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Vol. 2, Issue-II
Oct. 2016
ABSTRACT
This paper reviews existing literatures on the analysis of performance appraisal (PA) paying
special attention to those factors which influences and motivates the PA in positive ways. Sample size
fixed for this study is 100. Questionnaire is used to collect data from the sample size of 100. This
small piece of study analysis the data and gives suggestion to improve the PA and motivates the
employees in a positive ways.
Key Words: Self motivation, guidance and performance
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It indicates how well an individual is fulfilling the job demands. Often the term is confused with
effort, which means performance is always measured in terms of results.
Performance Appraisal is not an important or easy management task and it should be an once
a easy management task and it should be an once a year event. The reason they conduct Performance
Appraisal in the first place in that they believe in accomplishing two things.
1. Help employees to understand the quality of their current performance and identify
what they must to do to improve it.
2. Motivate employees to improve their performance.
Effective performance Appraisal has 3 basic components- planning performance, managing
performance and appraising performance. There is vast research data regarding performance appraisal. In
the 1980s, most of the research focused on revamping the rating system aa a method of performance
appraisal the actions helped in reducing the stress on strain put on the employees. (Feldman, 1981). Later
rating system improved which were welcomed by the managers. However it should be noted that research
has proved that the Behavioral Observation Scale (BOS) is one of the best techniques that could be
utilized by the managers to evaluate employees.
In the later years many new improved appraisal scales were developed. According to the
research of Arvey and Murphy (1998), hundreds of thousands of researches had been taken place
between the periods of 1950 to 1980, which merely focused on the different types of rating scales.
Landy and Farr (1980) carried out their research which viewed the methods of performance
appraisal from a totally new perspective. Their research paid attention to the rater and process
adopted by the rater in carrying out the performance appraisal process in an organization.
The research studies have proved that until the 1980s bias and prejudice in the performance
appraisal system led to appraisals being done on the basis of favoritism. The factors which were
given importance included race and gender basis. Important factors like knowledge, skills and style
of work as undertaken buy an employee took a back seat. Researchers have also focused their
attention on a concept called halo effect resulting in erroneous rating. Gradually the situation
changed to have appraisal free of bias though not accurate.
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The late 1990s can be credited for brining out some of the most interesting findings. They
helped in clarifying the presumptions regarding the performance appraisal. The work of Murphy
(1982) is one such contribution. Research focused on measure of employee attitudes towards the
system of performance appraisal and its acceptance (Roberts, 1990). Bernardian and Beatty (1984),
suggested in their research that behavioral and attitudinal kinds of measure ultimately prove to be
better anticipator as compared with the traditional psychometric variables, which we have declared
earlier as well, like leniency, halo and discriminability.
It is an accepted fact that a scientific continuously upgraded system of performance appraisal
procedure and process would go a long way in improving employee satisfaction and will surely help
the employee in improving the goal setting process by each employee within any organization. Target
setting at group and individual levels, revised and refined employee surveillance methods, and new
performance appraisal and evaluation methods have all been generalized to both individual workers
and to groups of employees below the managerial level (Coens, & Jenkins, 2000).
Overall, essential to a shift in the nature of "work" itself has been a transformation of concepts
and criteria of "performance" in work. The appraiser and the appraisee at the executive level identify,
clarify the important functions which assume priority over all the other functions that appraisee
would perform during the period of appraisal; these functional areas are called key performance
areas. Self-appraisal is beneficial when managers seek to increase an employees involvement in the
review process. If individual understand the objective they are expected to achieve and the standards
by which they are to be evaluated, they are to a great extent in the position of appraisee their own
performance become highly motivated.
Chandra, A. & Frank, Z.D (2004) wrote that performance appraisal systems are designed to
objectively evaluate an employee's performance and then outline measures to be taken for
improvements, which are essential for an organization to move ahead. The evaluative purpose is
intended to inform people of their performance standing. The developmental purpose is intended to
identify problems in employees performing the assigned task. These systems are often organization
specific and health care organizations are no exception. They are ensured that physician performance
is appraised, because they are accountable to patients and the community for ensuring that the care
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delivered meets defined standards and for quality improvement. Berwick, D.M. (1991) wrote that as
more organizations tackle quality from a system-wide perspective, the philosophy underlying
evaluation is shifting from a focus on the individual to one on the entire system, involving everyone
but blaming no one.
