Reserch_Proposal_on_the_Role_of_Performance_Appraisal_on_Acievements_of_Organizational_Goals

ROLE OF PERFORMANCE APPRAISAL IN ACHIEVING ORGANIZATIONAL GOALS A CASE STUDY OF BAFCON AND COMPANY BY AMANI SONGA 109-033071-03398 SIGN A RESEARCH PROPOSAL SUBMITED TO THE DEPARTMENT OF PUBLIC ADMINSTRATION, FACULTY OF MANAGEMENT STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF A BACHELORS DEGREE OF PUBLIC ADMINSTRATION OF ISLAMIC UNIVERSITY IN UGANDA MARCH 2011 TABLE OF CONTENTS CHAPTER ONE. 1.0 introduction 1.1 background of the study 1.2 Statement of the problem 1.3 Objectives of the study 1.3.1General objectives of the study 1.3.2 Specific objectives of the study 1.4 Research question 1.5 Significance of the study 1.6 Scope of the study CHAPTER TWO 2.1 Introduction 2.2 Definition of performance appraisal 2.3 Strengths of performance appraisal 2.4 Limitations of performance appraisal 2.5 Methods of employee appraisal Chapter three 3.0 Introduction 3.1 Research design 3.2 Data collective methods 3.2.1 Interviews 3.2.2 Questionnaires CHAPTER ONE INTRODUCTION 1.0 Introduction Chapter one focuses on introduction, background of the study, statement of the problem, objectives of the study, general objectives of the study, specific objectives of the study, research question, significance of the study, scope of the study. 1.1 Background of the Study. Before going to make a concept of performance appraisal system clarify it is necessary to have brief introduction of performance appraisal system. Appraisal system is a review exercise of assessing employees that is how they are progressing on the job front. The process observes measures and assesses the performance of employees at workplace. The key uses of appraisal system at workplace are to weigh up decision and develop decision. And it is also an instrument to give confidence and praise strong performer to continue their outstanding performance and motivate poor performer to do better job at workplace overall it is an opportunity for employees to improves their working lives. It gives chance to employees to meet high level management in organization to discuss their experiences and provides better chance of self evaluation in which area they need to cover by training and development. Performance appraisal is also a technique for employers to protect themselves against favoritism claims and distribute awards fairly. 1.2 Statement of the problem Although performance appraisal is not a new word or a new practice, there has always being problems in its process, the methods used, the analysis of the data and implementation this has affected negatively the performance of the appraisal process. This has resulted into poor employee performance in the organization consequently affecting the organization negatively and yet good performance is expected to prevail in the organization, performance appraisal techniques have not been understood well or has not been implemented well. My study therefore is aimed at identifying the different types and techniques of performance appraisal and if there is change in the methods of appraisal, can it cause improvement on workers performance' 1.3 Research Objectives The study will be guided by both general and specific objectives 1.3.1 General objective of the study The general objective of this research is to evaluate the importance of performance appraisal and evaluation in the management of Bafcon and company. 1.3.2 Specific objectives Specifically, this proposed study aims on achieving the following objective. 1. Know the fundamental concept of performance appraisal system in Bafcon and Company 2. Identify the perception of the employees about the performance appraisal system 3. Determine the approaches used by Bafcon and company management for performance appraisal. 1.4 Research Questions This research seeks to investigate and evaluate importance performance appraisal and evaluation in the management of public organization. Specifically, the following questions shall be answered: 1. How performance appraisal helps the management in BAFCON and company 2. What are fundamental concept of performance appraisal system in Bafcon and company' 3. What is the perception of the employees about the performance appraisal system' 4. What are the approaches used by public management for performance appraisal. 1.5 Significance of the study The research can be useful to the following categories of people, The study may be useful to Bafcon and Company in that it will generate knowledge about performance appraisal. It’s hoped that the findings of the study can help policy makers in the organization to come up with good policies in appraising staff. It is also hoped the findings of this study will in the long run help to boost the performance of the workers in the organization. It will also help researchers in knowing the appraisal means and how its to be done. To the organization, it will help it in considering the impact or and value of performance appraisal towards workers performance in the organization. 1.6 Scope of the study The study will be carried out in Bafcon and Company head quarters in Kampala located in Mengo along Rubaga road in Sims plaza opposite Barclays bank. CHAPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter contains review or past literature of scholars, researchers, manuals, pamphlets discussed by old and new writers on performance appraisal, it contains the definition of performance appraisal according to different scholars, methods of performance appraisal suggested by one of the scholars, advantages and limitations of performance appraisal. 