure employees'
performance.

Traditionally the formal performance appraisal system has been viewed as the primary
means of managing employee performance. Performance appraisal was an administrative duty performed by managers and primarily the responsibility of the human resource function. Managers view performance appraisal as an annual ritual - they quickly

complete the form and use it to catalog all the negative information they have collected on an employee over the previous years. Because they may dislike confrontation and not feel that they know how to give effective evaluations, some managers spend as little time
as possible giving employees feedback. Not surprisingly, most managers and employees

dislike performance appraisals.

If performance appraisal is considered an important tool in monitoring and assessing the effectiveness of employees' performance, it has to be properly designed and

implemented. Otherwise, its full potential is not realized and would merely serve to fulfill certain narrow aspects of the organization's objective. In reality, many

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organizations make performance appraisal an activity that is more likely often stated in
policy than in practice.

According to Lockett, (1992, p. 36) performance appraisal is considered as the "prime mechanism for reviewing performance over the last year; setting targets for the next year;
identifying training needs; discussing career development opportunities; reviewing the

job and seeing if there is a better way of carrying it out and agreeing merit by pay increases'. Maimunah (1997,p.78), identifies performance appraisal as the systematic evaluation of an employee's job performance, from which, his or her potential and shortcomings can be deduced and later enhanced or overcome, whichever is applicable.
Whatever the definition, performance appraisal is definitely an essential function in every

organization, where in many large and medium size organizations, is the responsibility of the personnel or human resource department.

1.1 Role of HRM and Performance Appraisal Towards Achieving Organizational

Objectives

Performance appraisal should have a major role in human resource management and should help define work roles, motivate performance, and aid in subordinate's development. By focusing on the process and purposes of appraisal, the appraiser and appraisees can be more equal partners and pay actions and career consequences will seem a natural part of the total appraisal discussion. In other words, appraisal events are particularly more successful when they serve purposes of subordinates as well as
purposes of the managers and the organization.

It is well recognized that an organized and well-administered performance appraisal

system serves to benefit both the individual employee and the organization. On the other hand, the employee benefits because an appraisal can pinpoint an individual's strengths and also weaknesses, which would determine room for improvement. It encourages

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employees* communication with supervisors, identifies performance expectation and helps build motivation. It also identifies the need for change in employees' behaviour and

work habits and enhances feedback from those being rewarded for job well done.
By using performance appraisal effectively, management would be able to stimulate work

behaviour to meet productivity demands and to reward desired behaviour and satisfy individual goals. The management should ask itself as to whether the levels of employee
performance throughout the organization is high enough to meet the new demands for

innovation, increased profitability and better quality of products? It can be seen that the
effectiveness of performance appraisal system affects every facet of the organization such

as the productivity, profitability, and manpower turnover. Everyone in the organization, may they be the human resource personnel , top management, appraisers or the

appraisees themselves have their own roles and responsibilities to play in ensuring the
success of the performance appraisal system.

1.2

Problem Statement

In most cases, organizations focus on output, general performance, efficiency, and

organizational profit above all other objectives. It is also very uncommon for them not to link most of human resource functions with performance appraisal. The Malaysian public has to recognize that the rail transport services in the country are today being run
by a workforce, the majority of whom began as public sector employees and who have
gone through the path of transformational changes to take them to where they are now.

This phenomenon is also found in KTMB a private rail operator, which serves as the
focus of this study. Here, performance appraisal does not seem to be given any
importance or priority. It is done as an exercise, which has no relationship or bearing with an individual's career development or other functions such as competency training, rewards and job transfer. Subsequently, appraisers are not given adequate exposure or

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guidance on how to conduct an effective appraisal exercise and they are also not informed as how to relate performance appraisal with other functions of human resource.

Under such circumstances, performance appraisal remains as a normal process and the feedback is seldom used to improve the employees' performance. As a result, most
employees perceive performance appraisal only as a routine yearly exercise to assess their performance against which they will be rewarded or penalized. The utilized

performance appraisal forms would later be kept aside and forgotten until the next
exercise comes. John Lockett (1992) however said that appraisals should not be a one-

off event and they should be and are part of an ongoing cycle of performance management.