RESEARCH METHODOLOGY:
Research methodology is a way to solve the research problem systematically it may be
understood as a science of studying how search is done scientifically study. We study the various
steps that all generally adopted by a researcher in studying problem along with the logic behind them.
RESEARCH TYPE:
A study is descriptive in nature. The main characteristic of this method are that researcher has no
control over the variables. He can only report what has happened and what is happening.
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COLLECTION OF DATA:
The researcher approached the employees individually questions were asked and information
was collected. Question were explained so as to around ambiguity. The employees were found cooperative.
SOURCES OF DATA COLLECTION:
The data used for this study were both primary and secondary data.
PRIMARY DATA:
The source of primary data is the field where researcher has collected the fresh and first hand
information or data from the employees.
SECONDARY DATA:
Secondary data is also known as documentary data. It consists of information that already
exists somewhere have been collected for some other purpose for this study.
RESEARCH INSTRUMENT:
This study includes a Questionnaire as a tool for collection of data.
SAMPLING METHOD
Convenience sampling is used to determine to collect the data.
SAMPLE SIZE:
The sample size of the study is 200 respondents belonging to different levels of management.
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Percentage
Educational Qualification
Percentage
Male
42%
Graduate
46%
Female
58%
Post Graduate
54%
Age
Percentage
Position occupied
Percentage
Less than 30
28%
Senior Management
16%
30 45
48%
Middle Management
36%
Above 45
24%
Junior Management
48%
Number of respondents
Percentage
Shortly agree
12
6%
Agree
96
48%
Disagree
60
30%
Totally disagree
32
16%
Total
200
100%
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Inference: From the above table it inferred that 48% of the respondents agreed that, the appraisal
system helps them to identify their strengths and weakness, 30% of the respondents disagree to the
statement, 16% of the respondents totally disagree to the statement and above, 6% of the respondents
totally agreed to the above statement.
Table 3: Opinion on Purpose of Performance Appraisal System
Opinion on Purpose of PAS
Number of respondents
Percentage
To improve skills
16
8%
Job knowledge
88
44%
Job satisfaction
52
26%
Productivity
44
22%
Total
200
100%
Inference: From the above table it is inferred that 44% of the respondents felt that performance
appraisal system improves job knowledge, 26% of the respondents felt it has improved job
satisfaction, 22% of the respondents felt productivity has improved and above 8% of the respondents
felt that performance appraisal has improved their skills
Table 4 : Frequency of Assistance & Guidance given with respect to
Performance Appraisal
Frequency of Assistance & Guidance given
Number of respondents
Percentage
Always
112
56%
Often
72
36%
Sometimes
16
8%
Not at all
0%
200
100%
Total
Inference: From the above table noted that 56% of the respondents feel they always get assistance
and guidance to improve their performance, 36% of the respondents feel often to above statement,
8% of respondents feel only sometimes to the above statement.
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Number of respondents
Percentage
Shortly agree
12
6%
Agree
124
62%
Disagree
44
22%
Totally disagree
20
10%
Total
200
100%
Inference: From the above table it inferred that 62% of the respondents agree that, the performance
appraisal system help them on self motivation to work better, 22% of the respondents disagree to the
statement, 10% of the respondents totally disagree to the statement, 6% of the respondents totally
agree to the above said statement.
Table 6 : Adequate Feedback Is Provided After Performance Appraisal
Opinion
Number of respondents
Percentage
Shortly agree
16
16%
Agree
10
10%
Disagree
44
44%
Totally disagree
30
30%
Total
200
100%
Inference: From the above table, it inferred that 44% of the respondents feel that they are sometimes
provide with adequate feedback for their performance, 30% of the respondents feel not at all to the
above statement, 16% of the respondents feel they are always provided to about, 10% of the
respondents feel often they are provided with adequate feedback for their performance.
