Documente Academic
Documente Profesional
Documente Cultură
APPRAISAL SYSTEM
Session: 2014-2018
Govt. Post Graduate Islamia College for Women, Cooper Road Lahore
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Acknowledgement
The accomplishment of this research project would not have been possible without the dedication, inventiveness
and guidance provided by a number of people all through the study.
First and foremost I want to express my appreciation to my Teacher; Miss Amna Shahzadi for the academic
guidance she accorded me in every stage of this research project. The wealth of knowledge in academic writing
attained through this collaboration is precious.
I also want to thank my good friends for proof reading this research. It is never easy to go through pages of
such writing in a field we are not familiar to. However as friends they made this happen while providing
positive feedback.
Finally, to my family for their continuous encouragement and support, without which I would not have been
able to concentrate and complete this research.
Thanks you
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Dedication
This research project has been moderately satisfying and delightful to conduct. However this would not have
been possible without the encouragement and sacrifices of time made available to myself by my family. I
therefore dedicate this research project to my whole family.
I also dedicate this research to my mother who taught me at a very tender age to always aim higher in my
academic searches. This research is an important innovation in this journey. To my mother also for the
discipline that came in convenient in keeping with the constricted timelines for this study.
Lastly, to my loving friends for their encouragement and feedback. May the completion of this study be an
inspiration to you to strive for success in all that you do in your life.
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Table of Contents
Chapter No. 1
Introduction
1. Introduction……………………………………………………………………………………..7
1.1. Problem Statement……………………………………………………………………………...8
1.2.Research Objectives……………………………………………………………………………..9
1.3.Definitions of Variables………………………………………………………………………....9
1.3.1. Supervisory Style……………………………………………………………………….…...9
1.3.2. Performance Appraisal System……………………………………………………………...9
1.4.Importance of the Study………………...……………………………………………………...10
1.5.Research Questions……………………………………………………………………………..10
Chapter No. 2
Literature Review
2. Literature Review……………………………………………………………………………….11
2.1.Background……………………………………………………………………………………..11
Chapter No. 3
Theoretical Framework
3. Theoretical Framework………………………………………………………………………......14
3.1.Performance Appraisal System Depends On Supervisory Style……………………….............14
3.2.Hypothesis………………………………………………………………………………………15
Chapter No. 4
Research Methodology
4. Research Methodology……………………………………………………………………………...16
4.1.Research Approach………………………………………………………………………………16
4.2.Research Strategy………………………………………………………………………………..16
4.3.Sources of Data………………………………………………………………………………….16
4.4.Primary Data………………………………………………………………………………….....16
4.5.Secondary Data………………………………………………………………………………….17
4.6.Study Population………………………………………………………………………………...17
4.7.Sample Size………………………………………………………………………………………17
4.8.Sampling Method………………………………………………………………………………..17
4.9.Data Collection Methods………………………………………………………………………..18
Chapter No. 5
Descriptive Statistics
5. Descriptive Statistics……………………………………………………………………………….…19
5.1.Demographic Statistics……………………………………………………………………………19
5.1.1. Demographic Profile of Respondents……………………………………………………..19
5.2.Descriptive Summary……………………………………………………………………………....22
5.3.Reliability Analysis………………………………………………………………………………...22
5.4.Correlation Analysis………………………………………………………………………………..23
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Chapter No. 6
Conclusion
1. Conclusion………………………………………………………………………………………..24
1.1.Discussion………………………………………………………………………………………...24
1.2.Conclusion………………………………………………………………………………………..24
1.3.Recommendations & Suggestions for future Research…………………………………………..25
References………………………………………………………………………………26
Appendix……………………………………………………………………………….27
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ABSTRACT
Performance appraisal system is a significant HR function in today’s organization where it shows a strategic
and participating role of numerous functions and is contributing to decision making in different state of matters.
The accomplishment of the appraisal system depends on several factors including employee engagement,
obligation, organization culture, leadership style and so on. Responses to appraisal and the appraisal process are
believed to significantly influence the effectiveness and the overall viability of appraisal systems (Jawahar,
2007). This indicates that it is important to notice and pay attention to the factors that influence the
effectiveness of performance appraisal. Literature review has resulted in identifying various aspects that
influence appraisal, including the appraiser’s supervisory style. The appraisal system needs to be more
objective, improve the feedback process, and increase the frequency of review. The supervisor’s role in this
outlook needs focus in order to obtain an effective performance appraisal system.