1.3

Research Objectives

The author finds that very little research has been done on the topic of employee
perception of performance appraisal in the organization in this country, as compared to

the developed countries, which has prompted her to carry out this study. The objectives
of the study can therefore be listed down as follows :-

< To examine the performance appraisal system that currently exists in KTMB and
its relationship with other functions of human resource management. <* To gather factual information on how the staff of KTMB perceive the present performance appraisal system in relation to the organization's goals and also the system's strengths and weaknesses.

<* To recommend any enhancement or improvement to the current appraisal system.

1.4 Significance of the Study

This study focuses on the current system of performance appraisal in the Freight Services Division of KTMB and its effectiveness both to KTMB and to individual employees.

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According to Everden and Anderson (1992), performance appraisal will assist the

organization in succession planning, identifying gaps in human resources planning, ensuring organization's and individual's objectives are in harmony, improving communication and performance. li is one of the many tools of managing people. In this regard, Armstrong (1991), recommended that the principles in managing people embodies in the following : People are the most important resources in an organization and must be managed effectively, as they are the key to the organization's success. The human resource policies and procedures need to be closely linked so as to contribute to the achievement objectives and strategic plans. At the end of this study, it is hoped that recommendations made to the KTMB's Management for it to take certain corrective measures will be useful to improve the situation involving staff performance appraisal and employees' performance so as to achieve the organization's effectiveness.

1.5

Hypotheses 1. 2.
3.

The Performance Appraisal meets only some of the objectives of the organization (mostly unrelated!). The full potential of the Performance Appraisal is not being tapped.
The Performance Appraisal system is not in line with the HRD/career

development programme.

1.6

Limitation and Scope of the research

The secondary data obtainable from the Freight Service Section is limited due to
confidentiality. The study is restricted to the Freight Division of KTMB and may not be

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applicable to any other division, industry or organization. It does not in any way reflect
the happenings in any other organization or similar industry.

1.7

Background of research

Keretapi Tanah Melayu was founded in 1885 as a wholly owned Government entity under the Ministry of Transport and is the sole provider of rail sen-ices in Malaysia. KTM was corporatised in August 1992, Marak Unggul Sdn. Bhd assumed the
management control of KTMB. This is another turning point for KTMB and it is the new management's intention to transform KTMB from a government entity into a

reliable, efficient and profitable transporter to cater for the freight, passenger and commuter needs of Malaysia and its neighbouring countries. The network is single track with a route length of 1658 km of meter gauge track. The company has 135 stations, of which route from Singapore in the south links northward with the State of Railway of Thailand through Padang Besar in the west and Sungei Golok via Gemas in the east of the Peninsula. KTM's mission is to be the preferred land transportation system by providing safe, efficient and reliable integrated rail services for people and goods. Therefore, KTM will be competitive and responsive to the market needs and achieve the goals through a highly trained and motivated workforce using modern technology and process innovation. KTM shall strive to provide reasonable profit and long-term growth to its shareholders.

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FREIGHT SERVICES DIVISION

The freight sector has been for a long time been the major contributor to KTMB's major overall revenue. And now it is set to further enhance its role with the rapidly growing
demand for transportation of goods. Due to the affluent society, the society is demanding many kinds of goods and services to meet their needs. KTMB carries many types of commodities such as containers 40%, cement 36%, followed by fuel at 7% and others at 17%. Cement and petroluem are usually carried between two predetermined stations in

complete train load formations and usually dedicated to one specific client. Other types of cargo usually go by General Purpose Goods Train. A wide variety of wagons are available to move the cargo over the whole railway system.
Cargo is generally, moved either in "open" or "covered" wagons. As a matter of policy, all "covered" wagons in future will be replaced by "containers", which allow added

flexibility in that they can also be dismounted and brought to the customers premises
thereby bringing the concept of door-to-door delivery to its most logical end. The Benefits of Rail Service 1. Speed and promptness - all consignments will reach their destinations as scheduled.

