Research project

PERFORMANCE APPRAISAL SYSTEM: It' s

Implication To Employee Performance

Submitted To: Dr. Zulqurnain

Submitted By: M. Asad Rasheed
Roll No: Bsf1704000
Section: (A) Morning
PERFORMANCE APPRAISAL SYSTEM: It' s
Implication To Employee Performance
Abstract
Purpose – It is utilized to track individual contribution and performance against organizational goals
and to identify individual strengths and opportunities for future improvements and assessed whether
organizational goals are achieved or serves as basis for the company’s future planning and development.

Design/methodology/approach – The knowledge gathered from both essential and

auxiliary sources. Data was collected from the first source through a structured questionnaire
supported a five-point Likert scale starting from 5= strongly agreed to 1= strongly disagreed. an
in-depth literature review was collected from secondary sources like online articles, research
papers, journals, etc.

I collected the info from the university students, assistant professors, associate professors,
lecturers, and other people. I explored inside the kind of a poll and got some information about
variables to utilize work entrances from a task searcher's viewpoint.

Findings – It was found that recruitment is beneficial, saves time, and makes the process faster.
Moreover, it brings low costs and works on the proficiency of associations.

Originality/value This research paper shows identified various factors affecting the

perception of millennial and post-millennial towards online recruitment and the significant
difference among job seekers of different age groups towards different factors.

Keywords
: Company Performance, Employee Efficiency, Employee Motivation, Employee Reward System ,

1. Introduction
The success of any organization depends on the quality and characteristics of its
employees. The employees become a significant factor in any organization since they are the
heart of the company. Organizations simply cannot achieve their goals and objectives without
them. However, it is a fact that any employee for that matter needs something to induce him or to
look forward to so that he is motivated to work at the best interest of the company.. This indeed
was indicative of the more strategic approach to Human Resource Management (HRM) policies
which sought to connect the aims of the organization to the performance of the individual.
The organization’s key aims, goals and objectives become an embedded part of the process in
the performance management and communicated through the performance appraisal process.
(Marchington and Wilkinson, 2005) Baron et al ( 2005) defend the performance appraisal is “ a more
limited approach which involves managers making top-down assessment and rating the performance of
their subordinates at an annual performance appraisal meeting”

Annual performance appraisals enable management gauge and monitor whether institutional
standards, expectations and objectives, and delegation of responsibilities and tasks are achieved. Staff
performance appraisals also establish individual training needs and enable organization to identify
training needs analysis and planning.

Performance appraisal is one element of the performance management process which involves
different measurements throughout the organizations but it is the element which is important if
organization is to take advantage of their most important asset employees and gain human capital
advantage. There are other processes within the organizations such as technology and design but it is
the human factor which is the most difficult to replicate and therefore the most valuable (Armstrong &
Baron 2005) strategy implementation and delivery of the organizational strategic target is the best
accomplished through high performance people and it is the development of these people which
performance appraisal seek to advance. This is not the only identified purpose for performance
appraisal.

The impact of the TQM (total quality management) principles to the process of evaluating the
performance of workers: Total quality management aims to achieve customer satisfaction and therefore
their degree of satisfaction can be judged is the standard by which the level of performance from this
perspective appeared in multi-resident agencies, because clients are all employees, officials, and
overseas customers and suppliers. Working together: as a team leads to the assessment of individuals
collectively, and not individually as it was in the traditional way. The system of performance appraisal in
accordance with total quality management as the most effective and objective and fairer system of
performance appraisal traditional, who had focused on a set of attributes, criteria that intangible,
including the resident is a person tends to attribute more than others, the assessment will be biased and
does not give accurate results. (Mohamed Ahmed, 2007)

2. Objectives Of The Study

This study aimed to assess the performance appraisal system and its effect on the performance
of employees of Nass Construction Company . Specifically, the study attempted to determine the
following:

2.1 Status of the performance appraisal system of the in terns of : reliability and validity,
quality and effectiveness
2.2 The impact of the performance appraisal system towards the performance of the
respondents in terms of: commitment, skills and responsibilities.