This paper focuses on studying the impact of various supervisory styles on the Performance Appraisal System.
The study focuses on measuring the three supervisory styles proposed by Rao, namely benevolent style, Critical
Style and Development oriented style in manufacturing and IT sectors. A benevolent style is where the top level
manager or the appraising manager is more affectionate towards his subordinates and is understanding of one’s
needs at the workplace. A critical leader is a tough task master who believes that employees need to be closely
watched in order to be reminded of their duties. He is not flexible towards employee’s needs, rather is focused
on the organizational objectives and is strict with the norms. Development oriented supervisor is the most
desirable style where the manager believes in his subordinates and aids in developing one’s competencies and
abilities
The analysis shows that there is significant difference between the supervisory styles and effectiveness of PAS
based on the type of company, namely manufacturing and IT. The measure of association between the various
styles and the effectiveness of appraisal system depicts that critical supervisory style is strongly and statistically
negatively correlated whereas, development oriented style is statistically positively correlated with performance
appraisal system.
The impact of the various supervisory styles on effectiveness of PAS was studied through regression that
resulted in showing significant contribution of the supervisory styles on effectiveness of performance appraisal
system. The values also signified that development oriented supervisory style is important and positively
explains the variance in the dependent factor whereas the critical supervisory style has a statistically significant
negative impact on the perception of employees regarding the effectiveness of PAS.
The study shows that developmental style tends to create learning and job satisfaction than the benevolent style
and critical style. The findings are in expected directions. The findings can be used to arrive at useful changes to
be implemented in the supervisor styles of the organizations to achieve the overall performance appraisal goal.
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IMPACT OF SUPERVISOR STYLE ON EFFECTIVENESS OF PERFORMANCE
APPRAISAL SYSTEM
1. Introduction:
Performance appraisal system is an important HR function in organization now days. It plays a strategic
and perfect role of different functions and it is effective while decision making in different
affairs/matters of organization. A successful appraisal system depends on the different factors which
includes the following:
Employee engagement.
Employee performance.
Employee commitment.
Organization culture.
Leadership style.
Due to these factors, the leadership style or the supervisory style results the appraiser’s cooperation and
relations with the employees. Appraisal process and its reactions crucially impact on the efficacy of the
appraisal system. This shows that it is very important to pay attention to the factors that impact on the
success of performance appraisal. While recognizing different factors that impact on appraisal, literature
review has resulted the appraiser’s supervisory style. The appraisal system must have the following
characteristics:
It should more objective.
It should improve the feedback process.
It should increase the prevalence of review.
It also has control on the operations of individuals, group/team and the whole organization. Performance
appraisal generates evaluative decisions which are essential to different HR actions and outcomes.
Studies shows that application of PA system remains one of the biggest challenges of effective HRM. A
good PA system provides worthy information to the employees about their progress and performance at
work in the organization, appraisal soundness and validity to remain an important part of the
organization.
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The study focuses on the different supervisory styles that affect the Performance Appraisal System.
The main three supervisory styles are following:
Benevolent style.
Critical style.
Development oriented style.
These styles are helpful in manufacturing and IT sector. In Benevolent Style, the top level management
is very kind with its juniors and this is one of the big needs of the workplace. In Critical Style, the
leader is strict and assigns difficult tasks to the employees, so that they realizes about their duties timely.
His primary focus is on the organization’s objectives, he does not compromise with employees needs
and he is strict with the rules. Development Oriented Style is the most advisable style in which the
manager trusts his juniors and help in developing abilities and proficiencies. The analysis shows that
there is an important difference between supervisory style and efficacy of PAS. The results of
association between supervisory styles and efficacy of PAS illustrates that Critical Supervisory Style
are strongly and negatively corresponded. While, Development Oriented Style is positively
corresponded with PAS. The effect of different supervisory styles on effectiveness of the PAS was
deliberated through regression that emerges in showing important contribution of the supervisory styles
on efficacy of PAS. It is denoted that Development Oriented Supervisory Style is very important and
positively describes the variance in the dependent factor whereas the Critical Supervisory Style has a
negative effect on the recognition of employees concerning the efficacy of PAS. The supervisors shall
acquire benevolent style, critical style or development oriented style. The study focuses to identify the
effect of these supervisory styles on performance management system in organizations.
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1.2. Research Objective:
To assess the effectiveness of the Performance Appraisal (SPA) system.
To assess employees accepting of the objectives of the appraisal system, its processes and
measures at organization.
To find out whether the appraisal system at organization is achieving the objectives.
