Assessment of the Practice and Effect of E-Appraisal: The Case of African Union Commission

Name: Sebsebe Tereda I.D.Number: ILI/MBA/015/12

Supervisor Name: Mesfin Lemma (Assistant Professor)

A Thesis Submitted to the International Leadership Institute in Partial Fulfillment for the Degree of Master in Business Administration (MBA)

Postgraduate Program International Leadership Institute

Date / July 2013 Place / Addis Ababa

International Leadership Institute Postgraduate Program (MBA Program)

Assessment of the Practice and Effect of E-Appraisal: The case of Africa Union Commission

Name: Sebsebe Tereda I.D.Number: ILI/MBA/015/12

A Thesis Submitted to the International Leadership Institute in Partial Fulfillment for the Degree of Master in Business Administration (MBA)

July 2013 Addis Ababa

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Board of Examiners International Leadership Institute Postgraduate Program

Assessment of the Practice and Effect of E-Appraisal: The case of AUC

By Sebsebe Tereda Approved by Board of Examiner: ______________________________ Main Advisor ______________________________ Examiner (External) ______________________________ Examiner (Internal) _________________ Signature _______________ Signature ______________ Signature __________ Date __________ Date __________ Date

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Acknowledgment
It is to the Alimighty God that I am most grateful for granting me the wisdom and the strength to come this far. My deepest and heartfelt gratitude is due to my advisor Assistant Professor Mesfin Lemma for his constructive criticisms, insightful comments and unreluctant follow-up of the progress of the study.My very special thanks goes to the AUC staff members for their valuable and considerable support and cooperation during data collection. I would also like to thank all those who contirubted to the successful completion of this study. Last but not least, I thank my wife, my children, parents, sisters and brothers for their encourgment and unreserved support for the accomplisment of this study.

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TABLE OF CONTENTS Title Acknowledgment Table of Contents List of tables List of charts Acronyms and abbreviations Abstract CHAPTER ONE: INTRODUCTION 1.1 Background of the study 1.2 Statement of the problem 1.3 Research questions 1.4 Objectives of the study 1.4 Significance of the study 1.5 Scope and limitation of the study 1.6 Organization of the study CHAPTER TWO: LITERATURE REVIEW 2.1 Brief history of performance appraisal 2.2 Basic concepts in performance appraisal 2.2.1 Definition of performance appraisal
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Page iv v ix xi xiii xiv 1 1 5 5 6 6 7 7 9 9 10 10

2.2 Types of performance appraisal 2.2.3 Purposes of performance appraisal 2.2.4 Frequency of performance appraisal 2.2.5 Performance appraisal methods 2.2.6 Performance appraisal problems 2.3 The evolution and basic concepts of e-appraisal 2.3.1 Brief history of e-appraisal 2.3.2 Definitions and thoughts on e-appraisal 2.3.3 Types of e-appraisals 2.3.4 Steps and implementation of the e-appraisal process 2.3.5 E-appraisal software 2.4 Positive aspects and dark sides of e-appraisal 2.4.1 Positive aspects of e-appraisal 2.4.2 Dark sides of e-appraisal 2.5 Overview of the AUC performance appraisal and e-appraisal 2.5.1 Overview of the AUC performance appraisal system

12 12 13 13 14 15 15 16 17 18 18 20 21 22 23 24

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2.5.1.1 Cycle, calendar and scope 2.5.1.2 Work plans 2.5.1.3 Implementation and monitoring mechanisms 2.5.1.4 Midterm and yearend performance review 2.5.1.5 Rating system 2.5.1.6 Linkages with annual salary increment 2.5.1.7 Rebuttal panels 2.5.2 Overview of the AUC e-appraisal system 2.5.2.1 AUC e-appraisal platforms 2.5.2.2 AUC e-appraisal steps 2.5.2.3 AUC e-appraisal facilities and benefits CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY 3.1 Research Method 3.2 Instruments of data collection 3.3 Sources of data 3. 4 Sample size and sampling technique 3.5 Techniques of data Analysis 3.6 Ethical consideration CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA 4.1 Characteristics of the Respondents 4.2 Analysis and Interpretation of the Findings
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24 25 25 26 26 27 27 28 28 29 29 31 31 31

. .

32 33 34 34 36 36 39

4.2.1 Existence of performance appraisal/e-appraisal practices 4.2.2 E-performance appraisal objectives 4.2.3 Performance appraisal policy 4.2.4 Evaluating performance appraisal and e- appraisal system 4.2.7 Effect of the e-appraisal system 4.2.8 Relevance of the rating format and methodology 4.2.9 Assessment of the e-appraisal system by the respondents 4.2.10 Summary of the interview session CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of major Findings 5.2 Conclusions 5.3 Recommendations References Appendix A Questionnaire for staff members Appendix B Interview Guideline Appendix C Declaration

39 49 58 59 64 65 66 67 68

68 72 73 76 81 93 94

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List of Tables
Table Table 4.1 Table 4.2 Table 4.3 Gender Educational levels of the respondents Awareness of a separate section responsible for human resources performance appraisal Table 4.4 Table 4.5 Frequency of performance appraisal The respondents rating about the current e-appraisal system Table 4.6 Competency of staff in terms of their performance on the e-appraisal Table 4.7 The method to gather information to design/ develop performance appraisal Table 4.8 Major objectives considered by the organization for performance appraisal Table 4.9 The organizations reason objective or objective to design and implement e-appraisal Table 4.10 Does the organization have formal and written appraisal Policy? If yes, is the policy well communicated Table 4.11 Respondents reaction to various critical issues involved in the performance appraisal process 58 57 55 52 51
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Page 36 37 39

41 41

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Table 4.12

Is there adequate assistance by Human resource Management Division

59

Table 4.13

Is there adequate assistance by Information Systems Division

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Table 4.14

If yes, rate the problems encountered on the e - . appraisal system

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Table 4.15

Relevance of the components of the rating format and methodology

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List of Charts
Charts Chart 4.1 Chart 4.2 Chart 4.3 Chart 4.4 Years of service Working on computers/Knowledge of IT Initiatives for performance appraisal Awareness on the need for requisite skills such as for performance appraisal Chart 4.5 Chart 4.6 Chart 4.7 Chart 4.8 Chart 4.9 Knowledge on human resource tools in SAP/ERP Frequency of orientation for performance appraisal Staff knowledge on e-appraisal system Rating of the e-appraisal system by the respondents Lack of appropriate appraisal on staff decision to leave the organization Chart 4.10 Whether the organization did overall assessment to identify skills and abilities Chart 4.11 Main reason for problems of e-performance appraisal Chart 4.12 Formal orientation programs for the staff about e-appraisal Chart 4.13 The organizations main focus for designing e-appraisal .
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Page 37 38 40 44

