Chapter 1
Introduction
“Assessment” is the process of evaluating the work of the staff
member in a given period
vis-a-vis responsibilities assigned, providing timely feedback for
the same with a view to performance improvement/ development, and providing
him/her an opportunity to state his/ her views for the same.
The Performance
Management System for staff refers to the overall human resource management
functions of the Institution comprising career planning and development, promotions,
reward systems, work planning, job descriptions, performance reviews, training
& development, compensation management etc. which operate organizational
development functions of the Institution.
PROBLEM STATEMENT
In many organizations,
performance appraisal systems (PAS) remain one of the great paradoxes of
effective human resource management (Cleveland, Murphy, and Williams, 1989).
According to Coens and Jenkins (2000), inaccuracies in appraisal can demotivate
employees forcing them to go reading „want ads‟. Ayee (2001) and Nkrumah (1991)
in Ohemeng (2009) said that the appraisal system in Ghana was fraught with
problems and abuses that made its credibility questionable. A recent study in
Barclays Bank Ghana, also reported that employees viewed performance appraisal
as discriminatory, punitive and judgmental processes, where cronyism and biased
considerations dominated objectivity (Horsoo, 2010). This makes one question
the level of employee involvement in the appraisal planning in Ghanaian financial
institutions. And would employee involvement in the appraisal planning lead to
employee motivation to perform? It is in the light of the above questions that
the study was set on the role of employee participation in appraisal planning
on employee motivation.
HYPOTHESIS
TESTING
H0:
Self-evaluation and employee perception of fair appraisal are not related.
H1:
Self-evaluation is a function of employee perception of fair appraisal.
Chapter 2 –
Literature Review
Performance Appraisal
& Employee Motivation and Loyalty
In the growing age of business and markets, human resource is
the big asset of the organization; if the organization is not keeping well with
its labour work force then it might get into trouble. Employees are the key
features of the growth of the organization. In order to have efficiency,
employee should be motivated and satisfied with their job and have devotion
with the organization. HR professionals are the one who can make it possible to
motivate the employees with the assessment systems by giving them fair
appraisals as per their performance. There is a strong relationship between
appraisal and motivation, job satisfaction and devotion. Keeping aside the main
objectives of performance appraisal, it can be use as a mechanism to create a
completion between employees to get the job done with all the linked targets
and benchmarks (Robert, 1984).
If the performance appraisal has some shortcoming in it and is
actually creating some discrepancy in the process, then it will affect the
motivational level of the employees and ultimately it will affect their efforts
and the risk taking ideas for the betterment of the organization. Also they
will lose interest in the affairs of the organization (Robert & Kim, 2007).
Plus this de-motivation leads the employees to the lack of loyalty and they
will look other options of good job and hikes in the rewards (bonnie, 2002).
Accurate performance appraisal is always preferable but if there
is any inaccuracy then employees always prefers to have accurate performance
appraisal with no hikes in rewards but not an inaccurate system that never
encourages or recognizes their efforts. The assessment process should be fair
because those employees who tend to receive exact performance appraisal over
the period of time and also have all the rewards associated with that assessment
is the most motivated employee among all of them and similarly he or she tends
to be more satisfied with his or her job and more loyal to the organization.
Intrinsic
motivation as a mediator
Intrinsic motivation is
the motivation to perform an activity for itself, in order to experience the
pleasure and satisfaction inherent in the activity (Deci et al., 1989;
Vallerand, 1997). Thus, among different work motives, intrinsic motivation is
particularly interesting from a developmental PA perspective focusing on
enriching attitudes, experiences and skills. Goal setting and feedback are
widely believed to affect performance positively through enhancing the
motivation necessary for work performance (Earley et al., 1990). Accordingly,
it may be expected that the relationship between satisfaction with PA and
employee outcomes will be mediated by intrinsic motivation. Roberts and Reed
(1996) proposed that participation, goals and feedback impact on appraisal
acceptance, which affects appraisal satisfaction and finally employee motivation
and productivity. Similar links are suggested by Pettijohn et al. (2001a,
2001b).
Research on the job characteristics
model (Hackman and Oldham, 1976) has supported the relationships between the
psychological states of experienced meaningfulness, responsibility of outcomes,
and knowledge of the actual results of the work, and intrinsic motivation
(Fried and Ferris, 1987; Johns et al., 1992). PA, as a means to communicate and
translate strategic visions and goals to employees, may enhance intrinsic
motivation through experienced meaningfulness of work, because superordinate
goals have the capacity to convey to employees something in which they can
believe (Latham, 2003). Similarly, and according to self-determination theory
(e.g. Ryan and Deci, 2000), intrinsic motivation will increase if communication
of organizational goals provides the rationale for behaviour at work.
