cavendish university zambia
TRANSCRIPT
CAVENDISH UNIVERSITY ZAMBIA
SCHOOL OF SOCIAL SCIENCES
ASSESSMENT OF THE IMPACT OF PERFORMANCE APPRAISAL ON
EMPLOYEE PRODUCTIVITY IN LOCAL GOVERNMENT – A CASE
STUDY OF CHILANGA TOWN COUNCIL
BY
SIBONGILE MUKUWA
Research Report
Submitted in partial fulfilment of the Requirements for
Bachelor of Development Studies of
Cavendish University Zambia
(2020)
i
DECLARATION
I, Sibongile Mukuwa, declare that although I may have conferred with others in preparing this
dissertation and drawn upon a range of sources cited in it, it is exclusively my own original work
and has not and will not be presented to any other university for a similar or any other degree
award.
Signature of Student………………………… Date……………………………...
Sibongile Mukuwa
Project Supervisor:....................................... Date............................................
Mary Banda(Mrs.)
ii
DISCLAIMER
This dissertation describes the work carried out as a part of programme of study at Cavendish
University. Therefore, all views and opinions expressed herein remain the exclusive
responsibility of the author and not necessarily those of Cavendish University Zambia.
iii
DEDICATION
To my family and friends, you all contributed to this work in one way or another. God bless you
all. Indeed, your constant support and encouragement brought me this far. My family’s sacrifice
meant that their much-needed social needs were at times denied – but for a good cause. To them
I dedicate this work.
iv
ACKNOWLEDGEMENT
My sincere thanks go to the Almighty God for making it possible for me to finish this project. I
am very grateful to my project supervisor, Ms. Mary Banda for all the necessary support
accorded during the project execution.
Additional thanks go to the Faculty of Social Sciences at Cavendish University for their
academic guidance and also management and staff at Chilanga Town Council, the institution
used in this study for helping in the administration of questionnaires in their various locations. I
would also like to thank all respondents who participated in this study.
v
TABLE OF CONTENTS
DECLARATION ............................................................................................................................. I
DISCLAIMER ................................................................................................................................ II
DEDICATION .............................................................................................................................. III
ACKNOWLEDGEMENT ............................................................................................................ IV
LIST OF ACRONYMS ............................................................................................................. VIII
LIST OF FIGURES ...................................................................................................................... IX
ABSTRACT ................................................................................................................................... X
CHAPTER ONE: INTRODUCTION ............................................................................................. 1
1.1 Background To The Study..................................................................................................... 1
1.2 Statement Of The Problem .................................................................................................... 3
1.3 Objectives Of The Study ....................................................................................................... 4
1.3.1 Main Objective ............................................................................................................. 4
1.3.2 Specific Objectives ....................................................................................................... 4
1.4 Research Questions ............................................................................................................... 5
1.5 Scope Of The Study............................................................................................................... 5
1.6 Significance Of The Study .................................................................................................... 5
1.7 Definition Of Key Terms....................................................................................................... 6
CHAPTER TWO: LITERATURE REVIEW ................................................................................. 7
2.1 Introduction ........................................................................................................................... 7
2.2 Different Methods Of Performance Appraisal ...................................................................... 7
2.3 Employees’ Perception Of Annual Performance Appraisal Systems .................................. 12
2.4 Ways In Which Performance Appraisal Has Impacted Employee Performance ................ 15
2.5 Impact Of Performance Appraisal On Employee Performance .......................................... 18
2.6 Empirical Studies................................................................................................................. 23
2.7 Theoretical Andconceptual Framework .............................................................................. 26
2.7.1 Theoretical Framework .............................................................................................. 26
2.7.2 Conceptual Framework ............................................................................................... 27
2.8 Chapter Summary ................................................................................................................ 28
vi
CHAPTER THREE: RESEARCH METHODOLOGY ............................................................... 29
3.1 Introduction ......................................................................................................................... 29
3.2 Research Design .................................................................................................................. 29
3.3 Data Collection .................................................................................................................... 29
3.3.1 Research Instrument ................................................................................................... 29
3.3.2 Types Of Data ............................................................................................................. 29
3.4 Target Population ................................................................................................................ 30
3.5 Sample Size And Selection Technique................................................................................ 30
3.6 Data Analysis....................................................................................................................... 30
3.7 Research Ethics ................................................................................................................... 31
3.8 Chapter Summary ................................................................................................................ 31
CHAPTER FOUR: FINDINGS AND ANALYSIS ..................................................................... 32
4.1 Introduction ......................................................................................................................... 32
4.2 Demographic Characteristics Of Respondents .................................................................... 32
4.2.1 Gender Distribution Of Respondents ......................................................................... 32
4.2.2 Age Distribution Of Respondents............................................................................... 33
4.2.3 Educational Background Of Respondents .................................................................. 34
4.2.4 Length Of Service Of Respondents ............................................................................ 35
4.3 Relationship Between Performance Appraisal And Employee Performance ..................... 36
4.5 Ways In Which Managers Can Review Past Performance And Improve Current
Performance ......................................................................................................................... 40
4.5 Ways In Which Performance Appraisal Enhances Employee Performance ....................... 43
4.6 Chapter Summary ................................................................................................................ 46
CHAPTER FIVE: DISCUSSION OF FINDINGS ....................................................................... 47
5.1 Introduction ......................................................................................................................... 47
5.2 Discussion Of Findings ....................................................................................................... 47
5.2.1 Relationship Between Performance Appraisal And Employee Performance ............ 47
5.2.2 Ways In Which Performance Appraisal Has Impacted Employee Performance ....... 47
vii
5.2.3 Ways In Which Managers Can Review Past Performance And Improve Current
Performance .............................................................................................................................. 48
5.3 Chapter Summary ................................................................................................................ 48
CHAPTER SIX: CONCLUSION AND RECOMMENDATIONs .............................................. 49
6.1 Introduction ......................................................................................................................... 49
6.2 Conclusion ........................................................................................................................... 49
6.3 Recommendations ............................................................................................................... 50
6.4 Limitations Of The Study .................................................................................................... 51
6.5 Areas For Future Study ....................................................................................................... 52
6.6 Chapter Summary ................................................................................................................ 52
REFERENCES ............................................................................................................................. 53
APPENDICES .............................................................................................................................. 62
Appendix I: Introduction Letter .................................................................................................... 63
Appendix II: Questionnaire........................................................................................................... 64
Appendix III: Chi – Square Calculations ...................................................................................... 68
viii
LIST OF ACRONYMS
APAS Annual Performance Appraisal System
BARS Behavioural Anchored Rating Scale
GDP Gross Domestic Product
GRZ Government of the Republic of Zambia
HPO High Performing Organisation
HR Human Resource
LGSC Local Government Service Commission
MBO Management by Objectives
NPM New Performance Management
PA Performance Appraisal
PAS Performance Appraisal System
PMP Performance Management Package
PSMD Public Service Management Division
ix
LIST OF FIGURES
Figure 2.0: Conceptual Framework of Performance Appraisal Process…………………… 27
x
ABSTRACT
The overall objective of the study was to assess the impact of performance appraisal on
employee performance in the local government sector focusing on Chilanga Town Council as a
case study. The objectives of the study were to assess the relationship between performance
appraisal and employee performance at Chilanga Town Council; examine ways in which
performance appraisal has impacted employee performance at Chilanga Town Council; explore
ways in which managers can review past performance and improve current performance at
Chilanga Town Council; and establish if performance appraisal enhances productivity at the
Council. A descriptive research design was used in this study. The study took a mixed methods
approach to analyse the impact of performance appraisal on employee performance. The
dependent variables included performance management, reward systems and performance
feedback, and the independent variable implications for service delivery. The study sample
comprised of 36 employees at Chilanga Town Council, who were selected using simple random
sampling. As a tool for data analysis, descriptive statistics were used. Percentages, frequencies,
means and standard deviations were used to analyse the respondents' demographic profiles. In
relation to the impact on employee performance of performance appraisal, the observations
suggest that the assessment leads to enhanced productivity in an organisation. An effective
evaluation model can increase the employees' interest and performance to achieve the specific
objectives of the institution. In terms of the impact of the reward systems on employees’ service
delivery, the results suggested that employees can be rewarded to meet the target levels of the
institution. The manager's opportunity to recognise good performance officially results in
motivation for the work. If good performance is observed and then rewarded, chances are
increased that it will repeat while poor performance is discouraged or even punished to reduce
the likelihood that it will happen again. Regarding the influence performance feedback on
employee service delivery, the findings showed that effective feedback is crucial for every
organisation to achieve its objective. Feedback allows employees to know exactly what is
expected of them. The key to the successful empowerment and productivity is effective
performance feedback between employees and supervisors. Adequate feedback builds
accountability, as staff and supervisors contribute to development goals, skills identification,
career development and motivation of employees for enhanced service delivery. The study
concluded that efficient performance appraisal practices allow employees to express their ideas
and expectations for achieving the company's strategic objectives. Practices in performance
appraisal can be an effective source of information and renewal management. In the ability of
every company to achieve its objectives, the use of the compensation system was a fundamental
factor. Effective feedback on measuring performance can result in improved productivity of
employees. Feedback allows the employees to know exactly what they expect. In order to
improve employee performance, the study recommends optimising performance management
practices. Performance reviews should focus on the individual employees' contribution to
achieving the organisational targets. The supervisor should recognise good employee efforts to
improve their work performance formally for every opportunity. Enhancing evaluation and
feedback should use effective performance management practices to achieve organisational goals
and increase employee performance.
1
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
The public sector in most countries, small or big, is going through profound restructuring, trying
to provide improved services while at the same time having to drastically downsize in the face of
major fiscal constraints. “A significant element of such reforms in the public sector is the
initiative to reform public administration, to reinvent government to use a popular expression,”
(Mayne and Zapico-Goni, 1997:3). This process of reforming public administration is seen as
necessary to meet the dual challenges of improved services with fewer resources. One of the
most popular tools used for reform activities at present is the annual performance appraisal
system (APAS). “Strengthening government performance – improving the productivity, quality,
timeliness, responsiveness, and effectiveness of public agencies and programmes – is important
to all, as beneficiaries of public service and as taxpayers” (Wholey, 1989:1) However, as Wholey
has further suggested, a number of political, bureaucratic, and technical obstacles constrain
government performance. Furthermore, performance appraisal (PA) is considered to be a
particularly controversial management practice anywhere it is being practiced. At this point it is
essential to provide few definitions of what PA means in the reform context. With the growing
amount of literature on PA, so have the definitions increased over the years. Therefore, the
following definitions have been chosen which could be regarded as most relevant to this study.
According to Shelley (1999), PA is a process by which organisations evaluate employee
performance based on preset standards.
Recently, Backlund and Suikki (2015) posited that performance appraisal system (PAS) is: A
structured formal interaction between a subordinate and supervisor, that usually takes the form of
a periodic interview (annual or semi-annual), in which the work performance of the subordinate
is examined and discussed, with a view to identifying weaknesses and strengths as well as
opportunities for improvement and skills development. Similarly, Jafari et al. (2009) maintain
that PA is part of the overall management activity and is considered as a process of making
judgments about an employee’s performance as a basis for effective and objective personnel
decisions. It is generally accepted that, to move the governmental sector toward better
performance, government agencies need to adopt and institutionalise high-performance
management principles, such as those from the New Public Management (NPM) framework
2
(Andrews and Van de Walle, 2013; Dzimbiri, 2008). NPM reforms focus on empowering
citizens to put legitimate pressure on governmental organisations to do better (GRZ, 2008), and
for the realisation of Zambia’s “Vision 2030” (GRZ, 2016). NPM has been cited as the favoured
system with which to achieve higher gross domestic product (GDP) growth rates and poverty
reduction (GRZ, 2005).
As Mulenga (2013) observed, “the abysmal state of the local government sector in Zambia is no
secret to the consumers.” In part, this failure is due to the disappointing effectiveness of the NPM
model in developing countries, caused, according to Mongkol (2011), by the fact that developing
countries: (1) Lack the capacity to successfully implement NPM reforms; (2) their governmental
sectors are afflicted by nepotism, and such practices hinder NPM; (3) their infrastructure for
managing reforms is not sufficiently effective in supporting market-oriented shifts; (4) they do
not have adequate laws and enforcement mechanisms in place to manage contractual
arrangements for service delivery; (5) not all aspects of the NPM framework are useful for them
and the NPM commitment to privatisation is difficult to realise because there is no administrative
capacity to undertake this complex task successfully. A common reason for failure is that
governmental organisations in developing countries are simply not robust enough to support
significant reform, and so governmental sector officials are seeking techniques that will help to
improve and strengthen their organisations so that they can become capable of such
improvement. One of these techniques is the APAS framework.
An APAS in a higher performing organisation (HPO) framework has been defined as a system
that achieves performance results that are exceedingly better than those of its peer group over a
period of time of five years or more, by focusing in a disciplined way on that what really matters
to the organisation (de Waal, 2012:5). Thus, the APAS in an HPO framework aims to transform
standard organisations into high-performing ones, and it has been validated in many contexts,
among them Zambia (de Waal, Goedegebuure and Mulimbika, 2014). Furthermore, the
framework has been corroborated in longitudinal studies that have established that it can help
organisations obtain sustainable high performance (de Waal and de Haas, 2016). However, such
longitudinal research has not yet been carried out in the local government context, which
constitutes a gap in the current literature. Hence, the present proposed study sets out to
3
demonstrate that applying the HPO framework can help governmental institutions to achieve
sustainable high performance, and the objective of this research is to evaluate whether this
assertion is true for Zambia local government authorities in particular.
Up to the time of this study proposal, performance management of local government workers in
Zambia was not adequately documented. The objective of this proposed study is to investigate
the effectiveness of APAS on employee performance of local government workers in Zambia
focusing on Chilanga Town Council as a case study. This is specifically to identify the current
practices used to manage the performance of council workers and to propose strategies for
improvement.
1.2 Statement of the Problem
There is an increasing use of the PA process (Meyer, 2001), generally motivated by an
organisational desire to affect employee behaviours and attitudes and, ultimately, employee
performance. This occurs because of the establishment of goals at the beginning of the
evaluation cycle, which provides employees with clear performance targets, the monitoring of
performance during the evaluation cycle (which can be used to assist poor performers) and the
reinforcement provided for good performance through the provision of rewards, usually in the
form of higher pay. The capacity to achieve these positive outcomes will be a function of the
quality of the PA experience. PA is a complex process and there is scope for variation,
particularly when the supervisor is required to make subjective judgments of employee
performance; principles of work planning, setting of agreed performance targets, feedback and
reporting (Noe et al., 2003). According to the Public Service Management Division (PSMD)
Circular Number B16 of 2017, GRZ introduced the Performance Management Package (PMP) in
all the Ministries, Provinces and spending agencies. However, despite these reforms, the
performance of Zambian governmental institutions, especially the local government sector, has
continued to fail, in terms of both the quantity and the quality of services expected by taxpayers
(Mulenga, 2013).