2.
3. 4. 5.
6.

Customers service points - KTMB is served by 150 customers service points

throughout the country.

Cost effective - advantage of carrying bulk and long haul cargo at a competitive rate. Coverage - the services covers all major cities of Peninsular Malaysia. Ease to Access - the round the clock operation are adjusted according to

customers' need.
Reliability and safety - the consignment will be in the right place on agreed time and and in the proper conditions.

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7.

High risk material transport - advantage of carrying high risk material transport compared to other modes of transport
products.

example Ammonia and petroluem

8.

No levy for Singapore bound freight - no levy is charged for the Singapore

destined freight thus reducing the transport cost for Singapore bound traffic. 9. Insurance coverage - for all the cargoes KTMB has provided for a Freight Liability Insurance Policy offering insurance coverage for carriage of wagons and
containers by rail within Peninsular Malaysia and Singapore. To put it simply,

the policy covers "liability of KTM Berhad" towards its customers or custosrriers'
agents for loss of or damage to cargo, including physical loss or cargoes being

destroyed during transit and handling.

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CHAPTER TWO
LITERATURE REVIEW

2.0

Introduction

The purpose of this chapter is to undertake a literature survey of performance appraisal

theories and studies. This chapter will discuss the definitions, objectives, benefits, the methods and techniques of conducting performance appraisal and lastly is about problems and how they can be solved.
2.1 Performance Management

Performance management is the process through which managers ensure that employees' activities and outputs are congruent with the organization's goals. Performance
management is central to gaining competitive advantage. Fletcher and Williams (1992)

concept of performance management is associated with organizations and employees creating a shared vision, objectives and aims that helps the employees to understand and recognize the contribution will lead to the enhancement of performance of both the employee and the organizations. When people (individuals and teams) know and

understand what is expected of them, and have taken part informing these expectations they will us their best endeavour to meet them. The capacity to meet expectations
depends on the levels of capability that can be achieved by individuals and teams, the processes, systems and resources made available to them and the level of support given by management.
There are many untapped potentials in KTMB as such the organization have the capacity

to pursue its success if the management focus on developing its most valuable assets its employees. KTMB should review its training programmes towards development of its
employee's skills and competencies.

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2.2

What is Performance Appraisal

Historically performance appraisal has always taken place in organization. This may have been a final process or may have occurred as part of the social interaction (Clark 1988:232). The word performance denotes a qualified results or a set of obtained results, accomplishments, execution, or carrying out anything ordered or undertaken, to something performed or done, to a deed, achievement, or exploit and to the execution or accomplishment of work. Nickols (1977, p. 14) defines performance as "the outcome of behaviour, Behaviour is individual activity whereas the outcomes of behaviour are the
ways in which the behaving individual's environment is somehow different as a result of
his or her behaviour." Gilbert (1974) equates performance with "accomplishments" that we value. Appraisal

is one of the most intimidating words in the English Language. The definition in the
Webster's dictionary is "to evaluate the worth, significance or status of...."

Performance appraisal system is one of the most important and difficult issues in personnel or human resource management. Various researchers and authors have written extensively on the issues of performance appraisal, but no one has come up with one universal system which can satisfy the requirement of every organization's need for effective performance appraisal system tailored to their organizational needs, philosophies, culture and politics. The effectiveness of performance appraisal system affects every facet of the organization such as the productivity , profitability and manpower turnover. Performance appraisal usually takes the form of periodic interview (annual or semiannual), in which the work performance of the employee is examined and discussed, with
a view to identify weaknesses and strengths as well as opportunities for improvement and

skills development, Hunt (1986). In many organizations not all appraisal results are used, either directly or indirectly to determine the reward outcome. Performance
appraisal consists of a formal annual review of an employee's performance on the job, as

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measured against specific criteria, delivered by the supervisor in a face-to-face meeting

with the employee , Scholes (1993).

