Introduction
Roberts (2003, p.89) argued that performance appraisal is a controversial management tool that provides answers to problems within the system design and administration of organizations. Majority of the organisations have adopted appraisal systems to enable it gauge employee performance in trying to boost morale, and reward them accordingly. However, despite the importance and popularity of the performance appraisal in organisations, its implementation and effectiveness have been controversial (Liu and Dong, 2012, pp. 150). In fact, some studies revealed that there are many performance appraisal systems that have completely failed to motivate employees to do a better job (Oh and Lewis, 2009, pp. 159 -160). However, participatory performance appraisal is an essential and proven attribute of an effective performance appraisal system (Roberts, 2003, p. 89).
The true performance appraisal participation is a process that can lessen the instance of dysfunctions of traditional performance appraisal systems, in order to promote a more “humane and ethical human resource management decision-making process” (Roberts, 2003, p. 89). It is best to focus on the employees’ morale, rather than in the behaviour or on objective features of organizations (Weakliem & Frenkel (2006, p. 336). The importance of performance appraisal system will help in answering some of the important questions about the relationship between workers’ feelings and their performance (Weakliem & Frenkel, 2006, p. 336). An organisation will be able to effectively improve its overall productivity by placing an emphasis on the performance appraisal process which can affect the employees’ perception of its fairness (Kavanagh, Beson & Brown, 2007, p. 336).
Background of the Study
The researcher believes that there is strong justification to study this area as it is important for organisations to understand the impact of appraisal systems on employee morale and consider options to ensure morale is sustained. The researcher anticipates the study will have both theoretical and practical significance as it investigates the impact of appraisal systems on employee morale which can bring positive effects on the employees’ performance, therefore, the organisation’s profit (Linz et al., 2006, p. 416) and reach the goals of productivity (Wright and Cheung, 2007, p. 207). The lack of appraisal systems is fatal to both employees and the organisation since it is indispensable for its survival and growth (Kim & Rubianty, 2011, pp. 330, pp.342), which can be determined by its compensation and reward system (Ducharme et al (2005, p. 46). On the other hand, the negative outcomes in using appraisal systems ineffective goal setting, lack of motivation, loss of confidence, poor team work, among others (Davis (2012, pp.11).
Aim and Objectives
The aim of this research is to investigate the impact appraisal systems have on employee morale. The study will achieve this by:
- Investigating the roles played by managers and subordinates within the appraisal process
- Investigating the different factors that affect employee morale during the appraisal process
- Establishing the use(s) of the appraisal system by the organisation to be studied and employees perception of these use(s)
Research questions
In order to achieve the research aim and objectives, the study will seek to answer the following questions:
- What factors affect employee morale within the appraisal system?
- What impact do these factors have on employee morale?
- What are the roles senior managers and line managers play in managing appraisal systems?
- What is the effect of participation of the employees in the appraisal process in terms of productivity and growth?
Learning Objectives and Style
At the end of this research, the researcher will be able to
- Identify those factors that affect employee morale within the appraisal system.
- Understand impact of these factors on employee morale
- Analyse data from different sources that will adequately answer the research questions and probe alternative explanations.
The researcher will make use of questionnaires and one to one interviews to accommodate the researcher’s combination of visual and auditory learning style.
Literature Review
Appraisal is an effective instrument in the human resources management, which, if performed correctly and logically, helps organisations achieve their target (Oshode, et al., 2014). It is an important factor in identifying people’s talents and capacities with results that can make them aware of advancements, plans and goals (Okanye, 2006). Thus, organisations should shift their primary focus on their employees (Palaiologos et al., 2011, pp. 826). If appraisal systems are implemented and managed properly, they are a value-added service that can give an organisation a competitive edge by helping it achieve its business strategies (Wright & Cheung, 2007, pp. 207) . The reward system that is based on the behaviors of leaders are “significant determinants of subordinate perceptions, attitudes, and task performance” (Jackson et al., 2012, pp. 646. At the same time, the appraisal process clarifies employees’ expectation and recognises achievement and progress toward goals (Jackson et al. 2012 pp. 647).
Some critics of performance appraisal argued that individual performance appraisal assumes a false degree of measurement accuracy and engenders dysfunctional employee conflict and competition. When the appraisal system is not properly managed, it can lead to dissatisfaction with the entire system and this may, in turn, influence employees’ intention to quit through reduced job satisfaction (Poon, 2004). However, the proponents of performance appraisal claim that these negative effects are remediable through the application of genuine employee participation (Roberts, 2003, p.89). The participation of the employees is the key to enhance job-related autonomy which promotes the growth of the employee. Intrinsic motivational approaches signify that the management has trust and confidence in the abilities of its employees. Through participatory appraisal, the employees are given the ample opportunity to be heard by management and voice-out their opinions with regard to the performance ratings. The employees are empowered to rebut ratings, documentation or verbal feedback that they disagree with (Roberts, 2003, p.90). This fosters a fair-decision making process that can lead to a more accurate and valid rating. As a matter of fact, the greater employee participation will generate an atmosphere of cooperation and employee support that will encourage the formation of a coaching and counseling relationship. Further, it reduces appraisal-related tension, defensive behavior, and rater-ratee conflict (Roberts, 2003, p.90).
