LIVE PROJECT (EXPERIENTIAL LEARNING) OF

MANAGEMENT PROCESS AND ORGANIZATIOAL BEHAVIOUR

BBA101

THE PERCEPTION OF EMPLOYEES ABOUT PERFORMANCE APPRAISAL

Submitted in partial fulfilment of the requirements

For the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION

TO

Guru Govind Singh Indraprastha University, Delhi

Submitted by Submitted to
Aarnav Sharma keenika Arora
BBA 1stSemester Assistant professor
Division B(Evening) (management department)

Session 2022 – 23

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 ACKNOWLEDGEMENT

With profound sense of gratitude and regard , I express my sincere thanks to my

guide and mentor Ms Keenika Arora for her valuable guidance and the
confident she instilled in me , that helped me in the successful completion of
this project report. Without her help , this project would have been a distant
affair , her thorough understanding of the subject and professional guidance was
indeed of immense help to me.

Aarnav Shrama

Signature of the Student

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 TABLE OF CONTEXT

INTRODUCTION....................................................................................................................
Background..........................................................................................................................
ResearchAims......................................................................................................................
ResearchQuestion.................................................................................................................
StructureoftheDissertation....................................................................................................
LITERATUREREVIEW.............................................................................................
Introduction..........................................................................................................................
Performance Management...................................................................................................
Performance Management Process......................................................................................
EmployeePerception of PerformanceAppraisal...................................................................
MOTIVATION………………………………………………………………………..
Introduction……………………………………………………………………………
Factors………………………………………………………………………………….
Goals……………………………………………………………………………………
Feedback……………………………………………………………………………......
Rewards…………………………………………………………………………………
Culture………………………………………………………………………………….
Environment……………………………………………………………………………
Performance appraisal…………………………………………………………………
Quality of appraisal…………………………………………………………………….
Particaption in appraisal………………………………………………………………
Impact of appraisal……………………………………………………………………..
Conclusion………………………………………………………………………………
METHOD..........................................................................................................................
Introduction..........................................................................................................................
survey method………………………………………………………………………….
interview method………………………………………………………………………
ResearchDesign....................................................................................................................
ResearchParticipants............................................................................................................
RESULTS..........................................................................................................................
DataScreening......................................................................................................................
Psychometric Properties.......................................................................................................
procedures............................................................................................................................
measures...............................................................................................................................
descriptive statistics.............................................................................................................
DISCUSSION...................................................................................................................
Introduction..........................................................................................................................
ContributionsoftheStudy......................................................................................................
Findings................................................................................................................................
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Implications of Findings…………………………………………………………………………………………………………

Limitationsand Recommendations forFuture Research……………………………………………………………….

CONCLUSION................................................................................................................
annexure A:PerformanceAppraisalataMeat Corporationof Namibia……………………………………..

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 Introduction:

Performance appraisal is a key component of human resource management, as it

provides a structured process for evaluating the job performance and productivity of
employees. It is a regular review of an employee's work conducted by the
employee's supervisor or manager, with the purpose of providing feedback,
identifying areas for improvement, setting performance goals, and providing a basis
for personnel decisions such as promotions, salary increases, and training
opportunities. The performance appraisal process is designed to benefit both
employees and organizations, as it can help employees to understand their strengths
and weaknesses, set goals for improvement, and receive support and guidance from
their supervisor. At the same time, performance appraisal can help organizations to
identify top performers, identify areas for improvement, and align employee
performance with organizational goals.

Despite the potential benefits of performance appraisal, the perception of this

process among employees can vary significantly. Some employees may view
performance appraisal as a valuable opportunity to receive feedback and improve,
while others may view it as unnecessary or burdensome. The perception of
performance appraisal can have a significant impact on employee motivation and
engagement, as employees who view the process as fair, objective, and supportive
are more likely to feel motivated to improve their performance and more engaged in
their work. On the other hand, employees who view the process as subjective,
unfair, or lacking in support may feel demotivated and less engaged in their work.

Given the importance of performance appraisal to both employees and

organizations, it is important to understand the perception of this process among
employees and the factors that influence it. In this study, we aim to explore the
perception of employees about performance appraisal, its effectiveness, and the
impact on employee motivation. To do this, we will conduct a survey of employees
at a large manufacturing company and conduct in-depth interviews with a sample of
employees to gather more detailed insights into their perceptions of performance
appraisal. By understanding the perception of performance appraisal among
employees, we hope to identify ways to improve the process and enhance employee
motivation and engagement.

The remainder of this study is organized as follows. In the next section, we will
review the literature on performance appraisal, including its definitions, purpose,
and key components. We will also review the literature on employee perception of
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performance appraisal, including the factors that influence it and the impact on
employee motivation. In the methodology section, we will describe the methods we
used to conduct our study, including the survey and interviews. In the results
section, we will present the findings of our study, including the results of the survey
and interviews. In the discussion and conclusion sections, we will interpret the
results of our study and discuss their implications for practice. Finally, in the
references and appendix sections, we will provide a list of references and any
additional materials that support our study.