Table 7 : The Skills Rated By Performance Appraisal helps in Improving Job Performance
Opinion
Number of respondents
Percentage
Shortly agree
10
10%
Agree
58
58%
Disagree
18
18%
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Totally disagree
14
14%
Total
200
100%
Inference: From the above table it is inferred that 58% of the respondents agree that, the
skills rated in the performance appraisal system is very much essential for their for their job
performance, 18% of the respondents disagree to the statement, 14% of the respondents strongly
disagree to the said above statement, 10% of the respondents strongly agree to the above said
statement.
Table 8: Performance Appraisal Provides Rewards which improve
Standard of Living of Employees
Opinion
Number of respondents
Percentage
Yes
164
82%
No
36
18%
Total
200
100%
Inference: From the above table it is inferred that 82% of respondents said yes that the employees
based on the performance appraisal increases the confidence level of employee &18% of them
opinioned as no with the statement.
Chi-square Test for Experience Vs. Satisfaction With respect to Method Of Performance
Appraisal
Ho: There is no significant difference between experience and satisfaction with the present method
of performance appraisal
Satisfied
Dissatisfied
Total
0-20
40
16
56
Above 21
92
52
144
Total
132
68
200
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(O-E)
(O-E)
(O-E)/E
40
36.96
3.04
9.241
0.250
16
19.04
(3.04)
9.241
0.495
92
95.04
(3.04)
9.241
0.097
52
48.96
3.04
9.241
0.188
(O-E)/E
1.030
= 1.030
Degrees of freedom
= (r-1)(c-1)
= (2-1)(2-1) = 1
Table value
= 3.841
Since the calculated value is less than table value (i.e., 1.030 < 3.841) the null hypothesis is
accepted. Hence, there is no significant difference between respondents experience and satisfaction
of the present method of performance appraisal.
SUGGESTIONS
The organization may take steps to communicate performance appraisal procedure in
advance to employees.
Performance appraisal system may help the employee to identify their strengths and
weaknesses.
Performance appraisal system may help the employee to achieve individual goals and
organizations goals.
Performance appraisal may help the employee to identify developmental needs.
Performance appraisal may help self motivation of employee to work better
.Feedback regarding performance appraisal may be provided to employees to motivate
them.
Partiality of treatment should be avoided at the time of rating.
Organization may take steps to improve the present performance appraisal system.
CONCLUSION
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REFERENCES
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ii.
iii.
iv.
v.
vi.
vii.
viii.
Berwick, DM (1989), Continuous improvement as an ideal in health care, N Engl J Med, 320:53-6.
Chandra, A. & Frank, ZD (2004), Utilization of performance appraisal systems in health care organizations and
improvement strategies for supervisors, Health Care Manag (Fredrick), Jan Mar 23(1):25-30.
Coens, T & Jenkins, M. (2000). Abolishing performance appraisals: Why they backfire and what to do instead.
San Francisco: Berrett-Koehler.
F. J. Landy, And Farr, J. L. Performance Rating, Psychological Bulletin, 87, 1980, 72-107.
Gollac, Michel and Volkoff, Serge, 1996, Citius, Altius, Fortius: lintensification du travail in Actes de la
recherche en sciences sociales, No. 114, September. References.
Murphy K.R. and Cleveland, J.N. Performance Appraisal: An Organizational Perspective, Boston: Allyn and
Bacon, 1991.
Palmer, J.K. and Feldman, Jack M, Accountability and Need for Cognition Effects on Contrast, Halo, and
Accuracy in Performance Ratings, Journal of Psychology, 139 (2), 2005, 119-137.
Roberts G.E., The Influence of Participation, Goal Setting, Feedback and Acceptance on Measures of
Performance Appraisal Effectiveness,, Dissertation Abstracts In-ternational (Doctoral dissertation, University of
Pittsburgh, 1990.
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