To compute employees awareness of the appraisal system at organization.
To discover how the performance appraisal system has been capable to recognize employees’
strengths and weaknesses and programs put in place to tackle weaknesses and reward
performance.
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Uses those results to give feedback to the employee so that the employee comes to know that
where and what improvements are needed and why.
Performance appraisals are designed to bring a conclusion that who needs what training and
who will be honored, continue or fired.
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What is the current level of different supervisory styles in the organization? In the terms of
benevolent, critical and development oriented styles.
What is the level of Powerfulness of the performance appraisal system in the cognition of
employees?
What is the statistical difference in the cognition of employees concerning the supervisory
style and effectiveness of PAS based on their company sector?
There is any expressive connection between the supervisory style and effectiveness of PAS
or not?
What is the capacity of impact of various supervisory styles on effectiveness of PAS?
2. Literature Review:
2.1. Background of the Study:
Performance appraisal (PA) is the most important Human Resource (HR) policy. Performance
appraisal is a judicious approach to merging HR actions and business strategy rather than a practical
unit. Organizations point to estimate and evaluate its employees and expand their abilities, skills,
enhance performance and scatter rewards through performance appraisal. This has helped
performance appraisal to progress in to a growing process from a psychometric and assessment
method. It is now described as any attempt concerned with enhancing attitudes, experiences, and
skills that improves the success of employees.
However many organizations show dissatisfaction with their appraisal systems. This may specify a
lack of success of PA as a mechanism for growing and encouraging people. This nurture concerns
on the process of performance appraisal and it has been found that there are a number of factors that
causes to this dissatisfaction.
Performance appraisal has immense consequences for attitudes and behaviors in organizations.
Performance appraisal effects managerial decisions, training and development, opportunity
components and those components in the work system that participates to performance. Therefore it
is an important component in decision making in a number of positions in the organization. One of
the measures of the success of a performance appraisal system is Performance appraisal
compensation, which refers to the general, overall recognitions of fairness of the HR system of the
organization. Appraiser bias is a major worry which has difference in opinion among the line
managers and the others. The system needs to be more purposive, improve the feedback procedure,
and increase the incidence of evaluation. Having significant performance methods would help
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reduce bias. Using several sources of feedback (including the self, peer and 360-degree systems), an
evaluation mechanism, and clarity in the system also would help reduce bias.
Employees are happy with their performance appraisal systems when there is trust in the supervisor
and when supervisors are helpful of their immediate managers, feedback, especially in the areas of
skill growth, pay for performance, and career improvement occurs during the appraisal session, and
immediate managers feel that they are given sufficient time to show their aspects, have opportunity
to effects the outcome, and sufficient explanation of their ranking is provided.
Leadership is a significant standard for managers and appraisers. It helps in not only managing the
individual but also in the growth and alteration of the immediate manager. It is observed that three
standards of most successful alteration, namely structuring trust, enhancing change and measuring
the right things and straighten the incentive system. The effect of leadership styles on employees is
important and had been studied in a number of researches.
Organizational success in attaining its goals and objectives rely on the leaders of the organization
and their leadership styles. By selecting the best leadership styles, leaders can influence employee
job satisfaction, loyalty and productivity. Alteration leadership is more significant in terms of
follower satisfaction than negotiation leadership. Organizations should have the right person to do
the right job and give employees satisfactory training to enhance their job performance and skills.
Supervisors should take actions to enhance their workers such as providing powerful leadership and
consultant for staff members, building working situation that are helpful and provide challenging and
encouraging work tasks.
A growth leadership style is described as an authorize style, where the top manager believes in
growing the capabilities of his staff, treats them as sensible adults, leaves them on their own most of
the times, is long term goal oriented, shares information with all to build their capabilities, make
easy resolution of quarrels and mistakes by the employees themselves with negligible involvement
from his side.
Growth style by nature, seems to be the most desired organization structuring style. Some
individuals and some situations are beneficial and evaluative styles. Some managers are not aware of
the primary style they gravitate to use and the influences their style is manufacturing on their
employees.
For the cause of this research, performance evaluation and its consequence on the output of staff in
the organization is the crucial point. This chapter as a result presents the theoretical framework and
models that are applicable and appropriate for the existing study; and which will be helpful and used
to investigate collected data and information.
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Performance, as suggested is an conclusion or result of an individual’s measures. An individual’s
performance as a result becomes a function of skill and inspiration.