45
46 47

48 49

50

53

54

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Chart 4.14

Has your organization faced problems in designing/implementing e-appraisal

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Chart 4.15

Is the e-appraisal system helped to give the input that was intended to give

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Chart 4.16

Complexity and inflexibility of the e-appraisal system

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ACRONYMS AND ABBREVIATIONS AD ASP AU AUC COD ERP ESS HR HRM Anno Domini (after the birth of Christ) Application Service Products Africa Union Africa Union Commission Committee of Directors Enterprise Resource Planning Employee Self Service Human Resource Human Resource Management

HRMD Human Resource Management Division IBM ICT IT IMIS MBO MS MSS PMAF SAP SPAS SPSS International Business Machines Information and Communication Technology Information Technology Integrated Management Information System Management By Objectives Microsoft Management Self Service Performance Management and Accountability Framework System Application Products Staff performance appraisal System Statistical Packages for Social Scientists

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ABSTRACT
The purpose of the study was to assess the performance appraisal and particularly e-appraisal practices in the AUC by looking at the various aspects and investigate related challenges. Specifically to the problems with the current AUC electronic performance appraisal system which was implemented under the SAP/ERP platform. A descriptive survey method was employed. Ninety seven (97) staff members completed the close-ended questionnaires. Qualitative information was also obtained from the Appraisal Coordinator of the Human Resource Management Division, which is under the Administration and Human Resource Directorate of AUC. In analysis of the data, summaries, short narrations tables and charts were used. The analysis of the data revealed that AUC has a comprehensive performance appraisal policy but the policy is not well communicated with staff though some efforts have been made by the organization and hence necessary to aware staff through various means. In addition, there is no assessment of the skills or the current e-appraisal system of the organization and hence it is essential to perform such exercise and supplement it with the necessary guidelines and trainings. The researcher recommends that the organization can also tackle the challenges by working closely with the supervisors (line managers) with regards to the e-appraisal in which the follow up necessary in doing the e-appraisal. Moreover, supervisors should be given a briefing on the e-appraisal twice a year and also necessary skill training to increase their effective participation on the e-appraisal system. Staff members should also be included in the program to have the necessary skills for effective implementation of the e-appraisal system. IT based tools such as eappraisal is a continuous process and it requires continuous skill building activities. After all, it is this process that determines the performance of employees in the AUC. Key words: AUC, descriptive survey method, e-appraisal system, IT, performance appraisal, SAP/ERP

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CHAPTER ONE INTRODUCTION This chapter provides a background to the study. It highlights the relevance of human resources performance appraisal and of e-appraisal in improving organizations performance. This part will therefore explore the performance appraisal and e-appraisal practices in AUC. In the following parts, the statement of the problem, research questions, objectives, significance, scope and limitation as well as organization of the study are discussed. 1.1 Background of the study