The performance appraisal process should include employee participation in development of performance standards, rating form, employee self-appraisal, and rate participation in the interview (Roberts, 2003, p.90). The two key process to ensure the success of employee participation hinges on the following: 1.) the amount and quality of informal performance feedback; and 2.) goal setting that will be will have positive result in the future (Roberts, 2003, p.91). The development of performance standards in an organization shall be dependent on the rating form and appraisal procedures. This can be illustrated when employee input is gathered on the aspects of performance that was formally appraised and the measurement scales given. Such instance may take place when the employees will opt for a pass/fail system when the emphasis is on global feedback as against more detailed individualized assessments.
On the other hand, the purpose of self-appraisal is to provide the employees with the chance to systematically assess and gauge their own performance. Roberts (2003, p.91) argued that self-appraisal will increase the employee participation and readiness for appraisal interview, over-all satisfaction, perceived appraisal fairness, and the mitigation of defensive behavior. In this way, the employees will be able to conduct self-evaluation by completing their own appraisal wherein they are allowed to present their draft to be discussed with the manager. In return, the employees shall be given the opportunity to review the draft appraisal of the manager. Most of the manager and employee ratings are inconsistent, but in participatory system, the goal is not to reach an absolute agreement. Instead, the process is directed towards the achievement of consensus over a period of time (Roberts, 2003, p.92).
Oshode, et al. (2014) argued that in order for appraisal system to be successful, the implementation should be adjudged fair by all stakeholders. Hence, the performance appraisal process must be imbued with fairness, appraisal satisfaction, supervisory support, appraisal system acceptance and greater employee acceptance of negative feedback (Roberts, 2003, p.92). An important set of the appraisal moderators is goal setting and feedback.
The positive effect of goal setting is that it allows the employees to focus and give attention on critical tasks at hand, enhancing employee persistence and reducing the chances of employee distraction. At the same time, formal and informal feedback will allow the employees to make adjustments in job performance and to receive positive reinforcement to cultivate effective job behavior. Roberts (2003, p.92) explained that performance feedback is instrumental in changing employee work behavior, enhance their job satisfaction and performance, and boost employee morale (Roberts, 2003, p.92).
Peterson et al. (2008, p 21) define morale as a cognitive, emotional, and motivational stance toward the goals and tasks of a group. They conclude that morale subsumes confidence, optimism, enthusiasm, and loyalty as well as a sense of common purpose. This means higher customer satisfaction is achieved when employees are satisfied and motivated. The factors that help to define morale are intrinsic motivation, job satisfaction, work meaningfulness, organizational commitment and work pride (McKnight, Ahmad & Schroeder, 2001). Further, higher morale comes from a “belief that rewards are equitably distributed”, while poor morale relates to lower work effort and productivity (Forret & Love, 2008, p. 251). Low morale in achieving business objectives results to high absenteeism, labour turnover, unresolved grievances or strikes, impedes the achievement of the organization’s desired outcomes (Linz et al., 2006, p. 417). Aguinis (2009) believes that there is much to gain if organizations are able to use their performance management systems for these six purposes: strategic purpose, administrative purpose, communicative purpose, developmental purpose, organizational maintenance, and documentation (Davis, 2012, p. 11).
Methodology
This study employs the use of survey research design. William (2006) confirms that “survey research is one of the most important areas of measurement in applied social research because it encompasses any measurement procedures that involve asking questions from respondents. A survey can be anything from a short paper-and-pencil feedback form to an intensive one-on-one in-depth interview (William, 2006). The interview questions will be semi-structured, highly interactive and in-depth to be able to determine the opinions of the participants in this study.
Instrumentation and Data Collection
The main tool that will be utilized for this research study in data gathering is through a questionnaire. The questionnaire was constructed as closed or fixed type in accordance to the goals and objectives of the research and issues that may arise during the course of the study. The researcher distributed the questionnaire among the respondents chosen for the study. The nature and purpose of the study were carefully explained to the subjects. The questionnaires were gathered and retrieved based on the schedule that was appointed and agreed by the researcher and the subjects. After the questionnaires were gathered and collected, the data contained therein were sorted and tabulated for analysis and interpretation.
