Literature Review
International county management association(2005) states that almost all employees are eager to know how well they are doing in their jobs, but many dread the meetings in which their performance is to be discussed. Most superior don’t look forward to evaluation sessions and in fact one of the primary reasons why employee performance appraisal system fails or is overlooked is because providing honest feedback does not come naturally. Supervisors generally are also reluctant to tell employees that they doing unsatisfactory work.
ICMA (2005) cites the importance of employee performance appraisal in order to help the employee achieve full potential. It enables the superior to establish benchmarks that can be used to measure performance.
Members of the organisation who may be involved in 360-degree review include supervisors, top management, subordinates, co-workers and representatives from other departments who interact with the employee. Anyone who has useful information on how the employee does the job may be a source in the appraisal, providing a broader view of the employee’s performance
Armstrong and Appelbaum (2003) concur that employee appraisal during this period was based on pay for performance. The authors note that pay by measurable output was the primary motive for appraisal. It was not centered on mutually developed goals or employee career enhancement as is found today.
Appelbaum (2003) note that employee performance appraisal system can be one of the most anxiety or receiving information that is critical or relates to less than adequate work.
Edwards (2000) defines employee performance appraisal system as the formal, systematic assessment of how well employees are performing in their jobs in relation to established standards, including communication of that assessment to the employee and the organisation. He notes that the goal of the performance appraisal process is to improve the quality of work and the individual employees involved in the work. He goes on to state that performance appraisal, if done properly, can strengthen the organisation as it prepares and develops the personnel in that organisation. The sum total of the individual performance is the performance of the organisation.
From an organisational perspectives, Edwards (2000) notes that employee performance appraisal system can provide useful information regarding the effectiveness of recruitment efforts, selection strategies, training programs, and career development. He also states that employee performance appraisal system can provide multiple benefits including feedback and recognition, goal setting, proper documentation, personnel development, and the establishment of organisational benchmarks.
Performance appraisal was first commonly used for numerical efficiency factors and pay for performance. The numerical output was then used as the primary basis for compensation. A modern extension of the pay for performance is a system known as merit pay.
Edwards (2000) notes that the power of the 360-degree feedback tool is that it provide clear and important performance information from a variety of sources. Some of the key advantage includes reduced discrimination risk, personal and organisational performance development, and team development.
Moulder (2001) states that performance appraisals are valued for defining expectations and measuring the extent to which expectations are met. She goes on state that appraisals can make clear to employees where they are having success and where they need to improve performance. She also indicates that appraisals are useful in setting goals and in fostering improved communications among work groups and between employees and supervisors.
Mahdieh Darehzereshki (1st January 2013) – performance appraisal is among the most critical Human Resource functions that brings global success for one organization. It is also important to mention that extensive frustration and dissatisfaction with performance appraisal have challenged practitioners and researchers to appraise the efficiency of performance appraisal quality. The purpose of this paper is to examine the role of the performance appraisal quality (independent variable) on one important human resource management outcome which is job satisfaction (dependent variable).
Using data from 133 employees of multinational companies in Malaysia, employees’ performance appraisal experiences were identified. Regression analysis was then employed to examine the relationship between performance appraisal quality of employees and job satisfaction.
Employees with high quality performance appraisal experiences were more likely to be satisfied with their job. The challenge for human resource (HR) practitioners is to decide whether the allocation of additional resources to ensure that all employees have a uniformly high quality performance appraisal experience is a worthwhile investment
Rabia Karimi, Muhamad Imran Malik, Dr. Saddam Hussain (December 2011) –
Malik, Saleem and Ahmad explained employee satisfaction with work as the degree to which an employee likes his or her job.
Study aims to examine the relationship of employee performance appraisal system and employee satisfaction in a sample of 101 employees working at one of the international non for profit organization. The data was collected by convenient sampling and snow ball sampling techniques with the help of questionnaires. The Pearson’s correlation and linear regression are used to test the results and it show that there is a positive relationship between the independent and the dependent variables. The study has implications for managers of all the profit and non ‘ for profit organizations.
Based on the responses of 53 male and 48 female respondents the results reveal that there is a positive and significant relationship between employee performance appraisal system and their satisfaction. This is due to the reason that the organization selected for the data collection was an international organization which is in practice of employing the policies in a fair manner.
M. D. PUSHPAKUMARI -High level performance through productivity and efficiency has always been an organizational goal of high priority. Employee effort is an important factor that determines an individual performance. When an employee feels a satisfaction about the job, he/she is motivated to do greater effort to the job performance. Then it tends to increase the overall performance of the organization.
A total number of two hundred and thirty seven respondents were selected from twenty organizations limited to five industries relating to manufacturing and services industries in private sector in the economy in Sri Lanka. Three employee categories were considered as Professionals, Managers and Non Managers. All respondents are selected from random basis of the office employees and emphasis is given to profession, organization and industry.
To obtain the required data, the questionnaire method is chosen as it affords the advantages of speed, cost and versatility. The purpose of collecting data, two questionnaires was developed separately for measuring job satisfaction and performance. Questionnaire two was developed to measure the employee performance in terms of effort extended to the job. Time effort, knowledge effort, responsibility, performance targets, punctuality, absenteeism, relationship with others, loyalty, submitting new ideas, initiatively, dependability, obedience, reliability and accuracy were the criteria identified to measure the performance of employees degree of effort extended towards the job.
The coefficient of correlation was applied to identify the impact of job satisfaction on performance of employees and it was calculated by using level of job satisfaction as the X-variable (independent variable) and level of performance as the Y-variable (dependent variable)
There is a significant impact of job satisfaction on performance of employees in private sector organizations.
Employees who are in higher levels tend to derive more satisfaction from intrinsic rewards while, employees who are in lower levels tend to derive more satisfaction with extrinsic rewards
JAY.S.KIM (MAR 1984) – A study conducted by Kim and Hamner (1976), however, manipulated the behavioural measures in the goal setting and performance feed-back program and found that the manipulation of the behavioural measures of performance can improve some of the outcome measures of performance such as cost effectiveness and safety among the employees
From a managerial perspective, the significance of behaviour versus outcome measures would depend on the degree of linkage between the means (i.e., instrumental behaviour) and the ends (i.e., desired outcomes).
Goal setting and feedback involving the behavioural measure in addition to the outcome measure would have a higher positive impact on performance than that involving either behaviour or outcome alone.
After the goal setting and feedback forms were developed, all supervisors under study received three hour training for the intervention. The training session involved general explanations on the effectiveness of goal set-ting and feedback. Special emphasis was given on the importance of (1) goal specificity and goal challenge, (2) participation in goal setting to increase goal acceptance, and (3) self and supervisory feedback on performance. In addition, the procedural instructions on the process involved and the mechanics for using the goal setting and feedback process.