2.3 Gaps in the implementation of the appraisal system of the company.

2.4 Recommendations proposed by the respondents to improve the appraisal system of the
company.

3. Literature Review
3.1 Evolution of Employee performance
It should serve as a standard to plan promotions, empowerment, salary revisions and
training and development. The success of every appraisal system depends on the key results of
such tool. Good result is impossible without giving importance to employee value. Evaluation
without appropriate action and results is useless it will only create more problems in the
organization. Employee will always look forward to finishing a job with enthusiasm if they are
given appropriate recognition or reward for doing a good job. People

3.2 Importance of Employee Performance

The result of the study imply that the company needs to enhance its appraisal system
most especially on the aspect of implementation. Since human resource plays the greater part in
the success of the company, management should implement combination of incentives to
enable employees work at the best interest of the company. In this way, good performance
should be rewarded and poor performance should be discouraged It should be realized that the
main aim of any performance appraisal system is to improve staff performance and increase
service quality. Initially, the focus of performance appraisal system was on the setting of
objective and on the evaluation of results against goals. Nowadays, modern management
realized that performance appraisal must embrace how people get things done as well as what
gets done ( input and output) ( Armstrong and Baron 1998). This tends to change the focus of
performance appraisal system completely, allowing it to implement a greater developmental
dimension. Modern performance management recognizes that performance is a result of a
combination of factors: systems, protocols, resources and human resource ( Edmonstone 1996)

.3 Key Predictors For Topic Of Interest

The key predictors for the current study Employee performance, Compliance, Work
attitude, Work Outcomes, Self Improvement, Contribution

3.3.1 Employee Performance

employee performance is how a member of staff fulfils the duties of their role,
completes required tasks and behaves in the workplace. ... It helps employees to
 reach their full potential, while also improving overall performance – which can have
positive effects on morale and quality of work produced.

3.3.2 Compliance
The practice a obeying a rules, law, in accordiance with establishment guide tried
to fit specified standard set do meet the requriment of acceptance prescribed regulation,
policies , or term of the contract

3.3.3 Work outcomes

 work outcomes, including intent to stay, organizational citizenship behaviors, and
performance, are directly and significantly related to their work attitudes,
including job satisfaction, work engagement, and affective organizational commitment

3.3.4 Self Improvement

: the act or process of improving oneself by one's own actions individuals interested
in self-improvement opportunities for self-improvement also : an instance or result of
such improvement You don't need to wait to ring in the new year to start making self-
improvements, because it's always a good time. 

3.3.5 Contribution
: the act or process of improving oneself by one's own actions individuals interested
in self-improvement opportunities for self-improvement also : an instance or result of
such improvement You don't need to wait to ring in the new year to start making self-
improvements, because it's always a good time. 

Figure 1
Conceptual Framework
 4. Hypotheses
The accompanying theories will help for future exploration work.
H1 Compliance positively affect on Employee performance

H2: Work attitude positively effect on employee performance

H3 Work outcomes is positively effect on employee performance

H4 Self-improvement is positively effect on Employee performance

H5 Contribution is positively effect on Employee Performance

5. Methodology
.1 Sample and Procedures
.1 The information gathered from both essential and auxiliary sources. Data was
collected from the primary source through a structured questionnaire based on a five-
point Likert scale ranging from 5= strongly agreed to 1= strongly disagreed. An
extensive literature review was collected from secondary sources like online articles,
research papers, journals, etc.

Table1: Respondent’s age

Respondent’s Number of Male Female Percentage

age Respondent
18-25 (Years) 95 58 37 49
26-35 (Years) 52 25 27 25
36-45 (Years) 23 11 12 12
46-55 (Years) 19 8 11 9.5
56-65 (Years) 11 6 5 4.5

Table1 above shows the segment subtleties of the respondents as per sexual orientation, age, and
most noteworthy capability. Of 200 respondents taken for the study, 56 percent were male and
44 percent were females. 49 percent of the respondents were in the age group of 18 - 25 and 25
percent were in the age group of 26 -35. These two gatherings were the principal supporter of the
investigation. 44 percent of the respondents were graduates, trailed by post-graduate who was 41
percent, then 12 percent who had finished tutoring and 3 percent have a place with the others
bunch concerning most elevated finished capability.