2.1 performance appraisal defined Performance appraisal is a management review on employee’s successes and achievements so that their productivity can be improved (Monday, 2010; Brown and Heywood, 2005). (Dubinsky, Skinner, and Whittler, 1989; Thomas and Bretz, 1994); for promoting the development of organizational knowledge and competencies (Snell, Lepak, and Youndt, 1999); and for providing a direction to employees in performance improvement (Latham, Skarlicki, Irvine, and Siegel, 1993). Previous studies (e.g. Cabrera and Cabrera, 2005; Morris, Snell, Kang, and Collins, 2002) suggested that the performance appraisal activity could be enhanced through the organizational KM initiative such as knowledge exchange. Hansen, Nohria, and Tierney (1999) demonstrated that the use and sharing of knowledge which embedded in a system are valuable for appraisal and reward program. Thus, the human resource management such as training, incentive compensation and performance evaluation can be further improved leading to a higher productivity (Brown and Heywood, 2005). A successful system should be established to facilitate and motivate knowledge creation and sharing (Bartol and Srivastava, 2002). Thus, the following proposition is developed: Performance appraisal is known to be the method and system, of evaluating whether organizational objectives are achieved. It would analyze the performance of staff (Debrah, et al., 2003). Evaluation seeks to monitor as well as enhance the efficiencies by giving the staff and personnel feedback on his/her performance. This method and system should be carried out at regular intervals and must follow specific protocols to sustain objectivity in the evaluation method and system. The firms and industries should have a clear set of evaluation or assessment instruments which will be utilized at all aspects of the firms. The method and system should either be carried out as an individual consultation or a face-to-face evaluation. Lastly, a standard review system should be conducted by a third party should be commissioned for the reassurance of fair play and objectivity in the evaluation (Spencer, 2004). 2.3 Advantages of performance appraisal This concept has its strengths as defined by Caruth & Handlogten, 1997) for it helps the manager to be able to identify individual present performance along with the staff and personnel’s future potential.  Evaluation also assesses the weaknesses as well as the strengths of the different employees  The third strength is that it can identify which training aspect should be considered for the particular staff and personnel.  It also increases the communication line between the employer and the staff and personnel because of the feedback and evaluation method and system.  According to Spencer (2004), evaluation is also a way for the organization to assess the role of the management as well for evaluation and supervision.  Evaluation aims to establish trust among the entire organization because objectivity and fair play are called into this task.  Lastly, the evaluation method and system is a good way of providing staff and personnel satisfaction and maturation which will improve the performance in the future.  Performance appraisal helps to reduce any role ambiguity (Brown and Peterson, 1993; Dubinsky and Mattson, 1979; Jaworski, Stathakopoulos, and Krishan, 1993); and to ultimately increase the employees’ effort, good performance, better satisfaction, high commitment; and also to reduce the turnover rate (e.g. Babakus, Cravens, Johnston, and Moncrief, 1996;  Brown and Peterson, 1994; Jones, Kantak, Futrell, and Johnston, 1996). Besides, performance appraisal provides information used for evaluation on the effectiveness of organization’s selection program 2.4 Limitations of performance appraisal Despite the initial enthusiasm with which this system was greeted by a number of companies, experience suggested that performance appraisal has a number of limitations and draw backs, as accorded by Biswajeeth (1997, 2000), UNHCR, save the children (UK,) Aswathappa. (2000), Ahuja (2002)  Hallo error, it occurs when it allows one aspect of an individual’s performance to influence the evaluation of the entire performance of the individual.  Rater effect. This increases favoritism, stereotyping and hostility, excessively high or low scores are given only to certain individual or groups based on the raters’s attitude towards the rate, not on actual outcomes or behaviors, sex, sex, race and friendship biasness are examples of this error.  Primary effect and recess effect. Here, the raters’ ratings are highly influenced either by behavior exbited by the appraise during the early stages of the review period (primary) or by out comes or behavior exhibited by the rater near the end of the review period.  Perpetual set. This occurs when the appraisers’ assessment is influenced by previously held beliefs. If the supervisors, for example, has a belief that employees hailing from one particular region are intelligent and hard working, this subsequent rating of an employee hailing from that region tents to be favourably high.  Status effect. It refers to over rating of employees in higher level job or jobs held in high esteem, and under rating employees in lower jobs or held in low esteem.  Spillover effect. This refers to allowing past performance appraisal ratings to unjustifiably influence current ratings, good or bad, result in similar rating for the current period although the demonstrated behavior does not deserve the rating, good or bad.  Performance dimension order, two or more dimensions on a performance instrument follow or closely follow each other and both describe or rotate on a similar quality. The rater rates the first dimension accurately and then rates the second similar to the first because of the proximity. If the dimension has been arranged in a significantly different order, the ratings might have been different. This exercise if practiced correctly by using the already existing methods, it will help the organization to always succeed in achieving its objectives as stated, however they are not always put in place that is why the failures almost outweigh the benefits.  If a firm has a policy to conduct performance appraisals on a regularly scheduled basis, not conducting them can seriously damage management’s credibility. 2.5 METHODS OF RATING EMPLOYESS According to spencer (2004) the following are the methods of performance appraisal The right rating method for your employee evaluations depends on the number of people you have doing the same job, the size of your organisation and the benefit you receive from investing in your evaluation tools. Then you need to consider the resources that you have available to develop your rating methods. You will find that rating methods will vary considerably in their complexity ranging from a basic summation of performance written by the employee’s manager, though to the use of complex behavioural descriptors used to compare and contrast individual performance. Without a doubt the best way to rate employee performance also happens to be the most expensive method to use, see BARS below. However, before you decide to use this method you will need to determine if your business will benefit from its use. You are more likely to benefit from these more expensive methods if you have a large number of people doing a similar job, with large starting in the hundreds of employees. In practice you will find that most employee performance evaluations include a