There are various research methods which can be considered as valid and reliable which had been used for this study through exploratory methods of a combination of quantitative and qualitative research. By combining these methods, the researcher will be able to identify the effects of performance appraisal system among the employees. The combination of qualitative and quantitative research will give the researcher the opportunity to collect and gather useful data that will are sufficient to answer the formulated research questions and attain the objectives of the study.
Quantitative Research Design
This research study shall use quantitative methodology on the topic which relates to challenges of that the managers have to face when conducting employee appraisal and how such performance appraisal system affects the employee morale within an organization.
For the quantitative research part of the study, the researcher shall make use of a statistic and standardized set of questions where all the participants or subjects were asked similar set of questions (Wimmer & Dominick, 2010). In comparison to the qualitative research method, the follow-up survey questions will only be allowed in the questionnaire, provided that they had been included in the questionnaire or measurement instrument prior to the commencement of the research project. Here, the interviewers who conducted the interview shall not be allowed to deviate from the set of questions that were provided questionnaire. Wimmer and Dominick (2010) stated that the quantitative researcher has to follow the deductive model in the data analysis, where a hypothesis shall be formulated before the study begins. Thereafter, the relevant data will be gathered for analysis for the purpose of allowing the researcher to determine is the hypothesis has been established or confirmed (Wimmer & Dominick, 2010).
For the quantitative research, it will involve several deductive, theory-testing, objective and positivists processes. The epistemology for this study using such kind of approach will need the researcher to assume an independent theory from the variables of the study (McNabb, 2010). The researcher may use realist epistemology and quantitative research methods which are not founded on the perspective that it is the approach which is presumed to be the most accurate and complete. However, the researcher is reminded that the representations are to be taken based on the aspect of what is most informative and useful in a specific situation (McNabb, 2010). The epistemology of quantitative research must present that there is an association between variables (DeLyser, 2010), and that questions on the attitudes in social surveys should be included in order that the quantitative research must also take interest in matters of meaning.
The findings from this initial desktop research will form the basis for designing a questionnaire which had been conducted to measure variables and measured using Likert Scale. The used a quantitative research to elicit views and opinions from line managers and subordinates in Fieldco Limited. The findings of the quantitative research will be tested by carrying out semi-structured in-depth interviews with senior managers at Fieldco. The researcher expects to structure the interview along the lines of the purpose and use of appraisal systems within the organisation, how the effectiveness of this purpose/use is measured, how employees opinion to its effectiveness are gauged, nature of training given to managers around appraisal of staff, management of conflict between managers and subordinates etc.
The interview will focus on a mix of management, composed of senior, middle and lower cadre, as well as subordinates. The researcher believes this approach is necessary to enable the findings of the quantitative method to be checked qualitatively. This will undoubtedly support the achievement of the research’s aim and objectives. The researcher has decided on triangulation on the premise that quantitative research will help establish relationships among variables with qualitative research hopefully explaining the factors responsible for the relationships. The researcher believes that using both research methods will aid any generalisations made in this study. In addition, while the basis of designing the questionnaire will be based on the researcher’s preconceptions, interviews will be expected to balance this subjectivism.
Qualitative Research Design
The primary data will be collected using open-ended interviews and through the distribution of questionnaires to the subjects/participants of the study. The design of the interview questions will be semi-structured and highly interactive and in-depth. The use of a semi-structured interview reflects a qualitative approach. The element of validity and reliability is guaranteed through effective and careful selection of the subjects/participants. There will be other resource persons such as the managers, who possess insightful data through relevant experience and observations. The primary questions that had been asked during interviews are also contained in the questionnaires that had been chosen after careful assessment and evaluation to ensure that the ability of the questions therein to meet the goals and objectives of the study. The data analysis for this study include light statistics that will be presented in detail through visual graphs, identification of relationships and analysis of the various deductions that had been conducted.
Andrew, Pedersen, and McEvoy (2011) argued that a case study has been one of the most commonly used qualitative methodological approaches to conduct a research study on the effect of performance appraisal system and its effects on employee morale. The qualitative aspect will be determined through the use of series of activities including tabular evidence, census data and conducting surveys. The gathering of qualitative data will use the methods such as interviews, focus groups and observations. Andrew et al. (2011) explained that the disadvantage of using interviews is that such activity can be time-consuming. The difference between data collection and interview in the project plan is that interviews can be time consuming while conducting surveys and distribution of questionnaires will require tabulation and analysis of data gathered.