It was observed that the application of the PMP with its APAS in most local authorities had
continued to be unsatisfactory. The PSMD circular further states that, in most cases the
4
completed APAS forms of the officers are not submitted to the Local Government Service
Commission (LGSC) as per stipulated guidelines (PSMD, 2017). Ministry of Local Government
in general and Chilanga Town Council in particular have a comprehensive APAS which utilises
the ranking method. The assessor is furnished with a checklist of pre-scaled descriptions or
behaviour, which are then used to evaluate the employee. However, no empirical study has been
conducted to determine the effects of APAS on employees’ performance at Chilanga Town
Council despite a general dissatisfaction by local government service providers with the way in
which they are evaluated or appraised, and the continued complaints from the public on the poor
quality of local government service. This study, therefore, sought to assess the impact of APAS
on employees’ performance at the council. It sets to determine and assess the impact of
performance appraisal system on employees’ productivity in the local government sector in
Zambia focusing on Chilanga Town Council as a case study.
1.3 Objectives of the Study
1.3.1 Main Objective
The main research objective of the study was to assess the impact of APAS on employees’
productivity in the local government sector in Zambia focusing on Chilanga Town Council as a
case study.
1.3.2 Specific Objectives
The main objective of the study was achieved through the following sub objectives:
1) Assess the relationship between performance appraisal and employee performance at
Chilanga Town Council.
2) Examine ways in which performance appraisal has impacted employee performance at
Chilanga Town Council.
3) Explore ways in which managers can review past performance and improve current
performance at Chilanga Town Council; and
4) Establish if performance appraisal enhances productivity at Chilanga Town Council.
5
1.4 Research Questions
The study was guided by the following main research question: What is the impact of APAS on
employees’ productivity in local government sector at Chilanga Town Council? The specific
research questions included:
1) What is the relationship between performance appraisal and employee performance at
Chilanga Town Council?
2) How has performance appraisal impacted employee performance at Chilanga Town
Council?
3) How can managers review past performance and improve current performance at
Chilanga Town Council?
4) Does performance appraisal enhance productivity at Chilanga Town Council?
1.5 Scope of the Study
Geographically, the scope of this study was delimited to Chilanga Town Council in Lusaka
Province of Zambia. The research revolved around the identification of the impact of
performance appraisal on employees’ productivity in local government administration. The
existing performance appraisal was analysed to ascertain its effects. As such, the role of
supervisors/managers who are the appraisers and the employees who are the appraisees and their
subsequent work output were the focus of the study.
1.6 Significance of the Study
There have been many studies conducted to examine the impact of PA satisfaction on an
employee. However, as far as Zambia is concerned, there has been limited, or fewer studies on
issues related to the impact of APAS on employees’ outcomes such as work performance,
effective organisational commitment and turnover intentions. The results and findings from this
research are likely to generate new conclusions to enrich the existing literature on PA in Zambia.
Furthermore, this research will enhance the understanding on PA and the importance it carries on
employee outcomes in local authorities. The intention of this research is to help the local
government sector in Zambia to evaluate their existing PA systems, by identifying the perceived
satisfaction of employees towards their current PA process that can provide and promote
6
excellent feedback towards their employees thus enhancing employees’ productivity. The
findings of this study will provide policy makers with a framework to guide planning and
management of council workers not only at Chilanga Town Council but also in other district
councils across the country.
1.7 Definition of Key Terms
For the purposes of this study, the following main concepts are defined:
Annual Performance Appraisal System - is a special form of evaluation involving a
comparison of the observed performance of an employee with a performance standard, which
describes what the employee is expected to do in terms of behaviours and results.
Appraisal – is a process of assessing the performance of an employee in relation to assigned
duties, roles and responsibilities.
Appraiser/Rater – is the person who judges the performance of another person
Appraisee/Ratee – is an individual whose performance is evaluated by his close superiors.
Employee Performance - is a process for establishing a shared workforce understanding about
what is to be achieved at an organisation level.
Performance – is Quality and quantity of work by the performer/employee.
Performance Management - is a method of implementing performance appraisal techniques
and administering any subsequent remedial actions.
Supervisor – is a line manager in charge of a group of workers and responsible for ensuring that
they do their work properly.
7
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
This chapter looks at past studies related to performance appraisal and its impact on employee
performance and seeks to extract different kinds of information from different authors and show
the relationship between different studies and how they relate to this study. The chapter also
presents an in-depth discussion of the theories and concepts underpinning performance appraisal
which have been identified in literature.
2.2 Different Methods Of Performance Appraisal
Bohlander and Snell (2004) state that PA methods can be broadly classified as: (1) Measuring
(graphic rating scale, mixed-standard scale, forced-choice method, essay method); and (2)
behaviour (critical incident method, behavioural checklist, behaviourally anchored rating scale -
BARS) and results. On the other hand, De Cenzo and Robbins (1996) have grouped appraisal
methods under the following headings: (1) Absolute standard (essay method, the critical incident
method, adjectives rating scale, forced-choice method, behaviourally anchored rating scale -
BARS), (2) relative standards (group order ranking, individual ranking, and paired comparison)
and (3) objectives. The various methods are described below.
Mixed standard scale - According to Bohlander and Snell (2004), this method is the
modification of the basic rating-scale method. He indicated that instead of evaluating traits
according to a single scale, the rater is given three specific descriptions of each trait. The purpose
of this is to reflect three levels of performance: Superior, average, and inferior. After the three
descriptions for each trait are written, they are accordingly sequenced to form the mixed standard
scale. The advantage of the mixed-standard scale method is that the rater does not deal with
numbers. Consequently, some of the most common errors associated with rating are overcome.
Additionally, analysis of rater response patterns can identify raters whose use of the scales is
haphazard. A drawback of mixed-standard scales is that scale values are not known.
Consequently, developmental information is lost.
Essay method - In essay method, Bohlander and Snell (2004) indicated that unlike rating scale,
which provides a structured form of appraisal, the essay method requires the appraiser to
8
compose a statement that best describes the employee being appraised. In this method, the
appraiser describes the employee's strengths and weaknesses and makes recommendations for his
or her development. The method also provides an excellent opportunity to print out the unique
characteristics of the employee being appraised. This method, however, has some limitations
such as time-consuming task; also the quality of the performance appraisal may be influenced by
that supervisor’s writing skills and composition style. Dessler (2005) on the other hand pointed
out that the essay method aids the employee in understanding whether his or her performance
was good or bad and how to improve that performance.
Graphic rating scale - In graphic rating scale method, each trait or characteristic to be rated is
represented by a scale on which a rater indicates the degree to which an employee possesses that
trait or characteristic. In graphic rating scale method, subjectivity bias is reduced somewhat and
the dimension on the scale and scale points are defined as precisely as possible.
Forced-choice/results method - This method requires the rater to choose from statements, often
in pairs, that appear equally favourable or equally unfavourable. The purpose of the statement is
to distinguish between successful and unsuccessful performance. The forced-choice method is
not without limitations of which the primary one being the cost of establishing and maintaining
its validity. According to Baron and Armstrong (2007), instead of looking at traits of employees
and the behaviours they exhibit on the job, many organisations evaluate employee
accomplishments - the result they achieve through their work. Advocates of result approach
argue that they are more objective and empowering for employees. Results appraisals often give
employee responsibility for their outcomes while giving them discretion over the methods they
use to accomplish them. This is empowerment in action. Advocates hold the view that there are a
number of result measures available to evaluate performance. For instance, salespeople are
evaluated on the basis of their sales volume, production workers are evaluated on the basis of the
units they produce and perhaps the scrap rate or number of defects detected. All of these
measures are directly linked to what employee accomplishes and results which benefit the
organisation. Some of the problems associated with results approach are; results appraisal may
be contaminated by external factors that employee cannot influence, sale representatives who
9
have extremely bad markets or the production employee who cannot get the materials will not be
able to perform up to their abilities.
Behaviourally anchored rating scale (BARS) - This method combines the benefits of
narratives, critical incidents and quantified scales by anchoring a rating scale with specific
behavioural example of good or poor performance. In BARS method, Bohlander and Snell
(2004) indicated that BARS is typically developed by a committee that includes both
subordinates and managers. The committee’s responsibility is to identify important
characteristics of the job. This in effect points to the fact that when subordinates and managers
are involved in developing BARS, it helps for the appraisal programme to be successful thereby
contributing to achieving the corporate mission. The proponents of this method say that it
provides better, more equitable appraisals than other techniques. However, the main
disadvantage of BARS is that it requires considerable time and effort to develop. In addition,
because the scales are specific to particular jobs, a scale designed for one job may not apply to
another. Organisations need to consider their goals, employees, and the nature of job, advantages
and disadvantages of the techniques before adopting it.
Critical incident method - The critical incident method is one of the methods organisations use
to appraise their employees. According to Bohlander and Snell (2004), critical incident occurs
when employee behaviour results in unusual success or unusual failure on some part of the job.
Hodgetts and Kroeck (1992) and De Cenzo and Robbins (1996) explained that critical incident
technique involves documentation of instances of employee performance in which particularly
effective or ineffective behaviour is observed. Considering the explanation given by both sets of
writers, they all emphasise on the fact that good or bad aspect of behaviour is observed and
documented. Bohlander and Snell (2004) indicated that one advantage of the critical incident
method is that it covers the entire appraisal period, therefore, guards against recency error.
Critical incident technique has value in performance appraisal since documentation of specific
employee behaviour is an integral part of performance appraisal. De Cenzo and Robbins (1996),
however, indicated that some drawbacks are basically that: (1) Appraisers are required to
regularly write these incidents down, and doing this on a daily or weekly basis for all
subordinates is time-consuming and burdensome for managers and; and (2) Critical incidents
10
suffer from the same comparison problem found in essays; mainly they do not lend themselves to
quantification. Therefore, the comparison and ranking of subordinates is difficult.
Management by objectives - Management by Objectives (MBO) is designed to overcome
certain of the inherent problems in the already mentioned technique of performance appraisal.
MBO is a philosophy of management first proposed by Peter Drucker in 1954. It is built on the
assumption that individuals can be responsible, can exercise self-direction and do not require
external controls and threats of punishment to motivate them to work towards their objectives.
This, from a motivational point of view, would be representative of Douglas McGregor's Theory
'Y'. According to Humble (1972), a system of MBO might allow for staff accepting greater
responsibility and for making a higher level of personal contribution. To him, participation is
inherent if MBO is to work well, and there is an assumption that majority of people would direct
and control themselves willingly if they are involved in the setting of their objectives. Grote
(1996) identifies the following core elements in MBO: (1) Formulation of trust and open
communication throughout the organisation; (2) mutual problem solving and negotiation in the
establishment of objectives, (3) creation of win-win relationships; (4) organisational rewards and
punishments based on job-related performance and achievements; (5) minimal uses of political
games, forces and fear; and (6) development of a positive, proactive, and challenging
organisational culture.
Beach (1985) submits that a major goal in MBO is to enhance the superior-subordinate
relationship, strengthen the motivational climate and improve performance. He identified eight
key features of MBO as follows: (1) Superior and subordinate get together and jointly agree
upon and list the principal duties and areas of responsibility of the individual's job; (2) the
employee sets his own short-term performance goals or target in cooperation with the superior.
The superior guides the goal setting process to ensure that it is related to the realities and needs
of the organisation; and (3) they decide upon criteria for measuring and evaluating performance;
(4) From time to time, more often than once per year, the superiors and subordinates get together
to evaluate progress towards the agreed upon goals. At these meetings new or modified goals are
set for the ensuing period; (5) the superior plays a superior role. He tries, on day-to-day basis, to
help the employee reach the agreed upon goals and also counsels and coaches employees; (6) in
11
the appraisal process, the superior plays less the role of a judge and takes the role of one who
helps the employee attain the goals or targets; and (7) the process focuses upon results
accomplished and not upon personal traits.
MBO possesses a number of advantages. First by participating in the setting of the goals, the
individual acquires a stake or a vested interest in trying to meet them (Beach, 1985). Secondly,
both supervisor and subordinate are in the same team working for better functioning group.
Third, an employee is rated against a fixed rating scale. Fourth, targets and responsibilities are
set and evaluated in terms of the particular situation and abilities. In spite of the fact that MBO
has advantages, it equally has disadvantages. Below are some of them:
1) First, because goal setting and attainment are so individualised it is difficult to compare
the performance of one employee to another or to a standard to which everybody is held.
2) Second, MBO performance standards are personal, not uniform throughout a department.
In addition, it does not focus on long term goals, rather short-term goals.
3) Third, MBO does not concentrate upon identification of trait that would qualify one for a
new different job.
Considering the methods discussed above, no single appraisal method is best for all situations,
therefore, a performance measurement system that uses a combination of the preceding methods
may be helpful in circumstances. Using combinations may offset some of the advantages and
disadvantages in the individual methods.
Behavioural checklist method - As indicated by Bohlander and Snell (2004) and De Cenzon
and Robbins (1996), the behavioural checklist method consists of having the rater check those
statements on a list that the rater believes are characteristics of the employee's performance or
behaviour. Cascio (1992) also explains that the rater is provided with a series of statements that
describe job-related behaviour. From the explanation given, the three writers share similar views
on the behavioural checklist method. Cascio, however, pointed out that; descriptive ratings are
likely to be more reliable than evaluative (good - bad) ratings. In choosing a particular method
therefore, it is important for an organisation to consider its strategy, goals and its employees.
12
2.3 Employees’ Perception Of Annual Performance Appraisal Systems
APAS has over the years given most employees mixed feelings. Whilst some believe it carries
some biases and largely fails to meet its objectives, others find it a means to justify their
performance (Rasch, 2004). According to Rasch, managers commit mistakes while evaluating
employees and their performance. Some of these biases are perceived by employees as ways of
unfairly interpreting their performances. Biases and judgment errors of various kinds may spoil
the performance appraisal process. Bias, according to Shelley (1999), refers to inaccurate
distortion of a measurement. Moats points out that, even when a performance evaluation
program is structured appropriately, its effectiveness can be diluted by the improper use of
subjective, as opposed to objective, measures. Objective measures are easily incorporated into an
appraisal because they are quantifiable and verifiable. In contrast, subjective measures are those
that cannot be quantified and are largely dependent on the opinion of an observer. Subjective
measures have the potential to dilute the quality of worker evaluations because they may be
influenced by bias, or distortion as a result of emotions (Moats, 1999). To overcome the effects
of prejudice, many organisations must train appraisers to avoid biases. McNamara (2000)
identifies eight common forms of biases which form part of employees’ perception of PAS as
discussed below.
