Assessment of employee attitude towards performance appraisal and its impact to work performance
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Date
2013-07
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Kampala International University, College of Economics and Management
Abstract
Employee perfonnance appraisal is one of the most connnonly used management tools in
organizations irrespective of their type, size and objective. Performance appraisal is one of the most
widely researched areas in industrial/organizational psychology. However, the traditional research
agenda has done little to improve the usefulness of performance appraisal as a managerial tool.
Recent research has moved away from studies of rater accuracy and rating instruments to themes of
employee reactions towards performance appraisal as indicators of system _satisfaction and efficiency.
Employee attitude towards pe1formance appraisal has been studied as a significant factor in employee
acceptance and satisfaction of perfonnance appraisal. This study investigated the attitude and
reactions of employees towards the overall performance appraisal system as well as its major
component paiis such as standaiĀ·d setting, appraisal instrument, feedback, and appeal procedure in
Centenaiy Bank Soroti branch.
The study reviewed related literature in line with the study objectives and research questions.
Perception and satisfaction has got a positive relationship as far as performance appraisal is
concerned. Two studies that deal with the satisfaction with performance appraisal system are the
study of Mount (1984), and that of Cook and Crossman (2004). Concerning the aspects that
detennine the satisfaction of appraisal discussion ai1d the aspects of overall perfonnai1ce appraisal
system satisfaction, the results of Mount showed significant differences.
Moreso Data were obtained via a questiom1aire from 75 participants in the head office and other four
branches ofMFI (Microfinance lending institutions) in Soroti. An interview was also made with some
10 key personnel of the bank particularly with employees working in Administration and Human
Resource department.
In chapter four, the study findings indicated that majority of the respondents perceived the
perfonnai1ce appraisal system as an unfair and a system which Ca!lllot acccurately measure their job
related performance. Respondents also indicated their dissatisfaction with standard setting, and
perfonnance rating instrument used by the organization, the respondents indicated their relative
satisfaction with feedback aspect of perfonnai1ce appraisal. Satisfaction was indicated with the appeal
procedure of the performance appraisal of the organization.
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Conclusively, the study findings concuned with the literature reviewed and what the researcher had
set out to find.this was evidenced in chapter five where a conclusion was reached that what
employees are receiving as their performance result is not the right reflection of their true
performance. The rating of employees lack reliability and its result cannot be used as a base for any
decision. This makes the rating result of employees inappropriate in other human resource decision
areas like salary increment, promotion, training need identification and etc. The perception of
respondents to the feedback aspect of performance appraisal was positive (28.3% in the strongly
agreed and 51.7% agreed). The mean value (1.98) of the overall satisfaction with feedback backs the
positive reaction of employees towards feedback. Therefore, In light of the above conclusion, it is
recommended that, Standard against which the performance of employees is going to be measured
must be set and should be communicated so that employees might know what is expected of them and
raters know what factors they need to take in to account when they rate the performance of their
subordinates.
Description
Dissertation submitted to the College of Economics and Management for the A ward of a Bachelors Degree in Human Resource Management of Kampala International University
Keywords
Employee, Performance, Appraisal, Work performance