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This research was conducted to explore the factors involved in making performance
appraisal successful. For conducting this research we used questionnaires. This
research sample size was 91. Statistical tools used, were correlation and regression.
The study showed that there is a positive relationship among job satisfaction,
feedback, importance to appraisal and success of performance appraisal. There is
Impact of job satisfaction and importance to appraisal on the success of performance
appraisal.
INTRODUCTION
No matter what type of business or group you are in, having a performance appraisal
system is a good idea. Even if organization have only one employee, that formally
review staff on a regular basis. Performance appraisal contributes to the overall
welfare of the organization. If it is done properly, performance appraisal is a very
effective tool to improve performance and productivity. It helps individuals to do
better, raises self-esteem and motivation.
To make the performance appraisal much effective, there should be clear objectives
for doing performance appraisals and everyone in the organization should
understand why it is being done.
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Literature Review
There is a growing debate about the appraisal process and utility of appraisal
systems for evaluating employees. Employee performance appraisal is vital and
vigorous management tool that makes difference in the organizational performance.
Employee performance appraisal is the method by which supervisor provides
ongoing feedback to subordinates about their performance, set objectives for
improvement, coaches employees, and produce a written evaluation of
performance. The goal of the appraisal is to foster staff development, increase
communication between mangers and the employees, and provide valuable feedback
to employees about their performance and recommend strategies for continued
professional growth. But if the goal is not achieved it has a negative effects on the
employees’ performance. Janice Lagan-fox, Jennifer Waycott, Marri Morizzi and
Louise McDonald (October 1998) conducted a research on predictors of
participation in performance appraisal. According to them, “attitude towards, and
support of, performance appraisal in general, perception of the consequences of
performance appraisal, satisfaction with the supervisor, anticipated feedback, and
awareness and knowledge of the system in the place in organization, were important
in predicting decision to adopt or reject the performance appraisal scheme”. They
also mentioned in their research that supervisors rarely gave formal or informal
feedback to employees and satisfaction with feedback is primarily determined by the
satisfaction with the supervisors. When the objectives are clearly defined the
employees will better able to understand that based on what tasks have been
evaluated. In their study it appeared that the employees that are more satisfied with
their supervisors believed that the supervisor was aware of the employee
performance standards and helped the employees to improve their performance.
Performance appraisal is an important tool to measure the performance of
employees and its worthiness is not neglected in any sector. Chris Metcalf (February
2001) conducted research on the importance of performance appraisal and staff
development for graduating nurses. According to him, “net benefit for employers is
improved quality outcomes, increased job satisfaction by the staff and cost-effective
usage of the resources. The limitation of the performance appraisal however, occurs
when management and staff do not understand the principles of performance
appraisal”. Performance appraisals provide employee with direct feedback on staffs’
performance, and also support an environment in which staff develop skills in
reflecting on and evaluating their own performance. Performance appraisals have
dual purpose. Firstly, the employee is rated on how well they have performed in the
past, and secondly future goals or objectives are made that will improve
performance in identifiable areas. According to Bailey RMN (November 1998) the
performance appraisal and performance review allow management to monitor
progress of employee efforts on the regular basis. This also facilitates
communication between management and the nursing staff when feedback is
provided regularly. He said that the appraisal is an opportunity for the appraisee and
appraiser to gauge professional development needs and the availability of adequate
resources required to facilitate these. According to his research, “An approach to
measuring performance for nurse educators to seize the initiative and be proactive in
presenting their own evidence at the appraisal interview, based on the systematic,
meaningful and reflexive evidence based practice. Instead of judging human nature
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and professional activities in linear ways, appraisal systems should reflect and chart
the expansive and hostalic knowledge, skills and practice which occur in everyday
professional action. This would better enable the emergence of appraisal systems
which are supported, owned and developed by those who are assessed and
monitored by them”.