Excessive stiffness or lenience - Depending upon the raters own standards, values and physical
and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently (Moats,
1999) According to Kurt (2004), some of the managers are likely to take the line of least
resistance and rate people high, whereas others, by nature, believe in the tyranny of exact
assessment, considering more particularly the drawbacks of the individual and thus making the
assessment excessively severe. The leniency error can render a system ineffective. If everyone is
to be rated high, the system has not done anything to differentiate among the employees. Moats
(1999) points out that, leniency and strictness bias results when the appraiser tends to view the
performance of all of his employees as either good and favourable or bad and unfavourable.
Although these distortions are often the result of vague performance standards, they may also be
the consequence of the evaluator's attitudes.
13
Personal biases - Shelley (1999) states that, the way a supervisor feels about each of the
individuals working under him - whether he likes or dislikes them - has a tremendous effect on
the rating of their performances. Personal Bias can stem from various sources as a result of
information obtained from colleagues, considerations of faith and thinking, social and family
background and so on. Likewise, Moats (1999) judges that personal prejudice results from a
rater's dislike for a group or class of people. When that dislike carries over into the appraisal of
an individual, an inaccurate review of performance is the outcome.
Central tendency - McNamara (2000) states that, central tendency bias occurs where appraisers
rate all employees as average performers. That is, it is an attitude to rate people as neither high
nor low and follow the middle path. According to Moats (1999), the error of central tendency
occurs when appraisers are hesitant to grade employees as effective or ineffective. They pacify
their indecisiveness by rating all workers near the centre of the performance scale, thus avoiding
extremes that could cause conflict or require an explanation.
Spill-over effect - McNamara (2000) in describing spill-over effect bias says that the present
performance is evaluated much based on the past performance. “The person who was a good
performer in distant past is assured to be okay at present also,” which is a distortion.
Horn effect - McNamara (2000) describes this bias as the situation where the individual’s
performance is completely appraised on the basis of a negative quality or feature perceived. This
results in an overall lower rating than may be warranted.
Matthew effect - Gabris and Mitchell (2000) have reported a disruptive bias in performance
appraisal known as the Matthew Effect. It is named after the Matthew of biblical fame who
wrote, "To him who has shall be given, and he shall have abundance: but from him who does not
have, even that which he has shall be taken away." According to Gabris and Mitchell, in PA the
Matthew Effect is said to occur where employees tend to keep receiving the same appraisal
results, year in and year out. That is, their appraisal results tend to become self-fulfilling: if they
have done well, they will continue to do well; if they have done poorly, they will continue to do
poorly. The Matthew Effect suggests that no matter how hard an employee strives, their past
14
appraisal records will prejudice their future attempts to improve (Gabris and Mitchell, 2000). In
addition to bias, Moats (1999) contends that flaws in the execution of an appraisal program can
be destructive. Moats cites the example of managers downgrading their employees because high
performance reviews would outstrip the department's budget for bonuses; or, some managers
using performance appraisals to achieve personal or departmental political goals, thus distorting
assessments.
First impression (primacy effect) - The first impression bias, according to McNamara (2000)
occurs when raters form an overall impression about the ratee on the basis of some particular
characteristics of the ratee identified by them. The identified qualities and features may not
provide adequate base for appraisal.
Recency effect - In the case of recency effect bias, rating is influenced by the most recent
behaviour ignoring the commonly demonstrated behaviours during the entire appraisal period.
The recency effect is a corollary of the natural tendency for raters to judge an employee's
performance based largely on his most recent actions rather than taking into account long-term
patterns (McNamara, 2000). As indicated, Moats (1999) corroborates McNamara’s position on
the nature of these biases, and further identifies a ninth bias which McNamara failed to indicate.
Moats calls this the cross-cultural bias, which he describes as the consequence of an evaluator's
expectations about human behaviour. Those expectations often clash with the behaviour of
appraisees who have different beliefs or cultural values.
Halo effect - In his words, Moats (1999) states that, the term "halo" stems from the distortion
that the appraisee, like an angel with a halo over its head, can do no wrong. This type of bias,
however, also applies to foes of the rater, and may not be job-related. The effect is particularly
pronounced when the appraisee is an enemy or very good friend of the evaluator. McNamara
(2000) adds that the individual’s performance is completely appraised on the basis of a perceived
positive quality, feature or trait. In other words this is the tendency to rate a man uniformly high
or low in other traits if he is extra-ordinarily high or low in one particular trait. If a worker has
few absences, his supervisor might give him a high rating in all other areas of work.
15
2.4 Ways in Which Performance Appraisal Has Impacted Employee Performance
Performance appraisal is widely practiced worldwide in organisations. One of the greatest
challenges faced by appraisal processes in organisations is the inconsistency existing between
theory and practical implementation. This is affirmed by Saffie-Robertson and Brutus (2014)
who highlight that most performance appraisal activities are resisted by employees in a bid to
protect their jobs. Continuing, they believe that the inflation of performance evaluation as a show
of leniency for employees in order to encourage them poses a major threat to the integrity of
performance appraisal systems in various organisations. According to Maroney and Buckley’s
(1992) account, there is a significant gap between theory and practice. They further observed that
human resource personnel do not fully utilise the psychometric tools available and middle
management argue that the process should be simple and easy to follow if not it becomes time
consuming and cost ineffective. Another criticism is the appraisal carried out by managers which
leads to the tendency of employees being dependent on them and more so sometimes the
managers are not properly trained and the feedback is hindered due to subjectivity and bias
which at the end leads to incorrect and unreliable appraisal of employees.
Walters (2005) summarises some of the challenges faced by performance appraisal process in an
organisation as top managements inability to determine evaluation criteria in quantifiable terms,
lack of competence and expertise in carrying out appraisal objectively, error in appraisals due to
bias like stereotyping and employee resistance due to lack of clarity about the purpose and the
process of the appraisal. lles and Zhang (2013) discuss the challenge of cultural differences in
performance appraisal in terms of attitude of extrinsic rewards, group performance, specific
formal appraisal methods and employee involvement. They suggest that cultural differences can
pose a challenge because employees in a collectivist culture prefer team work rather than
individual appraisal and are uncomfortable with direct face to face feedbacks or criticism. In the
performance appraisal system, there are chances of opposition for valuation due to fear. If the
evaluation system is poor, it will not give adequate effect. Rater’s problems like leniency or
harshness error, central tendency error, personal bias error, contrast error also affects the
performance appraisal of an employee (Rasch, 2004).
16
Each employee should be evaluated by his supervisor and discuss the objectives for upcoming
evaluations. This discussion should cover the review of overall progress, problems encountered,
performance improvement possibilities, long term career goals, specific action plan about job
description and responsibilities, employee development interest and needs, to concentrate on
specific areas of development, to review performance objectives and performance standard,
ongoing feedback and periodic discussions. Performance appraisals are important for staff
motivation, attitude and behaviour development, communicating organisational aims, and
fostering positive relationships between management and staff (Peiperl, 2005). Performance
appraisals provide a formal, recorded, regular review of an individual's performance, and a plan
for future development. In short, performance and job appraisals are vital for managing the
performance of people and organisations. Performance appraisals which are seen to have a
negative and positive effect on organisations have several drawbacks because the activity is a
very stressful process. Performance appraisal system practices in an organisation can make an
employer and its employee to have a different perspective/interpretation of the appraisals’
outcome. When an area of improvement is identified which is to be corrected, it may sometimes
lead to the employee feeling that the appraisal was nothing more than a “chewing out” session,
causing reduced morale (Nurse, 2005).
Some of the major limitations of performance appraisal include bias of appraisals, ambiguity in
standards, insufficient evidence; several qualities remain without appraisal, leniency or strictness
tendency, average rating problems, influence of man’s job and similarity error (Smriti, 2014).
According to Ruth (2012), the training provided by the employer is woefully inadequate for
preparing supervisors to provide unbiased feedback to employees in a manner that motivates
workers to strive for higher performance ratings. Another drawback of performance appraisal
system is that supervisors/raters dread the time it takes to prepare an employee performance
appraiser exercise. Interaction between the rater and the ratee is usually frightened because of the
close proximity within which raters and ratees work in small business settings. Other challenges
to effective performance appraisal include:
The quality of performance of employees can be affected - It has been proposed that
the use of performance appraisal system in organisations can adversely affect
17
organisations’ pursuits of quality performance (Soltani, 2005). In organisations where
total quality management is practiced, the use of performance appraisal is not necessary
in assessing employee performance and determining training needs.
Subjectivity in evaluation and its impacts - Traditional performance appraisals are
often based upon a manager’s or supervisor’s perceptions of an employee’s performance
and employees are evaluated subjectively rather than objectively. Therefore, the appraisal
may be influenced by many non-performance factors such as employee likeability,
personal biases, ease of management, and/or previous mistakes or successes.
Legal issues - When performance appraisals are not conducted appropriately, legal issues
could result and that places the organisation at risk. Performance appraisals are used in
organisational disciplinary programmes as well as for promotional decisions within the
organisation (Schraeder et al., 2007). Thus the improper application and utilisation of
performance appraisal results can affect an employee negatively, say denial of promotion.
This way, a dissatisfied employee can institute legal action against his/her appraiser or
the organisation.
Negative perceptions on the part of the appraisee - Quite often, individuals have
negative perceptions of performance appraisal systems. Receiving and/or the anticipation
of receiving a performance appraisal result can be uncomfortable and distressful
(Pettijohn et al., 2001), and potentially cause tension between supervisors and
subordinates. This often occurs in organisations where there is a high level of mistrust
for leaders. Thus, if the person being appraised does not trust his or her employer,
appraiser or believes that he or she will benefit from the process, he/she could have a
negative perception about the entire appraisal process. For instance, the appraisal could
be deemed as a “witch hunting” process.
Appraiser errors - A performance appraisal should provide accurate and relevant ratings
of an employee’s performance as compared to pre-established criteria/goals (that is,
organisational expectations). Nevertheless, supervisors will sometimes rate employees
more favourably than that of their true performance in order to please the employee and
18
to avoid conflict. Inflated ratings are a common malady associated with formal
performance appraisal systems (Cook and Crossman, 2014). Sometimes the appraiser
errors result from familiarity and leniency.
Challenging performance goals - Performance goals and performance appraisal systems
are often used in association. Negative outcomes concerning the organisations can result
when goals are overly challenging or are overemphasised to the extent of affecting ethics,
legal requirements or quality. Moreover, challenging performance goals can impede
employees’ abilities to acquire necessary knowledge and skills. Especially in the early
stages of training, it would be more beneficial to instruct employees on outcome goals
than on performance goals (Schraeder et al., 2007).
2.5 Impact Of Performance Appraisal On Employee Performance
One of the key responsibilities of the manager in any organisation is to evaluate the performance
of his subordinates. The essence of the performance appraisal is to assess the employees’
character, attitude, potentials and past performance on the job (Mani, 2002:142). According to
Perez and Falcon (2004:57), if the evaluation system is poor, it will not give adequate effect.
Rater’s problems like leniency or harshness error, central tendency error, personal bias error,
contrast error also affects the performance appraisal of an employee. Kuvaas (2006:510) states
that the halo effect occurs when a manager feels that the employee is particularly good in one
aspect of his/her role and awards a similar high assessment for all other areas without objective
consideration. Conversely, where an employee has a serious fault or poor element of
performance, this can sometimes result in unjustifiably reduced assessment of other areas
(Simmons and Lovegrove, 2002:340). Armstrong and Baron (2005:106) state that each employee
should be evaluated by his supervisor and then discuss set objectives for the upcoming
evaluation. This discussion should cover the review of overall progress, employee development
interest and needs to concentrate on specific areas of development in order to review
performance objectives and performance standard.
According to Cook and Crossman (2014), performance appraisals are important for employee
motivation, attitude and behaviour development, communicating organisational aims and
19
fostering positive relationships between management and employees. Performance appraisals
provide a formal, recorded, regular review of an individual's performance and a plan for future
development. In short, performance appraisals are vital for managing the performance of
employees in the organisation. To achieve the organisation targets there is the need for the
employee and manager to discuss targets to be achieved, so that the former is genuinely able to
commit to the challenge (Perez and Falcon, 2004:58). According to Rudman (2003:70),
performance appraisal policy was viewed as the single largest factor contributing to the
development of the organisation. It gives ways to innovative thinking and a determined action to
eliminate underperformance, unmotivated and poorly managed and trained employees. All of
these start with making of an effective performance appraisal policy established within the
organisation (Fletcher and Bailey, 2003:398). Anderson (2002:82) highlights that the regular and
proper use of performance appraisal policy gives better results for an organisation.
Performance appraisal policy may present two faces, namely the positive and negative aspects.
For its positive aspect, it aids the organisation in building mechanisms that enhance performance
among employees as they aim to reach the shared vision and objectives set as one body. This is
more of a discretionary effort as it increases the performance of employees and strengthens their
commitment and engagement to their shared goals. For its negative aspect, performance
appraisal involves a policy of appraisal which is dreaded by several managers and most of the
employees such that it undermines the performance of the employees to perform better. Hence,
in such cases, it is considered as an irrelevant process of performance management policy
(Kuvaas, 2006:504). According to Rudman (2003), performance appraisal is a critical factor in
an organisation in enhancing the performance of the employee. Further, there is a strong
connection between how firms manage their employees and the organisational results they
achieve. Boswell and Benson (2000) contend that the human nature is in constant need of
recognition and when they are recognised, either positively or negatively; it spurs them to do
more.
Tyson and York (2000) state that when employees understand how their individual roles function
within the framework of a team, they can more effectively contribute to the entire organisation.
Right decision on what performance appraisal technique to use is essential for the rest of the
20
process. For motivating employees by providing them feedback on how they are doing, the MBO
or work-standards approach seem to be a good choice. If they involve real participation, it is
most likely to lead to an inner commitment to improved performance. MBO method of
performance appraisal may, on the one side, overcome some of the problems that arise when
assuming that the employee traits needed for job success can be reliably identified and measured.