Human resource is the most universal and powerful aspect of any organization. Whatever type of function that an organization deals with or whatever area it is involved in, it will ultimately be done by its human resource. Human resource determines the overall shape of a country, an organization and an economy. Overall, human resource is a key ingredient in an organization that pursues to fulfill its objectives. In a book by Armstrong (2009), human resource management interpreted as a strategic and coherent approach to the management of an organizations most valued assets the people who are working individually and collectively contribute to the achievement of its objectives. A broader and more inclusive view is to see Human Resource Management as the management of people (Rowley and Jackson, 2011). One of the important functions under managing the human resource of an organization is assessing the performance of an employee. As it is described in a book by Grote (2002), no other management process has as much inuence over individuals careers and work lives than performance appraisal. The performance of staff is critical to the overall performance of an organization in achieving its objectives. Also, Grote (2002) commended that if used well, performance appraisal is the most powerful instrument that organizations have to mobilize the energy of every employee of the enterprise toward the achievement of strategic goals. It essentially plays a great role in the carrier development of employees and in meeting organizational objectives. According to Jacobs et al (1980) performance appraisal can be described as a systematic attempt to distinguish the more efficient workers from the less efficient workers and to discriminate among strength and weaknesses an individual has across many job
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elements. The more contemporary definition for performance appraisal given by Grote (2002) is a formal management system that provides for the evaluation of the quality of an individuals performance in an organization. In a book by John (2010), performance appraisal reflects an assessment process that seeks to assess the overall capabilities and potential of an individual or team based on past and current work behavior and performance as it is usually intended to address an employees achievements compared to what they were expected to achieve. In view of Parrill (1999), performance appraisal is a measurement which is normally done by the direct supervisor of the ratee and can serve different organizational purposes such as employee selection, disciplinary action, development or feedback, promotion, training or supervision and personnel planning. Robinson and Simpson (2003) expressed appraisal as a map and IT based performance appraisal or e-appraisal system as an efficient means of travelling. Therefore, IT based or an e-appraisal system implies the use of technology in performance management which brings about efficiency and hence has the potential to increase productivity and enhance competitiveness as described in a book by Guental and Stone (2005). Monk and Wagner (2013) explained that increasing the efficiency of information systems results in more efficient management of business processes such as performance appraisal systems. This can be achieved through reducing a rigorous paper work, which results in swift action and secures employee performance data because paper based appraisal system does not have an effective information system, it is difficult to manage performance evaluation data (Monk and Wagner, 2013). This makes it more challenging for the Human Resources Department to identify problems with an employee and take corrective action (Monk and Wagner, 2013). Moreover, with the paper-based system, it is difficult to track of an employees appraisal because it is viewed a t a time. Also, it is difficult to maintain proper control of sensitive personal information when it is maintained in paper files (Monk and Wagner, 2013). On the other hand, Guental and Stone (2005) explained the above mentioned advantages of IT based appraisal or e-appraisal as the reductionist approach which focuses on the features or components that make up the overall process by focusing on and controlling the steps in the process that a positive outcome will be achieved. In addition, the reductionist approach ends up, perhaps, by default, assuming that there is one way to successful performance (Guental and
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Stone, 2005). This approach has left out the fact that human component is very critical for the success of performance appraisal and limits to some ones job as if it is clearly drawn often on a computer screen (Guental and Stone, 2005). In contrast, Guental and Stone(2005) stressed that the there is an approach called holistic approach which focuses on the whole which may encompass employee wellbeing and development and somewhat ironically, seem to be on the outcome, not so much on the process (Guental and Stone, 2005). There is an indispensible thought that e-appraisal system has its own challenges and prospects which need further research and investigation. The issue of using Integrated Information system to facilitate performance appraisal is a trend in recent times and it is important to examine in to it to see the impact of an IT based or e-appraisal system taking in to consideration one organization, that is, the AUC. IT based performance appraisal or e-appraisal system implemented by the African Union Commission is within integrated information system based on SAP/ERP. Reviewing employee performance or performance appraisal is one of the roles within an integrated information system like ERP/SAP in handling human resource issues. As defined in a book by Monk and Wagner (2013), Enterprise Resource Planning (ERP) systems are core software programs used by companies to assimilate and synchronize information in each and every area of the business. Moreover, ERP (pronounced E-R-P) programs help organizations manage company-wide business processes, using a common database and shared management reporting tools (Monk and Wagner, 2013). Technically, ERP is defined as a large commercial software package that promise a seamless integration of information flow through an organization by combining various sources of information into a single software application and a single database (Hoon Nah, 2002). Performance appraisal is a service which is also embedded in the SAP/ERP. One of the leading of such ERP softwares that are currently available in the market is SAP (System Application Products) (Guental and Stone, 2005). Named as Systems Analysis and Program Development, it was developed by five former IBM systems analysts in Mannheim, Germany in 1972; later, the acronym was changed to Systems Applications and Products in Data Processing or SAP (Monk
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and Wagner, 2013). It is within this SAP/ERP that the African Union Commission e-appraisal is embedded. This study generally attempts to see the prospect that has been conceived and the challenges faced by the African Union Commission (AUC) in managing its IT based performance appraisal system. African Union is an intergovernmental political organization of the continents 54 member countries. As echoed in AUC (2013), its predecessor, that is, Organization of African Unity (OAU) was established on May 25, 1963 with the objective to rid the continent of the remaining vestiges of colonization and apartheid(AUC ,2013).The OAU initiatives paved the way for the birth of African Union (AU) and subsequently African Union is established in Durban, South Africa in July 2002(AUC, 2013).Africa Union Commission is the Secretariat of the African Union entrusted with executive functions and it is composed of 10 Officials: A Chairperson, a Deputy Chairperson; Eight (8) Commissioners and Staff members(AUC, 2013). It is also a key organ of the African Union playing a central role in day to day management of the African Union as described in AUC (2013). Moreover, it represents the Union and defends its interests; elaborates draft common positions of the Union; prepares strategic plans and studies and other additional tasks. The structure represents the Union and protects its interest under the auspices of the Assembly of Heads of State and Government as well as the Executive Council (AUC, 2013). As summarized in AUC (2013), the mission of the Commission is to become an efficient and value-adding institution driving the African integration and development process in close collaboration with African Union, African Union Member States, the Regional Economic Communities and African citizens. In the AUC (2013), it is described that the values to guide and govern the functioning and operations of the Commission given as: Respect for diversity and team work, think Africa above all, transparency and accountability, integrity and impartiality, efficiency and professionalism; and information and knowledge sharing. Consequently, the Commission will endeavor to fulfill its Mission by developing clear goals and strategies and the he values indicated above will constitute the basis on which the AUC will achieve its Mission (AUC, 2013). Performance appraisal is administered and monitored by Human Resource Management Division under Administration and Human Resources Management Directorate, which is under the Deputy Chairperson of the Commission.
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2.2

Statement of the problem

According to Guental and Stone (2005), technological advances increased ease, efciency, and fairness but they may not have lived up to their initial promises and the advances have brought with them negative aspects that may not have been anticipated. At this juncture, it is important to highlight the importance of technology in the appraisal systems, particularly in IT based performance appraisal or e-appraisal systems, however, it is undeniable that there also challenges to be addressed since performance appraisal is one of the very sensitive issues in an organization and it is also a determinant factor in the entire lifetime in an organization and it influences carrier development as well as benefits to the extent the very existence of an organization. In the past two years, AUC adopted an IT based performance appraisal under its Enterprise Resource planning Software acquired from SAP (System Application Products); German based Software Company on ERP. This technology was adapted to facilitate the performance appraisal system. There are advantages and disadvantages of the system. The problem in the e-appraisal system of the AUC is the nucleus of this study. Though problems of the overall appraisal system are somehow investigated, the study tries to investigate challenges particularly faced in relation to the e-appraisal system. The e-appraisal system is more explored to identify the drawbacks and prospects of the system. This involves a number of issues from the very essential concepts of performance appraisal to an integrated information system in evaluating the performance of staff members. It deals with assessing how the IT based performance appraisal system is working. It is also critical to investigate the various problems from the basic concepts of the performance appraisal system and technology perspectives. This would enable to solve the practical problems involved with current appraisal system. 2.3 Research questions

This research will strive to explore and address the following basic research questions: How performance appraisal and e-appraisal is processed and managed by the organization? What are the major factors that affect the electronic performance appraisal in the organization?
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What are the prospects in connection with the IT based performance appraisal in the organization? What are the lessons learnt in implementing the e-appraisal system and the ways forward for future improvement?