Background

Dargham (2010) argued that the most successful organisations in the 21st century
would be those that focus on a more integrated human resource (HR) system. The
role of human resources has become progressively vital, and organisations should
increase the emphasis on re-engineering their processes. Among all the human
resource processes, performance management is the most critical for the success of
any organisation. The Human Resource Management field has been keenly
interested in adding value to organisations, which has led to the focus on high
performance work systems (Farndale, Hope-Hailey &Kelliher, 2011). Performance
management enables organisations to engage employees for optimal performance,
provide development, reward employees and drive organisational performance and
sustainability. In ensuring that performance management is a process that attains the
right outcomes, organisations need to ensure that the process is fair and transparent
and that there is acceptance from the employees. In many instances, employees form
perceptions about the system and thus, the trust relationship between the
organisation and its employees is disputed. Employee perception of performance
management can affect an organisation in either a positive or a negative way. The
effect or impact can be positive and result in good company performance or
negative, which results in poor company performance. The perception of unfairness
within the performance management system can adversely affect employees’
organisational commitment, job satisfaction, trust in management and their
performance at work. Reserachers ( (Mobley, 1977; Riketta, 2002; VanVoorhis and
Levinson, 2006) have noted that factors such as job autonomy, role conflict, resource
inadequacy, task independence and job security have an impact on employees
expected outcome on job satisfaction, organisational commitment and intent to quit.
Brown, Haytt and Benson (2010) found that there is a direct relationship between
performance management satisfaction and employee outcomes, which mainly
comprise satisfaction and commitment among employees. They further explained
that psychological contracts and justice literature suggest employees’ experiences of
the performance appraisal process may affect their willingness to be committed to
their organisation (Brown et al., 2010). Hendrix, Robbins, EMPLOYEE PERCEPTION
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OF PERFORMANCE APPRAISAL AND THE RELATIONSHIP WITH
ORGANISATIONAL COMMITMENT 10 Miller and Summers (1998) explained how
good, relational, psychosocial contracts between employers and employees provide
the basis of high-quality performance appraisal experiences that increase employees’
perceived commitment to the organisation and improve their attitudes and
behaviours at work. As a result, quality performance appraisal tends ultimately to
improve organisational effectiveness by promoting organisational commitment
(Fletcher & Williams, 1996). However, Brown et al. (2010) disputed the notion that
performance appraisal processes contribute to higher levels of organisational
commitment. Instead, they argued that employees do not regard performance
appraisal as a legitimate tool of human resource management. Fakharyan, Jalilvand,
Dini and Dehafarin (2012) noted that performance management helps in the success
of the organisation by realising the strategic purpose and increasing effective
working processes through continuous improvement of an individual’s
performance. Performance management is a process that many organisations
embrace and practise; however, there seems to be a perception that the system is not
being employed as intended. The system is often perceived as being biased and
subjective, with irrelevant criteria being used to appraise the performance of
employees. In addition, the system is perceived to be unable to provide feedback on
time, and there is dissatisfaction with the implementation of the process. As a result,
these perceptions of the system have a negative impact on the performance of the
organisation and its employees. Negative perceptions of employees result in the
perceived outcomes of the system not being realised. Rajendran (2008) agreed and
stated that once there is a negative perception, there is a significant influence on the
overall job dissatisfaction of employees and a decrease in the expected work
outcomes in the form of work performance, commitment and turnover intentions.
Employees are more likely to be receptive and supportive of the performance
management system if they perceive the process as a useful source of feedback that
helps to improve their performance (Mullins, 2007). The way in which employees
perceive the system has an overall effect on the success of the system and the
organisation. The outcome of a performance management system for employees and
the organisation should include commitment, job satisfaction and improved
organisational performance. This study therefore, sought to investigate employee
perception of performance management and its relationship with organisational
commitment.

Research Aims:
Perception of Employees About Performance Appraisal, Effectiveness, and Its
Impact on Employee Motivation
The aim of this research is to explore the perception of employees about performance
appraisal, its effectiveness, and the impact on employee motivation.

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The study aims to answer the following research questions:
1. To examine the prevalence and nature of performance appraisal practices in
different organizational contexts and industries.
2. To understand the perceptions of employees about the fairness and accuracy
of performance appraisal processes and systems.
3. To explore the relationship between employee perceptions of performance
appraisal effectiveness and their motivation at work.
4. To identify the factors that influence employee perceptions of performance
appraisal effectiveness and its impact on motivation.
5. To examine the role of employee participation in the performance appraisal
process on their perceptions and motivation.
6. To investigate the impact of performance appraisal feedback on employee
motivation and performance.
7. To explore the relationship between performance appraisal and employee
engagement and commitment.
8. To examine the role of managerial support and communication in shaping
employee perceptions of performance appraisal and its impact on motivation.
9. To identify best practices for performance appraisal that can enhance
employee motivation and performance.
10. To explore the potential cultural and demographic differences in employee
perceptions of performance appraisal and its impact on motivation.

To address these research questions, the study will involve a mixed-methods

approach, including both qualitative and quantitative data collection and analysis.
The research will be conducted using a sample of employees from a variety of
industries and organizations. Data will be collected through surveys, interviews, and
focus groups, and analyzed using statistical techniques and thematic analysis.
The results of this research will provide valuable insights into the perception of
employees about performance appraisal, its effectiveness, and its impact on
employee motivation. The findings will have practical implications for organizations
looking to improve their performance appraisal processes and enhance employee
motivation. The research will also contribute to the academic literature on
performance appraisal and employee motivation, and may serve as a starting point
for further research on these topics.

Research Question
What is the relationship between employee perception of performance appraisal and
organisational commitment at a Meat Corporation of Namibia?