Instead of assuming traits, MBO method focuses on actual outcomes. These methods of
performance appraisal can give employees a satisfying sense of autonomy and achievement.
However, they can also lead to unrealistic expectations about what can and cannot be reasonably
accomplished. It has been shown in numerous studies (Locke, et al., 1981), that goal setting is an
important element in employee motivation. Goals can stimulate employee effort, focus attention,
increase persistence, and encourage employees to find new and better ways to work.
From a total quality management perspective, traditional performance appraisal can possibly hurt
quality and teamwork, because it can make employees compete against one another. The solution
might be rating teams rather than individuals. People need to know how well they are doing at
their jobs and where they could improve. It is important to keep in mind that appraisals do not
equate to criticism. It may be necessary to explain the importance of completing tasks within
timelines or changing the technique of doing a task. Unfortunately, many performance appraisals
only frustrate the employee by adding more tasks to what appears to be an already overloaded
agenda (Armstrong, 1999). Recent trend – introducing electronic monitoring systems (and
performance appraisal software), should not be left unnoticed. Even though the whole system
goes further than mere appraising performance; it deserves mention in this work. Despite its
negative effects on employees, it is used more than ever before. Managers fail to realise that
electronic monitoring is not able to replace the role of supervisor. It is likely to increase worker
stress and decrease employee job satisfaction.
Although this may lead to increased productivity, this is frequently accompanied by a decrease in
quality and customer service. A study among monitored employees showed a rise in cases of
extreme anxiety, severe fatigue or exhaustion, a loss of feeling in the finger/writs, shoulder
soreness and depression. The stress associated with electronic monitoring in these cases clearly
has real world effects. The stress that employees experience may cost employers more on
21
medical bills in the long run. According to Wilson and Western (2001), it is natural for
employees to be affected by how well they score on a performance appraisal depending on the
outcomes. Thus, the application of a performance appraisal policy can be either positive or
negative. Employees who receive good scores on their performance appraisals are generally
motivated to perform well and maintain their performance. Conversely, if a supervisor gives an
employee a poor score on his/her appraisal, the employee may feel a loss of motivation in the
workplace. Consequently, this can impact on the employee’s performance (Kuvaas, 2006:504).
Simmons and Lovegrove (2002:35) assert that most organisations differ from the rest in
organisation structure, customer orientation and human resources.
Erdogan (2002) states that human behaviour in organisations has also shown that the most
harmful thing to organisations is when managers are unable to get recognition and when they are
recognised, either positively or negatively, it spurs them to do more. It is contended that one of
the instruments through which managers motivate their employees is the use of an effective
performance appraisal policy. Cook and Crossman (2014:530) highlight that an employee whose
performance is under review often becomes defensive. Whenever employee performance is rated
as less than the best or less than the level at which employee personally perceives his/her
contribution, the manager is viewed as being biased. Disagreement about the contribution and
performance ratings can create a conflict-ridden situation that festers for months (Mani,
2002:142). Nurse (2005) states that negative feedback from performance appraisal policy not
only fails to motivate the typical employee but can also cause employees to perform poorly. Only
those employees who have a high degree of self-esteem appear to be stimulated by criticism to
improve their performance (Anderson, 2002:91).
According to Worley (2003:20), an appraiser should delineate performance appraisal policy to an
employee appraised and not as an opportunity to criticise. It is primarily a way of explaining
what could be done better and how the employee should perform better in future. Boswell and
Benson (2000:286) state that it is important that the appraiser be well informed and credible, as
employees are more likely to view the performance appraisal policy as accurate and fair.
Employees are likely to feel more satisfied with their performance appraisal results if they have
the opportunity to talk freely and discuss their performance. It is also more likely that such
22
employees will be better able to meet future performance goals (Scott and Einstein, 2001:113).
According to Armstrong and Baron (2005:16), when employees work together effectively and
communicate appropriately, the result is continuous and sustainable improvement. Rudman
(2003:437) states that to attain overall organisational excellence, individual employees need to
work together to find areas where challenges exist, or where performance can be improved.
Bond and Fox (2007) highlight that managers and employees can work together to identify
related development opportunities. Tyson and York (2000:142) state that when employees
understand how their individual roles function within the framework of a team, they can more
effectively contribute to the entire organisation. Performance appraisal which is seen as a way of
providing review and evaluation of an individual job performance has its own negative and
positive effect on the employee’s productivity in an organisation. This system acts as a motivator
to the employee to improve their productivity. When the goals of the employee are clarified, his
performance challenges identified, the effect is to motivate the employee to achieve those goals.
Creating a comprehensive plan for employee development and giving an employee achievement
to strive for, will inspire a higher level of efficiency. It is seen as a career development tool for
the manager and employee. The manager can help guide the employee on the path to corporate
advancement, and the employee gets a clearer understanding of what is expected from him in his
daily duties.
According to Donegan (2002), companies use performance appraisals to measure employee job
performance and to determine salary and wages increases. Nevertheless, performance appraisal
also brings news that causes fret over job security, status, eligibility for promotion and possible
bias or unfair ratings. It also shows the strength and weaknesses of employee on their job. There
are several management and leadership practices that determine the effectiveness of performance
management systems including the leadership by senior management, management ownership
and checks or balances, who owns and leads the system. According to a recent study by
Chaudron (2010), line management has a greater ownership than the human resource function in
most organisations. It also shows that this is very much a positive for the effectiveness of the
system. Line management ownership correlates highly with performance management
effectiveness while human resource ownership does not (Bloom et al., 2007).
23
A successful performance management is the ownership and leadership of senior management.
When management owns the system instead of HR and when senior leaders support it,
performance management systems are much more effective. What gets measured for
effectiveness gets done effectively. Training should be undertaken by the appraiser as well as the
appraisee. Appraisal discussion seems uncomfortable for individuals to participate in and to
conduct, and in the absence of training, they lack an understanding of what is supposed to
happen and how the overall systems work. The appraisal activity should be audited to know how
well the performance appraisal activities were carried out so that their effectiveness can be
determined (Chaudron, 2010). Integration with the overall human resources strategy is a critical
enabler of not just the performance management processes, but the overall talent management
system in an organisation. The basis of a good performance management system is in the
planning process. As the business is launched, serious consideration should be given to the type
of performance management system that is believed to be best suited to the workplace.
The performance management system used by the company must be congruent with the
company’s philosophy, mission and values. Defining the company philosophy, mission and
values start with the business plan and is carried out through the company practices (Mansor,
2011). For the performance management system to be effective, there are steps which are to be
taken. They include developing job descriptions and job specifications, identifying performance
standards and formulating the types of rewards and recognition offered for good performance
(Fletcher, 2008).
2.6 Empirical Studies
The literature review shows the importance of performance review, effects of performance
appraisal system on employees and how it affects their performance. However, many scholars
have put clear the importance and the right process for employee evaluation and the studies are
recorded below.
Nyaoga (2010) conducted a research study on the effectiveness of performance appraisal systems
in private universities in Kenya, Kabarak University in particular. His study shows that
performance appraisal system is the only tangible metric way by which an organisation can know
24
the level of performance of its diverse employees. Although most employees were aware of the
type of performance appraisal system used in the private universities, such systems were not
based on any serious formal purpose for which they were designed. The effectiveness of
performance appraisal systems in the private universities were only based on training to the
employees involved in the rating/appraising process and are multi-rating systems. Conclusively,
because the performance appraisal systems used in private universities were not effective and
that they existed just as a matter of formalities, the private universities could not measure
employees’ performance hence making it difficult to achieve the intended human resource
management objectives.
Brown and Benson (2003) also conducted a study on performance appraisal systems for
organisational success. The purpose of the study was to examine the issues associated with
performance appraisals and identify proven and suitable methodologies which would result into a
process that is credible, equitable and the one that reinforces the desired organisational
directions. The procedures developed for this study were aimed at overcoming these issues. This
was achieved by evaluating the need for performance appraisals, problems associated with
various methodologies and examining the qualities that need to be measured both in terms of the
individual and organisation and identifying the means of improving organisational performance.
The research found that the current processes within the Quantitative Finance and Risk Analysis
(QFRA) focus on dealing with diminished performance issues. Subsequently, the efforts of the
individual are not necessarily aligned with the desired organisational direction and little incentive
exists amongst managers to challenge the current processes or encourage risk taking to improve
service delivery.
Blau (2009) conducted a nationwide open survey of the bank employees on various personnel
issues. The objective of the study was to establish an ‘effectiveness of performance appraisal in
working organisation.’ He conducted a survey in the various banks and came up with the
following findings: Only about 14 percent of the employees stated that they were aware of the
basis on which their supervisors evaluated their work in the annual confidential reports. Of the
remaining, 55 percent had no idea at all on the criteria used and another 31 percent had some
general idea but not aware of any special criteria. About 68 percent of the employees felt that the
25
appraised should be interviewed about his performance and given an opportunity to provide
inputs for his performance assessment. The study seems to be not comprehensive and relevant to
the present study as its findings cannot be applicable to this study as the survey itself was
conducted in financial institutions which have different direction as the public institutions in
Zambia. The selected institution is mainly based on public service provision contrary to banks
which are for profit maximisation.
Another study was conducted by Mone and London (2010) on perceived fairness of and
satisfaction with employee performance appraisal in Southern United States. This study
investigated the employees’ reactions to fairness of and satisfaction with an existing performance
appraisal system utilising a hypothesised four-factor model of organisational justice as the
theoretical basis (Greenberg, 1993). The data were obtained via a survey questionnaire from 440
participants from two organisations that were part of a large public employment system. The
findings of the study indicated that respondents perceived the performance appraisal system to be
fair as indicated by their agreement with 9 of the 10 scales used to measure reactions to fairness.
The conceptualised four-factor model was not found to represent the underlying factor structure
substantially better than alternative plausible three-factor models. The best fit three–factor
model, however, provided some support for the differentiation between procedural and
interactional organisational justice factors, which is a distinction that has been debated in the
organisational justice literature.
Foot and Hook (2005) conducted a study on a performance appraisal in public sector in India.
The objective of the study was to know if the performance appraisal helps to recognise their
strengths and weaknesses. The survey of 588 officers of large public sector company in India
indicated that about 98 percent of the respondents felt that the appraisal system should help to
recognise their strengths and weaknesses. A fairly high percentage of them (over 60 percent)
recognised that it is very difficult to have objective assessment in any form of appraisal because
human factors are always involved. This survey seems to have been conducted in a company that
operates traditional appraisal system. This study focused on an open performance appraisal
program that is based on direct engagement between the appraiser and the appraised. The above
study seems to be comprehensive and relevant to the present study as it lays a good foundation
26
for studying the effectiveness of 360-degree performance appraisal practices in public
institutions. However, it shows the gap of time whereby it was conducted 32 years ago and a gap
of place, India, quite a different place from Zambia in terms of economic development and
geographical location. This study, therefore, focuses on Zambian context specifically, the local
government sector.
2.7 Theoretical andConceptual Framework
2.7.1 Theoretical Framework
In consideration of the theoretical framework, Goal theory will be adopted for this study. The
theory proposes that, “human beings are more motivated to act when there is a reward at the end
of the performance of a task or behaviour,” and this is premised around the objectives of
performance appraisal (Noe et al., 2003). Motivation theories and need theories are all theories
brought forward in view of understanding what underlying goals determine which kind of
behaviour. The Goal theory proposes that a reward at the end of a task or behaviour acts as a
motivation for the performance of that said task or behaviour. However, the reward should be
clearly stated. The end state can be the reward in itself. It is proposed that an efficient goal must
have four components: Proximity, difficulty, specificity and feedback. An ideal goal is a goal
where the time between the reaching out and the end state is close. It is moderate in difficulty,
neither too easy, to present some challenge, nor too difficult, so that success seems possible. The
goal should be specific. The individual must understand what is expected out of him, to start out
for the goal. A specific goal gives direction of focus to that specific goal and away from
distractions.
Feedback is necessary for measuring progress towards the goal. Feedback makes it possible to
know whether the level of efforts is adequate and in the proper direction or needs corrections.
The relevance of this theory to the research study can be credited to the works of Locke and
Lathan (2002) that highlight four mechanisms that connect goals to performance outcomes. First,
goals direct attention to priorities that is, when specific goals are set for workers, it drives their
attention to priorities of achieving the goals. Second, they stimulate effort, in other words when
sets of goals are attached to specific reward system, it stimulates workers to work better and
effectively. Third, they challenge people to bring their knowledge and skills to bear to increase
27
their chances of success. Fourth, the more challenging the goal, the more people will draw on
their full repertoire of skills.
2.7.2 Conceptual Framework
Conceptual frameworks, according to educational researcher Meyer (2001), are structured from a
set of broad ideas and theories that help a researcher to properly identify the problem they are
looking at, frame their questions and find suitable literature. It is the researcher’s own position
on the problem and gives direction to the study as in Figure 2.0 below.
Figure 2.0: Conceptual Framework of Performance Appraisal Process
Independent variable mediating variables
Dependent variable
Source: Author (2020)
Most academic studies use a conceptual framework at the outset because it helps the researcher
to clarify his research question and aims. Each of the individual components outlined in Figure
2.0 above helps to achieve the desired effect on employee performance. As elaborated by
Fletcher (1994), the objectives of the appraisal scheme should be determined before the system is
Employee Performance
Appraisal
Setting Performance
Standard
Communicating Standard
Set to Employees
High Employee
Productivity
Discussing Results and
Taking Action
Measuring Performance Comparing Performance
with Standard
28
designed in detail. The objectives to a large extent dictate the methods and performance criteria
for appraisal so they should be discussed with employees, managers and trade unions to obtain
their views and commitment. Performance appraisal follows a systematic process to ensure that
results are achieved. Having established the process of carrying out the appraisal, there is the
need to set the performance standard and communicate these standards set to employees. At
scheduled intervals employee performance is measured and compared to the set standard. To
achieve the desired impact on the performance of employees, results are analysed, and the
necessary action taken to address weaknesses. Weaknesses in any of the components of the
mediating variables affect the attainment of the desired results. For example, failure to set the
right performance standards that are aligned to the organisational objectives will have a negative
effect on the performance expected of the employee. Again, without taking the necessary action
after measuring performance the same weaknesses will continue to exist.
2.8 Chapter Summary
From the reviewed literature, it can be noted that APAS has a major role to play in employee and
organisational performance. The theories highlighted in the theoretical exposition and indeed the
empirical reviews are just different avenues to the same end. This is in the quest to evaluate the
impact of APAS on organisational performance by looking at credible theories and different
appraisal methods that have been developed through empirical studies. This chapter has
highlighted the significance of APAS in the organisation and the subsequent gains in
organisational performance brought about by appraised employees. The next chapter gives an
overview of the methodology adopted to gather data and process it into information on the
topical subject under study.