Systematic feedback on work performance may also impact intrinsic motivation
through increased experienced responsibility of outcomes and knowledge of the
actual results of the work. Finally, feedback received through PA activities
may increase intrinsic motivation to the extent that it increases employees’
perceived competence (Deci and Ryan, 1985). A meta-analysis by Fried and Ferris
(1987) showing that the motivating potential of the work characteristics in the
job characteristics model (Hackman and Oldham, 1976) is associated with work
performance, indirectly supports the relationship between intrinsic work
motivation and work performance. Intrinsic motivation as a predictor of
performance is also supported by research in sports (e.g., Callahan et al.,
2003; Catley and Duda, 1997) and educational settings (e.g., Lin et al., 2003;
Vansteenkiste et al.,2004; Wang and Guthrie, 2004). Furthermore, Ganesan and
Weitz (1996) found a positive relationship between intrinsic motivation and
affective commitment, suggesting that some of the benefits associated with a
challenging and interesting job are attributed to the organization. Finally,
several studies have reported negative and significant correlations between
intrinsic motivation and turnover intentions (e.g., Houkes et al., 2001; Richer
et al., 2002), probably because employees with interesting, enjoyable and
exciting jobs have less interest in quitting and because they are less likely
to be attracted by extrinsic rewards offered by other organizations.
MANAGERIAL PERSPECTIVE
If we look at the performance appraisal process from the eyes of
the management, they have a much positive approach and views about it as
compared to that of the employees. Some
of the benefits of the performance appraisal
process according to the article which appeared in the May-June
1997 issue of Corporate University Review, the viewpoint of senior executives, performance
appraisal systems are generally regarded as a necessary part of the organization’s
management system. This condition seems to exist because of the widely accepted, generallyunquestioned benefits of performance appraisal systems. If asked, atypical
executive might indicate the following benefits:
·
The
system provides employees with an opportunity to receive feedback regarding
their performance, usually at least once a year and often on an interim basis during the year. This leads to reduced error and
waste, increased productivity,
improved quality and service for customers, as well as enhanced employee
motivation, commitment, and a sense of ownership.
- The
system provides an opportunity for performance related discussions that
include the following aims: setting work objectives for the
employee, aligning individual and organizational goals, identifying training anddevelopment needs, and discussing career progression
opportunities.
- The system standardizes
performance appraisals and makes them
objective by providing uniform processes and criteria. This further results in a fair,valid,
and legally defensible basis for rewarding and recognizing
individual performance.
- Perhaps
the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor andsubordinate to have "time out" for
a one-on-one discussion of important work issues that might not
otherwise be addressed.
- Appraisal
offers a valuable opportunity to focus on work activities and goals, to identify and
correct existing problems, and to encourage better future performance. Thus
the performance of the whole organization is enhanced.
- For many employees, an
"official" appraisal interview may be the only time they get to have exclusive, uninterrupted
access to their supervisor. Said one employee of a large organization
after his first formal performance
appraisal,
"In twenty years of work, that's the first time anyone has ever bothered to sit down and tell me how I'm doing."
- Performance
appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for
worse.
- Performance
appraisal offers an excellent opportunity - perhaps the best that will ever occur - for
a supervisor and subordinate to recognize and agree upon individual training and development needs.
- Appraisal
data can be used to monitor the success of the organization's recruitment and induction practices.
- Though
often understated or even denied, evaluation is a legitimate and major objective of performance appraisal.
- The system affords the corporation legal protection against employeelawsuits for discrimination and wrongful termination. A perhaps less typical but more candid
executive might add a final benefit: the formal
performance appraisal system shores
up an organization’s hierarchical authority system. It
gives the supervising manager control over the carrots and sticks
in what is essentially a carrot-and-stick management system. The list of benefits above, with the
exception of the last one, represents an idealized view of
performance appraisal systems, a view that is espoused by many but
achieved by few, if any.