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“relationship between attitude toward organization and performance appraisal
system and rater behavior”. Their research suggest, “attitudes and beliefs accounted
for substantial variance in raters’ likelihood of giving high or low ratings,
willingness to discriminate good from bad performers, willingness to discriminate
among various aspects of job performance and competing actual performance
ratings”. Michelle Brown and John S. Heywood (December 2005) conducted
research on the performance appraisal system determinants and change. According
to their research, “performance appraisal is associated with workers having shorter
expected tenure and greater influence on the productivity”. They find out that the
presence of training gives rise to the need to evaluate the success of training and this
increases the benefits from formal appraisal. Thus, they anticipated that the
provision of training will be a positive determinant of performance appraisal.
According to them, absence of performance appraisal need not mean the complete
absence of monitoring. Monitoring may happen in an informal fashion. Nonetheless,
the implementation and operation of a formal performance appraisal system involves
substantial costs and will not likely be undertaken in those circumstances in which
the anticipated gains are greatest.
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THEORATICAL FRAMEWORK
Job satisfaction
Importance to
appraisal Successful
Performance
appraisal
Feedback
Job satisfaction
Importance to appraisal
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If the supervisor does not give importance to performance appraisal and delays it then
the employees will feel that this issue is unimportant for their supervisor. As mostly
performance appraisals are also connected with salary increment of employees. As a
result employees would become negligible in performing their best job, which will
affect the quality and productivity of work, so giving importance to appraisal is an
important factor in making the appraisal successful.
Feedback
If the subordinate reply in his appraisal that he is appreciated by his supervisor or his
supervisor continuously gives response to his efforts, then his will be motivated which
results in the success of appraisal.
PROBLEM STATEMENT
HYPOTHESIS
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METHODOLOGY
Data Collection
The data have been collected through questionnaires. Most questions were close
ended.
Participants:
Sample Size
A random sample of 100 was selected. Of the sample, 91 responses were obtained
(response rate were 91 percent).
Demographics:
Age Percentage
20-30 49.5%
31-40 31.9%
41-50 11%
50 or more 7.6%
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Gender Percentage
Male 72.5%
Female 27.5%
Education Percentage
Graduate 34
Higher 18.7
RESULTS:
Correlation
Success of
performance Job Importance To
appraisal Satisfaction Appraisal Feedback
Success of
performance
appraisal 1.00
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results as 49.5% of our respondents were lying in that range. This shows employees
lying in this age range are satisfied with their jobs and performance appraisal.
Regression
R Square 0.64
Coefficient P-
s value
Intercept 0.06 0.03
Job satisfaction 1.04 0.05
Importance of
appraisal 0.08 0.02
Feedback 0.40 0.05
The value of r-square is 0.64 it shows that the variables that we have chosen to
conduct research on performance appraisal contributed 64% to our results while
36% depends upon other factors.
Regression results shows that job satisfaction has significant impact on the success
of employee performance appraisal. So, H2 is accepted. Success of performance
appraisal is expected to increase by 1.04 units if job satisfaction is increases by 1
unit. The p-value shows that 95% probability of being correct that the variable is
having some effect. Importance to appraisal has also impact on the success of
performance appraisal but its impact is significant. Therefore, H3 is accepted that
shows impact of importance given to appraisal on success of performance appraisal.
Success of performance appraisal is expected to increase by 0.08 units if the
importance to appraisal is increase by 1 unit and the P-value shows that the
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probability of being correct is 98% that shows impact of importance given to
appraisal on success of appraisal. The results also indicates that success of
performance appraisal is expected to increase by 0.40 units if feedback increases by
1 unit and probability of being correct is 95%..
FINDINGS:
After applying the tests “correlation and regression” we came up with these finding.
• The results shows that job satisfaction has affect on performance appraisal. So,
H1 is accepted.
• According to the results, job satisfaction is positively correlated with job
satisfaction. Therefore, H2 is accepted.
• Importance given to performance appraisal also have affect on the success of
performance appraisal as determined by results. So, H3 is accepted.
• Immediate feedback is positively correlated with success of performance
appraisal. Therefore H4 is accepted.
LIMITATIONS
CONCLUSION
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RECOMMENDATIONS
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REFERENCES
• Goss, Wayne (4-5 October). Managing for results- appraisal and reward
Rmn, Bailey (Nov 1998). The tao of professional appraisal: how to remain
content and calm during the appraisal interview. Journal of Nursing
Management, 6, 6-379.
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