29
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
A research methodology is the conceptual structure within which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of data. Under this chapter,
the researcher presents the instruments that were employed during the process of collecting data
from various sources. Therefore, the chapter states and presents, the research approach, research
design, target population, area of the study, sampling procedure, research instruments, the data
collection process and analysis tools.
3.2 Research Design
The study adopted a descriptive research design to investigate the effectiveness of APAS on
employee performance in the local government sector in Zambia focusing on Chilanga Town
Council. The research methodology for this study was a mixed methods approach (Both
qualitative and quantitative in nature). The research tools for the study were questionnaires and
interviews.
3.3 Data Collection
There were two types of data to be collected for this study, the primary and secondary data. The
study obtained primary data through the self-administration of structured questionnaires to
employees of different ranks at Chilanga Town Council. Secondary data were obtained from
books, journals, publications and the websites through literature review.
3.3.1 Research Instrument
The study primarily used an interview guide and self-administered questionnaires to collect data
from the employees of the Council. The questionnaires contained close-ended questions for both
junior and senior employees, which were augmented by an interview guide. These formed the
basis for the collection of primary data in this study.
3.3.2 Types Of Data
The data collected were both qualitative and quantitative in nature and were based on the four
many objectives of the study. Emphasis on the data, however, was based on the effectiveness of
30
performance appraisal on employee performance in the Local Government sector. Both primary
and secondary data were used extensively as the focus of the research paradigm.
3.4 Target Population
All the items under consideration in any field of inquiry constitute a population. It can be
presumed that in such an inquiry when all the items are covered, no element of chance is left and
the highest accuracy is obtained. Sekaran (2003) states that population refers to the entire group
of people, events or things of interest that the researcher wishes to investigate. Quite often only a
few items are selected from the population for the study purposes. The items so selected
constitute what is technically called a sample. Saunders, Lewis and Thornhill (2012) define a
sample as a portion of the population that has attributes as the entire population. The target
population for this study comprised of all the 210 employees working at Chilanga Town Council.
3.5 Sample Size and Selection Technique
There are two broad categories of sampling designs and these are probability sampling and non-
probability sampling. Probability sampling is based on the concept of random selection – a
selection procedure that ensures that each element of the population is given a known chance of
selection. Non-probability sampling provides a range of alternative techniques based on one’s
subjective judgment (Saunders et al., 2012). The sampling technique the researcher adopted in
this study was non-probability sampling. The researcher used purposive sampling to select
specifically 75 junior staff members as the sample size from the list of employees provided by
the human resources directorate.
3.6 Data Analysis
Both quantitative and qualitative methods of analysing the data were used in this study. The bulk
of the information obtained from the study was coded and analysed to arrive at the conclusion of
each point that was being investigated. In cases where respondents made general comments on
issues under investigation, those comments were used to arrive at the generalisation regarding
the topical question. Analysis of qualitative data from the interview involved categorising themes
pertaining to respondents’ description of their experiences, coding themes and classifying and
grouping data according to research objectives and questions and the data were then interpreted
31
accordingly. Quantitative data were analysed using the Chi square as a measure of analysis to
ascertain the inference onto the population.
3.7 Research Ethics
The main ethical considerations which were observed for this study were getting informed
consent and confidentiality. Care was taken not to recruit any individual as a participant without
getting their written informed consent. The recruitment was done after fully disclosing the
reasons for undertaking the study (purely academic) and assuring that no harm was to befall the
respondents resulting from their participation in the study. Respondents were also informed that
they were at liberty to pull out of the study at any time. Finally, the participants were assured of
utmost confidentiality of their identity.
3.8 Chapter Summary
This chapter gave an outline to the overall approach evident in the research process from the
theoretical foundation to the strategies used in the collection and analysis of the data. By having
an understanding of the research methodology, informed choices about the research were easily
made. A questionnaire was used as an instrument of data collection. The following chapter
presents the research findings and interpretations of the findings in line with the research
objectives.
32
CHAPTER FOUR: FINDINGS AND ANALYSIS
4.1 Introduction
The main purpose of this chapter is to present the results of the data analysis and interpretation of
the results in line with the tenets of this study. The results have been presented in a manner not to
allow diversion from the original objectives using the suitable statistical analysis. The chapter
starts with the demographic profiles of the respondents and analyses responses on appraisal
system, reward system and performance feedback in the performance management process.
Statistics by nature if not carefully utilised could make interpretation difficult and the basic
tenets misapplied.
4.2 Demographic Characteristics Of Respondents
A total number of 75 questionnaires were administered to respondents sampled from among
employees of Chilanga Town Council with 36 returning as successful responses. This analysis
was, therefore, based on the 36 questionnaires received from respondents. The data collection
exercise in thus study suffered a lot of apathy, hence the low response rate. However, the 36
successful responses were considered adequate as Mugenda and Mugenda (2003) state that, for
statistical analysis, a minimum sample size of 30 provides rule of thumb. The study analysis
commenced with the demographic characteristics of respondents. The issue of demographic
variables shapes many facets of human lives as has been studied by researchers. Indeed,
demographic characteristics play an essential role in human interaction. The socio-demographic
characteristics considered for the study included that of gender, age, level of education and
length of service in the institution.
4.2.1 Gender Distribution Of Respondents
The gender distribution of respondents in this study was relevant due to the immense role that
gender stratification plays when it comes to how males relate with females in the workplace. It is
against this background that respondents were asked about their gender. The gender of
respondents has been described in Figure 4.1 below. There were more males than females
sampled as indicated by 28 (77.7%) males and 8 (22.22%) females. The findings show that male
respondents were largely sampled.
33
Figure 4.1: Gender Status of Respondents
77.78% - Male
22.22% - Female
Source: Field Survey (2020)
4.2.2 Age Distribution Of Respondents
To determine the category of age groups of employees, data on the age of the research
participants were analysed.
Figure 4.2: Age Status of Respondents
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
21-30 years 31-40 years 41-50 years 51 years and above
19.44%
36.11%41.67%
2.78%
Source: Field Survey (2020)
34
The results from Figure 4.2 above reveals that 19.44% were within the age group 21-30 and
36.1% were between 31-40 years, 41.7% were between 41-50 years and 2.78% were above 50
years. The results further indicate that, 41.7% of the total number of respondents being the
majority were within the age group 41-50 years whilst 36.1% followed in second place for
respondents in the 31-40 years age-group.
4.2.3 Educational Background of Respondents
The educational background of respondents gave insight into the diverse skills of the respondents
and how they could analyse and perceive issues at the workplace. The findings show that the
Judiciary employs mainly skilled workers. Figure 4.3 presents the distribution of respondents by
level of education attained. Figure 4.3 below shows the various levels of education of all
respondents. Of these, 2.8% had a high school certificate, 30.6% were professional tertiary
certificate holders, 16.7% were diploma holders; this is followed by 30.6% respondents who had
bachelors’ degrees of the respondents sampled. Furthermore, 19.4% have had post graduate
degrees and happen to be from the senior staff stratum.
Figure 4.3: Level of Education of Respondents
Source: Field Survey (2020)
35
Formal education has given rise to shifts in the occupational distribution and ranking in the
country, as well as a change in the stratification arrangements of the wider society (Assimeng,
2012). It has also changed the cognitive structure of many people. It is in the light of this that the
study examined the educational background of respondents. This level of literacy enhanced the
research, especially during the data collection. This was because most of the respondents could
understand the issues that the research sought to unravel.
4.2.4 Length Of Service Of Respondents
Length of service is an important characteristic that helps the organisation planners to plan the
manpower requirements of the organisation at any point in time. Results are given below. In
order to investigate the impact of performance management on service delivery, it was important
to explore for how long respondents had been working in the institution. Figure 4.6 above gives
the length of service of employees of Chilanga Town Council as gathered by the researcher.
Figure 4.4: Length of Service of Respondents
Source: Field Survey (2020)
Out of the total number of 36 respondents, 5.6% had been working in the institution for 0-1
years, 19.4% had been working for 2-4 years and 13.9% had served for 5-7 years. Those who
36
had been working for 8-10 years represented 30.6% and another 30.6% of the respondents had
worked with the institution for over 10 years.
4.3 Relationship between Performance Appraisal and Employee Performance
The study measures the relationship between performance appraisal and employee performance
by investigating several variables as tabulated in Table 4.1 blow.
Table 4.1: Relationship between Performance Appraisal and Employee Performance
Statements 1 2 3 4 5 Mean Std Dev
i. Performance appraisal makes me
work harder than expected
8.3%
3
5.6%
2
0.0%
0
33.3%
12
52.8%
19 4.2 1.22
ii. Performance appraisal makes me
work at my normal pace
5.6%
2
5.6%
2
16.7%
6
44.4%
16
27.8.0%
10 3.83 1.08
iii. Performance appraisal makes me
work below expectation due to how it
is conducted
16.7%
6
11.1%
4
30.6%
11
41.7%
15
0.0%
0 2.97 1.11
iv. If I don’t agree with performance
appraisal score, there is an appeal
process
8.3%
3
5.6%
2
22.2%
8
33.3%
12
30.6%
11 3.72 1.21
v. Performance appraisal makes me
better understand what I should be
doing
5.6%
2
2.8%
1
5.6%
2
33.3%
12
52.8%
19 4.25 1.08
vi. Performance appraisal is used as a
decision-making tool for the
increasing my performance
8.3%
3
2.8%
1
2.8%
1
41.7%
15
44.4%
16 4.11 1.17
vii. Performance appraisal influences
positively individual performance
5.6%
2
8.3%
3
5.6%
2
38.9%
14
41.7%
15 4.03 1.16
viii. I often perform better than what can
be expected without appraisal
5.6%
2
5.6%
2
2.8%
1
50.0%
18
36.1%
13 4.06 1.07
ix. Performance appraisal is valuable to
my performance in my institution
5.6%
2
5.6%
2
16.7%
6
44.4%
16
27.8.0%
10 3.83 1.08
x. I am satisfied with the current
performance appraisal system in the
department
16.7%
6
11.1%
4
30.6%
11
41.7%
15
0.0%
0 2.97 1.11
Average mean score 3.1 2.3 4.8 14.5 11.3 3.79 1.13
NB: 1-Strongly disagree; 2-Disagree; 3-Not sure; 4-Agree; 5-Strongly agree
Source: Field survey (2020)
37
According to Table 4.1 above, performance appraisal makes employees work harder than
expected going by the 86.1% who agreed. The responses also had a mean of 4.2 denoting a
general agreement as per Likert scale with a standard deviation of 1.22. This shows that majority
of the respondents were in agreement to the above assertion and the dispersion among responses
was low. Seventy two percent (72%) stated that performance appraisal made them work at their
normal pace and the mean value for this statement is 3.83 denoting a general agreement with a
low standard deviation of 1.08. asked as to whether performance appraisal makes the employees
work below expectation due to how it is conducted, only 41.7% were in agreement while 30.6%
were not sure and 27.8% were in disagreement. The mean value for this statement was 2.97 and a
standard deviation of 1.11, implying that most of the respondents were not in agreement to the
assertion. It was also learnt that if an appraisee does not agree with the appraisal score, there was
an appeal process as 53.9% were in agreement to this statement while the mean value was 3.75
and standard deviation of 1.21. The mean value denotes a general agreement of the statement
above. An overwhelming 86.1% stated that performance appraisal made them better understand
what they should be doing with mean value at 4.25 and a standard deviation of 1.08 denoting low
dispersion among those who agreed to the above assertion.
Performance appraisal was used as a decision-making tool for increasing the employees’
performance as 86.1% were in agreement and the responses had a mean value of 4.11 and a 1.17.
By implication, this shows an overwhelming agreement with the statement and a low dispersion
among responses. The findings further show that performance appraisal influences positively
individual performance as nodded by 80.6% of respondents whose responses had a mean value
of 4.03 and a standard deviation of 1.16. More than three quarters of the respondents stated that
they often performed better than what could be expected without appraisal as 80.6% affirmed the
above position and the responses had a mean value of 4.06 and a standard deviation of 1.07. This
by implication shows a state of general agreement to the assertion and the responses had a low
dispersion from the mean. It was further found that performance appraisal was valuable to the
employees’ performance in the institution as affirmed by 72.2% of the respondents who
indicated that they were in agreement while the mean value was 3.83 with a standard deviation
of 1.08. However, only 41.7% of respondents were satisfied with the current performance
appraisal system in the department and this had a mean value of 2.97 and a standard deviation of
38
1.11. As stated by Smriti (2014), performance appraisal always brings mixed feelings to the
organisation and further breeds a lot of mistrust between employees and management.
Furthermore, non-parametric chi-square analysis was carried in order to see how well the
findings for this relationship between performance appraisal and employee performance can be
inferred onto the population of Chilanga Town Council with hypothesis as follows:
HO: Performance appraisals have no effect on employee performance
H1: Performance appraisals have an effect on employee performance
The results were as follows:
And
While
Since the calculated chi-square value was larger than the critical value, the null hypothesis was
rejected leading to a conclusion that the expected population frequencies are not equal in value
for the responses on this item. This implies that, they can be inferred on the population of
Chilanga Town Council the same way they appear in the sample. In other words, there is no
statistical evidence at 5% level of significance to conclude that the responses in the population
where the sample was drawn from were equal in value. Therefore, the null hypothesis is rejected
while accepting the alternative which states that: Performance appraisals have an influence on
employees’ service delivery at Chilanga Town Council. The results generally reflect a positive
influence on employee productivity in the performance assessment. Performance reviews focus
on the contributions of employees to their organizational objectives. Similarly, Derven (2010)
suggested that performance assessments could lead, for example by increasing productivity or
service clients, to work performance improvements and thus overall business performance.
Malcolm and Jackson (2002) add that the performance assessment benefits both by identifying
high-performers and poor performers and by identifying strengths and areas of development.
39
A significant proportion of respondents agreed on the understanding of what they should do
through the performance assessment. The employees can find what is expected of them and the
consequences of their performance through a performance assessment. Ideally, they receive a fair
analysis of their performance. They receive Similarly, Derven (2010) explains that a
performance assessment helps evaluate employees ' performance and their contribution to
organisational objectives, as well as to bring individual performance into line with organisational
objectives and also examine employee achievements.
