HYPOTHESIS TESTING

HYPOTHESES OF THE STUDY

The researcher has formulated following hypothesis for the present Study.

1) Self-appraisal is highly beneficial in performance appraisal system

2) Performance appraisal causes Feeling of insecurity
3) Self-appraisal is the preferred technique used in Performance Management System

TESTING OF HYPOTHESES

Hypothesis No. 1) Self-appraisal is highly beneficial in the performance appraisal

system The research student has formulated following null and alternate statements for this

hypothesis. H0: Self-appraisal is not beneficial in performance appraisal system

Observed mean = expected mean (40)

Ha: Self-appraisal is highly beneficial in performance appraisal system Observed mean #

expected mean (40)

In this case to prove the null hypothesis researcher wants to check whether observed mean of
level of benefits
< expected mean of level of benefits i.e. 40.

In questionnaire a question has been asked to understand the opinions of the respondents on
the self-appraisal system implemented in the organisation.

Table 26, Opinions on employee self-appraisal

Sr. No. Opinion No. of respondents Percentage

1 Highly beneficial 67 55.8%

2 Beneficial to a certain degree 40 33.3%

3 Tend to be inflated 13 10.8%

Total 120 100%

As the above categorical variable represents the opinion of the employee about the benefits of
self-appraisal in performance appraisal system, groups (levels) are mutually exclusive and
data is adequate i.e. minimum expected cell frequency is 40, the researcher has opted for chi-
square goodness of fit test to compare the observed and expected means of the sample. For
this researcher has used the SPSS statistical package and results are explained below.

Benefit Level

Observed N Expected N Residual

Highly Beneficial 67 40.0 27.0

Beneficial to a certain
40 40.0 .0
degree
 Tend to be inflated 13 40.0 -27.0

Total 120

In above table it is observed that the ‘Highly beneficial’ responses are 67 which is more than
the expected (40) level of satisfaction and the residual is positive 27. The calculated 2 tailed p
value is 0.000 which is very significant and rejects the null hypothesis that; observed and
expected means are equal. Hence, the hypothesis ‘Self-appraisal is highly beneficial in
performance appraisal system’ is accepted.

Hypothesis No. 2) Performance appraisal causes ‘Feeling of insecurity’

The following null hypothesis and alternate have been formulated.

H0: Performance appraisal does not cause Feeling of insecurity Ha: Performance appraisal

causes Feeling of insecurity

In this case to prove the null hypothesis researcher wants to check whether Observed ‘Yes’
responses of ‘Feeling of insecurity’ < test proportion (50%) of ‘Feeling of insecurity’.

In the questionnaire a question has been asked to understand the opinions of the respondents
about psychological barriers in the performance management process especially on the
‘Feeling of insecurity’ in the organisation. (Table No. 21)

Sr. No. Barrier - Feeling of insecurity No. of respondents Percentage

1 Yes 7 8.4%

2 No 113 91.6%

Total 120 100%

Researcher has performed a binomial test in the SPSS package to test the proportions.
Binomial Test

Category N Observed Prop. Test Prop. Exact Sig. (2-

tailed)

Group 1 Yes 7 .06 .50 .000

Insecure
Group 2 No 113 .94
Feeling
Total 120 1.00

The above results suggest that observed proportion of group 1 (Yes) is 0.6 which is less than
the test proportion of 0.50. As p-values less than 0.001 at a 95% confidence level, it can be
said that these outcomes are not by chance. Researcher accepts the null hypothesis
“Performance appraisal does not cause Feeling of insecurity” and rejects the alternative
hypothesis.

Hypothesis No. 3) Self-appraisal is the preferred technique used in Performance

Management System

To test this hypothesis researcher has formulated following null and alternative hypotheses.

H0: Self-appraisal is the non-preferred technique used in Performance Management System

Ha: Self-appraisal is the preferred technique used in Performance Management System

In the questionnaire, employees have responded regarding the performance management

techniques. Here the researcher has tested the proportion of the responses for the preferred
technique namely “Self-appraisal” in performance management system. Researcher has
performed a binomial test in SPSS package, the results are given in the following table.

Binomial Test

Category N Observed Test Prop. Exact Sig. (2-

Prop.
tailed)

Group 1 Yes 112 .93 .50 .000

Self-Appraisal
Group 2 No 8 .07
Preferred
Total 120 1.00

The above results confirm that the proportion of respondents with a “Yes” response is 93%
which is very high compared to the tested proportion of 50% and p value (0.000) is quite
significant and suggests that both proportions observed and tested are not equal. Hence the
researcher has arrived at the conclusion to reject the null hypothesis and accept the alternate
hypothesis “Self-appraisal is the preferred technique used in Performance Management
System”