Performance Assessment (also performance appraisal, evaluation, measurement) becomes a frequent
evaluation of the job linked task happenings or failures of the individuals in the organization. A main
deliberation in performance enhancement involves the formation and use of performance events or
indicators; which are assessable uniqueness of products, services, processes, and operations the
company uses to follow and recover performance.
The word ``appraisal'' can mean diverse things in diverse situations highlight proper and informal
approaches which may have a variety of purposes, as well as: assessment, auditing, succession
planning, teaching, scheming, expansion and inspiration. Appraisals frequently witness an evaluation
of an employee's performance, prospective and growth needs. The appraisal is an occasion to take on
the entire view of work pleased, loads and quantity. It have examined the use of evaluative and
developmental approaches to appraisal in unusual sectors. Developmental evaluations center on
equally guidance to deal with immediate issues and on lasting job needs. In contrast, the evaluative
approach focuses on executive power and decision. A variety of techniques of appraisal, from
administratively distinct behavioral qualities and presentation criterion, capacity against feat of
objectives, to the enclosure of other parties occasionally with more qualitative events, for instance
peer and in 360 degree evaluation achieved throughout the exposure stage and concur objectives for
the next have investigated the use of evaluative and developmental approach to judgment in unusual
segments. Developmental assessments center on mutually teaching to tackle immediate issues and
on long-standing job needs. In difference the evaluative approach focuses on managerial organize
and decide a variety of methods of evaluation, from managerially definite behavioral qualities and
presentation criteria, dimension beside accomplishment of objectives, to the enclosure of other party
sometimes with additional qualitative events, for example peer and in 360 degree appraisal 999).
Performance is an employee's achievement of assign work as specific in the serious elements and as
measured against standards of the employee's position. The term “Performance Appraisal” is
concerned with the procedure of valuing a person’s value to an organization with a view to rising it.
Performance appraisal is worldwide phenomenon in which organization is creating judgement
regarding one is functioning with. It serves as fundamental element of successful work performance.
Performance appraisal is important for the efficient management and assessment of staff. It aims to
progress the organizational performance as well the individual development.
The focal point of performance appraisal is measuring and civilizing the genuine performance of
employee and as well the prospect likely of the employee. Its plan is to compute what an employee
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do. We consider PA as a methodical way of reviewing and assess the act of an employee throughout
a specified period of time and development for his opportunity.
When conducted correctly, appraisals provide the intention by:
1) Screening employees how to progress in their work.
2) Locating goals for employees.
3) Serving managers to evaluate subordinates efficiency.
4) Take measures correlated to hiring, promotions, demotions, teaching, reward, job design,
transfers, and extinctions.
The on top of expositions found performance appraisal as understandable and brief, normal and
neutral system of ranking an employee's performance in existing position, which can be used to
decide how extreme the employee can depart in job enlargement. The standards of such evaluations
are frequently the job explanation in tandem with declared company purposes.
An organization engages a person for the intention of employing his proficiency to attain certain
targets and goals. Every so frequently, the employer requires getting stock and deciding the
significance of every employee, his latent and what his opportunity in the company is expected to be.
In the researcher’s estimation this is proficient through the carry out of performance appraisal.
3. Theoretical Framework:
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3.2. Hypothesis:
𝐻𝑜 ; 𝑇ℎ𝑒𝑟𝑒 𝑖𝑠 𝑟𝑒𝑙𝑎𝑡𝑖𝑜𝑛𝑠ℎ𝑖𝑝 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑖𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑎𝑛𝑑 𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒.
𝐻1 ; 𝑇ℎ𝑒𝑟𝑒 𝑖𝑠 𝑛𝑜 𝑟𝑒𝑙𝑎𝑡𝑖𝑜𝑛𝑠ℎ𝑖𝑝 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑖𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑎𝑛𝑑 𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒.
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4. Research Methodology:
This Chapter illustrates how the current research study was accomplished. This chapter delineates the
alternative of research draw near and study proposes that have accomplished to the study within reach.
This chapter describes the applicants that were concerned in the current study, the measuring implement
used, the methods that were followed and the numerical techniques used to investigate the data.
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4.4. Primary Data:
The investigator collected main data throughout interviews and observations. It illustrates interviews
as the majority important basis of case study information. We can supply accurate answers to
research questions. Over again the utilize of the questionnaire was input in primary data collection
process. In case studies interviews mainly are open-ended nature. to the extent that most of the case
studies are regarding human relationships, interviews develop into essential sources of case study
confirmation.