Many respondents agreed that they perform better than can be expected without assessment with
a performance assessment. Mullins (2009) likewise points to a performance evaluation which
takes into account employees' previous performance and focuses on improving employees '
future performance. Mullins adds that performance assessment can help identify inefficient work
practices or disclose potential problems that limit the progress of the company. This means that
an evaluation is important to employee productivity in the company. Derven (2010) indicated
that performance assessments can assist in identifying the company's talented employees and
future leaders. The profitability of the company can thus be directly increased. Most respondents
agreed that performance evaluation was used as a decision-making tool to increase the
performance of employees. Decisions are made independently but are linked to the assessment
system. Many of the participants were satisfied with the organization's current performance
assessment system. This suggests that effective assessment can have a positive effect on the
company's productivity. Brown and Benson (2013) also suggest that performance assessment
may be linked to the performance improvement process, and the decision to identify needs and
opportunities for training, agree on future goals, encourage a career development plan, and
resolve existing issues.
Randell (2014) implicitly reports that the likelihood of good performance is increased and then
rewarded while poor performance is discouraged or even punished to lessen the chance of it
happening again. However, a number of respondents agree that, as the appeal process is in place,
they do not agree with the performance assessment result. This could mean that performance
evaluation emphasises the importance of employee participation and participation in
performance ratings. An effective assessment system can increase employees ' interest and
40
performance to achieve specified targets and performance goals. The absence of a fair evaluation
score could result in employees working at a normal pace or working below expectations as the
results are achieved.
4.5 Ways In Which Managers Can Review Past Performance and Improve Current
Performance
The study measured ways in which managers can review past performance and improve current
performance by investigating several variables in Table 4.3 below.
Table 4.3: Ways in Which Managers Can Review Past Performance and Improve Current
Performance
Statements 1 2 3 4 5 Mean Std Dev
i. My manager gives me fair feedback 2.8%
1
5.6%
2
2.8%
1
44.4%
16
44.4%
16 4.22 0.96
ii. My manager discusses regularly my job
performance with me
8.3%
3
5.6%
2
8.3%
3
55.6%
20
22.2%
8 3.78 1.12
iii. I enjoy discussing about my performance
with people outside it
11.1%
4
5.6%
2
5.6%
2
44.4%
16
33.3%
12 3.83 1.28
iv. My department seems more engaged in
providing positive feedback for good
performers than criticizing the poor ones.
5.6%
2
5.6%
2
5.6%
2
38.9%
14
44.4%
16 4.11 1.16
v. The feedback I receive agrees with what I
have actually achieved.
5.6%
2
8.3%
3
5.6%
2
38.9%
14
41.7%
15 4.03 1.16
vi. My manager communicates with me
frequently about my performance.
8.3%
3
5.6%
2
2.8%
1
41.7%
15
41.7%
15 4.03 1.21
vii. I am satisfied with the way my department
provides me with feedback
5.6%
2
5.6%
2
8.3%
3
47.2%
17
33.3%
12 3.97 1.08
viii. I always get adequate feedback on my
performance.
2.8%
1
8.3%
3
5.6%
2
50.0%
18
33.3%
12 4.03 1.00
ix. Current performance feedback in my
department is fair and unbiased
8.3%
3
5.6%
2
2.8%
1
41.7%
15
41.7%
15 4.03 1.21
Average mean score 2.3 2.22 1.89 16.11 13.44 4.00 1.13
NB: 1-Strongly disagree; 2-Disagree; 3-Not sure; 4-Agree; 5-Strongly agree
Source: Field survey (2020)
Other variables included feedback agreeing with the performance achieved, manager frequently
communicating about employee performance, relevance of employee feedback, satisfaction with
the organisation feedback and fairness of the current performance feedback. The study findings
are as below. According to the findings in Table 4.3 above, the statements under performance
41
feedback on service delivery influence were all overwhelmingly agreed upon by majority of the
respondents as the average mean score was found to be 4.00 and a standard deviation of 1.13
denoting a general agreement as per Likert scale (4 = Agree).
Furthermore, non-parametric chi-square analysis was carried in order to see how well the
findings for the managers’ feedback influencing current performance can be inferred onto the
population of Chilanga Town Council with hypothesis as follows:
HO: Managers’ Feedback has no influence on employees’ current performance at Chilanga Town
Council.
H1: Managers’ Feedback has an influence on employees’ current performance at Chilanga Town
Council.
The results were as follows:
And
While
Since the calculated chi-square value was larger than the critical value, the null hypothesis was
rejected leading to a conclusion that the expected population frequencies are not equal in value
for the responses on this item. This implies that, they can be inferred on the population of
Chilanga Town Council the same way they appear in the sample. In other words, there is no
statistical evidence at 5% level of significance to conclude that the responses in the population
where the sample was drawn from were equal in value. Therefore, the null hypothesis is rejected
while accepting the alternative which states that: Performance Feedback has an influence on
employees’ service delivery at Chilanga Town Council.
42
Most respondents agreed on the significant impact of the compensation system on the
productivity of employees. The system of compensation had a positive impact on employee
productivity. Consequently, an adequate compensation system exists. Derven (2010) also
suggests that performance evaluation awards give the manager the opportunity to officially
recognise and motivate his performance. Jackson and Schuller (2012) add that the performance
assessment awards indicate a clear goal, standards and priorities to increase confidence in
identifying strengths and enhancing employee productivity.
An important number of respondents agreed that the appreciation of managers increases the
success of their work. The manager's chance to recognize good people leads to work motivation
(Derven, 2010). It is important to recognise the efforts of employees rather than only results.
Supervisors should focus on improving positive behaviour and performance. Tangible rewards
also increase people's incentive to complete or exceed certain performance goals. Some
respondents agreed that various rewards promote employee creative skills. Likewise, Mone and
London (2010) explained that creative rewards support widespread creativity in other tasks.
Reward systems should encourage dynamism among team-based organizations, and they should
recognize the importance of cooperation and differences in individual performance, as well as
rewarding the right types of team conduct and performances and reward schemes. Gichuhi,
Abaja and Ochieng (2014) warn that, despite their teamwork, problems may occur when systems
of reward stress results.
In most cases, bonuses increase employee performance. Bonus rewards lead to increased
employment interest and performance. Likewise, Randell (2014) implicitly states that the
chances are increased by observing and rewarding good performance while failing to deliver.
Moreover, most respondents agreed that the rewards of the organization sometimes improve its
productivity. Important problems to ensure a successful reward process are efficiently used,
without compromising employee performance and interest, to boost interest and performance.
However, the advantages were varied and satisfactory for a small number of respondents. Mone
and London (2010) suggest that employees should be adequately rewarded for outstanding
performance with various rewards.
43
Many respondents agreed that the organisation influenced its productivity by linking the award
to work promotion. This shows that employment promotion can improve the performance of the
organization's employees (Jackson and Schuller, 2012). This will also give employees more
motivation. Some respondents agreed that the benefits would motivate them to fulfil their tasks
promptly. The feedback on the performance could thus lead to a delay. Few respondents agreed
that their salary levels were fair and satisfactory in terms of performance. Employees cannot,
therefore, be motivated to do their best. Mone and London (2010) found that an unfair evaluation
of employee performance leads to an insecurity or discouragement and poor relations between
employer and employee.
4.5 Ways in Which Performance Appraisal Enhances Employee Performance
The study measured ways in which performance appraisal has impacted employee performance
by investigating the following variables in Table 4.3 below.
According to Table 4.3 above, the respondents were in general agreement that the factors as
outlined under reward systems positively influenced their productivity and subsequently their
service delivery to the public as the given factors had an average mean score of 4.01 and a
standard deviation of 1.12. By implication, the respondents agreed that the reward systems
influenced their desire to deliver services as per institution’s mandate provided for under the
objectives and mission statement of Council.
Furthermore, non-parametric chi-square analysis was carried in order to see how well the
findings for the influence of reward systems on employee service delivery can be inferred onto
the population of Chilanga Town Council with hypothesis as follows:
HO: Performance appraisal has no impact on employee performance at Chilanga Town Council
H1: Performance appraisal has an impact on employee performance at Chilanga Town Council
44
The results were as follows:
And
While
Table 4.3: Ways in which Performance Appraisal Enhances Employee Performance
Statements 1 2 3 4 5 Mean Std Dev
i. The rewards provided by my
department very frequently motivate
me to give my best
8.3%
3
5.6%
2
2.8%
1
41.7%
15
41.7%
15 4.03 1.21
ii. The rewards provided by my
department sometimes serve to
improve on my productivity
5.6%
2
5.6%
2
8.3%
3
47.2%
17
33.3%
12 3.97 1.08
iii. My department influences my
productivity by linking the reward on
job promotion.
2.8%
1
8.3%
3
5.6%
2
50.0%
18
33.3%
12 4.03 1.00
iv. The rewards motivate me to be timely
in completing my duties.
5.6%
2
8.3%
3
0.0%
0
47.2%
17
38.9%
14 4.06 1.12
v. The rewards are varied and
satisfactory.
8.3%
3
5.6%
2
8.3%
3
36.1%
13
41.7%
15 3.97 1.23
vi. My level of wage is fair and
satisfactory to the degree of my
performance.
8.3%
3
8.3%
3
5.6%
2
25.0%
9
52.8%
19 4.06 1.31
vii. Reward opportunities encourage staff
to be creative
5.6%
2
5.6%
2
5.6%
2
55.6%
20
27.8%
10 3.94 1.04
viii. Bonuses increase my performance 5.6%
2
8.3%
3
5.6%
2
44.4%
16
36.1%
13 3.97 1.13
ix. Appreciation by managers increases
my success at work.
2.8%
1
8.3%
3
5.6%
2
50.0%
18
33.3%
12 4.03 1.00
x. When rewarded I seek for ways of
improving the performance of the
department.
5.6%
2
8.3%
3
0.0%
0
47.2%
17
38.9%
14 4.06 1.12
Average mean score 2.1 2.6 1.7 16 13.6 4.01 1.12
NB: 1-Strongly disagree; 2-Disagree; 3-Not sure; 4-Agree; 5-Strongly agree
Source: Field survey (2020)
Since the calculated chi-square value was larger than the critical value, the null hypothesis was
rejected leading to a conclusion that the expected population frequencies are not equal in value
for the responses on this item. This implies that, they can be inferred on the population of
Chilanga Town Council the same way they appear in the sample. In other words, there is no
45
statistical evidence at 5% level of significance to conclude that the responses in the population
where the sample was drawn from were equal in value. Therefore, the null hypothesis is rejected
while accepting the alternative which states that: Performance appraisal has an impact on
employee performance at Chilanga Town Council.
Most of the respondents agreed that the compensation system has a major impact on employee
productivity. The compensation system had a positive effect on the productivity of employees.
Therefore, there is an adequate system of compensation. Likewise, Derven (2010) suggests that
performance assessment awards give the manager a chance to formally recognise good
performance and lead to motivation. The rewards of performance evaluation indicate a clear
work goal, standards and priorities to ensure more confidence in strengths identification as well
as improved employee productivity, adds Jackson and Schuller (2012).
A significant portion of interviewees agreed that managers' appreciation increases their work
success. The manager's opportunity to recognise good workforce results in motivation for work
(Derven, 2010). Rather than only results, it is important to acknowledge employee effort.
Supervisors must concentrate on enriching positive conduct and performance (Derven, 2010).
Tangible rewards also increase motivation for people to complete their work or to meet or
exceed specified performance objectives. Some respondents agreed that different rewards
promote creative skills among employees. Likewise, Mone and London (2010) explains that
creative rewards promote widespread creativity in other tasks; reward systems should foster the
new dynamics of team-based organisations and reward the right type of team conduct and
performance and reward systems should both acknowledge the relevance of cooperation and the
differences in individual performance. Gichuhi, Abaja and Ochieng (2014) warn that problems
can occur when systems of reward stress individual outcomes despite teamwork.
Most respondents agreed that bonuses increase the performance of employees. Bonus rewards
lead to higher interest and performance in the job. Similarly, Randell (2014) implicitly reports
that the odds are increased when good performance is observed and rewarded, while poor
performance is disheartened. Most respondents also agreed that the organization's rewards
sometimes improve their productivity. Important problems that ensure a successful recompense
46
process are efficiently used to enhance interest and performance without compromising
employees' performance and interest. However, a small number of respondents agreed that the
benefits were diverse and satisfactory. Mone and London (2010) suggest that staff should be
sufficiently rewarded with varied rewards for outstanding performance. Many respondents
agreed that by linking the award to the promotion of work, the organisation influenced its
productivity. This indicates that job promotion may improve the organisation’s employee
performance (Jackson and Schuller, 2012). This also means more motivation for employees.
Some of the respondents agreed that the rewards motivate them to perform their duties in a
timely manner. This could lead to a delay in the delivery of the feedback on performance. Few
respondents agreed that wage levels in terms of their performance were fair and satisfactory. So,
employees cannot be motivated to do what they can. Mone and London (2010) found that unfair
assessment of the performance of employees makes them feel insecure or discouraged and leads
to poor employer-employee relations.
4.6 Chapter Summary
The overall objective of the study was to assess the effect of performance appraisal practices on
employees’ performance with a focus on Chilanga Town Council. The findings show that
performance assessments, rewards and performance feedback have a connection to the
productive performance of employees, which should inevitably lead to the effective delivery of
services at the Council. The next chapter covers a summary of findings of the study.
47
CHAPTER FIVE: DISCUSSION OF FINDINGS
5.1 Introduction
This section provides the discussion of the research findings compared to the literature review
findings and a summary of the study and recommendations for further improvements in
determining measures to be taken to investigate the effect on productivity of employees of
performance management practices. The research will be concluded on the basis of the findings
of the research goals. The overall aim of the study was to assess the impact of performance
appraisal on employees’ performance with a focus on Chilanga Town Council.
5.2 Discussion of Findings
5.2.1 Relationship Between Performance Appraisal And Employee Performance
In terms of influence of by performance appraisal on employee performance the findings suggest
that employee assessment leads to increased productivity. Performance reviews focus on
contributions by employees to the organisational objectives. Performance management allows
employees to express their ideas and expectations to achieve the company's strategic objectives.
Performance management could be an effective source of decision-making management
information. An effective evaluation system may increase employee interest and performance in
order to achieve or exceed certain performance objectives.
5.2.2 Ways In Which Performance Appraisal Has Impacted Employee Performance
With respect to performance appraisal impact on the performance of employees, the findings
suggest that workers can be rewarded to meet the target level of productivity of the organisation.
