hrm thesis viva slide

FAIR PERFORMANCE APPRAISAL AND ITS EFFECTS ON ORGANIZATIONAL

COMMITMENT OF LECTURERS IN UNIVERSITI UTARA MALAYSIA

MASTERS DISSERTATION VIVA

MASTERS IN HUMAN RESOURCE MANAGEMENTOTHMAN YEOP ABDULLAH GSBUNIVERSITI UTARA MALAYSIA

PREPARED BYPRIDHIVRAJ NAIDU

SUPERVISED BYPROF. MADYA DR.

MOHMAD YAZAM SHARIF

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CHAPTER 1

Introduction

Higher Education – Important asset to the country Malaysia – Higher Education is a foundation for natural development. The National Higher Education Strategic Plan (2007- 2020) Performance – as a benchmark and it plays a significant impact in achieving

the policies and goals of the government.

“We’ve no choice but to concentrate on quality. We want Malaysia to be a hub of higher education. We want first-class mentality students”

Datuk Seri’ Mohamad Khaled NordinMinister of Higher Education (2008 – 2011)

Performance Measurement - since 2006, 70% of HEI started implementing. MQA – SETARA 2007, 2009 & MyRA 2011. MyRA – Quantity and Quality of Researcher 55%.

PM – Change and adopt according to requirements and environment. UUM – PM shift from Manual to Online system based evaluation. Research and Consultation Information System (ReCIS).

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CHAPTER 1

Problem Statement

Lecturers’ commitment towards their institution is reciprocal in nature.(Miah & Talukder, 2012)

Commitment refers to the attitude of the employees toward their organization.(Allen and Meyer, 1990)

Decreasing organizational commitment has a high correlation with turnover.(Griffeth & Hom, 1995; Griffeth, Hom & Gaerthner, 2000)

Psychological withdrawal from the efforts of the organization.(Hsu, 2002)

Annual Achievements Report

(RIMC Achievements 2012 and 2013)

(UUM - RIMC Achievements 2012 and 2013)

Intellectual Property Registration 2012 2013

Original Writings 367 62 83.1%

Other Intellectual Properties 83 31 62.6%

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CHAPTER 1

Research Questions

1. Does fair performance appraisal have a relationship with organizational commitment of lecturers?

1.1 Procedural Justice – Organizational Commitment1.2 Distributive Justice – Organizational Commitment1.3 Informational Justice – Organizational Commitment1.4 Interpersonal Justice – Organizational Commitment

2. To what extent does fair performance appraisal influence organizational commitment of lecturers?

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CHAPTER 1

Research Objective

1. To determine the relationship between fair performance appraisal and organizational commitment of UUM lecturers.

1.1 Procedural Justice – Organizational Commitment1.2 Distributive Justice – Organizational Commitment1.3 Informational Justice – Organizational Commitment1.4 Interpersonal Justice – Organizational Commitment

2. To determine the extent to which fair performance appraisal influences organizational commitment among UUM lecturers.

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CHAPTER 2

Literature Review

Organizational Commitment (DV) Generally relates to the behavior of the employee and their

identification with the institution and their involvement in the organization.

Personal attachment between the employees, and the goals of the institutions they are acquainted to.

Performance Appraisal Performance management process links organizational objectives,

performance standards and performance evaluation, which is used to measure the effectiveness and efficiency of the employees.

Fairness of Performance Appraisal Based on the practices of the organization and the employers

towards the employees themselves and is also the deciding factor for the success of the performance appraisal itself

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CHAPTER 2

Literature Review

Organizational Justice Theory (Greenberg, 1987)

Distributive Justice (IV)Focuses in justice of resources allocation among the employees, looks at the relative gain for the work done by the employee.

Procedural Justice (IV)Procedural justice is how managerial decisions are derived, fairness in the procedures used in deciding the performance itself is more important than the amount of reward received.

Interpersonal Justice (IV)individual relationship between the person that executes distributive and procedural justice and the employee.

Informational Justice (IV)Communicating relevant reasons for the procedures used in appraising, and the rational of the distribution of rewards to the employee in the organization

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CHAPTER 3

Research Methodology

RESEARCH FRAMEWORK

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CHAPTER 3

Research Methodology

HYPOTHESIS

Hypothesis 1: Fairness in conducting performance appraisal has a significant relationship with the organizational commitment of lecturers

Hypothesis 1a: Fair procedures in conducting performance appraisal have a significant relationship with the organizational commitment of lecturers.