combination of two or more of the following rating methods. Graphic rating scale, global rating method, essay method, management by objectives Graphic Rating Scale Graphic rating scales are used in many surveys, they normally consist of a line with four or five rating criteria listed, such as Unsatisfactory below expectation, satisfactory, above average, out standing An example of this type of rating criteria Performance Criteria Un – satisfactory Below Expectations Satisfactory Above Average Outstanding Productivity X Quality X Or Performance Criteria 1 2 3 4 5 Productivity X Quality X Typically there will be a range of criteria such as productivity, quality, teamwork, customer service, or concern for safety etc. The team leader or manager will rate each employee based on their judgment of the employee’s performance, time their assessment is supported by data. This method is typically subject to considerable bias, which makes it hard to compare people doing different jobs or even the same job in different teams. There is generally no criterion to determine the difference between each of the graduations on the rating scale. To remove the bias some businesses assign criteria to some of the elements. For example, a sales person may score a 3 if they meet their sales budget, exceeding by 10% scores a 4 and by 20% of more scores a 5, If they miss target by 10% they score a 3 and by 20% or more they score a 1. You will find that most efforts to clarify the rating criteria tend to be on those rating criteria that are quantitative. Many people will also debate having 4 or 5 rating criteria, while there is some merit in the debate when this method is used in employee surveys and market research; there is no validity in the debate when this method is used for employee performance evaluations. Global Rating Some organizations use a single global rating of overall job performance to evaluate an employee. While this method would be expedient for the employer and may assist with decision such as paying bonus and allocating performance based pay increases, it is unlikely to provide the employee with any ideas on how to improve their performance. For example Performance Criteria Un – satisfactory Below expectations Satisfactory Above Average Outstanding Overall Performance X Note: This is not recommended for your employee performance evaluations The Essay Method In the essay method the appraiser writes a statement to describe the employee’s strengths and weaknesses and to make recommendations about the employee’s developmental needs. This method gives the appraiser some freedom to describe the employee’s unique characteristics, promotability and special talents. This method is reliant on the appraisers writing skills and their ability to express their thoughts through the written word. To ensure consistency and improve the content of this written evaluation a checklist of things to cover can be created and could include items such as Job performance, quality of work, team work. However once this check list is created you could use it to create a graphic rating scale, and provide a comments section for appraiser to add additional comments. When used in conjunction with other methods, such as the graphic rating scale, the essay method does not require a lengthy statement and can add value to your employee performance evaluations. Management by objectives (MBO) This approach is designed to overcome the limitations of the more traditional system. This is a result oriented appraisal and has been widely adapted by a number of merit rating that is based on the quantitative measurable performance goals often agreed upon jointly by the supervisor and the sub ordinates. CHAPTER THREE RESEARCH METHODOLOGY 3.0 Introduction. This chapter contains a research design, data collection methods, data processing and analysis. 3.1 Research design The study will use the descriptive design, a descriptive design refers to a research where the researcher has no control over the variables and he only reports what has happened. 3.2 Data collection methods Questionnaires and interviews are the instruments that will be used in data collection in this study, some data will be quantitative and some qualitative. In this case, the questionnaires and interview guidelines will include some closed ended questions although the questionnaires will largely be structured. 3.2.1 Interviews method. Some data will be collected using two interview guide sets. An interview guide is a research instrument that contains a set of questions on defined issues under study that are put to respondents on face to face basis Saunder et al (2007) this instrument will also contain mostly close ended questions. The interview guide will be used for this study because some sections of the study population have more knowledge that can not be fully captured using a questionnaire. Face to face interviews shall be conducted with officers of the personnel department, the general manager and those in the appraising staff. 3.2.2 A self administered questionnaires method The data collection will be conducted using questionnaires. A questionnaires is a research instrument that contains a set of questions on defined issues under study that are put to respondents for answering on a self adminstredd basis saunders et al (2007) the instrument will contain mostly close ended questions. The questionnaires will be selected for use in this study because it is easy to apply as most respondents are well educated and can fill in the questions easily or with little guidance. The expected respondents include the general manager, human resource manager and the appraisers among others, and this will be done by distributing copies of the questionnaires to them in their respective departments. 3.4 Data analysis. After getting the above information, the researcher will analyze these respondents very critically to deduce conclusions. This will basically be because no single method can give accurate information but a combination of many different methods will be preferred because the researcher assumes a combination of many methods can provide a fairly accurate information. Since the whole data will be descriptive, the researcher will use qualitative methods of data analysis so as to interpret the information LIST OF REFERNCES. K.K. Sinha, 1996. Impact of Work Teams on Manufacturing Performance: A Longitudinal Field Study. Academy of Management Journal, 39(4): 867-890. Barney, J.B., 1991. Firm Resources and Sustained Competitive Advantage. 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