Perhaps the most important purpose of performance appraisal is at least to maintain the
level of effectiveness of people at work and hopefully to add to their performance and
satisfaction, Randelf (1989). But obviously, it is accepted that the performance appraisal system has its relationship with other functions of human resource management. The performance appraisal system is developed for various reasons. Most private

companies typically have a formal appraisal system to measure or evaluate performance

for compensation purposes. Accordingly, the best predictor of future performance is past

performance. It is also used for human resources development. Many people questioned
the main purpose of performance appraisal and are unclear of its main purpose. If the

purpose of the appraisal is unclear, therefore Deming's (1986) quotation stating that appraisal seems to be more destructive than constructive may be valid. Despite these failings, most experts agree that there are many valid reasons to use a

performance appraisal system. An objective appraisal process focuses on employee job performance toward agreed-on goals - not personality trails. It recognizes employees contribution towards achieving organizational goals, addresses shortcomings, identifies education needs and is a meaningful part of a person's career-planning process. For most
organization, this process is also the basis for determining employee compensation

benefits. Effective performance reviews and appraisals help strengthen the communication between a manager and an employee, and foster a relationship of trust and respect to be
nurtured over time. Appraisals no longer need to be viewed as a necessary evil but rather as a tool that can be used to enhance the career of potential employees. Performance appraisal is a method of ensuring that employees are aware management is monitoring their professional progress. If employees are aware, the objective of a performance appraisal is specifically to identify their strengths and weaknesses and to organize

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training programmes to further develop these strengths or overcome these weaknesses. They may be more willing to co-operate and allow their weaknesses to be disclosed. Employees have tended to demonstrate a more favourable attitude when the purpose of a

performance appraisal has been perceived to be employee development (Daley 1983).

Appraisal has been often regarded as a tool for managerial control : as Townley puts it,

'contributing to an overall approach to the handling of labour relations' (1991:92). From the employee and the unions' point of view, it is frequently seen as means of maximizing
the financial rewards for the individual workers' effort. When properly organized and

administered the performance appraisal serves to benefit both the supervisor and their
employees. The purpose is to measure progress, differentiate between levels of
performance, pinpoint training neeeds, validate rewards and identify promotable

employees. Performance appraisal is a learning process by which the subordinate learns

of the organizational needs and the manager learns about individual needs.

Appraisals can generate accurate records of past performance which can aid in counseling
and setting objectives for individual workers; management hopes to clarify the organization's objective during appraisal sessions, and aims to ensure that the individual's

goals are consistent with these objectives and that there is mutual awareness of where both organization and the individuals are heading.(Durey 1991, Cullen and Austen
1987, Saville and Higgins: 1990; Stoner 1985; Schuler et al 1988; Palner 1988).

2.2.1

Employee Viewpoint
Torrington and Weightman (1989) suggest that from the individual's point

of view, appraisal may be seen as a time when they can gain feedback on their
performance, reassurance, praise, encouragement, help in performing better

and some guidance on future career possibilities. The main objective of

performance appraisal is to evaluate the subordinate. In addition, evaluating

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(i.e, to judge) is also an ongoing source of tension, since evaluative and developmental priorities appear too frequently in disagreement. Although organizations have a distinct right or duty to conduct such evaluations of performance, majority of Trade Unionist still rejects the idea. The explicit process of judgement can be dehumanizing and demoralizing and a source of anxiety and distress to employees.

2.2.2

Organisational Viewpoint One of the most important reasons for having a system of performance

appraisal is to establish and uphold the principle of accountability. For decades, researchers have known that one of the leading causes of organizational failure is "non-alignment of responsibility and accountability".
"Non-alignment" occurs where employees are given responsibilities and

duties, but are not held accountable for the way in which those responsibilities and duties are performed. Ultimately, in the severely non-aligned system, no one is accountable for anything. In cases where non-alignment is not severe , the organization may continue to function, albeit at reduced levels. For the
organization, performance appraisal provides a primary vehicle to monitor

control, and influence individual performance.

