The impact of appraisal system and appraisers on employees satisfaction

Transcription

1 1 The impact of appraisal system and appraisers on employees satisfaction (With special reference to the clerical staff in the University of Ruhuna) 1.Introduction Performance appraisal directly influences employee satisfaction, motivation, work performance, and effectiveness of programs conducted by an organization. Therefore, performance appraisal (PA) is one of critical management functions in Human Resource management in any organization. PA affects to improve performance of employees and productivity of organization. Therefore the PA should be done proper manner with comprehensive appraisal system by skillful supervisors to utilize human resource for organization success (Cascio 2003). PA serves as the basis for other human resource systems, such as salary management, career development, and selection processes. The research aims to study impact effectiveness of clerical staff PA system and appraisers on their satisfaction in the University of Ruhuna. 2 Research problem The PA system in the University is managers centered one sided process which does not encourage employees to perform as lack of opportunity to participate PA process. This barrier prevents two way communication blocking feedback of the process. Swan argues employees performance and productivity are reduced due to lack of proper AP system. On other hand Zuhyle argues that PA system used for Non Academic staff in the university system in the country has many shortfalls and deficiencies occurred due to lack of getting feedback from apprasee. Therefore a new system needs to be introduced in order to appraise performance on the jobs to identify shortfalls, weaknesses and development needs of individuals and take steps to improve them. Appraisal system is not strong enough to get better picture of the performers due to neglecting basic elements in the system. As under this system employees do not

2 perform well it strongly recommends introducing new PA system for all non academic staff to increase performance through their satisfaction (Zuhyle, 2003). UGC Corporate Plan, (2003) also reports that PA system of non academic staff is not satisfactory standard and it has no provision to appraise performance on the job and provide incentives to meet these shortfalls. A new PA system needs to be developed considering basic elements. The report states that PA form used in the system does not meet with the real purpose of appraisal. Furthermore the report says as PA system of Executive Officers is not proper to appraise performance as it cannot identify strengths and weakness and training needs. The UGC Circular No791 reports PA system in the university system does not contribute to identify the strengths and weakness and training needs of staff. The most literatures have addressed this issue and public sector organizations in the country face similar problem. Several studies argue that public organizations in the country are not efficient due to poor performance. One of reasons is lacking proper appraisal systems (Gunathilak,2003). A successful PA system should include both behavioral and an objective components with basic requirements of sensitivity and reliability. PA system lacking these basic requirements negatively affect for both employees and organization performance (Casisio,2003). The appropriate PA system should take place at each step to ensure the unique fit to the relevant company to get better from employees (Erasmus et al, 2003). PA system comes under criticism from both management and employee on performance criteria and underling unfairness of appraisal process (Union meeting report, 2004). According to above the following problem is investigated. What impact does effectiveness of PA system and appraisers on employees satisfaction? 3 Objectives The main objective of the study is to identify the effect of effectiveness of PA system and effectiveness of appraisers on clerical staff on the university. Other objectives are 1. To identify the PA system of clerical staff in the University 2

3 2. To identify employees perception on PA system. 3. To analysis the effect of PA system and appraisers on clerical staff satisfaction. 4. To make suggestions to improve the existing appraisal system. 4 Methodology The study is a descriptive one and a case study approach is used. Two independence and a dependence variables are studied. First independent variable is effectiveness of PA system and it is determined by relevance, sensitivity, reliability, acceptability, and practicality and second independence variable is effectiveness of appraisers. The dependence variable is the employees satisfaction. The sample consist 80 clerical staff and the sample is selected in cluster sampling technique. A questionnaire on employee attitudes towards the effectiveness of PA system and appraisers are used to collect primary data. Secondary data is collected from major departments such as Establishment Division university of Ruhuna on their progress reports and other related reports. Descriptive statistics and person s correlation coefficients are use to analyze variables. Furthermore to analysis data SPSS and MS Excel software Package are used. PA system determines performance through employees satisfaction and productivity in organization. If PA system does not satisfy above requirements employees do not perform up to standard. Many AP systems fail because they do not satisfy basic these requirements (Cascio, 1995). By making PA systems relevant, sensitive, and reliable, the scientific and legal requirements for PA system are satisfied. Without a proper structured appraisal system there is no chance to ensure that the judgments of the rater will be lawful, fair, defensible, and accurate (Archer, 2001). So effectiveness of PA system depends on inclusion of above requirements. PA system lacking above requirements may effect to reduce performance of employees. The proposed theoretical framework for this study is as shown in Figure 1 below. Figure 1 Conceptual Appraisal Process 3