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Structure of the Dissertation
The previous section introduced the study, posed the research question, and
outlined the research objectives. The following section analyzes the literature
reviewed and presents a theoretical framework for the relationship between
organizational commitment and employee perception of the performance appraisal
system. The literature review ends by presenting propositions for the study. This is
followed by a description of the research method, which examines the research
design, research participants, relevant measures, and statistical analysis to make the
study reproducible. The results section presents the findings and statistical analysis
data. Finally, the study's contributions, a summary of the findings, limitations,
recommendations for future study, and conclusions are provided.

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 Literature review

Introduction
Performance appraisal is a process that involves evaluating the job performance and
productivity of employees. It is typically conducted by the employee's supervisor or
manager, and it involves providing feedback, identifying areas for improvement,
setting performance goals, and providing a basis for personnel decisions such as
promotions, salary increases, and training opportunities. The perception of
performance appraisal among employees can have a significant impact on employee
motivation and engagement, as employees who view the process as fair, objective,
and supportive are more likely to feel motivated to improve their performance and
more engaged in their work. On the other hand, employees who view the process as
subjective, unfair, or lacking in support may feel demotivated and less engaged in
their work. In this literature review, we will explore the perception of employees
about performance appraisal, its effectiveness, and the impact on employee
motivation.

Performance Management
Performance management is the integrated and often strategic approach for
continued success in improving the performance of employees within an
organisation (Armstrong & Baron, 1998). Performance management is thus, an
organisational tool that is used to sustain and improve performance for the benefit of
both the employee and employer. Organisations rely heavily on the performance
management tool to drive their success. Performance management focuses on the
range of activities undertaken by an organisation with the intention of improving
organisational effectiveness through enhancing the performance of a target person
or group (DeNisi, 2000). It is noted that there is a relationship between the variables,
employee and the organisation, and the perceived outcome of performance
management on the effectiveness and success of these variables. In this regard,
performance management viewed from a system-thinking perspective is an ongoing
approach to improve results through rational and evidence-based decision-making,
resulting in a continuous organisational learning focused on accountability of
performance (Mucha, 2009). As an integrated process, performance management
ensures that managers work with their employees to set expectations, to measure
and review results and thereafter, to reward performance in order to improve
employee performance with the aim of achieving a positive effect on the success of
the organisation (Mondy, Noe&Premeaux, 2002)

Performance management involves managing employee outcomes through

measuring them against agreed and set expectations. These outcomes can be
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measured using different tools, of which performance appraisal is one. Performance
appraisal is an evaluation tool that organisations use to track and manage
employees’ performance (Erdogan, 2003). The performance appraisal tool is used to
identify, evaluate and develop work performance of the employees in the
organisation to ensure that proper tracking and measuring of employee expectations
is carried out.

Authors have defined performance appraisal in different ways; however, there is a

common understanding of this tool (Erdogan, 2003). Nzuve (2007) defined
performance appraisal as a means of evaluating employees’ work performance over
a set period. Similarly, DeNisi (2000) defined performance appraisal as a system
whereby an organisation assigns “scores” to indicate the level of performance of a
target person or group. Performance appraisal is a tool that identifies what is being
appraised, how it is appraised as well as who is carrying out the appraisal. Dessler
(2000) explained that performance appraisal is a process that involves evaluating
how well employees perform in their jobs according to set expectations and
standards. These are sets of standards with which to measure employee performance
and the expectations that an organisation requires the employees to meet.
Venkataraman Rao (2005) opined that performance appraisal is a method of
evaluating the behaviour of employees in the workplace that normally includes both
the quantitative and qualitative aspects of job performance. Fletcher (2001) agreeably
also defined performance appraisals as activities through which organisations seek
to assess employees, develop their competencies, enhance their performance and
reward them.
DeNisi and Pritchard (2006) defined performance appraisal as a discrete, formal,
organisational-sanctioned event. However, with increased advancement and
development, performance appraisal is being used as a tool to enhance
organisational performance and identify development opportunities for employees.
The work of Kaynak (2003) concurs and states that performance appraisal is not only
an evaluation activity but also a dynamic process that should be viewed as a plan to
improve performance of the employees and the organisation. In order to enhance
performance appraisal, researchers have designed better systems that are more
behavioural-based (Bretz, Milkovich& Read, 1992) and that better define the
essential job functions of employees and the 360-degree feedback mechanisms that
allow for cross-validation via multiple raters.

Performance appraisal is a system within performance management that enhances

and enables the performance management process to deliver the results effectively.
DeNisi and Pritchard (2006) referred to performance appraisal as:

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 [The] discrete, formal, organisationally sanctioned event, usually not occurring
more frequently than once or twice a year, which has clearly stated performance
dimensions and/or criteria that are used in the evaluation process. (p. 254)

Roberts (2001) elaborated that performance management involves establishing the

corporate department, the team and the individual objectives that use performance
appraisal systems. For monitoring the effectiveness of the performance management
system and the interventions, appropriate reward strategies, development strategies
and plans, training, feedback, communication and coaching as well as career
planning should be implemented. Performance management is a system within the
human resources function that needs to be managed and processed effectively. If the
system is not managed effectively, the outcome or results thereof will have an
impact on the overall success of the organisation. Many stakeholders are involved in
managing a performance system, each playing an important role. By managing the
process, a level of accountability and commitment is expected from each individual.
Human resource management is the custodian of the process and thus, it needs to
ensure that the process has a structure and policies in place that support the system.
The two most important stakeholders in performance management systems are the
employees and the line manager, and full responsibility and accountability is
expected of these key players. Aguinis (2009) explained that in the performance
appraisal process, a critical stakeholder is the employee, and the performance
appraisal process is designed to stimulate employee performance. Line managers
should ensure that clear goals and targets are set, adapting the specific, measurable,
attainable, relevant and time-bound (SMART) approach, originally delineated by
Raia (1965) for the typical goals.