2.4

Objectives of the study

The general objective of this study is to grasp e-appraisal system in the AUC by looking at the various aspects, investigate related challenges and prospects. Then, forward appropriate recommendations. It will reinforce the strengths and give recommendations for improvement. The central theme of this study is focused on assessing the IT based performance appraisal system in the AUC. Moreover, the specific objective of the study addresses the following core points: 1. To find out the overall management of performance appraisal and e-appraisal system of the AUC. 2. To find out the, procedures or processes involved and how the processes are defined in electronic performance appraisal system of African Union Commission. 3. To find out the challenges faced and lessons learnt by the AUC in implementing its IT based performance appraisal system. 4. To analyze the system with the basic concepts of performance appraisal, e-appraisal and IT perspectives. 5. To make appropriate recommendations for improving electronic appraisal or IT based performance appraisal system at the African Union Commission. 2.5 Significance of the study

Generally, the significance of performance appraisal may be stressed in many ways, the effective functioning of an organization rest primarily upon the quality of its employees that is determined to a substantial degree through striving to improve the performance of its employees. Specifically, e-appraisal systems will play a significant role in the current world set up and technologically advanced and IT enabled environment. Therefore, this study would be significant for the following reasons:
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1.

The study can be used as a feedback for the Human Resources Management Division of the organization about the appraisal system in general the current e-appraisal system in particular within the organization.

2.

The study helps to identify the current prospects and challenges of IT based performance appraisal system.

3.

The recommendation given based on the discussions and analysis will be helpful for AUC if used as a reference to see the current status of e-appraisal system.

4. 5.

The researcher hopes that the thesis might enrich the existing literature in the field. Finally, the study may also encourage and help as initial reference for other researchers who want to conduct in-depth study on the subject.

2.6

Scope and limitation of the study

This study tries to see IT based appraisal system of the AU Commission. Therefore, it focuses on performance appraisal system and specifically e-appraisal system under Human Resource Management Division. It will not go beyond this to discuss issues other than the subject matter mentioned above. Due to time constraint, the methodologies are limited and have an impact on the outcome of its results in a broader sense. The topic is broad and cannot be addressed within a specific time; it needs deep investigation from financial to time constraints and as well as data availability. However, this study will give an opportunity to further investigate the matter. 2.7 Organization of the study

This study is organized in five chapters. Chapter one is the introduction. This includes the background to the study, statement of the problem, objectives, significance of the study, scope and limitation of the study as well as organization of the study. Chapter two will cover the review of related literature on performance appraisal particularly on IT based performance appraisal. It gives the concepts and theories on performance appraisal in general and IT based performance appraisal in particular. Chapter three will deal with research design and methodology. It will explain the methods used and how the data for the study will be analyzed and presented. Chapter four provides data analysis, interpretation and discussion of findings.
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Chapter five is conclusion and recommendations which will summarize its findings and conclude the research outcome and forward appropriate recommendations.

CHAPTER TWO LITERATURE REVIEW This chapter reviews literature on performance appraisal and e-appraisal. This is done mainly to get the current knowledge in the field or topic the researcher planned to study. Hence, this chapter tries to review the brief history of performance appraisal, basic concepts in performance appraisal, the evolution and basic concepts of e-appraisal, positive aspects and dark sides of eappraisal, and the overview of the AUC performance appraisal and e-appraisal. 2.1 Brief history of performance appraisal

According to Koontz (1971), the earliest and first known performance appraisal took place during the Wei dynasty from 221-265AD in China when the emperor engaged an imperial rater, whose task was to evaluate the performance of the official family. Also, affirming the above statement, Armstrong (2009) revealed that one of the earliest notable history of performance appraisal about how the 16th century Ignatius Loyola established a system for formal rating of the members of the Jesuit Society. Then, the U.S Federal Civil Service Commissions merit rating system was in place in 1887 (Grote, 2002). Armstrong (2009) showed that the first formal monitoring system was evolved out of the work of Frederick Winslow Taylor of the scientific management school before the First World War. During World War I, the performance of army officers was evaluated with a focus on assessing officers ability (Pulakos, 2009). Graphing rating scale was introduced in 1922 to elicit ratings of traits relevant to a job (Pulakos, 2009). Management by objectives came and continued in the 1960s and 1970s and at the same time, experiments were done on performance appraisal techniques such as behaviorally anchored rating scales (Armstrong, 2009). The history performance appraisals get in to climax when the concept of performance appraisal came in to the picture. The term performance management was first used in the 1970s but it did not become a recognized process until the end of 1980s (Armstrong, 2009). Currently, performance management is becoming a dominant and comprehensive approach in aligning performance with organizational objectives. The concept of performance management incorporates some of the notions and approaches of management by objectives and performance
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appraisal but it includes a number of significantly different features (Armstrong, 2009). That is why Cascio (2006) prefers to use the term performance management rather than performance appraisal. This term encompasses more important issues and addresses problems related to performance. In a book by Mondy et al (1999), it is also reaffirmed that performance appraisal is about performance management which influences performance of an employee. Moreover, a study by Steen et al (2009) showed that performance management n influential factor to meet several activities and to attain organizational objectives. The contemporary approach to performance appraisal is performance management as it brings about an impact on the overall performance of an organization. Therefore, Silverstein (2007) highlighted that many organizations are moving to beyond simply reviewing employee performance toward comprehensive performance management as it is a process oriented approach to appraise employees in todays challe nging and complex world. Be it performance appraisal or performance management, the digital age transformed it to be performed using ICT tools. Recently, even it is integrated to complex software system called enterprise resource planning software which requires greater computer hardware and software capability. 2.2 Basic concepts in performance appraisal

One of the most important issues in managing human resources is performance appraisal or performance review or performance assessment (Arthur, 2008).It essentially plays a great role in the carrier development of employees and in meeting organizational objectives. As Roberts (2003) puts it, performance appraisal is one of the most complex and controversial human resource techniques. It is also important to realize that performance appraisal is an incredibly powerful but the most underappreciated management tool in organizations as explicated by Grote (2002). Therefore, it needs much caution when approaching issues related to it. 2.2.1 Definition of performance appraisal

