ODA BULTUM
UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF MANAGEMENT
THE EFFECT OF EMPLOYEE PERFORMANCE APPRAISAL ON
EMPLOYEE MOTIVATION IN THE CASE OF CHIRO TEACHERS
TRAINING COLLEGE
A RESEARCH PROPOSAL SUBMITTED FOR PARTIAL FULFILLMENT
OF THE
REQUIREMENTS FOR BA DEGREE IN MANAGEMENT
ADVISOR: MR._TASFAYE.F
GROUP MEMBERS ID NO
SHAMIL HUSSEIN.........2773
OBSA AMINA.................
DIDA.
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Table of Contents
CHAPTER ONE: INTRODUCTION.....................................................................................................................1
1.1 Background of the Study......................................................................................................................1
1.2 STATEMENT OF THE PROBLEM...........................................................................................................2
1.3 RESEARCH QUESTIONS.........................................................................................................................3
1.3) OBJECTIVE OF THE STUDY...................................................................................................................4
1.3.1) General Objective........................................................................................................................4
1.3.2 Specific Objective..........................................................................................................................4
1.4 SCOPE OF THE STUDY..........................................................................................................................4
1.5 SIGNIFICANCE OF THE STUDY..............................................................................................................4
1.6 LIMITATION OF THE STUDY..................................................................................................................5
1.7 ORGANIZATION OF THE STUDY............................................................................................................6
CHAPTER TWO: REVIEW OF RELATED LITERATURES.....................................................................................7
2.1 NATURE OF PERFORMANCE APPRAISAL..............................................................................................7
2.2 CRITERIA FOR A SUCCESSFUL PERFORMANCE APPRAISAL..................................................................8
2.3 WHY APPRAISE THE PERFORMANCE OF EMPLOYEE............................................................................8
2.4 PURPOSE OF PERFORMANCE APPRAISAL............................................................................................9
2.4.1 Administrative purpose................................................................................................................9
2.4.2 Motivation purpose......................................................................................................................9
2.5 PERFORMANCE APPRAISAL PROCEDURE (STEPS)................................................................................9
Steps of a Performance Appraisal................................................................................................................10
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1. Planning...........................................................................................................................................10
2. Performing.......................................................................................................................................11
3. Evaluating.........................................................................................................................................11
4. Finalization of results.......................................................................................................................11
CHAPTER THREE: RESEARCH METHODOLOGY.............................................................................................12
3.1 Study Design.......................................................................................................................................12
3.2 Data source........................................................................................................................................12
3.3 Data Type and Data Collection Method.............................................................................................12
3.4 Sampling Method and Sample Size....................................................................................................13
3.4.1Sampling Method.........................................................................................................................13
3.4.2 Sample Size.................................................................................................................................13
3.5 Method of Data Analysis....................................................................................................................13
3.6 Ethical Consideration.........................................................................................................................14
3.7 Time and Cost Budget
3.7.1 Time/work/ plan.............................................................................................................................14
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CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
Performance appraisal is a human resource activity that is used to determine the extent to which
on employee is performing his/her job effectively. Performance is said to be a result of
employees and abilities and role perception in the organization during formal specified period of
time is assessed.
It can be also defined as a structural form of interaction between subordinate and supervisor that
usually takes the form of periodic interview annually or semi annually in which the work of the
employee is examined and discussed used with a view of identifying weakness and strength as
well as opportunities for improvement and skill development.(Dessler, 2002:416)
Performance feedback lets the employee know how well they have performed in comparison
with the standard of the organization. Performance appraisal and feedback can be an emotionally
laden process that dramatically affects employees attitude towards the organization and
themselves. If used effectively, performance appraisal can improve employee performance and
motivation. If used in appropriately it has disastrous (Fisher Feldman Shaw, 1996, 450-451).
An employee can be evaluated by his/her superior, subordinates, and peer by self-appraisal
methods. The immediate supervisor most of the time, hold the best position to observe his
subordinate behavior and to make judgment. This it is possible to say that a superior can have a
clear understanding of his subordinate behavior, performance, weakness and strength. The
quality of his judgment and appropriateness of his evaluation depends on the time he spends on
observing his subordinate and his ability in appraising. Responsibility of performance appraisal
gives superior considerable potential power to control the behaviors of subordinates (kast,
1985:519).