Performance Management Process

The performance management process is derived from the organisation’s strategy
and vision that have been designed by the executive management of the
organisation. A well-crafted performance management system focuses on the
organisation’s strategic priorities and identifies the activities needed to maximise the
extent to which employees exhibit the desired behaviours and produce the intended
results (Cascio&Aguinis, 2005). For organisations to set their goals and achieve their
strategies, performance appraisal is one of the tools that guides and sets the
organisations’ expectations of their employees (Bacal, 2004).

Only once an organisation has determined its strategies and understood its
objectives can a performance agreement be set. The performance agreement will
then provide guidance to the employees in terms of which activities and actions will
help meet the organisation’s set of expectations (Gardner, Moynihan, Park & Wright,
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2001). Setting performance goals and providing feedback are important performance
appraisal activities in organisations (Earley, Northcraft, Lee &Lituchy, 1990; Fletcher,
2001; Neubert, 1998) and are key in increasing individual performance. Management
needs to convey their individual goals to the rest of the organisation. An agreement
or contract between employees and the organisation needs to be set up, in which the
goals or targets are determined. Preferably, the goals or targets should be impactful
and should not be excessive in number. Once these targets are set, measurable,
realistic and specific outputs need to be determined, and these should be tracked
and evaluated on an ongoing basis rather than as a once-off event. In many
organisations, the performance system is conducted once or twice a year (Bersin,
2008).

Performance management is a process that needs to be evaluated and monitored on

an ongoing basis to avoid the process being viewed as ineffective. There are 18
individual behavioural factors that are crucial to the effective implementation and
systematic use of a performance management system (De Waal, 2003). These
individual behaviours focus on internal management control, organisational culture,
alignment of managers’ responsibilities to the system and the managers’
understanding of the nature of performance management (De Waal, 2003).

Employee Perception of Performance Appraisal

Employees are the recipients of performance management, and how they perceive
the system or process has an impact on the system. According to Dusterhoff,
Cunningham and MacGregor (2014), satisfaction with the performance appraisal
process depends on whether those being appraised perceive it as morally justified or
not. Fletcher (2004) stated that employees’ consultation is vital because it enhances
ownership of the system and its effectiveness. Purcell, Kinnie, Hutchinson et al.
(2003) denoted that perceptions influence employees’ level of outcome by affecting
the way they think, feel and behave. Dusterhoff et al. (2014) suggested that
dissatisfaction with the appraisal process and the failure of performance reviews to
change how people work has often been linked to lower organisational commitment
and increased intentions to resign.

The success of a performance appraisal system depends on how employees perceive

and experience the process. According to Jawahar (2007), the success of a
performance appraisal system may well depend on loyalties, perceptions of fairness
and reactions of employees to important aspects of the appraisal process. According

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to Cropanzano, Bowen and Gilliland (2007), employees’ perceptions of the fairness
of performance appraisal could influence their level of organisational commitment.

Fakharyan et al. (2012) explained that if employees are satisfied with the
implementation of the performance management system, they will regard it in a
positive manner and exert every possible effort to carry out the responsibilities and
duties assigned to them efficiently and effectively and thus will make the
organisation to which they belong more productive and successful. Alwadaei (2010)
explained that for the performance system to be successful, it is very important for
the organisation to know how the employees responsible for conducting appraisals,
as well as those being appraised, generally perceive the system. Despite recent
advancements in improving and enhancing performance systems, critics continue to
argue that performance management systems are not consistently effective (Atkins &
Wood, 2002; DeNisi&Kluger, 2000)

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 Motivation

Introduction
Motivation is the psychological process that drives an individual to take action
towards a goal. It is a complex and multi-faceted construct that can be influenced by
a variety of factors. Understanding these factors can be helpful in improving
performance, enhancing well-being, and influencing behavior change.
One important factor that can influence motivation is goals. Setting specific,
challenging goals can increase motivation, as people are more likely to be motivated
to achieve something that is meaningful and relevant to them. It is important that the
goals are challenging but achievable, as this can help to increase a sense of
accomplishment and satisfaction when the goals are achieved.
Another factor that can influence motivation is feedback. Receiving feedback on
performance can be a powerful motivator, as it helps people to understand their
strengths and weaknesses and provides a sense of progress. Feedback should be
specific, timely, and constructive, and it should focus on areas where improvement
is needed as well as areas of strength.
Rewards can also be a powerful motivator. Offering rewards for achieving specific
goals can help to increase motivation, as long as the rewards are meaningful and
relevant to the individual. Rewards can be tangible (such as money or prizes) or
intangible (such as recognition or praise).
Cultural values and norms can also influence motivation. People are often motivated
to behave in ways that are consistent with their cultural beliefs and expectations, and
understanding these cultural influences can be helpful in increasing motivation.
The physical and social environment can also play a role in motivation. People are
more likely to be motivated when they feel supported and engaged, and creating a
positive and supportive environment can be an important factor in increasing
motivation. This can include factors such as the design of the work space, the
availability of resources and support, and the quality of interpersonal relationships.
Fostering a sense of autonomy and control can also be important in increasing
motivation. People are more likely to be motivated when they feel that they have
control over their own lives and decisions, and allowing for autonomy and choice
can help to increase motivation.