Various scholars have defined performance appraisal in different ways and looking at some of these definitions may enable us lay a solid foundation to capture what the concept of performance appraisal is all about as it is also in existence before the advent of e-appraisal.
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According to Delpo (2007), performance appraisal is a process that includes observation, documentation and communication, which is a way of structuring the relationship of an organization with its employees. Arthur (2008) also reaffirmed that performance appraisal is a process which begins by identifying objectives, recognizing the benefits for all concerned, and identifying key criteria. The more explanatory and comprehensive definition of performance appraisal is given by Grote (2002) as a formal management system that provides for the evaluation of the quality of an individuals performance in an organization with four phases (four- phase model) as performance planning, performance execution, performance assessment and performance review. In a more different manner, Lloyd (2009) defined performance appraisal as one component in the overall process of performance management process which enables to maintain strong contact with employees through coaching guidance and feedback. Gomez et al (2001) explains performance appraisal as an important issue in an organization with three important components. These three important components are identification, measurement and management of human resource in an organization. It is highlighted that these three components have a critical role in handling human resources in an organization. According to Gomez et al (2001), identifying human resources requires a measurement system that focuses on performance rather than irrelevant characteristics such as race age or sex. Identifying human resources involves job analysis. Mondy et al (1999) defines job analysis as the systematic process of determining the skills, duties and knowledge required for performing jobs in an organization. This is the first and basic step to be done by organization before rushing to evaluate the performance of their employee since the evaluation be done in accordance with the skills, abilities and the knowledge that the job requires. In a book by Gomez et al (2001), the second important component and, in fact, the centerpiece of the appraisal system is measurement or rating. Performance appraisal requires the use of consistent and comparable rating standards. The same author indicated that the third component of appraisal system is management of human resources. Management of human resources requires aligning the performance appraisal system with the organizational objectives since management is the overriding goal of any appraisal system and it underlines that the performance

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appraisal should be future oriented to improve performance rather than past oriented activity (Gomez et al, 2001). 2.2.2 Types of performance appraisal

Various authors have tried to identify types of performance appraisal based on some features of performance appraisal systems. Byars and Rue (1979) have identified two types of performance appraisal, confidential and open appraisal. Also, Obisi (2011) have identified three types of performance appraisal namely confidential or secret appraisal, open appraisal as well as semiopen and semi-secret. According to this author, in confidential appraisal, the individual is not involved in the appraisal exercise as the appraisal outcome is not at all communicated to the person being appraised. On the other hand, open appraisal system will be revealed to the appraisee about strengths and weaknesses, the contributions and failures which are discussed with the employee. The third type identified by Obisi (2011) is semi open and semisecret appraisal. This is an appraisal process whereby performance appraisal procedure would be made open at the beginning and later made secret. 2.2.3 Purposes of performance appraisal

Nao et al (2011) argued that performance appraisal serves three broad purposes: strategic, administrative, and developmental. Strategic purpose helps the organization to achieve its business objectives. It does this by helping to link employees behavior with the organizational goals in that performance appraisal measures for each employees enables the organization to take corrective action, such as training, incentives, or discipline. The administrative purpose refers to the ways in which organizations use the evaluation to provide information for day-today decisions about salary, benefits, and recognition programs. It can also support decision making related to employee retention, termination for poor behavior, and hiring or layoffs. The final purpose of the appraisal according to Nao et al (2011) is its developmental purpose, meaning that it serves as a basis for developing employees knowledge and skills. Effective performance feedback makes employees aware of their strengths and of the areas in which they can improve. Cummings (1972) also writes that the overall objective of performance appraisal is to improve the efficiency of an enterprise by attempting to mobilize the best possible efforts
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from individuals employed in it. It is paramount to note that performance evaluation has essential role to play in managing human resources to achieve organizational objectives. 2.2.4 Frequency of performance appraisal

Though there is a widespread consensus on the need for time framed performance appraisal system, there is different views on how frequently it should be. Obisi (2011) asserts that informal counseling should occur continuously. This will help the manager or the appraiser to discuss about the appraisees performance as soon as possible after he or she has judged it so that it can be used an opportunity to provide positive reinforcement for the good work and a basis for training for a poor performance. According to this author, in most organizations employees are formally evaluated once a year, in others twice a year. However, he recommended that reviews be conducted three to four times a year for most employees as objectives cannot be accomplished by a performance appraisal given only once a year. Similarly, Armstrong (2009) believes that though performance evaluation is a continuous process, it is still necessary to have a formal review once or twice a year to obtain a focal point for the consideration of key performance and development issues. However, a study by Borman et al (2003) contended that once or twice a year is far or too infrequent. Moreover, Cascio (2006) argues that appraisal that is done once or twice a year is traditional. Armstrong (2006) suggested that instead of waiting the formal rating period, it is better to pay attention to the performance and behavior of individuals to perform performance appraisal.Thus, it is important to underline that performance evaluation frequency must be based on organization type & size of organizations, works conducted and on objectives set as well as purpose of the appraisal itself. At the same time, it has to strike a delicate balance between achieving its objectives & resources employed to do the same. 2.2.5 Performance appraisal methods

The type of method that organizations use in the performance appraisal process has a big impact on the overall outcome. Performance appraisal methods can be of different types depending on the organization and the type of business and activities they are engaged on. It is also important that performance measurement or rating should as much as possible to be comprehensive to see all aspects of employee towards employees performance. Berry (2003) indicated that rating
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techniques can be distinguished on basis of several factors as use of a rating scale, ease of development, amount and kind of information which is yielded and the purpose of the rating. He also distinguishes between objective and subjective measures of performance. It is understandable that there is no stand alone or single method of rating for all organizations, tailoring the measurement or rating to its situation is the major responsibility of a particular organization. Beardwell et al (2004) and Lloyd (2009) described the types of performance measurement tools as follows: The first method is writing essays which are short, focused, and performance-related. The second is using geographic rating scales and behaviorally anchored rating scales which demonstrate traits and characteristics, competencies, actions, behaviors and results. The third method is using checklists such as weighted checklists by a broad listing of work-related behaviors, characteristics, and outcomes. The fourth approach is ranking employees; this is to match each employees performance with that of peers. The fifth is finding critical incidents to see employees outstanding behaviors and quest ionable behaviors. The sixth method is behaviorally anchored rating scales, these are rating scales tied with behavior. The seventh one is management by objective which is objective based. The last one is 360 degree evaluation which encompasses the overall aspect of employee performance 2.2.6 Performance appraisal problems

