Effects Of Performance Appraisal System On Employees’ Performance

Performance Management and Performance Appraisal

Human Resource department is a significant part of any organisation, irrespective of the objectives of the business, nature of the institution or the scale of business. The role of an HR executive is not only to look after hiring of people, their responsibility is to understand the needs, requirements, issues, grudges and provide the people of the organisation with better opportunities (DeNisi & Smith, 2014). Maintaining a motivated and inspiring work environment is also a part of the management so that the people are content and have their interest aligned with the objective of the company.  There are a number of expectations when a person joins a company as an employee and this expectation is form both the parties: employer and the employee. One of the most important aspects of expectation of an employee is getting the rightful remuneration as well as appreciation for the efforts that he or she has been incorporating in the work (Sharma & Sharma, 2017). Another major aspiration from the perspective of an employee is the chance to grow and improve in the system; this is where performance management and evaluation becomes an integral part of any organisation. Based on the nature of the work, scale of operation etc the prospect of improvement or development in the career path is defined. Performance management and evaluation leads to appraisal, which has to systematic and organized as it is one of the major sources of motivation for an individual’s performance (Speklé & Verbeeten, 2014). In the process of employee appraisal the employees are reviewed and discussed; weaknesses, strengths, opportunities and threats are all identified for caution and development of the organisation (Huselid, M. A. 1995). Some of the major factors that affect the effectiveness of an appraisal system include; communication, training, documented process and evaluation of results. Reward review, potential review and performance review are the major types of appraisals commonly used in the organisations (Speklé & Verbeeten, 2014).

Performance management is a part of the justification of the remuneration that is being offered, thus, it directly impacts the motivation of the employee. Basically there are two objectives of performance review and appraisal:  firstly it is used to evaluate the recent performance of the individual and secondly, determine the future prospects of the person and the training or resource that is required to equip the person for future endeavors. It should be noted that appraisal is a part of performance management, there are other aspects of performance management as well. The human resource of a company is the back bone of the operations, therefore it is essential to monitor and evaluate the performance as it is directly responsible for the performance of the company as well.

The Impact of Performance Appraisal on Employee Motivation

According to Allen & Mayfield (1983), the performance appraisal is one of the components in the organisations that cause serious problems in the Human Resource Departments.  The chances of a person being de-motivated or dissatisfied with the results of the performance management are high. There are chances of internal conflict and issues due to appraisal. The policies of every organisation are taken based on the suitability of the management and thus the appraisal systems are sometimes based on a yearly basis or takes place by annually etc. There are also a number of frameworks that have been developed by scholars over the years in order to help the management of business organisations to manage the performance of the employees (Allen & Mayfield, 1983).

This research is about the effects of appraisal system on employees in the public service of the Jamaica Constabulary Force and the potential ethical issues that are likely to affect this system. The major significance of production in most of the organisations is to maintain, (Becker & Gerhart, 1996) meet and satisfy the customers’ needs; this ensures that the company competes favorably regardless of the stiffness of the competition in the market.

The principal aim of the research project is to investigate the Effects of Performance Appraisal System on Employees’ Performance of The Jamaica Constabulary Force in the Public Service of Jamaica. As appraisal is an important part of the responsibility of the Human Resource, the department of the organisation of choice will play an essential role in  answering the research questions and eventually achieving the objectives of the research.

Research questions:

Does performance appraisal improve the productivity of the employees?

What is the relationship in between employees’ productivity and the appraisal of performance?

What is the important information that the employees need to understand related to their work?

What are the ways in which the employees can improve based on the past performance?

In this research the objectives are as follow:

• To know whether the performance appraisal enhances the productivity
• To review the relationship between employees’ productivity and the appraisal of performance.
• To help the employees understand the important information related to their work.
• To help managers and supervisors improve on their current performance based on their past performances.

Human resource management is a very common topic of research among the academic society, thus there has been several studies that have been conducted upon the various variables associated with the subject.  The importance of performance management in an organisation owes to the fact that it is directly responsible for the way the company performance at large as well. As the people are responsible for the daily operates and delivering the needful for running the business, it is essential to evaluate and monitor the performance with transparency. Performance appraisal is an important part of performance management and has a number of advantages as well as disadvantages. This research will help the managers of an organisation to understand and use the advantages of the strategies in order to overcome the disadvantages. The process is also important as it is widely accepted by organisations all over the world, though the process and the implementation may be different based on a number of aspects.

Research Questions and Objectives

The research will concentrate on the public sector service as the case study is based on Jamaica Constabulary Force. In the service sector the performance of the employees cannot be measured with particular numerical values rather mostly it is based on the feedbacks that are received by the customers and the supervisors. Hence this research is important to understand the ways in which the process of appraisal impacts the performance of the employees in the future. Motivation plays a significant role in the performance of a person and his or her will to continue working with the organisation.

Appraisal is a source of motivation as it is regarded as a reward for the performance that the person for a stipulated period of time. With the help of this study the manager of an organisation will understand the factors that cause inconsistency and develops conflict among the people. They can also understand the ways in which the process can be improved in their organisation. The work is also expected to serve the employees of any organisation in terms of their knowledge that they need to acquire of the organisation during the time of their appraisal.

