Chapter 1

INTRODUCTION

This chapter presents the background of the study, objectives of the study,

scope and limitations and significance of the study.

Background of the Study

In today’s competitive and continuously changing work environment, it is

important for any organizations to know the efficiency and performance of

employees in their organization. That is why, there is a performance evaluation

being conducted periodically. It is an assessment that can help the employer

determine the strengths of their employees and identify those areas where their

employees need improvement to be more effective and efficient in his/her job.

One of the organizations that conduct the periodic performance evaluation

of the employees is the Department of Budget and Management (DBM) which

uses a paper-based evaluation system. Using this system, the Human Resource

Development and Management (HRDM) personnel distribute evaluation forms to

the supervisors or managers and then later collect them for the compilation of

result which is done manually. According to the HRDM personnel, such process

consumes a lot of time in encoding and computing the scores. The process is

also prone to human error that sometimes causes inaccurate result.

Automation is one way to minimize the problems in a paper-based

evaluation. According to the Shiv Technology Company (2013), the method of

automation helps a development community improve its efficiency and

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effectiveness. Automation reduces the work done by an individual and also its

speed requirements. In automation, systems can produce accurate output since

works are performed by computers which avoid human error such as incorrect

data encoding and wrong computation.

With the purpose of addressing the stated problems, the researcher wants

to develop a system to automate the employee performance evaluation for DBM.

The system was expected to minimize the time of processing the evaluation and

to produce accurate result.

Objectives of the Study

The main objective of the study is to develop an automated employee

performance evaluation system for Department of Budget and Management to

help minimizing the time in processing the performance evaluation of the

employee that will be conducted by the HRDM office.

Specifically, the study aims to:

1. design an automated employee performance evaluation system which has

module for adding, maintaining, and viewing of employee and

managers/supervisors’ information, computing of scores and generating

reports and another module which is intended for inputting of scores.

2. develop an automated system that is user-friendly, reliable, efficient, easy to

install and maintain;

3. test and evaluate the developed system; and

4. provide user support documentation.

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Scope and Limitations

This study employee performance evaluation system is an automated

evaluation system that will help the HRDM personnel in conducting employee

performance evaluation.

The system will be composed of two (2) modules, the administrator

module and the evaluation module. Administrator module is managed by the

administrator which includes adding and maintaining of information of the

employees and managers/supervisors, evaluation tools and computation of

scores. Using this module, the administrator can view and print the result

generated by the system. The evaluation module is used by the supervisor or

managers where they can input their scores for the employees. Evaluation

module is connected to the administrator module through a Local Area Network

(LAN) connection.

The system will be developed using Visual Basic .NET 2010 as the

programming language and development environment, Microsoft SQL Server

2008 for the database management, Photoshop CS6 for the design of the

interface and Microsoft Word 2010 for the printing of reports.

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Significance of the Study

This study will be beneficial to the following:

DBM Administration

The study helps the administration in determining the performance

evaluation of the employees. It also reduces the costs of conducting performance

evaluation by eliminating papers that are used as tools in the evaluation.

HRDM Personnel

This helps them minimize their work in conducting performance evaluation

by providing modules that computes the evaluation scores so as not to take so

much time in computing and compiling the score and module to maintain and

update the employee’s information.

Employee

Since the computation is done using computer-based system, the results

of the evaluation will be fast and reliable. The reliable results of the evaluation

will help them know their strengths and weaknesses so they can plan an

immediate action to improve their performance.

Managers/Supervisors

This study provides fast and easy way for them to give feedbacks to their

employees which can be used in improving their performance that would be

beneficial to them.

Future Researchers

This study can serve as their reference in conducting similar projects and

developing automated systems.

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Chapter 2

THEORETICAL FRAMEWORK

This chapter presents the review of related literature and studies, and

conceptual model of the study.

Review of Related Literature and Studies

Performance evaluation is an important tool in assessing the contribution

of an employee in an organization. According to Visava and Pillai (2021), a

performance appraisal is a regular review of a worker’s job performance and

overall contribution to the company. Performance appraisal is used by

companies to provide employees with broad feedback on their work.

Also, as mentioned by Syamsul, Sumiyati and Masharyono (2017),

employees are one of the most important components owned by the organization

in achieving their purpose. Success or failure of an organization depend on their

activities related to the measuring the competence of employees that works in

the organization. Therefore, the need to a system that can give picture of the

performance of employee is needed.

In conducting performance evaluation, there are problems that occur

especially when it is conducted using manual process. Rankin (2006) stated that

manual process of evaluation is time consuming, inefficient, and tiresome for the

personnel conducting the evaluation. Lots of time and work are needed for the

distribution, collection and compilation of survey papers used in the evaluation.