Subordinate can also evaluate their superiors managerial effectiveness. If the work condition
permits subordinates many time to observe their superior behavior, they can deliver accurate and
reliable information related to superior performance.
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Manager that continually monitor their subordinates activities also evaluate their performance
informally. More frequent periodic evaluation provides objective results. Therefore performance
appraisal should be continuous process but requires appraisal review. In many organization, but
not all , appraisal result is used either directly or indirectly to help determining reward outcome
that is the appraisal result are used to identify the better performing employee who should get the
majority of available merit, pay increase, bonus and promotion.
In Ethiopia many organizations and different institution used the graphic scale and rating
methods of performance appraisal. In this methods of appraisal predetermined standard are set
and based upon this standard employees are appraised. In such predetermined standard points
are assigned. It is based upon that point one is assumed to be good, fair and satisfactory
performance comparison. As distinct and formal management procedure used in the evaluation
of work performance (Takle Micheal Mamo research 1996:40)
Employees are also more likely to tech that the appraisal process is fail if they are given a chance
to talk about their performance. This is special when they are permitted to challenge and appeal
against their appraisal (Geenberg 1960 350)
It is very important that employees recognize that negative appraisal feedback is provided with a
constitutive intention that it helps them to over come present difficulties and to improve future
performance. Employees will be less anxious about criticism and more likely to find for useful,
when they believe that the appraisers intention is helpful and constructive. (Feb Or Etal,
1998:3001). Therefore, the research will be intended to identify the impact of employee
performance appraisal on employee satisfaction (motivation).
1.2 STATEMENT OF THE PROBLEM
Performance appraisal can have many problems in any organization. The problems differ from
organization to organization. This is because of the employees of one organization may have
different performance from the other organization. Employee can be motivated or de-motivated
for many reasons.
-It may be due to subjectivity bias or
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-Poor performance appraisal standard in the organization.
The appraisal method used and the manner in which results are communicated positively or
negatively affect employees motivation. The main problem in chiro teacher training college as
related to performance appraisal is:-
The employee have no much motivation for the result of performance appraisal
Raters are not efficient in rating
50% of the appraisal is taken by student for academic staff.
Some rater account error in rating by favor, bias, some to me and the like.
The design can be claimed if the criterion for appraisal is poor, the technique used is
cumbersome or the system is more formal than substance. The criteria used focuses solely on
activity rather than output and personal trait rather than performance.
1.3 RESEARCH QUESTIONS
Some of basic question to be answered include:
1. What is the perception of employee about appraisal system?
2. Are the employee informed about the appraisal in advance?
3. Are the appraiser trained to conduct the appraisal?
4. How does the appraiser appraise the employee performance appraisal?
5. Does the appraiser discuss with the employees about the result weakness and their
strength?
6. - What is the impact of performance appraisal on employee motivation?
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1.3) OBJECTIVE OF THE STUDY
1.3.1) General Objective
The general objective of this study is to asses the performance appraisal system in Mattu
teachers training college and method of appraisal and its impact on the employer motivation.
1.3.2 Specific Objective
1. To assess the role of performance appraisal in the college,
2. To examine the method of appraisal used by the appraisers in the college.
3. To evaluate the ability of appraisers to appraise or evaluate employees performance.
4. To examine the perception of employees as well as appraisers about the system of
appraisal.
5. To identify the techniques used by the organization to appraise employees performance
6. To explore the impact of performance appraisal on employee motivation.
7. To recommend solution for the problems identified.
1.4 SCOPE OF THE STUDY
The scope of the study was limited to the assessment of performance appraisal impact on
employee motivation in chiro teachers training college. The scope of the study ranges from
identifying the underlying problem of appraisal in college. Knowing the employees performance
appraisal and the consequence or result of appraisal on employee motivation and suggest
possible solution and recommendation. The study was conducted based on sample survey.
Questionnaire was the basic source of data used by the researcher.
1.5 SIGNIFICANCE OF THE STUDY
The study is helpful for someone to understand the problem of performance appraisal in the
college and it helps to know the methods and techniques used to evaluate or appraise employee
performance. The study also helps to know the criteria used by the college to appraise
employees.
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The study is useful for the organization for its future action. In that the organization corrects
unwanted procedures that affect the process of performance appraisal as well as employee
motivation.
On the other hand this study will be helpful for policy maker. Because it gives a way for decision
maker and policy maker to view the organization problem and forward better policy that can
control the problem.