Hypothesis 1b: Fair distribution of outcomes based on performance appraisal has a significant relationship with the organizational commitment of lecturers.

Hypothesis 1c: Relationship between the employee and the supervisor (Interpersonal justice) has a significant relationship with the organizational commitment of lecturers.

Hypothesis 1d: Communication between the employee and the supervisor (Informational justice) has a significant relationship with the organizational commitment of lecturers.

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CHAPTER 3

Research Methodology

VARIABLES ITEM RESEARCHER RELIABILITY

Dependent Variable

Organizational Commitment 9 Mowday, Steers and Porter, (1979)

0.967

Independent Variable 0.916

Procedural Justice 7 Colquitt, (2001) 0.769

Distributive Justice 4 Colquitt, (2001) 0.947

Interpersonal Justice 4 Colquitt, (2001) 0.948

Informational Justice 5 Colquitt, (2001) 0.933

MEASUREMENT & INSTRUMENTS

Cronbach Alpha value of 0.7 and above is accepted (Sekaran, 2003; Salking 2009; Sekaran & Roger, 2010)

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CHAPTER 3

Research Methodology

METHODOLOGY

Methodology

Research Design Quantitative

Population and Sample Total Lecturers in UUM: 1198Num. of Sample required: 291

Sampling Method Stratified Random Sampling

Layout of Questionnaire 5 point Likert Scale, 5 Variables

Pilot Test First 30 respondents

Data Collection Technique Google Doc. Email questionnaire

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CHAPTER 3

Research Methodology

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DATA ANALYSIS TECHNIQUE

Objective Analysis

1. The relationship between fair performance appraisal and organizational commitment of UUM lecturers.

Correlation / Regression

1.1 The relationship between Procedural Justice and organizational commitment of UUM lecturers

Correlation / Regression

1.2 The relationship between Distributive Justice and organizational commitment of UUM lecturers.

Correlation / Regression

1.3 The relationship between Interpersonal Justice and organizational commitment of UUM lecturers.

Correlation / Regression

1.4 The relationship between Informational Justice and organizational commitment of UUM lecturers.

Correlation / Regression

2. The extent to which fair performance appraisal influences organizational commitment among UUM lecturers.

Correlation / Regression

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CHAPTER 4

Data Analysis

RESPONSE RATE

Academic College Distribution Response Response Rate (%)

College of Arts and Science (CAS) 178 52 29.21

College of Business (COB) 227 199 87.66

College of Law, Government and International Studies (COLGIS)

95 65 68.42

500 316 63.20

Response rate above 50% is generally acceptable.(Hair et.al, 2010)

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CHAPTER 4

Data Analysis

RESPONDENTS PROFILE

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CHAPTER 4

Data Analysis

Variables No of Items Pilot Test Actual Study

Organizational Commitment 9 .967 .940

Procedural Justice 7 .769 .850

Distributive Justice 4 .947 .944

Interpersonal Justice 4 .948 .925

Informational Justice 5 .933 .733

RELIABILITY TEST (Cronbach Alpha)

Cronbach alpha value more than 0.7 is acceptable to conduct research.(Nunnally & Bernstein, 1994; Sekaran, 2003)

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CHAPTER 4

Data Analysis

Variables KMO and Bartlett’s Test Component Matrix

KMO Value Sig. Num. of Items Component

Organizational Commitment .900 .000 9 .730 to .885

Procedural Justice .818 .000 7 .605 to .847

Distributive Justice .843 .000 4 .916 to .934

Interpersonal Justice .834 .000 4 .756 to .965

Informational Justice .778 .000 5 .735 to .996

FACTOR ANALYSIS

Minimum factor loading of 0.5 for anti image to be included in the factor analysis.