Factors
affecting Employees’ Motivation
No one works for
free, nor should they. Employees want to earn reasonable salary and payment,
and employees desire their workers to feel that is what they are getting
(Houran. J). Money is the fundamental inducement, no other incentive or
motivational technique comes even close to it with respect to its influential
value (Sara et al, 2004). It has the supremacy to magnetize, maintain and
motivate individuals towards higher performance. Frederick Taylor and his
scientific management associate described money as the most fundamental factor
in motivating the industrial workers to attain greater productivity (Adeyinka
et al, 2007). Research has suggested that reward now cause satisfaction of the
employee which directly influences performance of the employee (Kalimullah et
al, 2010). Rewards are management tools that hopefully contribute to firm’s
effectiveness by influencing individual or group behavior. All businesses use
pay, promotion, bonuses or other types of rewards to motivate and encourage
high level performances of employees (Reena et al, 2009). To use salaries as a
motivator effectively, managers must consider salary structures which should
include importance organization attach to each job, payment according to
performance, personal or special allowances, fringe benefits, pensions and so
on (Adeyinka et al, 2007). Leadership is about getting things done the right
way, to do that you need people to follow you, you need to have them trust you.
And if you want them to trust you and do things for you and the organization,
they need to be motivated (Baldoni.J, 2005). Theories imply that leader and
followers raise one another to higher levels of morality and motivation
(Rukhmani.K, 2010).Motivation is purely and simply a leadership behavior. It
stems
from wanting to
do what is right for people as well as for the organization. Leadership and
motivation are active processes (Baldoni.J, 2005). Empowerment provides
benefits to organizations and makes sense of belonging and pride in the
workforce. In fact, it builds a Win - Win connection among organizations and
employees; which is considered an ideal environment in numerous organizations
and their employees. Empowering can flourish virtual human capacities.
Empowered employees focus their job and work-life with additional importance
and this leads to constant progress in coordination and work procedures.
Employees execute their finest novelties and thoughts with the sense of
belonging, enthusiasm, and delight, in empowered organizations. Adding up, they
work with a sense of responsibility and prefer benefits of the organization to
theirs (Yazdani,B.O. et al, 2011) Trust is defined as the perception of one
about others, decision to act based on speech, behavior and their decision
(Hassan et al, 2010). If an organization wants to improve and be successful,
trust plays a significant role so it should always be preserved to ensure an
organizations existence and to enhance employees’ motivation (Annamalai.T,
2010). It can make intrapersonal and interpersonal effects and influence on the
relations inside and out the organization (Hassan et al, 2010). No matter how
automated an organization may be, high productivity depends on the level of
motivation and the effectiveness of the workforce so staff training is an
indispensible strategy for motivating workers. One way managers can instigate
motivation is to give appropriate information on the sentences of their actions
on others (Adeyinka et al, 2007).
Organizational factors and their influence upon
worker motivation
Organizations
influence worker motivation through a variety of channels: through the
organization’s efforts to improve worker capability; through the provision of
resources and processes; through feedback or consequences related to worker
performance; and through more indirect aspects such as work culture.
Organizational structures, processes, and resources provide the day-to-day
context in which health workers carry out their tasks. The internal structures
of organizations reflect reporting hierarchies, level of worker autonomy,
clarity of organizational goals, relative status of different workers and
delegation of responsibility and authority. The processes determine how work
gets accomplished and the level of resources necessary to accomplish them.
There are
several routes through which organizational structures and processes impact on
the two components of worker motivation: the worker’s adoption of
organizational goals, and worker perception of the possibility of contributing
to those goals. Organizational management structures and processes influence
whether the organization has a clear mission, articulated goals, and norms and
standards for worker behavior. A strong sense of organizational mission appears
to be one of the key factors motivating workers and explaining organizational
effectiveness (Grindle, 1997). When norms and standards, and associated
processes are clear, it is possible for workers to understand how they can
assist in reaching the goals. Communication processes within the organization
will determine how well information about the organization, its goals, norms,
and standards are communicated to the worker. Organizational support structures
and processes shape workers’ perception about the possibility of task
accomplishment. Ability to perform is not dependent only upon the worker’s own
skills. System-wide support is also critical: giving sufficient authority and
autonomy to complete the task; ensuring clarity about the roles and
responsibilities of the different individuals involved; ensuring clear,
efficient service delivery, support and management processes; and furnishing
adequate resources (such as drugs, supplies, and equipment) to carry out
organizational processes. Organizational systems of providing information about
organizational and individual performance determine the type of feedback
received by the worker, and who provides this feedback. How a worker relates to
the individual or group providing feedback will influence the value placed upon
this feedback. Health sector reform and organizational structure There are several key ways in which reforms
can impact upon organizational structure, processes and resources, and hence
affect health worker motivation: e.g. creating a clearer, narrower
organizational mission, changing reporting structures and autonomy, creating
more channels for worker feedback, and increasing resources available to
accomplish organizational goals. Organizational mission: Organizational reform
in the context of health sector reform very often aims at creating a narrower
and clearer organizational mission. For example, in Zambia, the Ministry of
Health was effectively divided into two separate organizational structures: one
responsible for policy-making, coordination and regulatory functions, and a
second, new Central Board of Health that would oversee implementation
functions. Similarly, in the UK, purchaser– provider splits removed the
District Health Authority from responsibility for the organization and delivery
of services and re-focused its mission upon defining needs and purchasing care.