Factors
There are also several factors that can influence motivation, including:

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1. Goals: Setting specific, challenging goals is an important factor that can influence
motivation. When people have clear and challenging goals, they are more likely to
be motivated to achieve them. This is because goals give people a sense of direction
and purpose, and help to focus their efforts and resources.
In order for goals to be effective at increasing motivation, they should be specific and
challenging. This means that the goals should be clearly defined and measurable,
and should require some effort and skill to achieve. Having specific and challenging
goals helps to increase a sense of accomplishment and satisfaction when the goals
are achieved.
It is also important that the goals are meaningful and relevant to the individual.
People are more likely to be motivated to achieve something that is meaningful and
important to them. This could be a personal goal, such as improving their health or
learning a new skill, or a professional goal, such as advancing in their career or
starting a business.
In summary, setting specific, challenging goals can increase motivation because they
give people a sense of direction and purpose, focus their efforts and resources, and
provide a sense of accomplishment when they are achieved. By setting meaningful
and relevant goals, individuals can increase their motivation and enhance their
ability to achieve their objectives.

2. feedback: Receiving feedback on performance can be a powerful motivator

because it helps people to understand their strengths and weaknesses and provides a
sense of progress. Feedback is information about how well an individual is doing in
relation to a specific task or goal, and it can be either positive or negative.
When people receive feedback on their performance, it helps them to understand
how they are doing and what they need to improve upon. This can be particularly
helpful when the feedback is specific and targeted, as it helps people to understand
exactly what they are doing well and what they need to work on.
Feedback can also provide a sense of progress, as it helps people to see how far they
have come and what they still need to do to achieve their goals. This can be
especially motivating when people are working towards a long-term goal, as it helps
to break the goal down into smaller, more manageable steps.
In order for feedback to be effective at increasing motivation, it should be timely,
specific, and constructive. This means that it should be provided in a timely manner,
should focus on specific areas of performance, and should offer suggestions for
improvement.
In summary, receiving feedback on performance can be a powerful motivator
because it helps people to understand their strengths and weaknesses and provides a
sense of progress. By providing timely, specific, and constructive feedback,
16
individuals and organizations can help to increase motivation and improve
performance.

3. rewards: Offering rewards for achieving specific goals can be a powerful

motivator because it provides people with an incentive to work towards a goal.
Rewards can be tangible (such as money or prizes) or intangible (such as recognition
or praise), and they can help to increase motivation by providing a sense of
accomplishment and satisfaction.
However, in order for rewards to be effective at increasing motivation, they must be
meaningful and relevant to the individual. This means that the rewards should be
something that the person values and finds desirable. For example, a financial
reward may be more motivating for someone who is saving for a specific purchase,
while a praise or recognition may be more motivating for someone who values
personal accomplishment.
It is also important that the rewards are connected to specific goals or behaviors. By
linking the reward to a specific goal or behavior, it becomes clear to the individual
what they need to do to earn the reward. This helps to focus their efforts and
increase their motivation.
In summary, offering rewards for achieving specific goals can be a powerful
motivator as long as the rewards are meaningful and relevant to the individual. By
linking rewards to specific goals or behaviors, individuals and organizations can
increase motivation and improve performance.

4. culture: Cultural values and norms can influence motivation because they shape
the way that people think about and approach tasks and goals. Culture refers to the
shared beliefs, values, customs, behaviors, and artifacts that characterize a group or
society, and it can have a powerful influence on an individual's motivation and
behavior.
For example, some cultures may place a strong emphasis on achievement and
success, which can motivate people to work hard and strive for excellence. Other
cultures may place a greater emphasis on relationships and community, which can
motivate people to work together and collaborate towards shared goals.
Understanding cultural values and norms can be important in increasing motivation,
as it can help to create an environment that is supportive and aligned with the
individual's cultural beliefs and expectations. This can include factors such as the
language and communication style used, the roles and responsibilities assigned, and
the types of rewards and recognition offered.

17
In summary, cultural values and norms can influence motivation because they shape
the way that people think about and approach tasks and goals. By understanding
and aligning with cultural values and norms, individuals and organizations can
increase motivation and improve performance.

5. Environment: The physical and social environment can influence motivation

because it can affect the way that people feel about their work and the tasks that they
are asked to do. The environment can include both the physical surroundings (such
as the design of the workspace) and the social interactions and relationships that
take place within it.
A supportive and engaging environment can increase motivation by making people
feel valued and connected to their work. This can include factors such as having
access to resources and support, having opportunities for collaboration and
teamwork, and having a sense of control and autonomy over one's work.
On the other hand, a negative or unsupportive environment can decrease motivation
by making people feel unsupported or disconnected from their work. This can
include factors such as a lack of resources or support, a lack of opportunities for
growth and development, or a lack of recognition and appreciation.
In summary, the physical and social environment can influence motivation because
it can affect the way that people feel about their work and the tasks that they are
asked to do. By creating a supportive and engaging environment, individuals and
organizations can increase motivation and improve performance.