.2 Measures or Research Instruments

To measure the research construct of the study, Figure 1 shows the research
instruments and items for the quantitative approach. Exploration instruments and
things were embraced dependent on past writing in related fields of study. The
information gathered from both essential and auxiliary sources. Data was collected
from the primary source through a structured questionnaire based on a five-point
Likert scale ranging from 5= strongly agreed to 1= strongly disagreed. An extensive
literature review was collected from secondary sources like online articles, research
papers, journals, etc. To quantify information content quality four requests were
gotten by past research (Zhang and Dimitroff, 2005b; DeLone and McLean, 1992,
2003). To quantify clarity four things (Jones et al., 2008; Lee and Lehto, 2013), to
measure interactivity six questions (DeLone and McLean, 1992, 2003; Cyr et al.,
2009), to gauge appeal and viability seven things (Cyr et al., 2009), search engine
optimization (SEO) three items (Zhang and Dimitroff, 2005b), website ranking four
items (Yazdi and Deshpande, 2013, Ajzen, 1985), ease of route five things and to
quantify graduate understudies conduct goal work searcher five things were embraced
from past studies.
.3 Analytical Strategy
.3 An instrument was developed to check the content and validity of this research. A
survey was conducted to investigate the key influencing factors towards E-
recruitment adoption among job seekers in Pakistan. It further examines the
association between E-recruitment and their reception. To achieve the objective of
this study a sample of 200 respondents was selected. The sample comprised of
students from government and private sector universities in Multan. Out of 200
respondents 108 were male(s) and 92 were female(s) which shows 54% and 46%
respectively. Finished surveys were gathered from the respondents and information
 was entered in PC programming. Finally, SPSS 16.0 was used for the estimation and
analysis of the results.
6. Discussion & Results
6.1 Reliability and validity of the appraisal system

It is noted that performance appraisal system should bring a positive experience and contribute
to the overall welfare of the organization. If done properly, it is a very effective tool to improve
performance and productivity and for developing employees.

Results of the study imply that the performance appraisal system of the company needs further
review and revision so as to serve the main purpose of the evaluation. This is evidenced by the
respondents claimed that the appraisal system is not reliable and valid and not honestly and
fairly done. Armstrong( 2006) stressed that appraisal system should clearly defined performance
standards and regular discussion of performance and development of action plans as
consequence of the appraisal should be done.

6.2 Quality of the Performance Appraisal

No evaluation system will achieve its objectives unless there is some consequences to the
evaluation. It is of no value, just a waste of effort, time and money. It should serve as a standard
to plan promotions, empowerment, salary revisions and training and development. The success
of every appraisal system depends on the key results of such tool. Good result is impossible
without giving importance to employee value. Evaluation without appropriate action and results
is useless it will only create more problems in the organization. Employee will always look
forward to finishing a job with enthusiasm if they are given appropriate recognition or reward
for doing a good job. People will be more creative and willing to extend a mile of their time and
will always work at their best.

The results imply that the employees are not convinced and happy about the implementation of
the appraisal system of the company. It was clear that the appraisal system is not motivating
hence not effective. It is indicative that the company should revisit and redesign its performance
appraisal policies and strategies in order to bring positive change in the organization. The
company should realize that employee input is a vital element of an effective performance
appraisal system. It is imperative to include the employees in the performance management
process to ensure that the employees feel a sense of engagement in the process.

Limitations and Future Scope

The study was only limited to one of the largest recruitment job portals of Pakistan,
however, generalizing the results would be inappropriate. Concerning the customer
base, it reflected the perception of job seekers only, and the services provided to
 recruiters were ignored. Though the sample size is acceptable, it needs to be increased
along with other management students of different Universities to get the exact
picture about the perception of students. Even the geographical area for the study can
be multi-state. Further examination on the view of occupation searchers can be
conveyed forward with the comparative analysis of different job portals and different
locations and for some specific functional areas.

7. Conclusion
This study was conducted to ascertain whether HRM professionals believe that there have been any
significant changes in the design, implementation, and effectiveness of performance management
systems in Australian organizations since earlier studies, and whether such changes might reflect
and reinforce contemporary strategic HRM theory. It was expected that the pressures of
globalization, increased regional competition, industry rationalization, and a significantly more
cooperative industrial relations environment, would have encouraged employers to redesign their
performance management systems in order to reflect their competitive imperatives, and to enable
closer links between individual, group, and organizational objectives and outcomes

Overall, the findings of the study can best be described as mixed, with evidence that substantial
changes have been made with respect to the use, purposes, and nature of performance
management systems, and more hopefully, that more customised and integrated systems are
proposed for the future. There are signs that some organisations, especially those utilising the
balanced scorecard as the bridge between organisational and individual employee goals, are
seriously attempting to implement the strategic HRM agenda in their organisations through
performance management, and it appears likely that these imperatives will grow in the future

However, satisfaction levels with present systems have deteriorated since the earlier studies, the
training of system users has declined, and the involvement of employees in the review of their own
and their team’s performance is not yet well implemented. The dissatisfying factors remain those of
all previous studies, and indicate the guiding principles that HRM professionals should use in order
to further develop their performance management systems – alignment, integration, commitment,
collaboration, feedback, outcomes, and user-friendliness.

8. References
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