Autonomy: Public sector health delivery organizations are typically embedded in
cumbersome centralized bureaucracies which control human resource management
systems and set (implicit and explicit) norms for organizational structure and
processes. Consequently, many reforms seek to endow greater autonomy to
decentralized units. For example, the establishment of autonomous hospitals is
aimed at freeing organizations from such structures and giving these organizations
responsibility to adopt more rational work processes. New structures can make
the work environment more conducive to task achievement, and workers more
likely to think that they can achieve specified goals. Feedback: Many health
sector reforms try to extend authority for providing feedback to agents
situated closer to the health worker. For example, decentralization often
transfers more authority for human resource decisions to local administrative
units, which should be better informed about worker performance than distant
public service commissions. Similarly, encouragement of hospital boards,
district health boards, and health center committees try to place more
authority for providing feedback in the hands of local communities (discussed
further in the section on ‘‘cultural and community influences’’). Resources:
Many reforms focus on increasing the availability of complementary resources at
different points in the health care system. Schemes may be initiated to raise
extra resources (such as health insurance or cost recovery schemes) or to
improve efficiency in how existing resources are managed (e.g. overhaul of drug
supply systems). While reforms may lead to organizational structures more
conducive to worker motivation, the transition process itself may also have
significant, and possibly negative, effects upon worker motivation. Without
adequate transparency and communication, individual workers may not understand
the new organizational goals. In addition, changes in structures and processes
may be disadvantageous for some groups. For example, health care reforms in the
UK have granted greater authority to managers (commonly referred to as
managerialization) at the expense of other professionals (Ferlie, Ashburner,
Fitzgerald, a Pettigrew, 1996).
Chapter 3 – Research Methodology
In order to
study the effect of performance appraisal process on the intrinsic motivation,
a questionnaire designed and distributed among 50 employees of various Department
in Health Sector and will use Statistical tools and testing to get better
results.
Participants
Participants will be individuals age 20-50
located in Karachi.
Study Design
The PA occurred
naturally in this organization. All employees were given a formal PA by their
immediate supervisor once a year on the anniversary of their hire date. A
graphic rating scale format was used for the written appraisal. During the PA,
employees were provided past performance feedback, information on future areas
for improvement, training needs assessment, and any merit increase. In effect,
the PAs were intended by the organization to be both developmental and
evaluative.
Although actual
merit increases were not available for this research, pay and other rewards
(for example, promotions) were tied to performance ratings. Therefore,
investigating the role of performance ratings should provide an indication as
to whether the relationship between perceived evaluative PA use and attitudinal
reactions depends on the outcome of the appraisal.
Measures
Questionnaire
will be used for measures to collect the data. A Likert scale (1 _ strongly
disagree, 7 _ strongly agree) will be used for survey items on PA use and
employee attitudes.
Results
Findings
Conclusions
In many organizations,
annual performance appraisals form the basis for the rewards employees get. In
this paper, we have investigated how a manager’s performance appraisal aspects
an employee’s future performance. A key feature of our model is that both the
manager and the employee have a perception of the employees past performance.
References
Lynne Miller Francoa,*, Sara
Bennettb, Ruth Kanferc (2002) Health sector reform and public sector health
worker motivation: a conceptual framework
Quratul-Ain Manzoor Impact of Employees Motivation on
Organizational Effectiveness
Shaemi Barzoki Ali, Abzari Mahdi, Javani Malihe (2012)
The
Effect of Employees’ Performance Appraisal Procedure on their Intrinsic
Motivation
Bård Kuvaas a (2006) Performance appraisal satisfaction and
employee
outcomes:
mediating and moderating roles of work
motivation
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