The manager's opportunity to recognise officially the good work of his employees leads to
motivation for work. Opportunities for reward encourage creative and innovative employees.
The use of the recompense system was a key factor in the ability of any company to achieve its
objectives. When good performance is respected, and then rewarded, it is increasing, while poor
performance is discouraged from reducing the likelihood that it will happen again. Bonuses lead
to a greater interest in the task and to greater performance. Employment promotion can improve
the organisation's employee performance.
48
5.2.3 Ways In Which Managers Can Review Past Performance and Improve Current
Performance
In terms of the impact of performance feedback on the productivity of employees, the findings
showed that efficient feedback is vital to achieving its objective. Effective feedback on
measuring performance can result in increased productivity of employees. Feedback allows
employees to know exactly what is expected of them. The purpose of the assessment process for
enhanced productivity must be communicated and clearly explained. An effective performance
feedback reflects each employee's contribution to achieving the objectives of the organization
and its degree of efficiency. A successful organisational productivity and ventilation is the key to
efficient performance feedback between employees and supervisors. Suitable feedback enhances
accountability as employees and overseers contribute to the development of goals, skill
identifying, career development and motivation of employees.
5.3 Chapter Summary
Generally, the APAS was not effectively used in making serious decisions on the human
resources. From the findings, it can be deduced that there was no clear rewards or incentive
policy as one way of motivating individual performance. Appraisal for incremental purposes had
not served its purpose. Failure by local government to implement the use of ARP had contributed
to under performance in public service because the current system of collective bargaining which
even rewards non-performers has demotivated the high performers. Government needed to
enforce the PRP in order to improve performance. Regarding the use of the APAS in making
appointments and promotions, the APAS was not effectively used to make decisions on
appointments and promotion. The study revealed that there was a lot of corruption, nepotism,
tribalism and political patronage in the way appointments and promotions are made in public
Service. Appointments and promotions that were made based on the above mentioned vices
resulted in underperformance and poor service delivery. Generally, there was also a perception
among most public servants that government does not dismiss the under performers. That
perception has been entrenched in public service as it is difficult to quantify under performance.
Based on the discussion and analysis above, the conclusions and recommendations of the
research study are made in the next chapter.
49
CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS
6.1 Introduction
This chapter concludes the findings based on the objectives set for the study. The study
embarked on this part of the research to purely evaluate how effective the APAS had been in
improving performance in the Zambian Local Government Service. The study had the following
specific objectives: Assess the relationship between performance appraisal and employee
performance at Chilanga Town Council; examine ways in which performance appraisal has
impacted employee performance; explore ways in which managers can review past performance
and improve current performance; and establish if performance appraisal enhances productivity.
6.2 Conclusion
The findings suggested that performance appraisal leads to improved productivity and ultimately
service delivery. Performance reviews focus on the contributions of employees to the
organisational objectives. Performance management allows employees to express their ideas and
expectations to achieve the company's strategic objectives. An efficient management system can
increase employee motivation and performance to complete the work or achieve or exceed the
performance goals specified. The findings indicate that employees can be rewarded for achieving
their objectives of productivity. The manager's opportunity to acknowledge the good
performance of his/her employees is motivating. Rewards encourage employees to be creative
and innovative. In order for any company to achieve its objectives, the use of the recompense
system was an essential ingredient. When performance is observed and then rewarded, the odds
of repeating it are increased and poor performance discouraged from reducing the odds. Bonuses
result in a greater interest in the task and achievement. Promoting jobs can improve the
organisation's employee performance.
The results showed that effective feedback is crucial to achieving its goal for any organisation.
Improved employee productivity can be achieved with effective feedback from performance
measurement. Feedback allows employees to know exactly what is expected of them. The
purpose of the evaluation process for improved productivity must be communicated and clearly
explained. An effective feedback on performance reflects the contribution of each employee's
performance and its effectiveness to achieving the organisation's objectives. A successful
50
organisational productivity is driven by an effective performance feedback between employees
and supervisors. Appropriate feedback increases accountability, as employees and supervisors
participate in the development of goals, skills identification, career development and staff
motivation.
6.3 Recommendations
The study recommends optimising the performance management to improve employee
performance as follows:
Performance reviews should focus on the individual employees' contributions to achieve
organizational objectives. The employees should be encouraged to express their ideas and
expectations in order to achieve the institution's strategic goals. The performance
management can make the employees aware of their expectations and their performance
consequences. Evaluation of performance should improve the performance of employees.
For effective decision making, performance management should be optimised. This may
lead the employees to perform and exceed their performance at work.
The study suggests that the organisation reward staff for increased productivity. The
manager should recognise good efforts by employees for improved work performance
formally for every opportunity. To encourage employees to be creative to reach the
organisational goals, the compensation system should be different. This increases the
chance of repeating and increasing the performance while noting the discouragement of
poor performance. In order to improve task interests and performance, bonuses should be
used. Employment promotion can be used to enhance the organisation's work
performance. A fair evaluation process should be established to ensure the employee is
secure for improved productivity.
The study recommends that an organisation use effective feedback to achieve its
objective. Effective feedback should be provided, which would result in increased
productivity for employees. Feedback allows employees to know exactly what they
expect. For increased productivity, it is important to communicate and talk about
51
employee performance. Feedback on performance must be free of personal bias errors
such as stereotyping in order to positively impact employee productivity. The
contribution of the individual employee's performance should reflect an effective
performance feedback. A formal evaluation system should be established, and
management should use the existing systems to accept the results. Adequate feedback on
performance should strengthen employee productivity accountability.
6.4 Limitations of the Study
During this study, there were several constraints and a smooth performance of the study was
interfered with. Lack of resources and time were the primary constraints. First, one of the
greatest expected constraints was the financial challenge as the researcher was a private
sponsored student. Second, the time-limit for the writing of the dissertation, visits of different
literatures as well as for information collection was been limited because they have were affected
by other research operations, and more particularly empirical literature review on the
performance management analysis in Zambia has not been readily available.
Third, it took more time for the Chilanga Town Council system to be studied in detail so that
necessary information can be collected. Time provided was not enough due to fact that
researcher has also to attend other daily activities as per research requirements and schedule, as
well as employment demands. Fourth, some of the information which should have been obtained
from the Council executives was sensitive and could not easily be accessed. In the provision of
necessary data, some respondents provided no support. The following strategies were
implemented to overcome the above constraints. First to overcome financial problem, the
researcher tried to avoid unnecessary costs and particularly was conscious in all financial
matters. In addition to the delay in the research, the sample size was manageable and the action
plan as suggested was strictly followed. Furthermore, to tackle such challenges, a schedule of
research activities was prepared, with strict observation of the timetable in order to accomplish
the required research on time.
52
6.5 Areas for Future Study
This study was limited to Chilanga Town Council only. In order to generalise the findings, it is
suggested that a similar study be conducted in other local government departments across the
country as per recommendations above.
6.6 Chapter Summary
This final chapter summarises the conclusions based on the results for each hypothesis of study
and the research problem. It then addressed the effect of the conclusions and their contributions
to the growth of new theory development and offered policymakers suggestions. Finally, it
discussed the constraints that arose during the study phase and given an overview of further
study possibilities.
53
REFERENCES
Anderson, J.R. (2002). Paper presented at the Human Resource Track Midwest Academy of
management Conference. Kansas City: Missouri.
Andrews, R. and Van de Walle, S. (2013). ‘New Public management and citizens’ perceptions of
local service efficiency, responsiveness, equity and effectiveness’. Public Management Review,
15(5): 762-783.
Armstrong, M. (1999) A Handbook of Personnel Management Practice. 6th Revised ed. London:
Kogan Page.
Armstrong, M. and Baron, A. (2005). Managing performance: Performance management in
action. Chartered Institute of Personnel and Development, London: Kogan.
Assimeng, M. (2012). Social Structure of Ghana. A study in persistence and change. Ghana
Publishing Corporation, Assembly Press.
Backlund, T. and Suikki, K. (2015). Performance appraisal-Dattner consulting Banket, R.D.
(2011). An empirical analysis of continuing improvements following the Implementation of a
performance-based compensation plan. Journal of Accounting and Economics 30(2), 315-350.
Baron, A. and Armstrong, M. (2007). Performance Management; the new realities. Wiltshire,
Cromwell Press.
Beach, D.S. (1985). Personnel – The management of people at work (5e), Macmillan Publishing
Co. N.Y. p. 22.
Blau, G. (2009), Testing the Longitudinal Impact of Work Variables and Performance Appraisal
Satisfaction on Subsequent Overall Job Satisfaction, Human Relations 52 (August): 1099–113
54
Bloom, N. Dorgan, S. Homkes, R. Layton, D. and Sadun, R. (2007). “Management in
Healthcare: Why Good Practice Really Matters” Report [Online] Available from:
http://cep.lse.ac.uk/textonly/_new/research/productivity/management/PDF/Management_in_Heal
thcare_Report.pdf [Accessed 17th January 2020].
Bohlander, G. and Snell, S. (2004). Managing Human Resources (13e), Lachina Cascio,
Publishing Services Inc, U.S.A., pp. 352-360.
Bond, T. and Fox, C. (2007). Applying the Rasch Model: Fundamental Measurement in Human
Sciences. 2nd Edition. New Jersey: Lawrence Album Associates.
Boswell, M. and Benson, J. (2000). Employee Satisfaction with Performance Appraisal and
Appraisers: The role of perceived appraisal use. Human Resources Development. 11(3): pp. 283-
299.
Brown, M., Haytt, D. and Benson, J. (2003). Consequences of the performance appraisal
experience. 39 (3), pp. 375-396
Cascio, W.F. (1992). Applied psychology in human resource management (5th ed). Upper
Saddle River, NJ: Prentice-Hall.
Chaudron, D. (2010). 360-Degree Feedback, Leadership, Management Style and Performance
Improvement. Human Resources Management Guide Network [Online]. Available:
http:www.organisedchange.com/Excite/360degreefeedback. [Accessed 12 January 2020].
Cook, J. and Crossman, A. (2014). Satisfaction with performance appraisal systems. Journal of
Managerial Psychology. Vol 19, no.5, pp. 526-541.
De Cenzo, D.A., Robbins, A. and Stephen, P. (2002). Human Resources Management. 7th
Edition. Ohio: Thompson Learning.
55
Derven, M. (2010). The paradox of performance appraisal. Personnel Journal 69 (2), 12-17.
Dessler, G. (2005), Human Resource Management. 11th edition, Upper Saddle River: Pearson
Education Inc.
Dessler, D. and Gary, R. (2000). Human resources Management. 8th Edition. Harlow: Prentice
Hall.
De Waal, A.A. (2012). What makes a high performance organisation? Five validated factors of
competitive performance that apply worldwide. Enfield, UK: Global Professional Publishing.
De Waal, A. A. and de Haas, J. (2016). Longitudinal research into the effects of the high
performance organisation framework: The case of NEH the Philippines. Paper presented during
the PMA 2016 Conference, June, Edinburgh, UK.
De Waal, A. A., Goedegebuure, R., and Mulimbika, T. (2014). Creating high performance
governmental organizations in Zambia. African Journal of Business & Economic Research, 9,
pp. 2357-2386.
Dieleman M, Toonen J, Toure H, Martineau T. (2006). The Match between motivation and
performance management of health sector workers in Mali. Human Resource Health. 2006; 4:2.
Donegan, M.C. (2002). Growth and Productivity – Optimising the financial Function for small
and Emerging Business, John Wiley and Sons Inc, Neto Jersey p. 233.
Drucker, P.F. (1954). The practice of management, Linane House, Jordan Hill, Oxford ox2 8dp,
Butterworth-Heinemann p. 119.
Dzimbiri, L.B. (2008). Experiences in new public management in Africa: The case of
performance management systems in Botswana. Africa Development, XXXIII (4), pp. 43-58.
56
Erdogan, B. (2002). Antecedents and consequences of justice perceptions in performance
appraisals. Human Resources Management Review. 23(12): pp. 555-578.
Fletcher, C. (1994). Performance appraisal and management. The Development Research
Agenda. Journal of Organisational Psychology. 74(4): pp. 456-490.
Fletcher, C. (2008). Appraisal, feedback and development: Managing performance review at
work. 4th Edition. Oxford: Routledge.
Fletcher, C. and Bailey, C. (2003). Assessing Self-awareness: Some Issues and Methods. Journal
of Managerial Psychology. 18(5): pp. 395-404.
Foot, M. and Hook, C. (2005) Introducing Human Resource Management (2e), Pearson
Education Ltd, Ediburyh Gate, p. 263.
Gabris, G.T. and Mitchell, I.D. (2000) Improving employee acceptance toward performance
appraisal and merit pay systems. Review of Public Personnel Administration, 20(1), pp. 41-53.
Gichuhi, A. W., Abaja, P.O., and Ochieng, I. (2014). Effect of Performance Appraisal on
Employee Productivity: A Case Study of Supermarkets in Nakuru Town, Kenya. Asian Journal
of Business and Management Sciences 2 (11), 42-58.
Government of the Republic of Zambia (GRZ) (2005). Implementation completion Report (ICR)
Public Service Capacity Building Project (PSCAP), Management Development Division,
Cabinet Office 2005.
Government of the Republic of Zambia. (2008). Government Strategy for the priority areas of
the public service reform programme for the period 2008.
Government of the Republic of Zambia (2016). Draft Re-aligned Sixth National Development
plan.
57
Greenberg, J. (1993). Justice and organisational citizenship: A commentary on the state of the
science. Employee Responsibilities and Rights Journal, 6(3), pp. 249-256.
Grote, R.C. (1996). The complete Guide to Performance Appraisal, America Management
Association, NY, p. 61.
Hodgetts, R.M. and Kroeck, G.K. (1992). Personnel and Human Resource Management, the
Dryden Press, Harcourt Brace Jovarich Inc, Florida p. 329.
Humble, J.W. (1972). Management by Objectives. Management Publication Ltd, p. 425.
Iles, P.A. and Zhang, C. (2013). International Human Resource Management: A Comparative
and Cross-cultural Approach, London: CIPD.
Jackson, S. and Schuller, R. (2012). Managing Human Resources through Strategic Partnership
(8th ed.). Toronto, Canada: Thompson.
Jafari, M. Bourouni, A. and Amiri, R. H. (2009). A new framework for selection of the best
performance appraisal method. European Journal of Social Science, 7(3), pp. 92- 100.
Kurt, L. (2004). Kurt Lewin and the Planned Approach to Change: A Re-appraisal. Journal of
Management Studies, 41: pp. 977–1002.