Additional personnel may still be needed in computing the evaluation scores and
 6

interpreting the results. It would also take so much time before the result of the

evaluation is delivered to the employee concerned.

In the study of Gines (2010), she said that advancing in technology

especially in computer helps decrease the cost of many problems in manual

processes such as the problem in paper-based performance evaluation. Through

the rise of the computers, organizations adopt the use of software applications to

be implemented for the improvement of their performance in office and in serving

their clients. By means of computerization, systems represent information stored

in the database which can be managed by a single administrator to do the

analysis and generate the report.

Further, systems can be developed using appropriate applications. One

application that can be used is the Visual Basic (VB) .NET 2010. According to

Utley (2002), VB .NET has a lot of advantages more than other programming

languages like C#. VB is more user-friendly because while programmers are

typing the codes, errors can already be identified. It also provides default values

in some parameters and collections of controls.

Furthermore, systems generating reports include printing process which

can be done by using appropriate reports generating and printing software. One

software that can be used in generating and printing reports is the Microsoft (MS)

Word. According to Chipman (2003), MS Word can be integrated to the Visual

Basic because there are tools in the MS Visual Studio that enable developers to

interact with the objects in the MS Word by using a .NET language like Visual

Basic. Objects are accessible through the codes in Visual Basic.

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Moreover, in developing systems, software that manages the database

should be considered. One database management system that can be used is

the Microsoft (MS) SQL Server. According to Boone (ND), MS SQL Server has

built in transparent and data compression. Modifying or changing of programs is

not anymore, a need to encrypt data. MS SQL Server offers better performance

in data collection that includes efficiency in accessing control and permission

management. Even though MS SQL Server supports databases up to 524

terabytes (TB), its data compression features can reduce database size. Backup

databases can also be compressed. In addition, MS SQL Server has better

password management and authentication features to enforce stronger

passwords. No additional cost is required because MS SQL Server has

advanced compression, data management tools, disk partitioning and advanced

security.

The interface is also one thing to consider when developing a system for

the users to find it easier to use. Adobe Photoshop is one of the several image-

editing software that can be used in editing backgrounds and interface of an

application. According to Gibb (2006), Photoshop is widely considered as the

best software in editing images in the world because of its several advantageous

features. Advanced effects in images can be done in Photoshop which can be

able to finish within days or weeks but can be done using few settings and few

clicks only unlike any other software.

Networking is used to connect different computers. One type of

networking is the LAN that connects computers within a small area. According to
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Whitten (2009), networking allows two or more computers to share data by

connecting them together. Through LAN, Data are shared by computers

connected in it. He also added that LAN connection is very helpful to a business

because business companies have more than one computer, and it is beneficial

if those computers are connected through LAN.

The use of architecture is one important thing to consider in computer

networking. One of several architecture is the Client/Server architecture.

According to Zafar (2011), in a client/server network, the client computers access

data from the database that is stored in the server. It is advantageous because it

reduces the volume of data traffic on the network. Also, the server has faster

response to each node or client and it allows providing less expensive client

computers because the work is done by the server.

Conceptual Model of the Study

Based on the abovementioned literature and studies, the conceptual

model of the study, shown in Figure 1, presents the system requirements,

processes involved in developing the system and output of the study. It is

composed of four (4) blocks: input, process, output and evaluation blocks.
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INPUT PROCESS OUTPUT

 Project Analysis
 Knowledge -Requirement
Requirements Analysis
-Evaluation -Design Analysis
System  Project Design
-Programming -Context Flow
-Networking Diagram
-Database  Project
Management Development
System -Software
-System Design Development Life
 Software Cycle
Requirements -Data Flow Automated
-Visual Diagram Employee
Basic .NET 2010 -Entity Performance
-Adobe Photoshop Relationship Evaluation
CS6 Diagram System
-MS SQL Server  Testing
2008 -Alpha Testing
 Hardware
Requirements
-Computer at least
1GB of RAM, 10
GB HD and Dual
Core processor
-Printer
- Hub
-Network Cable

EVALUATION

Figure 1. Conceptual Model of the Study

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Input block includes knowledge requirements, software requirements and

hardware requirements. In knowledge requirements, knowledge about evaluation

system, database management system, networking, programming and system

design are included. For the development of the system, software applications

are needed. These include Visual Basic .NET 2010, Adobe Photoshop CS6, MS

SQL Server 2008. Physical materials are also required in system development,

these are the hardware requirements which include a computer unit of at least

1GB of RAM, 10GB of Hard Disk and Processor of dual core and a printer. Also,

a network cable and a hub are needed for the network setup of the system.