1.6 LIMITATION OF THE STUDY
In conducting the study, the researcher may face many problems. Some of them are described
below:
A. Lack of cooperation
During the collection of data, some the employees of the college are not willing to fill the
questio0nnaire.
B. Language
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The other problem the student researcher may face is: - few employee of the college doesnt
know English language. The researcher was forced to ask them in the language they understand
and translate the answers in to English.
1.7 ORGANIZATION OF THE STUDY
This study will be organized into five chapters. The first chapter will deals with the introduction
part of the study. Here, the statement of the problem, research question, objective of the study,
and significance of the study, scope and limitation of the study where included.
Chapter two will focuses on literature review of important concepts and theories that where
relevant to the study. The third chapter will deals with the methodology used for the research.
Chapter four will focuses on results and discussions of collected analyzed data and finally, the
fifth chapter will be represented by summary, conclusion and recommendation based on the
findings of the research.
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CHAPTER TWO: REVIEW OF RELATED LITERATURES
2.1 NATURE OF PERFORMANCE APPRAISAL
Different authors defined performance appraisal differently the meaning and understanding of
the term is vary with the purpose it intends to serve and in addition to the understanding of the
individuals.
According to Parasad and Banner Pea, (2012) performance appraisal is a systematic evaluation
of employees by some other qualified person who is familiar with the employees performance.
This definition suggest individual involved in performance appraisal have the necessary
training and knowledge about the characteristics of the work and the performance level of the
employee. So this is good for holding the employee moral (motivation).
As defined by RaO and Nurayana 199,203 Performance appraisal is a process of evaluating the
performance and qualification of an employee in terms of requirement of job for which he/she is
employed for purpose of administration including placement, selection for promotion and
providing financial reward and other action which require deferential treatment among the
member of the group as distinguish from action affecting all member equally. This definition
indicates there is common goal to take performance appraisal.
Performance appraisal is a formal and systematic assessment made in prescribed and uniform
manner in order to evaluate employees performance and then give feedback to the employee
evaluated in order to improve his/her performance or continue in his/her strength (Math and
Jackson 2013, (400-401).
From the definition given above performance appraisal is one of the crucial human resource
activity that enables organization to efficiently utilize their human resource efficiently. This
efficient evaluation and giving feed back is used to increase employee motivation.
Performance appraisal is defined as any procedure that involves;
1. Setting work standard, 2. Assessing the employees actual performance related to those
standard and 3. Providing feed back with the aim of motivating that person to eliminate that
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performance deficiencies to continue to perform above par no all feed back is effective in
improving performance (Dessler Cole 2011 :416)
As the above definition performance appraisal is rating employee performance with pre-stated
standards. Also giving feed back to motivate employee, with out motivation feedback is useless
since there is a feed back that is not effective.
2.2 CRITERIA FOR A SUCCESSFUL PERFORMANCE APPRAISAL
Performance criteria are standards that are commonly used for testing or measuring performance.
Criteria for evaluating job performance can be classified as trait based behavior based or result
based. A trait based criteria identify a subjective characteristics such as pleasant personality.,
initiative or creatively and has a little to do with specific job (Mathis & Jackson, 2012:
251).
Behavior based criteria focus on specific behavior that lead to job success. For example a sales
person who can exhibit appropriately the behavior of verbal persuasion has satisfied behavior
based criteria. Behavioral criteria are more difficult to develop but have advantage of clearly
specifying the behavior that the management wants to see.
Result based criteria look at what the employee has done or accomplished. For some jobs where
measurements are easy and appropriate, a result based criteria works very well. However that
which is measurement tends to emphasized and equally important, but non-measurable part of
the job may be left out (Math is & Jackson 1999: 296).
2.3 WHY APPRAISE THE PERFORMANCE OF EMPLOYEE
As indicated by Rao performance appraisal is no a useless exercise, for it provide highly useful
information for making decision about various personal aspect of employees for instance merit
increase or promotions. Performance appraisal determine who shall receive merit increases
counsel employees on their improvement, determining training need, determining probability
identifies the employees to be transferred etc.
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2.4 PURPOSE OF PERFORMANCE APPRAISAL
Organization use performance appraisal in different way. But its over all purpose is to lay a bas
is for making personnel related decision. The plan and method used are highly dependent upon
its purpose (motivating purpose) (Megqiasm, 2012:403).