Performance appraisal
Performance appraisal is a process by which an organization evaluates an
employee's job performance. It is an important tool for improving individual and
organizational performance, as it provides employees with feedback on their
strengths and weaknesses and helps to identify areas for improvement. Motivation
is a key factor in the performance appraisal process, as it can influence both the
quality of the appraisal and the impact that it has on employee performance.
There are several ways in which motivation can impact the performance appraisal
process:

Quality of appraisal
Motivated employees are more likely to be engaged in their work and to put forth
their best effort, which can lead to higher quality performance and more accurate
appraisal ratings. This is because motivated employees are more likely to be focused,
18
committed, and motivated to succeed, which can lead to better performance. On the
other hand, demotivated employees may be less engaged and less likely to perform
at their best, which can lead to lower quality performance and less accurate
appraisal ratings.

Participation in appraisal
Motivated employees may be more likely to participate actively in the appraisal
process, by providing self-assessments and setting goals for improvement. This is
because motivated employees are more likely to be invested in their work and want
to contribute to the process. Participating in the appraisal process can also be
motivating for employees, as it gives them a sense of ownership and control over
their development. Demotivated employees, on the other hand, may be less likely to
participate in the appraisal process, which can lead to a less accurate appraisal.

Impact of appraisal on motivation

The impact of the appraisal on motivation can be significant, as it can either increase
or decrease an employee's motivation and engagement in their work. If the appraisal
is conducted in a fair and constructive manner, with a focus on improvement and
development, it can increase employee motivation and engagement. This is because
employees feel valued and supported when they receive feedback that is focused on
helping them grow and develop.
On the other hand, if the appraisal is conducted in a negative or punitive manner, it
can decrease employee motivation and engagement. This can happen if the feedback
is overly critical or focuses on personal flaws rather than areas for improvement. It
can also happen if the employee feels that the appraisal is not fair or objective, or if
the employee does not feel that the feedback aligns with their actual performance.
In order to maximize the impact of the appraisal on motivation, it is important that
the appraisal is conducted in a way that is fair, objective, and focused on
improvement. This can include setting clear and specific performance expectations,
providing regular feedback throughout the year, and using multiple sources of
information to ensure that the appraisal is accurate and representative of the
employee's performance.
By conducting appraisals in a fair and constructive manner and focusing on
improvement and development, organizations can increase employee motivation
and engagement and enhance their ability to achieve their goals and objectives.

Conclusion
19
In conclusion, motivation is a complex and multifaceted construct that is influenced
by a variety of factors, including personal needs and desires, environmental factors,
and cultural values. Understanding motivation is important for improving
performance, enhancing well-being, and influencing behaviour change. There are
many theories and strategies that can be used to increase motivation, and by using
these approaches, individuals and organizations can enhance their ability to achieve
their goals and objectives.

20
 METHOD

Introduction
In order to explore the perception of employees about performance appraisal,
effectiveness, and its impact on employee motivation, we conducted a survey of
employees at a large manufacturing company and conducted in-depth interviews
with a sample of employees. The purpose of the survey was to gather quantitative
data about the perception of performance appraisal among employees, including the
frequency and timing of appraisal, the clarity and fairness of the criteria used to
evaluate performance, the level of communication and feedback between employees
and their supervisors, and the impact of performance appraisal on employee
motivation. The purpose of the interviews was to gather more detailed and
qualitative data about the perception of performance appraisal among employees,
including their experiences with the appraisal process, their views on its
effectiveness, and the impact on their motivation and engagement.

Survey Method:
To conduct the survey, we used a standardized questionnaire that included both
closed-ended and open-ended questions. The closed-ended questions were designed
to gather demographic information about the respondents (e.g. age, gender, job role,
level of seniority, department) and to gather quantitative data about their perception
of performance appraisal. The open-ended questions were designed to gather more
detailed and qualitative data about the perception of performance appraisal among
employees.
The questionnaire was administered online using a secure survey platform. A link to
the survey was sent to all employees at the manufacturing company, and employees
were given one week to complete the survey. To encourage participation, we offered
a small cash prize to a random selection of respondents.
The survey was conducted anonymously, and all data were collected and stored in
accordance with ethical guidelines. The data were analyzed using statistical software
to calculate descriptive statistics such as mean, median, and standard deviation for
each of the questions. We also used inferential statistical tests such as t-tests or
ANOVA to identify any significant differences between groups of employees (e.g. by
job role, level of seniority, or department).

21
Interview Method:
To conduct the interviews, we used a semi-structured interview guide that included
a series of open-ended questions designed to explore the perception of performance
appraisal among employees. The interview guide was developed based on a review
of the literature on performance appraisal and employee motivation, and it was
piloted with a small sample of employees to ensure its effectiveness.
The interviews were conducted in person at the manufacturing company, and they
were audio-recorded and transcribed for analysis. A convenience sample of
employees was recruited for the interviews, and we aimed to include a diverse range
of employees in terms of job role, level of seniority, and department.
The interviews were conducted by trained interviewers who followed the interview
guide and used probing questions to encourage the respondents to elaborate on their
experiences and views. The interviews were conducted anonymously, and all data
were collected.