4 4 Performance Appraisal System Independence variables Effectiveness of appraisal system Effectiveness of appraisers Failures or success of appraisal process Determine employee s satisfaction / performance Dependence variable According to figure 1 success of PA process is determined effectiveness of PA system and appraisers. Failures or success of PA process determined employees satisfaction and performance. Employees satisfaction is the dependence variable of the study. 5 Effectiveness of PA system Table 1 displays findings first independence variable, effectiveness of PA system. The mean is 2.19 and the standard deviation is 0.02 which records very low variation among variables. The responses received on one of the five variables exceed the mean and those received on the rest remain below it. That means the majority of the respondents are not satisfied with level of the basic requirement of AP system. Among the variables, fifth one is perceived to be the highest mean and third is lowest. In all statements, standard deviations are noticed to be small which represents that the data are tightly concentrated to the mean. Cranbach s Alpha statistics of this variable is 0.65 indicates reliability of the variable. It can be surmised that the responses on the remaining variables are not influenced. This ensures the reliability of the overall survey. Table 1: Descriptive statistics of PA system Variable Mean SD Level of relevance in PA system is satisfied Level of sensitivity in PA system is satisfied

5 5 Level of reliability in PA system is satisfied Level of acceptability in PA system is satisfied Level of practicality in PA system is satisfied Total values (Source: Survey data, 2013) The findings confirm that PA system is not clear links between the performance standards for a particular job and university goals and between the critical job elements and the bests are rated no differently from the worst employees, then the appraisal system cannot be used for any administrative purpose, it certainly does not help to develop, and it undermines the motivation of both employees and supervisors. On other hand it is invalid lawfulness of appraisal process and unfair and discriminatory. The system is not provided consistent, reliable and valid information and data, which can be used to defend the organization even in legal challenges. Furthermore PA system does not satisfy the condition of validity by measuring what they are supposed to measure. As a result the system lost its consistency of judgment. In addition above findings confirm that organization does not put much effort into garnering the front-end support and participation of those who use the system. The perceived legitimacy by employees and managers of PA system may be more important than the technical functionality of the process. It can find that lack of involving all parties taking part in the system s use to be consulted in the development, implementation and maintenance of the system. Furthermore as the system has marginal problem with its PA instruments are easy for a managers and employees to understand and use and in terms of administration functions it is cost effectiveness. Findings conclude the system needs to be improved so that to prevent affection to dissatisfy employees. 6 Effectiveness of appraisers Table 2 shows the survey results on variable effectiveness of appraisers. Calculated mean value and standard deviation are 1.74and 0.15 respectively. The standard deviation records very low variation. Three statements exceed the mean one is exactly same and the rest remain below it and these are followed by the majority of the respondents are not satisfied with appraisers. In all statements, standard deviations are noticed to be small which represents that the data are tightly concentrated to the mean.

6 Cranbach s Alpha statistics of this variable is 0.72 indicates highly reliability of five variables. Outcomes say employees perceive supervisors do not conduct PA process the best possible way. Table 2: Descriptive statistics of effectiveness of appraisers 6 Indicators Mean S.D Having necessary knowledge and skills Communication skill Ability to identify training needs Leadership style Accepting employee idea Total (Source: Survey data, 2013) 7 Finding of employee s satisfaction Employee satisfaction is the terminology used to describe whether employees are happy and fulfilling their desires and needs at work. Employee satisfaction is a factor in employee motivation, employee goal achievement, and positive employee morale in the workplace. To measure employee s satisfaction the researcher uses satisfying employees with providing feedback and recognition for good performance, performing better and expend extra effort for job, Enjoyable of task and volubility of PA system and Satisfying with post appraisal process indicators. Table 3 shows the survey results. Table 3: Descriptive statistics of employees satisfaction Indicators Mean S.D Satisfying with feedback providing way Satisfying with recognition for good performance Performing better and expend extra effort for job Enjoyable of task and volubility of PAS Satisfying with post appraisal process Overall value (Source: Survey data, 2013) Calculated mean value and standard deviation are 2.01 and 0.06 respectively. The standard deviation records very low variation among variables. The responses received on one of the five statements exceed the mean one is exactly same and the rest remain below it and these are followed by the majority of the respondents are not satisfied with AP System. Among the statements, fifth one is perceived to be the highest and