2.4.1 Administrative purpose
Appraisal is used for administrative purpose. This means that managers want to determine their
employees. Performance for salary, administration, promotion, transfer, lay off, termination and
to make other administrative human resource decisions.
The personnel department in an organization can also use appraisal result for human resource
planning. The result helping estimating the quality and number of personnel required to replace
poor performance that is expected to be field or demoted.
2.4.2 Motivation purpose
To encourage good performance, authorities forwarded that outstanding and predictive
employees can be awarded. On the other hand poor performance employees have to be trained
and counseled. Still other argue that employees most of the time are curious about their level of
performance. They can be initiated for a higher performance it they are informed how well they
are doing. An appraisal whether it used for administrative or developmental purpose or both
should be capable of motivating employee of good performance or poor performance
2.5 PERFORMANCE APPRAISAL PROCEDURE (STEPS)
Performance appraisal in volumes three basis steps. These are
1. Define the job
2. Appraise performance of employee
3. Provide feed back
Define the Job means making sure that you and your subordinate agree on what you expect
him/her to accomplish and what standard the persons performance will be appraised.
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Appraising performance means comparing your subordinate actual performance means
comparing your subordinate actual performance to the standard in step one this usually involve
some type of rating form performance appraisal usually requires one or more feed back session
during the subordinates performance progress are discussed and during which plan are laid out
for any development that is required (Dessler 1991 425)
For formal performance appraisal to be effective six steps are taken. These are;
1. Establish performance standard for each position
2. Establish performance evaluation policies on when and how often to be evaluated.
3. Who should evaluate the criteria for evaluation and evaluation tools to be used?
4. Have raters have gathered the data on employee performance
5. Discuss the evaluation with the employee in question
6. Make decision and file the evaluation (Teshome Bekele 1995, 20 management
institution).
Steps of a Performance Appraisal
Performance appraisals are regular reviews of employee performance within organizations.
Performance appraisals measure an employee's performance in the past year, identifying training needs
and contributing to personnel decisions such as promotions, salary increases and terminations. They
also give managers an opportunity to sit down and talk with their employees.
1. Planning
At the beginning of every year, a manager and an employee should meet to discuss the
employee's job description, responsibilities and duties. They should discuss what the employee
did in the past year and what is expected in the future.
2. Performing
Once the job description and responsibilities are made clear to the employee, she sets out to
achieve the goals assigned to her.
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3. Evaluating
At the end of the year, the manager evaluates the subordinate's performance. The manager
evaluates how well the employee met his objectives and deadlines, as well as the employee's
attendance, behavior and initiative. The manager appraises the employee's performance both
individually and with respect to other employees in the department. The manager's evaluation is
then provided to the top management as well as the employee.
4. Finalization of results
In case of exemplary performance, the employee might be rewarded with a promotion, perks,
bonuses or a raise. In case of unsatisfactory performance, the employee is reprimanded by means
of demotions or even termination. Training needs also might identified in a performance
appraisal.
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CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Study Design
The research design will be descriptive because such types of study tries to describe the
characteristics of population and define the problem effectively. In addition to that it enables us
to answer the question like who, what, when and how in relation to the study.
In this study the researcher has used survey in order to conduct the study by probability sampling
method.
Probability sampling methods are those in which every item in the universe has a known chance
or probability of being chosen for the sample. From probability sampling the researcher will use
systematic sampling. In systematic sampling, first employees are listed. Then setting the interval
and taking the respondent from the total list. (Interval= total population/number of respondent
needed)
3.2 Data source
The researcher will collect data from both primary and secondary sources. Primary sources will
be workers and management of organization and secondary sources will be published and
unpublished materials, records and document of organization concerning impacts of
performance appraisal on employees motivation.
3.3 Data Type and Data Collection Method
The primary data will be collected from the respondents by preparing open ended and close
ended questionnaire because it is expected that the respondents are educated to fill the designed
questionnaire properly as intended by the researcher. This is because of using questionnaire is
possible for the respondents to express their feeling and valuable suggestion freely. Structured
interview method will be used to collect data from management of organization. Secondary data
will be collected from different published and unpublished materials, records and documents of
organization concerning performance appraisal and employees motivation.
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3.4 Sampling Method and Sample Size
3.4.1Sampling Method
In this study the researcher will employ survey in order to conduct the study by probability
sampling method.