Understanding performance appraisal challenges and problems are very helpful to improve the performance appraisal system and come up with better solutions. According to Mondy et al (1999), there are a number of problems observed while performing appraisal. Some of the problems in performance appraisal are lack of objectivity, leniency or strictness, central tendency, recent behavior bias, personal bias and judgmental role evaluator. Cascio (2006) also underscored three appraisal errors as halo error, contrast error and recency errors. Mondy et al (1999) explained that the three errors as follows: halo errors happen when the evaluator perceives one factor as having paramount importance and gives a very good or bad rating. Contrast error occurs when a rater compares several employees to one another rather than to an objective standard of performance. Recency error results when a rater assigns his or her ratings
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on the basis of the employees most recent performance. Several other problems may arise during performance appraisals from the manager, from the employee, and some from other factors (Spinks et al, 1999). Lack of clarity and lack of mutual respect are also highlighted by Arthur (2006) as obstacles to performance appraisal objectives. In effect, organizations should take appropriate measures in training their raters or whoever involved in rating of employees. Moreover, it is important to understand the important features of effective performance appraisal systems. Clear knowledge of the characteristics will help in minimizing and tackling the problems. Mondy et al (1999) provides some features of an effective performance appraisal system as job related criteria, agree on performance expectations, standardization of all the process, training the appraisers, develop open communication, employee access to results and ensuring due process. This is a comprehensive approach to make the appraisal process smooth and ensures a proper handling of performance management. 2.3 The evolution and basic concepts of e-appraisal

The foundation for e-performance appraisal is the performance appraisal itself. That is why basic concepts of performance appraisal are discussed thoroughly in the study. Though the evolution of e-appraisal cannot be detached from the very rooted history of performance appraisal, it has its own background and concept as well as its inception is somehow related with the advent of IT and an internet. This section basically describes the brief history of e-appraisal and the essential concepts under it. 2.3.1 Brief history of e-appraisal

In the book by Torres and Arias (2004), computer-based performance appraisals are in application for more than ten years. The same authors described the first IT-based performance appraisals were essentially automated as performance appraisal forms. In a study by Case and Hoell (2009), the first electronic performance appraisal software systems appeared in the mid1990s, including client-based systems loaded on desktops that required data to be shipped to vendors for analysis. Web based systems were available with the advent of an internet and its fast growth. Web-based electronic performance appraisal products were available starting
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1990s for companies and now are commonly available and popular due to their ability to integrate with a wide range of other HR information systems software (Robb, 2004).Web-based performance appraisals unlike paper-based reviews depend on software that allows for the immediate access of all documents, journal entries, prior reviews, and records relevant to the appraisal process.(Arthur, 2001).Web-based performance appraisals are increasingly capable of providing each and every level and step of an employee performance review process (Arthur, 2001). Some of the current electronic performance appraisals are traced back to management by objective (MBO) and other systematic goal-setting approaches which are focused on directing employee performance toward organizational goals (Locke and Latham, 1990). With all current trends, electronic appraisals are integrated with enterprise resource planning software systems that enable both employees and managers to have access to real-time performance data on 24/7 basis. The capabilities of todays IT -based electronic performance management systems have also contributed to changes in how organizations approach performance appraisal (Case and Hoell, 2009). Many of the systems in use in recent years are grounded in attempts to automate 360 degree evaluation processes, which was started like other performance management approaches as a manual based performance appraisal process (Robb, 2004). 2.3.2 Definitions and thoughts on e-appraisal

According to Alrowad (2013), electronic performance appraisal system is an innovative approach to administrating employee performance appraisals that are flexible, secure, intuitive and completely paperless. Bondarouk and Looise (2009) defined electronic performance appraisal as a way of implementing performance management processes in organizations through conscious and directed support of and/or with the full use of web-technology-based channels. Recent trends show that web portals are becoming the dominant aspects of IT based performance appraisal systems which runs on corporate intranet thorough enterprise resource planning software (Coronas and Oliva, 2005). Particularly, such web portal based electronic appraisals in SAP enterprise resource planning is classified as the employee self-service for the appraisee and manager self-service for the appraiser and both will logged in to the system under their level of privilege and proceed with what they do in their self- service platform.
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Cardy and Miller (2005) classified IT based performance appraisal in two levels, that is, at the macro level and at the micro level. At the macro level, IT is used for allocating human resources within the company as part of enterprise resource planning (ERP) and it gives the management of a company the overview of the status of each resource (Cardy and Miller, 2005). Bondarouk and Looise (2009) described micro level technology support of electronic performance appraisal in the measurement and development of the performance of individuals in two ways as content and process. From the content perspective, companies use IT to generate data for performance measurement, usually of routine jobs with simple tasks in which little personal judgment and low discretion is needed (Cardy and Miller, 2005). Where as in the process aspect, IT aids in the delivery of performance feedback, appraisal and development possibilities and it is regularly used for jobs with personal judgment, high discretion, and open ended tasks. (Cardy and Miller, 2005).When supported with web-technology, the information about performance appraisal is accessible to others within an organization as well as employees can track their own progress over a series of evaluations (Cardy and Miller, 2005). 2.3.3 Types of e- appraisals

Bondarouk and Looise (2009) mentioned the three types of e-appraisals as operational, relational and transformational. The basic and elementary one is operational e-appraisal which supports the formal or the procedural process between managers, employees, and organizations such as writing of performance plans and offers online forms in which employees and managers fill out after the performance planning and appraisal. The second one is relational e-appraisal which supports the informal, relational or day-to-day communicative processes between managers and employees such as providing feedback between employees or between a manager and a subordinate (Bondarouk and Looise, 2009). The same scholars revealed that the relational e-appraisal system supports and changes the complete process of performance appraisal, with the full use of web technology for the administrative and communication process. Bondarouk and looise (2009) described the third type of electronic appraisal as transformational e-appraisal, which facilitates a strategic approach to performance management which helps the HR practitioner to concentrate on developing an organizations unique human component, while the employees remain fully engaged in their work. In general, Bondarouk and looise (2009 )
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concluded that electronic performance appraisals are often part of an ERP package, which allows organizations to explore the enterprise wide data and analyze performance and competencies of individuals, groups of workers, departments and project teams. 2.2.4 Steps and implementation of the e-appraisal process