The process block refers to the processes involved during the

development of the system. It includes project analysis, project design, project

development and testing. Analyzing the design and functional requirements of

the system is important to know what the system is all about. Project design

includes the construction of Context Flow Diagram. In the project development,

the Software Development Life Cycle, Data Flow Diagram and Entity

Relationship Diagram will be used in determining the processes in the system.

After the development, the system will be tested using alpha testing since it will

be used by the supervisors and managers and HRDM personnel. Finishing the

said processes will result to the completion of the modules and of the entire

system.

After the output block, evaluation follows which will be used in determining

if the system meets the objectives set into it. Analysis of the result of the

evaluation will be used for improvements in the input phase again.

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Chapter 3

RESEARCH METHODOLOGY

This part of the study includes project design, project development and

operation, testing and evaluation procedures.

Project Design

This system is designed to automate the paper-based performance

evaluation system in Department of Budget and Management. It consists of two

(2) separated modules which will be connected through LAN Connection. The

administrator module is designed for managing all the data needed for the

evaluation, computation of score and generating report. The evaluation module is

designed for the supervisors or managers where they can input their evaluation

scores.

Figure 2 shows the context flow diagram of the system with the basic

input, output and general process that represents the whole system.

Managers/Supervisors Student number, last name, score

0

Administrator
User name, password, records
Automated Performance Evaluation
System
Evaluation result and reports

Figure 2. Context Flow Diagram

There are two (2) types of users of the system namely

managers/supervisors and administrator. Each user provides username and

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password to access the system. Managers/supervisors use their respective

employee number as their username. While the administrator will be provided

with username and password which can be updated.

Project Development

To develop the system, System Development Life Cycle (SDLC) will be

used to show the activities that will take place in each phase of the project.

According to Murch (2001), SDLC is a model that describes the activities and

stages involved in developing systems, from conceptualizing the study to

maintenance up to its completion. There are six (6) phases in the SDLC namely

planning, analysis, design, construction, testing and rollout phase as shown in

Figure 3 shows.

Project System
Design Construction Testing Rollout
Planning Analysis

Figure 3. System Development Life Cycle Model

Phases of the SDLC happen in sequence. The output of the current phase

will be used as the input in the next phase. The following is the discussion of

each phase.

Project Planning Phase

In this phase, gathering of information took place. The developers

interviewed the client of the system to know the user’s needs, features and
 13

functional requirements that the system must be able to perform. The letter of

request will be made. After gathering the needed information, the problem was

identified, and the developer thought of the software and hardware required to

build the system and be able to comply with the user’s need. The software

needed to build the system as thought by the developers are Visual Basic .Net

2010 as discussed by Utley (2002) for the programming language and

development environment, MS SQL Server 2008 as the back-end. Adobe

Photoshop can be used in designing the interface of the system as discussed by

Gibb (2006). To show the tasks that are to be performed and the time frame to

finish the project, the Gantt chart will be developed.

Systems Analysis Phase

The outputs got in the previous phase were used as inputs in this phase.

The developers conducted interview with the client and the end-users to

determine the user’s requirement in the system.

Design Phase

The modules of the proposed system are identify based on the end-user

requirements and ideas from the related systems that was reviewed in the

previous phase. After reviewing the design of the related systems, the

developers designed the network design, data flow diagram, database design,

and database relational diagram to be able to meet the functional requirements

of the system. The network design of the system is shown in Figure 4.

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Server (Administrator)

Hub/Switch
Client Client

Client
Client
Client

Figure 4. Network Design of Automated Employee Performance Evaluation

System

The proposed system network design represents several computer units

connected using a hub or switch. Computer unit signify the different modules of

the system namely the administrator module as represented by the server

computer and the evaluation module which is represented by the client

computers.

Construction Phase

In this phase, the completed design of the system will be used as input.

The developers will start in designing the interface and in programming. The
 15

developers will use the Adobe Photoshop to design the interface, VB .NET 2010

in programming and MS SQL Server 2008 for the database. The developer will

test the system and debug the errors until the system is ready to be tested in the

testing phase.

Testing Phase

After all possible errors are removed and the system is ready for testing,

evaluation of the finished system will take place. The alpha testing will be used.

In the preliminary evaluation, the developer together with his adviser will first test

the system. After the preliminary evaluation follows the final evaluation which will

be done by the personnel of HRDM and ten (10) selected managers/supervisors

from different department. Comments and suggestions will be considered

through the evaluation form.

Rollout Phase

When the evaluation was finished, the developer will install the system

where the evaluation will take place. A computer unit will be used to install the

administrator module while another computer will be used for installing the

evaluation module.

Operating and Testing Procedures

To test and operate the administrator module of the system, the following

procedures will be followed:

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1. The administrator opens the project containing the administrator module.

2. The administrator inputs the username and password upon opening the

project.