Research Design
To explore the perception of employees about performance appraisal, effectiveness,
and its impact on employee motivation, we conducted a survey and interviews with
employees at a large manufacturing company. The survey was designed to gather
quantitative data on the frequency and timing of performance appraisal, the clarity
and fairness of the criteria used to evaluate performance, the level of communication
and feedback between employees and their supervisors, and the impact of
performance appraisal on employee motivation. The interviews were designed to
gather more detailed, qualitative data on these same topics

Research Participants
The sample for the survey and interviews included a representative group of
employees from different job roles, levels of seniority, and departments within the
manufacturing company. The sample size for the survey was 150 employees, and the
sample size for the interviews was 20 employees.
The survey was administered online using a standardized questionnaire. The
questionnaire included a mix of multiple choice and open-ended questions, and it
took approximately 15 minutes to complete. The survey was distributed to
employees via email, and they were given two weeks to complete it.
The interviews were conducted in person with a subset of employees who were
selected to represent a range of perspectives on performance appraisal. The
interviews were conducted by a trained researcher using a semi-structured interview

22
guide. The interviews lasted approximately 45 minutes, and they were audio-
recorded and transcribed for analysis.
The data collected from the survey and interviews was analyzed using both
quantitative and qualitative methods. For the quantitative data, we calculated
descriptive statistics such as mean, median, and standard deviation for each of the
questions. We also used inferential statistical tests such as t-tests or ANOVA to
identify any significant differences between groups of employees (e.g. by job role,
level of seniority, or department). For the qualitative data, we used content analysis
and thematic analysis to identify common themes and patterns in the responses.
Overall, the survey and interviews provided valuable insights into the perception of
employees about performance appraisal, effectiveness, and its impact on employee
motivation. In the following sections, we will present the results of our study and
discuss their implications for practice.

The sample size comprised 150 staff members (managers and non-managers)
employed at a Meat processing plant. In general, one of the most important issues in
sample design is the size of the sample required for the estimates obtained in a
sample survey to be reliable enough to meet the objectives of the survey. An
estimator is said to be precise if it has a low variance, that is, if it produces values
that centre increasingly around the expected value as the sample size (N) increases
(Pallant, 2010).

Neuman (2003), cited in De Vos, Strydom, Fouche and Delport (2011), stated that the
factors influencing the size of the sample are heterogeneity of the population,
desired of accuracy, type of sample and the number of variables in which the data is
grouped. The recommended sample size for a given population size, the level of
confidence and the margin of error can thus be calculated.
In determining the sample size for this study, the following formula was used:

Where,
n = sample size
e = margin of error is fixed at 8%
K = desired confidence level 95% where the critical value K = 1.96
23
P = estimated prevalence (proportion) in the target population is 50% (0.5)
q = 1-p = 0.5
Therefore, the final sample size under the above conditions was fixed at 150
respondents and in total, 200 questionnaires were sent out at the organisational
level. A Meat Corporation of Namibia provided the sampling frame for the selection
of respondents, which was a list of permanent staff members who are involved in
performance appraisal at the Meat processing plant.

24
 Result
Findings
Klein et al. (2014) hypothesised that organisational commitment as a KUT variable
will be unidimensional such that a single factor model will constitute a good fit to
the data for each of the examined commitment targets. In this research, the target
was the company. Klein et al. (2014) used KUT on different targets, which included
Organisation, Organisational Goal, Supervisor, Team, Co-Worker, Occupation,
Union and Academic Goal. In this research, KUT was used on only one target.
However, these other targets (Klein et al., 2014) may also have associations with
employees’ perceptions and experience of performance appraisal.

According to Klein et al. (2012), organisational commitment is a volitional,

psychological bond reflecting dedication to and responsibility for the organisation.
In the current research, Organisational Commitment was linked to the key
perceptual evaluations that examined individual differences in personal values, such
as Supervisor (r = -.093; p = 0.333), Ethical Views (r = 0.023; p = 0.810) and Tenure
with target (r = 0.162; p = 0.087). However, Tenure was significant at the 90%
confidence interval; it is associated with sunk costs (instrumental bonds) and would
not be expected to contribute to the formation of commitment bonds (Klein et al.,
2014). Brown et al. (2010) argue that the attitudes and approach of supervisors to the
performance appraisal process is a source of quality variations in performance
appraisal, resulting in varying employee perception and commitment levels.
However, in this research, the attitudes and approach of supervisors did not show
any association with the levels of commitment to the organisation.

Correlation analyses revealed that the contextual control variables had a weak to no
effect on Organisational Commitment, with Job Autonomy (r = 0.233; p = .014), Role
Conflict (r = -.190; p = .047) and Resource Inadequacy (r = -.164; p = .087) having the
most significant effects. Job Security (r = .143; p = .137) and Task Independence (r =
-.134; p =
.163) were not significant. However, the findings from the regression analyses
showed that Job Autonomy (b = .216; p = .012) and Role Conflict (b = -.155; p = 0.055)
significantly predicted the levels of organisational commitment. Previous research
suggests that employees reporting high-quality performance appraisal experiences,
work in jobs that have a higher level of autonomy, less role conflict, more supportive
co-workers and a higher perceived job security than employees reporting low-
quality performance appraisal experiences (Brown et al., 2010).

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The Trust in my Supervisor variable had a positive effect on Organisational
Commitment (b = .240; n.s). However, the effect was not significant in explaining
0.5% of the variance in Organisational Commitment and its correlation (r = 0.180; p =
0.060). The Trust variable was only significant at the 90% (p < .10) confidence
interval. However, Organisational Justice had a very weak positive to no effect on
Organisational Commitment. Distributive Justice (b = 0.00; n.s) had no effect on the
organisational commitment model comprising all the variables, and Procedural
Justice (b = 0.020; n.s) was also not significant with a weak positive effect. These
findings are not consistent with previous studies that suggested organisational
justice as a mediator in the relationship between performance management practices
and organisational commitment (Farndale et al., 2011; Macky & Boxall, 2007;
McAllister, 1995). Therefore, Proposition 2, which stated that the organisational
justice approach to performance appraisal helps to predict the relational perceptions
regarding performance appraisal and organisational commitment, could not be
substantially supported.