According to a study by Case and Hoell (2009), most electronic performance appraisal systems focus on both results and competencies. Moreover, MacMillan (2004) showed that cascading goals to the level of each individual is also supported by many electronic performance appraisal systems. In which of the cases, the electronic performance appraisal process is divided into a number of steps as highlighted by Hayes (2003). According to the same author, the first step is establishing performance criteria with measurable objectives, standards, and competencies and then continues to identifying gaps in current performance. The next step involves measuring actual performance and concludes with reinforcing and rewarding superior performance (Hayes, 2003). The study by Case and Hoell (2009) revealed that the steps will bring about values for organizations if carried out in a collaborative manner using the right technology. Moreover, the same scholars argued that the four important success factors are critical for the implementation of electronic performance management systems. These are: easiness of use, usefulness, user participation and top management commitment. It is imperative that any organization which will intend to implement electronic performance appraisal should give due consideration to the above four success factors. Careful management of the implementation process with due consideration to strategic choices and types of performance management have a great potential to get maximum benefits from e-performance appraisal. (Case and Hoell, 2009) 2.2.5 E-appraisal software

The backbone of e-appraisal is the computer software engine that is running in the computer hardware. In a book by Arthur (2001) performance appraisal software is defined as a tool which allows the user to access and process easily with regards to a number of issues that could be part of a performance appraisal process. Organizations must give due consideration when it comes to the selection of e-appraisal software they opt to use for the successful undergoing in overhauling their performance appraisal process. Robb (2004) put the components that make an electronic
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performance appraisal selection criteria as: flexibility that meets needs of all, integration which will enable to link the existing system with the new one, ease of use for all users and administrators, process support for the type of evaluation system the organization uses, ability to give all necessary additional features such as support tools in using the appraisal system and its availability through a web based system or other means. Though the software products are different in various aspects, they have common things which will not be ignored as it will help to help to have standard criteria in choosing the right performance appraisal software. Arthur (2001) also explicated the common things to all appraisal software as: forms and templates depending on the type of job and responsibility, users and managers support tools, built in applications which identify illegal terminologies, variety support tools about numerical and other type of ratings and back en applications to process performance and human resource data. Also, MacMillan (2004) underlined that user, manager, and electronic performance appraisal administrator roles are supported by most electronic performance appraisal solutions. The same author indicated that most electronic appraisal systems support increased visibility of common goals and also about communication and access to resources that can help to ensure that the employees day-to-day activities remain focused on the goals of an organization. Electronic appraisal solutions can also contribute in having team work with various departments beyond team work within the same department. In their study, Case and Hoell (2009) showed that electronic appraisal systems solutions can also play a vital role in understanding of how departments should be working together to execute business strategies. In general, Case and Hoell (2009) classified software vendors in four categories as: pure-play performance management vendors, talent management suites, learning management systems (LMS) providers, and enterprise resources planning (ERP) providers. Depending on organizational capability and size, Macmillan (2004) forwarded two implementation strategies for organization to give e-appraisal its rightful place in organizations. The first ones are solutions which are available on a hosted basis from application service providers (ASPs). The second ones are available as a single module with in vendors HRIS solution kit or ERP system. Cardy and Miller (2005) also indicated that one of the methods is incorporating e-appraisal as part of an overall ERP software system. The ERP creates a continuous process, providing managers with
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easy access to information and the ERP methodology is also attractive from the standpoint of permitting a strategic approach to HRM so that the HR practitioner can concentrate on developing an organizations unique human component, while the employees remain fully engaged in their work (Greengard, 1999). It is important to note that it is up to the organization to decide the system from the above categories and implementation strategies after having made adequate assessment on the type appraisal process that the organization have, the capability of its employees, managers and system administrators, the type of business that is involved in as well as the overall organizational objective to be achieved by having the e-appraisal system. However, appraisal satisfaction is very essential whatever type of technology to be used to automate the performance appraisal process. Therefore, user participation is in planning as well as implementing eappraisal is critical since without user satisfaction and support any technological enhancements are likely to be unsuccessful (Guental and Stone, 2005). 2.4 Positive aspects and dark sides of e-appraisal

A study by Case and Hoell (2009) indicated that electronic performance management is viewed as a top priority by most HR managers and is observed as being more important than other human resource information system applications including payroll, time and attendance, benefits administration, online recruiting, and regulatory compliance. According to the same study, use of electronic performance and talent management systems is growing at a robust rate of 20%. In a book by Guental and Stone (2005), it is indicated that the use of technology in performance management has the potential to increase productivity and enhance competitiveness as well as it is believed that appraisal satisfaction is a key concept that is central to any discussion of technology and performance management. Hence, there is no question about the criticality of the issue. Its importance and further look in to the problems and the promising foreseeable future of electronic performance appraisal systems is very essential. To see which one outweighs the other, it is necessary to find out the positive and negative aspects of e-appraisal.