Performance management, performance appraisal, motivation, Job satisfaction, employee retention

Theoretical concept of Performance management and performance Appraisal

The output of the people associated with the company appointed at any level is responsible for the success and achievement of the organisation. Based on the values and principles that drive the company the objectives of the business are set accordingly. Therefore, it is important for the management to monitor and evaluate the performance of the people.  According to Makori (2014), performance management is the process of improvement and development of the tasks that the employees have to perform on a day to day basis in order to achieve the objectives of the business. Communication in between the supervisors and the employees are an important aspect of performance management (Makori, 2014).

Performance management includes training and development so that the employees get an opportunity to improve and develop skills so that they can also grow in their career with the company.  Employee retention is one of the major challenges for the HR department, it is essential to develop a work environment for the employees, which is favorable in doing this performance management play an important role. Another important variable in the process of performance management is motivation; motivation is also a factor that drives job satisfaction, for example, if an employee work is appreciated with the managers or supervisors there is a chance that the employee will be positively motivated to work towards a desired outcome.

There is always a difference in between what the employees perceive and the actual performance, this in turn gives rise to conflicts and issues which can be averted with the help of transparency and effective communication (Makori, 2014).

However, appraisal is a part of performance management and is a part of significant academic research over the years. Performance appraisal includes a feedback of the employee and also helps in determining the strengths as well as the weaknesses. It is primarily the contribution of the employee towards achieving the objectives of the business.  The purpose of performance appraisal basically is to restructure the compensation of an employee based on the past percentage. The process also helps in determining the areas of improvement, where training is required and where a person deserves to be promoted, based on the performance of an individual such decisions are taken. There are various tools that has been developed over the years by scholars and management experts for performance appraisal like Management by Objectives, 360-degree appraisal, Assessment center, Cost accounting method etc.  

Impact of performance appraisal on employee motivation

There are positive as well as negative impacts on the employees based on their performance. Motivation is the urge to act upon some idea; employee performance is directly impacted by the degree to which the person is motivated to work for the organisation (Lee & Steers, 2017). According to Ayd?n,& Tiryaki (2018), the perception of the employees regarding their performance is different from that of the management and therefore there are high chances of conflict in the process. For example, an employee feels that he or she has more potential or has provided the company with much more than what the management thinks and there is a difference in opinion during that period then there is bound to be a conflict.

However, Ikramullah, Van Prooijen  Iqbal  & Ul-Hassan (2016), state that there are positive impact on the employees as well, constructive feedback is a part of appraisal which helps the employee in understanding the shortcomings and coming up with a way to deal with deal with that similarly there are chances that that the people. One of the major objectives of performance appraisal is to improve the performance of the employees by providing with better opportunities. Mulvaney (2017), argued that the performance appraisal also help in developing a long term valuable relation with the employees, the employees understand the value and is motivated with the positive feedbacks. Training sessions and skill development programme are formulated on the basis of the data that is gathered during the appraisal. An employee is always looking forwards to career development and appraisals are a good chance to provide the employee with the same (Mulvaney, 2017). 

Performance appraisal within the context of the organisational culture

The culture of an organisation forms the basis of the way the company works, the objectives that the company sets to achieve and the ways in which the employees and other stakeholders are involved in the process of business. According to Decramer, Smolders & Vanderstraeten (2013), as employee appraisal is an important part of the HR department of the company decisions regarding the appraisals are also in sync with the culture that is prevalent in the organisation. The culture of an organisation is based on three aspects: the culture that is present in the society that the company is based upon; the nature of the business and the values and principles of the people who established the company (Stensaker & Vabø, 2013). The values which are followed by a company are the ones which are introduced and continued by the leaders of the organisation. If the leaders of the organisation value the role of an employee then the performance appraisal will be aligned to the interest of the employees. The culture of the organisation helps the management in devising policies and PA is a part of the decision making process. The tools of performance appraisal is chosen by the company based on the nature of the business as the performance of the employees in one industry cannot be similarly measured by the same tools of an employee of a different industry (Noruzy, Dalfard, Azhdari, Nazari-Shirkouhi & Rezazadeh, 2013).

Key HRM Responsibilities during the Performance Management and Appraisal Cycle

According to Albrecht, Bakker, Gruman, Macey & Saks (2015), the HR department of an organisation has a significant role in managing the performance of the employees. The managers in this department are expected to understand the values of the company and thereby device the HR policies aligned with the principles that the company follows. The supervisors and the employees participate in the process of appraisal but the procedure, guidelines, tools and framework are set by the HR department. It is the duty of the HR department to ensure that the work environment is healthy and also to deal with the issues and grievances of the employees (Sumelius, Bjo?rkman, Ehrnrooth, Ma?kela? & Smale, 2014). Since the process of performance management and appraisal can be conflicting there must be transparency in the process (Van Dooren, Bouckaert & Halligan, 2015). 

 This must be ensured by the HR department; the policies of the company should be clear to the people so that they understand the process and abide by the regulations that have been set. The HR department sets the objectives and the criteria which are required to judge the performance of an individual (Sumelius, Bjo?rkman, Ehrnrooth, Ma?kela? & Smale, 2014).