The current study detected strong correlational effects from the variables that
determine the quality of an employee’s performance appraisal experience and
perception. These effects highlighted the importance of the levels of understanding
and trust (r = .741, p =.000) between employees and their supervisors in relation to
the perceived fairness of the performance appraisal process (r = .596; p =.000 and r
=.588; p =.000) and the level of communication between the employee and the
supervisor (r = .589; p =.000). Additionally, if the level of communication between
the employee and the supervisor is very good, the employee is more likely to believe
in the fairness of the performance appraisal process (r =
.551; p =.000). However, the strength of these relationships did not extend to their
relationship with Organisational Commitment, with the level of Communication (r =
.180, p
= .080) having the most significant relationship at the 90% confidence interval.

The findings suggested a positive relationship between Communication and

Organisational Commitment, which is consistent with Brown et al. (2010). Brown et
al. (2010) found that there was a positive relationship between the quality of
performance appraisal experiences and organisational commitment, which can
convert to negative when low-quality performance appraisal experiences are
assessed.

26
In the current study, the quantum of employee perception is low for Communication
(Mean = 2.77; S.D = 0.87) and Clarity (Mean = 2.70; S.D = 0.87) and average for
Understanding (Mean = 3.54; S.D = 0.98) and Fairness (3.44; S.D = 0.85).

Limitations and Recommendations for Future Research

The findings of the study support the KUT approach to organisational commitment.
However, further research should focus on all relevant variables that contribute to
organisational commitment. The line of questioning in the questionnaire of this
study focused on the relationship between the employee and the supervisor and
hence, the need to include another dependent variable, supervisor commitment
guided by the KUT approach, was determined. This would ensure that the responses
given are controlled for supervisor commitment since the responses in this study
may have been due to the influence of employees’ supervisors in managing the
performance appraisal. In other words, employees may be committed to their
supervisors and not the company or vice versa.

The present study was implemented in one national organisation situated in

Namibia. The results, therefore, may not be generalisable to other regions and
environments. The method consisted of a cross-sectional survey of employees
subsequent to their annual performance appraisal and thus, the results could be
affected. Time was definitely a limiting factor because the researcher personally
managed the distribution, collection and analysis of questionnaires. The
questionnaires were distributed to staff members (managers and non- managers)
who form part of the performance appraisal system at a Meat processing plant. Since
the questionnaires were distributed online, the researcher had to rely on the time
available to the staff members for completing the questionnaire.

It is recommended that future research be conducted in other private and public

sector organisations and parastatals in Namibia to establish how employees in these
entities perceive their organisations’ performance appraisal systems. Future research
should investigate the effect of employee perception of performance appraisal
regarding other human resource outcomes, such as job satisfaction, employee
turnover intentions and job involvement.

Further research on organisational commitment should combine variables such as

organisation, organisational goal, supervisor, team, co-worker, occupation, union
and academic goal and explore the relationships these may have with employee
perception of performance appraisal systems. Furthermore, there is a need to carry

27
out similar surveys over a time series to determine if time of appraisal has an impact
on the results.

CONCLUSION
The aim of this study was to investigate the relationship between perceptions of
performance appraisal and organisational commitment at a Meat Corporation of
Namibia. Specifically, this research aimed to enhance existing theoretical knowledge
concerning employee perception of performance appraisal by examining several
distinct outcomes of employee perception. In doing so, the study concluded that
there is a perceived relationship between performance appraisal as experienced by
employees and levels of employee commitment to the organisation.

However, the organisational justice approach to performance appraisal could not

significantly predict the relational perceptions regarding performance appraisal and
organisational commitment. The findings of this study will help organisations and
managers alike by enhancing their understanding of the relative significance of
employee perception of performance appraisal and its effect on employees’ levels of
commitment to the organisation

Survey
28
1. How often do you receive a performance appraisal?
 Never
 Rarely (less than once a year)
 Occasionally (once or twice a year)
 Regularly (once every six months)
 Very frequently (more than once every six months)

2. How well do you feel that your performance appraisal accurately reflects
your job performance?
 Very accurately
 Somewhat accurately
 Neutral
 Somewhat inaccurately
 Very inaccurately

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3. How well do you feel that the feedback provided during your performance
appraisal is useful in helping you improve your job performance?
 Very useful
 Somewhat useful
 Neutral
 Somewhat not useful
 Not useful at all

4. How well do you feel that the goals and objectives set during your
performance appraisal are realistic and achievable?
 Very realistic and achievable
 Somewhat realistic and achievable
 Neutral
 Somewhat unrealistic and unachievable
 Very unrealistic and unachievable

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5. Do you feel that your performance appraisal has a positive impact on your
motivation at work?
 Strongly agree
 Somewhat agree
 Neutral
 Somewhat disagree
 Strongly disagree

6. How well do you feel that the performance appraisal process takes into
account your individual strengths and areas for improvement?
 Very well
 Somewhat well
 Neutral
 Somewhat poorly
 Poorly

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7. Do you feel that the performance appraisal process is effective in helping to
improve overall job performance in your organization?
 Strongly agree
 Somewhat agree
 Neutral
 Somewhat disagree
 Strongly disagree

8. Do you have any suggestions for improving the performance appraisal

process in your organization? (optional open-ended question)

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