7 both first and second one are lowest. In all statements, standard deviations are noticed to be small which represents that the data are tightly concentrated to the mean. Cranbach s Alpha statistics of this variable is 0.72 indicates highly reliability of five variables. It can be surmised and ensures the reliability of the overall survey. Outcome says that the feedback employees receive does not agree with what they have actually achieved and they perceive that organization does not attempt to conduct performance appraisal the best possible way and the organization is not good at providing recognition for good performance. Furthermore, employees do not perform better than what can be expected and they do not expend extra effort in carrying out job. The tasks do at work are not enjoyable and performance appraisal is not valuable to employees as well as to organization. On other hand organization does not seem more engaged in providing positive feedback for good performance and poorly considers outcomes for salary increment and promotions. Outcomes also imply that employees are not happy on AP system fulfilling their desires and needs at work. They do not have motivation, goal achievement, and positive morale in the workplace. According to outcomes it can conclude that majority employees do not have employee s satisfaction. 8 Correlations among variables The correlation coefficients for relationships among variables are shown in correlation values given in table 4. Table 4 Correlation coefficients for variables Variables Employee Significant Satisfaction level (2-tail) Effectiveness of PA system ** Effectiveness of appraisers ** (Source: Survey data, 2013) Both correlation coefficients are recorded higher positive correlation with employees satisfaction and all are record positive correlation coefficients and it means as one variable increases in value, the second variable also increase in value. Similarly, as one variable decreases in value, the second variable also decreases in value. This is called a positive correlation. Furthermore, correlation coefficients are not problem with their significant levels. Effectiveness of PA system and employees satisfaction 7

8 is recorded highly and positive correlation which is 0.54 implying PA system positively and highly affects for employees satisfaction and it significant level is which also report higher accuracy level of the recommendation. Effectiveness of appraisers and employees satisfaction is also recorded highly and positive correlation which is 0.52 implying appraisers positively and highly affects for employees satisfaction and it significant level is which also report higher accuracy level of the recommendation All correlation coefficients significant level is much higher which helps to confirm the research recommendations higher accuracy level. Findings confirm two variables being used to assess effectiveness of PA system, are emerged as considerable variable which highly affects for employees satisfaction. 9 Conclusions All the findings confirm the PA system negatively affects employees satisfaction. In order to achieve the objectives, the University needs positive approach to improve fundamental requirements in PA system to satisfy employees. Therefore it is recommended to develop university owned PA system with treating such requirements strongly and steps are needed to improve such requirements with employees contribution in PA system. Much attention is needed to improve PA system which contributes to improve employees satisfaction as it has recorded higher correlation with PA system. 10 Recommendations Based on the discussion made with supervisors and data collected from questionnaire, several recommendations can be made. First, training session needs to be held on continue basis for supervisors on performance appraisals method to reduce errors in appraising employee performance. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. The awareness sessions for the employees and appraises should be made more interactive and the views and opinion of appraises regarding appraisal should be given due consideration. Employees need to be involved in the decision-making process regarding the design and execution of PA system. Furthermore studies are needed in the area of comparing 8