One of the aims of

performance appraisal is to make people accountable for their actions. The

objective is to align, and realign, responsibility and accountability at every organizational level. (Cash 1993).

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2.3

Relationship of Performance Appraisal to other functions of HRM

2.3.1

Training and Development

According to Nadler (1984) training is the organizational activity, which aims

to improve an employee's current performance. Performance appraisal offers an excellent opportunity for a supervisor and subordinate to recognize and

agree upon individual training and development needs. Performance appraisal

can make the need for training more pressing and relevant by linking it

clearly to performance outcomes and future career aspirations. 2.3.2 Career development
Basically performance appraisal can assist in career development in two ways

; appraisees are asked to fill in the form what are the next appointment they
want to fill or where they want to serve. This may be the simplest way where

the organization helps to match between career development and career

planning. If the immediate superior is not very concern about the important

information with regards to career development, then its objective will not be met. Consequently, appraisee may feel disillusion with the system.
According to Muller(1970) people are the most important asset, their

development and career planning for the future responsibilities are of

particular importance.
2.4 Performance Appraisal Systems

There are various types of appraisal system and the most common is the behaviour
oriented rating scales and behaviourally anchored rating scales (BARS). In the rating

scale, employees are rated on established for a number of defined factors. It is common because it is the simplest and the fastest. Basically this type focus on characteristic of
employees and their contribution to the organization.

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BARS are combination of the critical incident method and rating scales. Job behaviuours
derived from critical incidents are described more objectively for both positive and negative behaviours. This method is common because it is more reliable than many other

methods. Graphic Rating Scale is a common performance appraisal form which lists the
various factors that may affect job performance and usually includes a 5-point scale,

ranging from outstanding to unsatisfactory. Supervisors check the print on the scales where they believe an employee ranks. Such a form usually includes items on job

knowledge, attendance, punctuality and interaction with others. The form usually also
has a few lines for comments on each point. An advantage of this form is that it is easy to use; a disadvantage is that each rating is subjective. Another problem is supervisors' tendency to avoid rating people as either

outstanding or unsatisfactory. Finally , the criteria like those of other forms, may be
difficult to relate directly to what the employee does everyday or to customer satisfaction and overall organization objectives.

2.5

Who should do the Appraising

Individuals are appraised by a variety of people, including their immediate supervisor,

their superior's superior, a member of the personnel department, themselves, their peers
or their subordinates. Sometimes, assessment centers are used to carry out the appraisal. Brief summaries of individuals who become appraisers are as follows:2.5.1 Manager/Supervisor Appraisal
The employee's immediate manager carries out most appraisals. The advantage

of this is that immediate supervisor usually has the most intimate knowledge of
the tasks that an individual has been carrying out and how well they have been done.

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Research done by Bernardin (1979) on ratee's preference has indicated that immediate supervisors are the most trusted providers with accurate appraisal feedback. Even when appraisal information is collected from a range of other sources, it is the immediate manager who collates and uses this information with the individual. However, a problem may arise when a subordinate is attached to another department for a period of time and his immediate supervisor has no knowledge of his performance at the other end. 2.5.2 Superior's Superior The level of authority above the immediate manager can be involved in the

appraisal process in one or two different ways. First they may be called upon to
conutersign the manager's appraisal of the employee in order to give the seal of approval to indicate that the process has been fairly and properly carried out.

Secondly, the manager's may directly carry out the appraisal. This is known as
the 'grandfather' approach appraisal. This is more likely to happen when the

appraisal process is particularly concerned with making comparison between

individuals and the identifying of potential for promotion. It helps to overcome the problems of double standard and that managers will appraise by different standardsand minimizes the possibility that svery high standards and is a 'hard marker'. Grandfather appraisal is often used to demonstrate a fair play.

2.5.3 Peer Appraisal Individuals of equal rank who work together are increasingly asked to evaluate each other. A peer appraisal provides information that differs to some degree from ratings by a superior, since peers often see different dimensions of performance. Peers can readily identify leadership and interpersonal skills along with other strengths and weaknesses of their co-workers. One advantage of peer

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