Performance Management and Appraisal System of Jamaica in the public sector

Customer satisfaction, delivered with professionalism, courtesy and integrity, to the benefit of the wider society are some of the areas of focus for the government and this is why the Jamaican Government emphasize on the performance management (Moa.gov.jm, 2018). In the public sector also the tool that is used for performance appraisal is in the form of feedbacks, with the help of the feedbacks the strengths, weakness and other prospects should be communicated with the supervisors as well as the subordinates (Moa.gov.jm, 2018). The process of reviewing depends on the meeting where the employee and the supervisors meet with the HR and come to an equal understanding of the decisions that will impact the compensation and also may be the position of the employee in the organisation.  Based on the sector and the industry the criteria are laid down but the process remains the same.  The following diagram will explain the process in an informative format (Moa.gov.jm, 2018).

According to Flick (2015), the outline of the research paper or the structure of the research is the design. The design helps in understanding the dynamics of the variables associated with the research. Mostly there are two types of designs that are used by researchers    inductive and deductive. The design that will be adopted by the researcher for this study is deductive as there will be no concept developed form the study, rather an analysis of the information will help provide an insight with the help of relation in between the variables. The approach of the design will be therefore it can be said that it is a Descriptive research design was adopted and used as the best method so as to discuss in depth the issues concerning the variables of the study.  It is the process by which the researchers observe to derive data and studying the subject without influencing or interfering the in the process (Mackey & Gass, 2015). This design can be used for both qualitative as well as quantitative methodologies. The process explains a detailed approach towards answering the research questions as well as analyzing the data. In this design the researcher will state the facts (Padgett, 2016). This design will help in  understand the effects of appraisal system in employees’ performance. The method also enabled to come up with the required data appropriately. The descriptive design is very suitable because there is the use of random methods and the errors can be easily identified through observing the samples. This approach is very significant to this study since it answered the research questions. The questions included ‘what’, ‘when’ and ‘who’.

In any research data can be either collected with the help of two methods, secondary and primary. In the process of secondary data collection, the information is gathered with the help of the data which is already available (Padgett, 2016). Some of the source of information that will be used in this process is taken from journal articles, official documents and content available in the official websites. Analysis of this information will help in forming an understanding of the relation that is established by other scholars in regarding the variables used in the research. Google Scholar will be used in order to find academic journal, basic information regarding the organisation. Information will be gathered using the website of the Ministry of National Security Jamaica as well as in some of the official documents (Creswell, 2013).

On the other hand, primary research is the process of gathering new information, as the study is based on a public sector organisation it is required to gather information from the employees regarding their perception on appraisal and their experience in the company after appraisal will be used to infer a correlation in between the variables of research (Creswell, 2013). A survey will be conducted as a tool to gather information from the Jamaica Constabulary Force employees with the permission of the management and employees participating in the survey will be undertaken prior to the process (Mackey & Gass, 2015).

There are three types of data analysis process which is usually undertaken by academic researchers, they are: qualitative, quantitative and mixed methods (Padgett, 2016). In this research the mixed approach will be taken in order to reach the desired conclusion (Neuman & Robson, 2014). The secondary data will be analyzed with the help of the qualitative approach, whereas the primary data will be analyzed with the help of quantitative approach. Using both the methods in order to reach a single conclusion is called the mixed approach (Roberts, 2013).

As an academic researcher it is mandatory to abide by the rules and regulations of the international standards when it comes to research ethics. The transparency of information in between the people who will participate in the survey is important. In order to ensure validity in the information the survey sample size will be taken from the concerned organisation, and the information will be compared any high discrepancy in the data will be back checked with the concerned organisation. It is also important to give the credit of work used in the secondary research as well as throughout the study with the help of referencing and in-text citation using the APA 6^th style. The source of information weather primary or secondary will be taken from reliable source. The Secondary information will be taken from peer reviewed journal articles which will be taken from online data base. The author will avoid any information from doctoral dissertations, patents and handbooks or guidelines. Only authentic articles published in reputed journals will be used. There is also an ethical consideration from that has been submitted by the researcher (Padgett, 2016).

The dissertation will be divided in chapters in order to initiate a rational flow of information for the reader. Every chapter will have an introduction and a summary to help the reader understand and comprehend with the perspective of the researcher. Chapter 1: Introduction, this will include the background of the study, Problem statement, research questions, Justification or rational of the study, overview of the case organisation. Chapter 2: Literature review or secondary data, Chapter 3: Research methodology: this chapter will contain detailed information regarding the methodology that has been followed along with the rationalization of the decisions that has been taken. Chapter 4: Findings and Analysis: Here both the secondary and primary data will be analyzed with the help of the tools need, sub headings will be divided accordingly. Chapter 5: Conclusion and Recommendation: The conclusion must be linked with the objectives that have been stated in the proposal and the recommendations of the research should be based on the findings. The reader should find all the answers to the research question by reading this chapter.

The following Gantt chart will help in organizing the project and will also help in scheduling the study.

Reference list: 

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