(Atyo, Adamson & Cant, 2001)

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CHAPTER 4

Data Analysis

Variables (n=316) Skewness Kurtosis

Statistic Std. error Statistic Std. error

Organizational Commitment -1.119 .137 1.791 .273

Procedural Justice -.524 .137 .516 .273

Distributive Justice -.700 .137 .149 .273

Interpersonal Justice -1.06 .137 1.23 .273

Informational Justice -.554 .137 .020 .273

NORMALITY TEST

The skewness values must not be more than 1.96 at sig. 5% (Hair,et.al.,1995)

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PROSEDURAL JUSTICE

DISTRIBUTIVE JUSTICE

INTERPERSONAL JUSTICE

INFORMATIONAL JUSTICE

ORGANIZATIONAL JUSTICE

Organizational Commitment .434** .298** .525** .628** .581**

CHAPTER 4

Data Analysis

CORRELATION

REGRESSION

**P<0.01, R2 = 41.6

ORGANIZATIONAL JUSTICE

PROCEDURAL JUSTICE

DISTRIBUTIVE JUSTICE

INTERPERSONAL JUSTICE

INFORMATIONAL JUSTICE

Beta (β) .581 .122 -.030 .129 .486

Sig. .000 .025 .550 .049 .000

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CHAPTER 4

Data Analysis

Hypothesis Result

1 1: Fairness in conducting performance appraisal has a significant relationship with the organizational commitment of lecturers Accepted

2 1a: Fair procedures in conducting performance appraisal has a significant relationship with the organizational commitment of lecturers

Accepted

3 1b: Fair distribution of outcomes based on performance appraisal has a significant relationship with the organizational commitment of lecturers

Rejected

4 1c: Relationship between the employee and the supervisor (Interpersonal justice) has a significant relationship with the organizational commitment of lecturers

Accepted

5 1d: Communication between the employee and the supervisor (Informational justice) has a significant relationship with the organizational commitment of lecturers.

Accepted

HYPOTHESIS TESTING

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CHAPTER 5

Discussion and Conclusion

FINDINGS

Significant relationship between the four dimensions of organizational justice and the organizational commitment of UUM academicians.

From the regression results it was also apparent that overall Organizational Justice has a significant relationship with the lecturers Organizational Commitment.

Anyhow when tested separately, Procedural Justice, Interpersonal Justice and Informational Justice projected significant relationship, only Distributive Justice failed to register a significant relationship with lecturers’ organizational commitment.

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CHAPTER 5

Discussion and Conclusion

Relationship between Fair Performance Appraisal and Organizational Commitment

Organizational Justice and Organizational Commitment – ModerateEmployees are concerned on all the four dimensions and it affects the employees’ organizational outcome behaviors such as organizational commitment (Ambrose, 2002 & Bies, 2001)

Procedural Justice and Organizational Commitment - ModerateDistributive Justice and Organizational Commitment - WeakInterpersonal Justice and Organizational Commitment - ModerateInformational Justice and Organizational Commitment - Strong

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CHAPTER 5

Discussion and Conclusion

The Major Influence of Perception of Fair Performance Appraisal to Organizational Commitment

Organizational Justice and Organizational CommitmentSignificant - β .581

1. Informational Justice and Organizational CommitmentSignificant - β .4862. Interpersonal Justice and Organizational Commitment Significant - β .129 3. Procedural Justice and Organizational CommitmentSignificant - β .122 4. Distributive Justice and Organizational Commitment Not significant - β -.030

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CHAPTER 5

Discussion and Conclusion

Limited Generalizability 52 public and private, universities and university collages operating in Malaysia (Rating results for SETARA'11 & MyRA, 2012). Taking into consideration the other factors that may influence the

organizational commitment of lecturers in UUM. Cross Sectional Analysis - the study is unable to conduct comparison of

perceptions.

Relationship of fair performance appraisal and the affects work related behaviors’ such as organizational commitment

Implementing the organizational justice perspective in increasing positive behavioral reactions

Area of importance in terms of fairness of performance appraisal in UUM

Limitations

Implications

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CHAPTER 5

Discussion and Conclusion

Emotional Factors

Communication and Treatment they receive from the organization compared to the reward that they receive.

Quality work force with productive effort.

Improving in the performance appraisal system in the university

CONCLUSION

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THANK YOU

Pridhivraj Naidu - 814284Masters in Human Resources Management

Othman Yeop Abdullah GSBUniversiti Utara Malaysia