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To attain a characteristic subgroup of the population, convenience sampling is used. A convenience
sample is a sample wherever the respondents are nominated, now part or in entire, at the ease of the
researcher.
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Chapter No 5
Analysis and Results
5. Descriptive Statistics:
Descriptive statistics are numerical procedures that let researchers to define data through summary or
exhibition. Frequencies, percentages, are operated to study the demographic data in the existing
research. Graphical images are presented to enable understanding of data. This was simplified by the
SPSS.
Statistics
Valid 50 50 50 50
N
Missing 0 0 0 0
Mean 3.3200 2.7800 1.4400 1.4400
Median 3.0000 3.0000 1.0000 1.0000
Mode 4.00 2.00a 1.00 1.00
Std. Deviation .71257 1.46092 .50143 .50143
Variance .508 2.134 .251 .251
Range 2.00 5.00 1.00 1.00
Majority of our respondents fall in the age group of 23-32 years. It means that we have collected
most of our data form youngsters. Mostly respondents’ qualification is masters. 45% of our
respondents are female and remaining 55% are males. 53% of our respondents are single and
remaining 47% are married.
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5.2. Descriptive Summary:
Questions 1 2 3 4 5 6 7 8 9 10
N Valid 50 50 50 50 50 50 50 50 50 50
Missing 0 0 0 0 0 0 0 0 0 0
Mean 3.5800 3.1800 3.1800 3.3200 3.5400 3.7200 3.6600 2.5200 3.2600 4.3200
Median
4.0000 3.0000 3.5000 3.5000 4.0000 4.0000 4.0000 2.0000 4.0000 5.0000
Mode
4.00 4.00 4.00 4.00 4.00 5.00 4.00 2.00 5.00 5.00
Std. Deviation
1.17959 1.38048 1.18992 .97813 1.28110 1.27839 1.20560 1.16479 1.63894 1.13281
Variance
1.391 1.906 1.416 .957 1.641 1.634 1.453 1.357 1.686 1.283
Range
4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00
Reliability Statistics
.555 .536 11
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5.4. Correlation Analysis:
1 2 3 4 5 6 7 8 9 10
1 1
2 .473 1
3 .244 .290 1
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Chapter 6
Conclusion, Limitations
6. Conclusion:
6.1. Discussion:
The analysis and outcomes shows that employees view their supervisors in a encouraging tone as the
unkind score of development style is 4.399 in a score of 5. The respondents have agreed a smaller
score to the acute part (3.13) of the supervisory style, which directs that they desire to scoreless for
the critical side of the manager. Over-all employees are more relaxed with a benevolent leader who
is capable to understand their concerns and difficulty in the procedure of achieving their aims.
Leadership is a gentle of relationship to spread on power and impacts to make people work collected
and accomplish mutual goals
The outcomes of the analysis of variance displays that there is a important difference in the opinion
of respondents concerning the supervisory styles and appraisal system, established on their industry
circumstantial as from IT sector or industrial sector. The employees in industrial sector could view
their managers as more serious than those from the IT sector. IT is comparatively a new field and
mainly occurred to satisfy the IT resolutions requirements of the western countries. Although
industrial sector is outdated and has a higher power reserve that result in the superiors being more
serious and tough to acquire their work done.
6.2. Conclusion:
Measurement and supervision systems may involve a lot of time and struggle, especially at the
commencement of the process as inside resources. Supervision and leadership shows a major role in
scheming and developing operative performance measurement system. Also the supervision
commitment calls for official and professional performance management evaluations that could
affect employees’ commitment to accomplishing targets and refining performance. Generally,
employees view performance-monitoring methods as systems planned to force them to work
tougher, and managers see such systems as struggles to put increased stress on them to create added
results. This condition is changing along with the alteration in perception of employees, procedures,
systems and technology.
The study endorses that the Development oriented supervisory style is further effective than
Benevolent and Critical style. It also certifies that Critical style leadership does have an undesirable
impact and harmful correlation with usefulness of Performance Appraisal System and therefore is
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not a successful system in the long run. On the other hand, the Performance Appraisal system has to
be exercised, taken into description, the size of the organization, circumstantial and the traditional
practices of the commerce, the type of employees and other regulating factors that would affect the
effectiveness of the PAS. The writers advocate that detailed steps need to be occupied to exercise a
stable supervisory style that would result in operative performance appraisal systems and
organizational performance. The study presents a comprehensive future scope of reviewing the
various mediators in the relationship.
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References:
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Appendix:
Demographics:
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