This research will also be looking to see evidence of Longenecker (1997, pp. 213) top ten causes of ineffective managerial appraisals within Fieldco and how these mentioned causes affect employee morale including unclear performance criteria/ineffective rating instrument, poor working relationship with the boss, superior lacks information on actual performance, lack of on-going performance feedback, overly negative/second guessing review, perceived political reviews, and lack of focus on management development/improvement, an ineffective link to reward systems, superior lacks rating skills/motivation, and review process lacks structure/consistency. In addition, the “seven common and persistent failures of performance appraisals that undermine their value and reliability” stated by Davis (2012, pp. 11) will also be investigated within the context of Fieldco’s appraisal systems and these will be investigated further especially the impact on employee morale. The interviews and questions will be designed accordingly to reflect these. The interview questions and questionnaire will be semi-structured, highly interactive and in-depth to be able to determine the opinions of the participants in this study.
The difference between data collection and interviews in the project plan is that data collection is part of the quantitative approach, while interviews shall form part of the qualitative approach. The reason why quantitative approach was opted for data collection is because quantitative methods are often believed to yield more objective and accurate information. The reason behind this is that the data had been collected using standardized methods, which makes it possible to be replicated. In comparison to qualitative data, it can be analyzed using sophisticated statistical techniques. The use of semi-structured questions signifies qualitative approach, which is suitable for formative evaluations needed for the study. Although the two approaches may or may not satisfy the canons of scientific rigor, some of the data collected using quantitative approach may not be accurate and valid since the survey respondents may not understand the meaning of questions to which they respond, or there are instances when the recall of events of the participants is often faulty.
Source: Author’s Work, 2014
Following data collection, the approach proposed for data analysis for this study will be first, to provide a description of the sample from which data will be collected, descriptive information on age, gender, department, years at company, role etc., as well as the means, modes, range, and standard deviations for the derived scores. Second, the researcher will determine if any relationships/correlations or differences exist in the use of appraisal system on employee morale along the lines of age, gender, role, years at company etc.
The researcher expects to use SPSS software to analyse information gathered from the use of questionnaires. The interview questions will be semi-structured, highly interactive and in-depth. The interviews will be coded to label transcribed data. The focus will be on open coding so that concepts will be yielded, which will later be grouped into categories. It is these categories that will provide the basis for the final analysis. The research orientation is ethno methodological as it attempts to evaluate impact of appraisal systems from the perspective of subordinates and managers. This ethno methodological stance to research is to study how people make sense of their social world, so the way subordinates and managers make sense of appraisal systems in Fieldco and the impact on morale will be investigated.
Source of Data:
The research work makes use of a real estate company, Fieldco Limited, located in Lagos, Nigeria. The choice of the real estate sector for this research is hinged on the intensity of competition that characterise the sector and the understanding that such level of competition in a multi-service company will have a huge impact on how colleagues are managed for optimal performance. The pre-conception of the researcher is that using a medium sized organisation like Fieldco will likely generate a significant sample size and opinion, and the company is more likely to manage appraisal systems strategically to sustain and advance their competitive advantage rather than small businesses. In addition, the researcher’s exposure to Lagos Nigeria will ensure sensitivity to cultural nuances is properly managed during data gathering.
Fieldco (a real estate company based in Lagos, Nigeria) is a company involved in sales, leasing, facilities management and development of properties in Lagos, Nigeria. It has five sites and staff strength of about 70 employees. The company has an annual turnover of over US$ 4 million and currently has over 130 residential apartments under management in various sites in Lagos State. The sites are Rebecca Court, Livingold Terraces, Lifestyle Terraces all within Banana Island in Lagos, and will also include Cameron Court, Tarino Tower, which are all within Ikoyi in Lagos. Both the Managing Director and the Head of Human Resource Management are very interested in the findings of this research and have given their permission.
Participants/Subjects of the Study
The sampling approach used can be described as “non- probability” as the purpose was not to use a random selection method but to identify and select those that are more likely to have information about the process (Bryman and Bell, 2003). The sampling approach used is to identify employees who are appraised, and managers who are involved in the appraisal process. In selecting sample from the population of about 80 employees, twenty employees will be selected non-randomly for this study, while the other 4 respondents from each of the five sites of the company. General statements based on action, activities or events in one location to describe the company will be avoided.
Limitation
The main concern of the researcher is that the sample size may not be sufficient to make generalisations. The researcher understands that focusing on just a city and one company in Nigeria may affect the conclusions of the research but the timescale for the research is such that it will be practically impossible to extend this research to more than one city. In addition, some of the participants of this research (both managers and subordinates) may decline in filling the questionnaires.
Resources Needed
The resources required for this research include:
- Electronic libraries for collection of relevant past research and academic journals.
- Computer and Internet: The researcher already has a laptop and Internet service she subscribes to.
- Stationary: The researcher will need about a ream of paper for the questionnaires. The researcher’s sister has assured her that she can print all questionnaires and interview questions needed at her office at no cost.
Project plan
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