Kuvaas, B. (2006). Performance Appraisal Satisfaction and Employee outcomes; Mediating and
moderating roles of work motivation. London: Prentice Hall.
Locke, E.A and Lathan, G. (2002). A Theory of Goal setting and task performance, Englewood
Cliffs, Prentice- Hall.
Locke, E. A. Shaw, K. N. Sari, L. M. and Latham, G. P. (1981). Goal setting and task
performance: 1969-1980. Psychological Bulletin, 90.
58
Mani, B. (2002). Performance appraisal systems, productivity, and motivation: A case study.
International Journal of Human Resource Management 19: pp. 141-159.
Malcolm, M. and Jackson, T. (2002). Personnel Practice (3rd ed.). Chartered Institute of
Personnel and Development.
Mansor, N. A. (2011). ‘Determinants of performance management system in South East Asia’,
Interdisciplinary Journal of Contemporary Research in Business, 3(2): pp. 43-56.
Maroney, B. P and R Buckley (1992). "Does Research in Performance Appraisal Influence the
Practice of Performance Appraisal Regretfully Not!" Public Personnel Management 21: pp. 185-
196.
Mayne, J. and Zapico-Goni, E. (1997). “Effective Performance Monitoring: A Necessary
Condition for Public Sector Reform.” In Monitoring Performance in the Public Sector, eds.
Mcnamara, C. (2000). Performance measurement and management: Some insights from practice.
Australian Accounting Review, 15(35), pp. 14-28.
Meyer, J. P. (2001). A three-component conceptualisation of organisational commitment. Human
Resources Management Review, 1: pp. 61-89.
Moats-Kennedy, M. (1999). The case against performance appraisal. Across the Board, pp. 51-
52.
Mone, E. and London, M. (2009). Employee engagement through effective performance
management: a practical guide for managers, Routledge\Taylor and Francis Group, Oxford.
Mongkol, K. (2011). The critical review of the NPM management model and its criticisms.
Research Journal of Business Management, 5(1), pp. 35-43
59
Mugenda, O. M. and Mugenda, A. G. (2003). Research methods: Quantitative and qualitative
Approaches. Nairobi: African Centre for Technology Studies.
Mulenga, R. (2013). Public sector blues: Consumer perspectives Part II Zambian fire fighter
services. Consumer Reviews. [Online] Available from: https://consumerdiaries.wordpress
.com/consumer-education/public-sector-blues-consumer-perspectives-part-1/public-sector-blues
-consumer-perspectives-part-ii-zambian-fire-fighter-services/. [Accessed 17th January 2020].
Muriisa, R.K. (2008). Decentralisation in Zambia: prospects for improved service delivery.
African Development. 2008; XXXIII: pp. 83–95.
Noe, R.A, Hollenbeck, J.R, Gerhat, B, Wrigh, P.M. (2003). Human Resource Management:
Gaining a Competitive Advantage. Boston: Irwin McGraw-Hill.
Nurse, L. (2005). Performance appraisal, employee development and organizational Justice:
Exploring the linkages. International Journal of Human Resource Management16 (7): pp. 1176-
1194.
Nyaoga, R. Simeon K. and Magutu P. (2010). The effectiveness of performance appraisal
systems in private universities in Kenya, African Journal of Business & Management, Vol. 1.
Peiperl, M. (2005). Getting 360-degree Feedback Right. Harvard Business Review on Appraisal
Employee Performance. Harvard Business Publishing. Boston: Allyn & Bacon.
Perez, P.D. and Falcon, J.M. (2004). The Influence of Human Resource Management in Savings
Bank Performance. The Service Industrial Journal. 24(2): pp. 51-66.
Pettijohn, L. S. Parker, R. S. Pettijohn, C. E. and Kent, J. L. (2001). Performance Appraisals:
Usage, criteria and Observations. Journal of Management Development, 20(9), pp. 754-771.
60
Public Service Management Division (2017). Procedures and Guidelines for Human Resource
Development in the Public Service, Government Printers, Lusaka, Zambia.
Randell, F. (2014). Issues and Challenges in the Practice of Performance Appraisal Activities in
the 21st Century. International Journal of Education and Research 1 (4), 1-8.
Rasch, L. (2004). Employee performance appraisal and the 95/5 rule. Community College
Journal of Research & Practice, 28(5), pp. 407-414.
Robbins, S.P. and Coulter, M. (2002). Management. 7th Edition. Upper Saddle River, NJ:
Prentice Hall.
Rudman, R. (2003). Human Resources Management in New Zealand. Auckland: Pearson
Education New Zealand Limited.
Ruth, M. (2012). The disadvantages of Appraisal systems. Demand media.
Saffie-Robertson, M. C. and Brutus, S. (2014). The impact of interdependence on performance
evaluations: the mediating role of discomfort with performance appraisal. The International
Journal of Human Resource Management, 25(3), pp. 459-473.
Saunders, M. Lewis, P. and Thornhill, A. (2012). 7th Edition. Research Methods for Business
Students. Harlow: Prentice Hall.
Ssengooba, F. Rahman S.A, Hongor,o C. Rutebemberwa, E. Mustafa, A. Kielmann, T. and
McPake, B. (2007). Health Sector reforms and human resources for health in Uganda and
Bangladesh: mechanisms of effect. Human Resource Health; 5:3.
Schraeder, M, Becton, J, and Portis, R. (2007). A critical examination of performance appraisals.
The Journal for Quality and Participation, pp. 20-25.
61
Scott, S.G. and Einstein, W.O. (2001). Strategic Performance Appraisal in Team-based
Organisations: one size does not fit all. Academy of Management Executive. 15(2): pp. 107-116.
Sekaran, U. (2012). Research Methods for Business, United States of America, Hermitage
Publishing Services Publication Co.
Shelley, S. (1999). Diversity of appraisal and performance related pay practices in higher
education. Personnel Review. Vol 28, no. 5/6, pp. 439-454.
Simmons, J.A. and Lovegrove, I.W. (2002). Negotiating a research method’s conceptual terrain:
lessons from a stakeholder analysis perspective on performance appraisal in universities and
Institutes. Paper presented at the European Conference on Research Methods in Business and
management. Reading: Kidmore End.
Smriti, C. (2014). Top 8 Limitations of Performance Appraisal system/employee management.
[Online]. Available from: http://www.YourArticleLibrary.com, [Accessed on: 14 October,
2019].
Soltani, E. (2005). Conflict between theory and Practice: TQM and Performance Appraisal. The
International Journal of Quality and Reliability Management, 22 pp. 796-818.
Tyson, S. and York, A. (2000). Essentials of Human Resources Management. 4th Edition.
Oxford: Jordan Hill.
Walters, M. (1995). The Performance Management Handbook. London, IPD.
Wholey, J.S. (1989). “Introduction: How Evaluation Can Improve Agency and Program
Performance.” In Improving Government Performance, eds. Wholey, Joseph S. and Newcomer,
Katheryn E. and Associates. San Francisco: Jossey-Bass Publications.
62
Wilson, J.P. and Western, S. (2001). Performance Appraisal: An Obstacle to Training and
Development. Career Development International. 6(2): pp. 93-99.
Worley, C. (2003). Analysis of Travis County Performance Appraisal Systems. Applied
Research Projects. 38(15): pp. 18-25.
APPENDICES
63
Appendix I: Introduction Letter
Cavendish University
Lusaka
……/……./ 2020
Dear Respondent,
Re: Student Research
I am a Bachelor of Development studies student at Cavendish University Zambia - Lusaka
currently carrying out a research on:
“The Impact of Annual Performance Appraisal (APAS) on Employees’ Productivity in Local
Government –A Case Study of Chilanga Town Council”
You have been chosen to take part in this study by answering the questionnaire attached. This is
an academic exercise to enable me partially to fulfil a requirement for the award of a degree.
Therefore, your honest response to the questionnaire will be highly appreciated and considered
confidential. Please take a few minutes to answer this questionnaire. It is the researcher’s ethical
responsibility to maintain confidentiality of responses. You are also at liberty to remain
anonymous in this process.
Yours faithfully,
Sibongile Mukuwa
Cell: +260 977 562 662
___________________________________________________________________________
64
Appendix II: Questionnaire
Instruction: This questionnaire is part of a study examining, “The Impact of Annual
Performance Appraisal (APAS) on Employees’ Productivity in Local Government
Administration –A Case Study of Chilanga Town Council.” Kindly indicate your preference
among alternative answers for each question by ticking in the appropriate box. Where alternative
answers are not provided, fill in the gaps provided. Thank you for your contribution.
A. Background Information
1. Gender Tick
Male
Female
2. Age Tick
21-30
31-40
41-50
51 and above
3. Level of Education Tick
School Certificate
Professional Certificate
Diploma
Bachelor’s Degree
Master’s degree
Doctorate
4. Length of Service with High Court Tick
1 year and below
2-4 years
5-7 years
8-10 years
10 years and above
65
Section II: Relationship between Performance Appraisal and Employee Performance
5). Please indicate the extent to which you agree with the following statements by using a scale
of 1 to 5 where 1= strongly disagree and 5 = strongly agree. (Key: 1-Strongly disagree; 2-
Disagree; 3-Not Sure; 4-Agree; 5-Strongly agree).
Statements 1 2 3 4 5
x. Performance appraisal makes me work harder than expected
xi. Performance appraisal makes me work at my normal pace
xii. Performance appraisal makes me work below expectation due
to how it is conducted
xiii. If don’t agree with performance appraisal score, there is appeal
process
xiv. Performance appraisal makes me better understand what should
be doing
xv. Performance appraisal is used as a decision-making tool for the
increasing my performance
xvi. Performance appraisal influences positively individual
performance
xvii. I often perform better than what can be expected without
appraisal
xviii. Performance appraisal is valuable to my performance in my
organisation
xix. I am satisfied with the current performance appraisal system in
the department
6). How else does performance appraisal affect employees’ productivity/service delivery?
……………………………………………………………………………………………….
……………………………………………………………………………………………….
Section III: Ways in which Performance Appraisal has Impacted Employee Performance
7). Please indicate the extent to which you agree with the following statements by using a scale
of 1 to 5 where 1= strongly disagree and 5 = strongly agree.
66
(Key: 1-Strongly disagree; 2-Disagree; 3-Not Sure; 4-Agree; 5-Strongly agree)
Statements 1 2 3 4 5
i. The rewards provided by my department very frequently
motivate me to give my best
ii. The rewards provided by my department sometimes serve to
improve on my productivity
iii. My department influences my productivity by linking the
reward on job promotion.
1 2 3 4 5
iv. The rewards motivate me to be timely in completing my duties.
v. The rewards are varied and satisfactory.
vi. My level of wage is fair and satisfactory to the degree of my
performance.
vii. Reward opportunities encourage staff to be creative
viii. Bonuses increase my performance
ix. Appreciation by managers increases my success at work.
x. When rewarded I seek for ways of improving the performance
of the department.
8). How else does the reward system affect employee’s productivity/service delivery?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
Section IV: Ways in Which Managers Can Review Past Performance and Improve
Current Performance
9). Please indicate the extent to which you agree with the following statements by using a scale
of 1 to 5 where 1= strongly disagree and 5 = strongly agree.
(Key: 1-Strongly disagree; 2-Disagree; 3-Not Sure; 4-Agree; 5-Strongly agree)
Statements 1 2 3 4 5
i. My manager gives me fair feedback
ii. My manager discusses regularly my job performance with me
iii. I enjoy discussing about my performance with people outside it
iv. My department seems more engaged in providing positive
feedback for good performers than criticizing the poor ones.
v. The feedback I receive agrees with what I have actually
achieved.
My manager communicates with me frequently about my
performance.
67
vi. The feedback I receive on how I do my job is highly relevant.
vii. I am satisfied with the way my department provides me with
feedback
viii. I always get adequate feedback on my performance.
ix. Current performance feedback in my department is fair and
unbiased
10). How else does performance feedback affect employee productivity/service delivery?
…………………………………………………………………………………………………
…………………………………………………………………………………………………
Section V: Establish if performance appraisal enhances productivity
11). Please indicate the extent to which you agree with the following statements by using a scale
of 1 to 5 where 1= strongly disagree and 5 = strongly agree.
(Key: 1-Strongly disagree; 2-Disagree; 3-Not Sure; 4-Agree; 5-Strongly agree)
Statements 1 2 3 4 5
i. There is a link between performance appraisal and employee
productivity
ii. There has been a change in the performance of Chilanga Town
Council workers due to performance appraisal Systems
iii. There is a performance culture among the workers at Chilanga
Council in line with performance appraisal systems
iv. There is compliance with the performance appraisal Systems
when conducting performance reviews
v. The implementation of performance appraisal Systems led to
change in employee productivity
vi. The level of employee productivity at the Council is high as
compared to the beginning.
vii. The current level of employee productivity is high at the
Council.
viii. The current level of the decision-making process in the
department is highly formal.
ix. The ability of the employees to be innovative is high.
x. The quality of the services at the Council is high
12). How else has employee productivity and service delivery improved at Chilanga Town
Council?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
68
Thank You for Your Time and Responses
Appendix III: Chi – Square Calculations
Relationship between Performance Appraisal and Employee Performance (N=36)
Responses
O
E
O-E (O-E)²
(O-E)²
E
Degrees of
Freedom
SD 3.1 7.2 -4.1 16.81 2.33
4
D 2.3 7.2 -4.9 24.01 3.33
NS 4.8 7.2 -2.4 5.76 0.80
A 14.5 7.2 7.3 53.29 7.40
SA 11.3 7.2 4.1 16.81 2.33
Total 36 36 16.81
Ways in which Performance Appraisal has Impacted Employee Performance (N=36)
Responses
O
E
O-E (O-E)²
(O-E)²
E
Degrees of
Freedom
SD 2.1 7.2 -5.1 26.01 3.61 4
D 2.6 7.2 -4.6 21.16 2.94
NS 1.7 7.2 -5.5 30.25 4.20
A 16 7.2 8.8 77.44 10.76
SA 13.6 7.2 6.4 40.96 5.69
Total 36 36 27.20
Establish if performance appraisal enhances productivity (N=36)
Responses
O
E
O-E
(O-E)²
(O-E)²
E
Degrees of
Freedom
SD 2.3 7.2 -4.86 23.62 3.28 4
D 2.22 7.2 -4.98 24.80 3.44
NS 1.89 7.2 -5.31 28.20 3.92
A 16.11 7.2 8.91 79.39 11.03
SA 13.44 7.2 6.24 38.94 5.41
Total 36 36 27.08