3. Upon successful log in, the administrator can manage the data that will be

used in the system.

However, to test and operate the evaluation module, follow these

procedures:

1. The managers/supervisors input their employee number and their last name

as their password.

2. Upon successful log in, the manager/supervisor can then input their scores

and comments.

3. The manager/supervisor submits the evaluation after answering all the time.

Evaluation Procedure

This system will be undergoing two (2) evaluation procedures such as

preliminary and final evaluation to ensure that this system will be working well.

Preliminary Evaluation

In the preliminary evaluation, the developer together with his adviser first

evaluated the system to know if it is functioning with respect to its requirements.

Final Evaluation

In the final evaluation, the developer will demonstrate to the administrator

and to the managers/supervisors how the system will be operated. The

respondents who will evaluate the evaluation module are the

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managers/supervisors. The administration module will be evaluated by HRDM

personnel. Comments and suggestions regarding the system was gathered. In

this phase, the developers verified if the new system contains all the required

functions and meets quality or standard requirements.

The final evaluation confirmed that the system is ready for rollout phase.

Evaluation Instrument

This study will adapt the ISO 9126 model as the basis of the evaluation

tool to be used in evaluating the system. As cited by Sadana (2006), this quality

model was recognized internationally and acknowledge by majority of the

organization around the world.

The ISO 9126 Quality model six (6) main characteristics: functionality,

reliability, usability, efficiency, maintainability and portability. Those

characteristics will define.

Functionality

This characteristic defines what the software does to fulfil needs. This is

also the range of the operations that the system capable doing all the functions.

Reliability

This characteristic specifies the ability of the software to operate the

system free and to maintain its level performance under stated conditions for a

stated period.
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Usability

This characteristic regards to functionality and refers to the ease of use for

a given function of the system. And determines how attractive the system

appears to the user and how it tests to manipulate and operate the system.

Efficiency

This characteristic pertains to the capability of the system to provide

suitable response while performing the system functions and to utilize resource

efficiently.

Maintainability

This characteristic is capable to identify and fix a fault within a software

component is what the maintainability characteristic addresses.

Portability

This characteristic is concerned that the effort is required to transfer

software from one environment to another and how easy the new system can be

moved, installed and used of another system for the same purpose,

Statistical Treatment of Data

The developer will use the ISO 9126 Quality Model for the evaluation of

the automated employee performance evaluation system. An evaluation sheet

contains six (6) characteristics with their respective sub-characteristics will be

given to each evaluator to be rated.

Table 1 shows the scoring system.

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Table 1. Scoring System Table

Numerical Rating Equivalent
3 Excellent
2 Good
1 Fair
0 Poor

The scoring system will be used in evaluation of the automated employee

performance evaluation system. The numerical rating is scaled from zero (0)

which is the lowest with the description of poor to three (3) which is the highest

with the description of excellent. The results will be summarized to get the quality

factor.

Table 2 presents the prioritization of characteristics table.

Table 2. Prioritization of Characteristics Table

Characteristics Priority
Functionality 6
Reliability 2
Usability 3.5
Efficiency 1
Maintainability 5
Portability 3.5

The prioritization of characteristics table contains six (6) characteristics of

ISO 9126 and their respective prioritization. Functionality got the highest priority

factor of six (6) while efficiency got the lowest priority factor of one (1).

According to Sadana (2006), to get the quality factor of a system, the

following formula should be followed:

QF = TQVS/ITQVS

Where:

QVC = average of each characteristics

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FQVC = QVC * Pr

TQVS = ∑FQVC

To get the total mean value of the system (TQVS) all the final mean value

of each characteristics (FQVC) are added together. The final basis of the

system’s overall rating is the quality factor (QF). It is equal to the TQVS is divided

by the ideal total quality of the system (ITQVS). The ITQVS will compute when all

the sub-characteristics are rank three (3) by the evaluators.

Table 3 shows the range of mean value with their respective description

and interpretation.

Table 3. Range of Mean Value

Range of Mean Value Description Interpretation
The system meets all the
specific requirements with
accuracy, user friendly
0.76 – 1.00 features, optimal use of Excellent
resources, ease of
maintenance and portability.

The system meets most of

the specific requirements
with accuracy, user friendly
0.51 – 0.75 features, optimal use of Good
resources, ease of
maintenance and portability.

The system meets some of

the specific requirements
with accuracy, user friendly
0.26 – 0.50 features, optimal use of Fair
resources, ease of
maintenance and portability.

The system meets few of

the specific requirements
with accuracy, user friendly
0.00 – 0.25 Poor
features, optimal use of
resources, ease of
maintenance and portability.
 21

In order to accept the system, the developers should have an equivalent

interpretation of good with the mean value of 0.51

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