Probability sampling methods are those in which every item in the universe has a known chance
or probability of being chosen for the sample. From probability sampling the researcher will use
systematic sampling. In systematic sampling, first employees are listed. Then setting the interval
and taking the respondent from the total list. (Interval= total population/number of respondent
needed).
Simple random sampling is one where each item in the universe has an equal or known
opportunity of being selected & random sampling is a sample selected in such away that every
item in the population has on equal chance of being included.
For this research systematic sampling will be used. Systematic random sampling is a short cut for
random selection. It is fairly easy to do and more precise than simple random sampling.
3.4.2 Sample Size
From the total population of 182 employee 25 % (45 employees) were taken as a sample. From
the total 45 respondent, 35 of them are from academic staff and 7 of them are appraiser. The rest
10 respondents are taken from administrative staff where 3 of them are appraiser and the rest 7
ware employee respondent. So the researcher has distributed a questionnaire for these
respondents.
3.5 Method of Data Analysis
After collecting data with the help of questionnaire and interview, the data will be analyzed. This
will be done first by editing the collected data to avoid some errors during data collection or
responses which are not in parallel to each other. The processed and analyzed data will be
presented in the form of percentage, pie chart, bar graph and table which is based on their
appropriates to the processed data and descriptive method of data presentation will be used hand
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in hand with a above methods in order to clarify and describe quantitative data. In data
presentation, qualitative data will be translated and grouped into categories.
From the analyzed and processed data interpretation, the researcher will put conclusion by
summarizing the main points about the study and also will forward his own recommendations
based on some important comments given by respondents.
3.6 Ethical Consideration
The study will be conducted by taking in to account ethical responsibility. The researcher has
obtained permission from the organization for the study. Respondents will be clearly informed
about the purpose of the study, which is only for academic purpose. Respondents will not allow
to write their name on the questionnaires. Their responses also will be kept confidential in order
to maintain their privacy and to protect them from any harm.
Confidentiality of the office information will also be maintained by not disclosing the raw data
and destroying all the data after completing its purpose. Finally, a copy of the final report will be
given to the organization for transparency, lesson learnt and action to be taken by the
organization, if it is necessary.
3.7 Time and Cost Budget
3.7.1 Time/work/ plan
The study will be completed within the eight months. The following tables explain each of
important phases necessary for conducting research.
No Activities Months
Nov Dec Jan Feb Mar April May June
1 Topic selection
2 Collection of some data about
background of organization
3 Selection of related literature
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4 Preparation of research proposal
5 Recommendation of comments to
first draft of the proposal
6 Typing of final proposal
7 Submission of final proposal
8 Collection of data from the
organization deeply
9 Prepare and distribute questionnaires
to respondent
10 Collection of questionnaires from
respondent
11 Analyzing of data
12 Writing of first draft of the research
13 Submission of first draft of research
report comments
14 Typing of final draft of the research
15 Submission of final research
16 Presentation
3.7.2 Cost/Budget Plan
The research will be estimated the cost amount of budget listed below within a given time
because to do a research budget is also the most important and has a great role. Without budget
we cant do a research, therefore, a researcher plan for the following cost budget/ plan.
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No. Items Quantity Unit cost Total cost
1 Printing proposal 26 pages 3 78
2 Binding proposal 1 15 15
3 Questionnaires(3pages for each respondents 398*3= 4 1194
4 Printing final draft of research paper 50 pages 3 150
5 Stationary tools
Pen 3 10 30
Paper 1packet(500ps) 0.5 250
Hard paper 2 3 6
Plastic cover 2 3 6
Colored paper 2 3 6
6 Transportation cost - - 480
Miscellaneous expense 200
Total cost 2415 birr
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REFERENCES
Dessler cole Sutherland, Humar resource management, 8th edition, Canada, Canadian
edition,in,2002
Barrett, Richard S. performance rating, 3rd ed chiqo science Research associate sine, 1996
Bettomely, Michael H. personnel management, 4th, edition London pitman publisher USA 1983
Mathis Robert L, Human resource management, 19th edition prentice hall new 2006
Ivanlevich, Hohn M and Willian F.Glveck foundation of personnel human resource
management, 4th edition, Homewood: Richard. D.rwin ine. 1984
Byars lyoyd and lcssic W.Rve. Human recovered management , 4th edition vonhoff man press
USA, 1994.
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