9 employees own evaluations of their performance compared to superiors evaluations of employee performance. The PA system needs to be revised according to University needs and plans and a new system needs to be considered with both employees and supervisors contribution. Employees feedback needs to be perceived and integrated and the outcomes need to be used for career development, training and performance improvement. The performance standards need to be developed using the job descriptions and well defined criteria for the work. Managers can provide performance appraise through interviews. Open communication is very low in PA process therefore openly discuss need to be introduced for PA process. Monetary reward acts as the main motivating factor therefore it is needed to link PA system to promotions and other compensation process in the long-run. Financial and non-financial incentive should be linked to the annual appraisal system so that employees would be motivated to perform better. Management does not give much importance or attention to PA Leaders needs to take responsibility and lead the way in the implementation of PA. Respondents felt that appraisal is likely to be more successful when it is linked with financial and semifinancial incentives like promotion, and increments. This increases the commitment from the parties concerned the both appraisal and appraise. Employees should be given feedback regarding their appraisal. This will help them to improve on their weak areas. The employees who have excellent performance should be used as a mentor for other employees who would motivate others to perform better. Combing the different methods of appraisal can minimize the element of biasness in an appraisal. Like the rating method combined with assessment center method would give an evidence of poor or unfavorable or outstanding behavior of appraise. More transparency should be brought about in the appraisal system. Recognizing the good performers i.e., appraises who have accomplished the targets for the year can help in getting more commitment from the employees. Information regarding the performance of the employees should be kept in proper manner. Some of the performance appraisals should be conducted by the top management so that they can 9

10 understand the employees and their needs, behavior better and to find out the loopholes. 10 Reference Amarasinghe, E.F.G.(1994).Manual of personal procedure, First Edition Employees Federation of Ceylon. Botha, j.j.(2007), An assessment of the performance appraisal System applied for the junior management Level at the cold chain. Dissertation for MBA, NMMU Business School. Cascio, W.F.(2003).Applied psychology in personnel management. 4thEd.Prentice-Hall: London Cascio, WF Managing Human Resources productivity, quality of life and profits, 4th edition. New York: McGraw-Hill, Inc. Champika, J.R. 2004) Personal Management Improvement. Dissertation for Diploma in HRM, NIBM. Craig, Beatty and Baird (1986), Performance Appraisal Methods, 4thEd.Prentice-Hall:London. Dahanayaka, K.J.(2002)Job satisfaction and performance among University teachers in Sri Lanka. Research paper for MBA. PIM University of Sri Jayawardenapura. Erasmus, B., Schenk, H., Swanepoel B. & Van Wyk, M South African Human Resource Management, Theory & practise. 3rdEd. Lansdowne : Juta & Co Ltd. Gary, Dessler. (2003) Human Resources Management (Ninth edition). New Delhi. Prentice Hall of India. Gunathilaka, M.W.K. (2003) Job satisfaction among public managers and its effect on organizational commitmen,. Research paper for MBA. PIM University of Sri Jayawardenapura. Jayasooriya, C. (1994) Research techniques in Education an introduction, Godage Publication, Sri Lanka. Divisional Secretariat Officers to increase productivity of field officers, Presentation for Diploma of HRM, SLIDA. Nachmias, F.C., (1997) Research Methods in the Social Sciences, 2 ed impression 338 Euston Road, London. Nandanie, K.W.T. (1994) Job satisfaction and performance of employees in the public sector Research Paper for MPA. PIM University of Sri Jayawardenapura. Rabia Karimi (2008), Examining the Relationship of Performance ppraisal System and Employee Satisfaction, International Journal of Business and Social Science Vol. 2 No. 22; December 2011 Samaraweera, R.,Increasing (1990)the efficiency and effectiveness in public administration, dissertation for MBA Post Graduate Institute of Management University of Sri Jayewardenepura. Silva P.E.D.M.,(1999)Assessment of Factors which Motivate the Clerical Staff of the University in Sri Lanka, an empirical Investigation for M com 93/09 Faculty of Commerce and Management Study University of Kelaniya. Somarathna, I.T.,(2002) Impact of the promotion Policies and reward system on employee s satisfaction, Dissertation from MBA.Post Graduate Institute of Management University of Sri Jayewardenepura. Sujoya Ray Moulik(2003), exploring the relationship between perceived uses of appraisals and performance appraisal satisfaction in the Indian it sector: an empirical study, department of business management university of Calcutta, India.

11 Swan, W.S How to do a superior performance appraisal. John Wiley & Sons, Inc.:New York. Statistical Hand Book, University Grant Commission, UGC, (2003), Cooperate plan of University Grant Commission,2003 UGC, (2003), Circular No 791, University Grant Commission,2003 UGC (1978), University Act No 16 of 1978, University Grant Commission, Weerasekara, L.C. De A, (2003) Strategy for performance improvement in the department of the Post. MBA dissertation PIM University of Sri Jayawardenapura. Zuhyle, (2003),Current performance appraisal system in University system, short report University Grant 11 commission.