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2.4.1 Positive aspects of e-appraisal One core concept which is important to underscore on the use of electronic appraisal is appraisal satisfaction. According to Cady and Miller (2005), high quality performance feedback helps organizations to bring satisfaction which will in turn reflected through retaining, motivating and developing their employees and this can be achieved through technological input to the performance appraisal process. The same authors indicated that technology can contribute to the performance appraisal satisfaction in two ways. One is viewing technology as content and the other is viewing technology as a process. As content, technology may facilitate measuring an individual performance whereas as a process it is used as a tool to facilitate writing reviews, narratives and generate performance feedback. According to Arthur (2001), electronic performance appraisal has three advantages. The first and primary advantage of an electronic performance appraisal system is that the ease with which it enables manager to comply with review related responsibilities and gives the capability to process and store huge data set which will help to reduce the amount of time to gather and organize performance related information. The second advantage of electronic performance appraisal is that it facilitates access to performance information on a need to know basis and reduced time spent in drafting and reviewing performance reviews. The third one is that it will help to align personal goals with organizational objectives by giving quick ongoing updates of performance objectives and carrier development plans. Yahoo (2013) described the two areas in which electronic appraisal have an advantage. The first one is a large group of people can be rated in less time and the other is that it may control personal bias. Cardy and Miller (2005) called this aspect of electronic appraisal highly attractive as it can help organizations to evaluate more employees and evaluate them more frequently. The issue of time is very serious in organizations and this is another aspect where electronic performance appraisal brings about a big difference. Anderson (2013) indicated that electronic appraisal system saves time in two ways. One, the ability of employees and managers to process their performance appraisal in short time as opposed to paper based systems and the time wasted in long performance appraisal meetings. Two, electronic performance appraisal system can collect data quickly, process and provide the outcome instantly. Next to time factor, the impact
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of performance appraisal system is reflected on work flow. Anderson (2013) explained that electronic performance appraisal positively affects the work flow in two ways. One, it will bring about efficiency and the other is that it will help to make sure that all appraisals are seen by the appropriate parties. There are also professional advantages that electronic appraisal systems can provide .Cardy and miller (2005) showed that electronic performance appraisals offer stand-alone rater trainings and coaching utility as well as promote adherence legal guidelines. With regard to issues of standard, electronic appraisals allows to use one rating system for all employees and customizable to companies (Samuels, 2013). From technical point of view, Case and Hoell (2009) indicated that electronic performance appraisal systems are capable of overcoming and provide consistency in the performance management process. Moreover, these systems have analytical reporting capabilities which facilitate quick and accurate performance data as well as goal tracking ability (MacMillan, 2004). 2.4.2 Dark sides of e-appraisal Technology can have unintended and negative consequences (Cardy and Miller, 2005). Therefore, it is very essential to look in to the dark side of it as well. Arthur (2001) revealed four disadvantages of electronic performance appraisal. The first one is the errors in the software system which impairs the timely delivery of reviews and outcomes. The second one is the complexity of the system and its difficulty to learn. The third one is that it requires adequate financial resource as it is expensive to install and a significant amount of technical support is required. The last one is that it is dehumanizing and significantly reduces person to person interaction. Arnold (2013) also reaffirmed that electronic performance appraisal system significantly removes the interaction between managers and employees. Samuels (2013) also described electronic performance appraisal as impersonal. This a very serious concern about e-appraisal which needs greater attention when implementing it as human being has a complex nature which cannot resolved by IT based systems. Samuels (2013) showed that one critical danger of using electronic performance appraisal is the hacking of the company electronic database which could
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result in an invasion of privacy and creating liability for the company which is responsible to keep them. Arthur (2001) also raised security concerns and the need for significant technical support with regards to electronic performance appraisal which in turn would result in a huge financial cost for the company. Cardy and Miller(2005) also associates electronic appraisals with the reductionist approach which focuses on features and components which makes up the whole process in contrast to a holistic approach which focuses on the whole which gives attention to employee wellbeing and development as well as profit as it focus on the outcome rather than the process. According to the same authors, some professions and type of measurement ratings are not fine-tuned technologically to best fit electronic performance appraisal systems. Moreover, geographic and personality factors are not felt in electronic appraisal system which could lead to employee dissatisfaction and loss of trust (Cardy and Miller, 2005). 2.5 Overview of the AUC performance appraisal and e- appraisal

The African Union Staff Performance Appraisal System (SPAS) is designed to mobilize and galvanize the African Union Commissions (AUC) entire governan ce structure towards a cohesive corporate focus on the achievement of the strategic objectives of the Constitutive Act; delegate responsibility, authority and accountability for the achievement of agreed upon targets, goals and priorities. The AUC has recently adapted an enterprise resource planning system under the platform of SAP, accordingly all human resource information system is embedded to this system. Among others is the staff performance appraisal system which is processed under this system. There are two sections, the Employee Self Service (ESS) a platform where the employee set goals and the Manager Self Service a platform where the supervisors appraise their subordinates. The system has the capability to remind both the employee and the manager on the status of the performance appraisal. Currently, this web based online system is used to facilitate staff performance appraisal system.

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2.5.1

Overview of the AUC performance appraisal system

According to African Union Commission performance and Accountability policy framework (2009), the purpose of the African Union Staff Performance Appraisal System (SPAS) is to improve the delivery of services to Member States by optimizing performance at all levels by: Empowering AU staff with leadership, managerial and supervisory responsibilities and holding them responsible and accountable for managing and motivating staff; Encouraging a high level of staff participation in the planning, delivery and evaluation of work; Recognizing successful performance and addressing underperformance in a fair and equitable manner; Promoting a culture of high performance and continuous learning and working in a results and work plan-based environment. 2.5.1.1 Cycle, calendar and scope The AU SPAS begins on 01 March of each year with a mid-term review at the end of August and annual performance appraisal at the end of February, since the budget year of the commission starts in late February. It would also promote the necessary linkages between departmental work plans and individual staff members work plans. Before the beginning of the performance cycle Supervisors will meet with the staff under their supervision to develop Departmental Annual Work Plans that will be the foundation for the staff performance appraisals. Accordingly, Departmental work plans should be developed by supervisors, in consultation with staff members concerned. All organizational work plans will be developed on an annual basis in line with the AU financial year. Pursuant to the AU Staff Regulations and Rules, this Staff Performance Appraisal System (SPAS) shall cover all categories of regular staff, Short-term and Contract Staff, Field Mission and Project Staff up to and including Director Level. But doesnt include elected officials like the Chairperson, The Deputy Chairperson and the 8 commissioners.

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2.5.1.2 Work plans In the light of the Departmental, Work Plans, respective direct supervisor will meet with the staff members under their direct supervision to ensure that the objectives of the Department are understood and Annual Individual Work Plans are drawn up. Supervisors may meet with the staff under their direct supervision either as a group or individually. The staff member will work with the direct supervisor to prepare the plan for the performance cycle and to determine the goals, related activities and success criteria. According to African Union Commission performance and Accountability policy framework (2009), the overall performance appraisal includes the following: Work Plan March to February (full performance cycle); Mid-Term Review August Year End Appraisal - February Preparation of Work Plan January and February

The format of the work plan may vary depending on the functions of the staff member but must include goals or a statement of performance expectations for the reporting period. When more than one staff member perform the same function, performance expectations may be collectively developed, while allowing for individual variations where appropriate. 2.5.1.3 Implementation and monitoring mechanisms African Union Commission performance and accountability policy framework (2009), described that enhancing managerial accountability at all levels requires the performance appraisal system implementation is included as a key indicator in the annual performance work plan for all Supervisors. The status of SPAS implementation will be routinely reviewed by the meeting of Directors (COD), in routine internal audits as well as annual external performance audits by other oversight bodies will form part of the strengthening of the implementation of the SPAS. In addition to this overall monitoring system, the following mechanisms are put in place:

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2.5.1.4 Midterm and yearend performance review In the middle of each performance cycle, the direct supervisor will review, with each staff member, the manner in which the individual work plan has been carried out and will provide performance feedback and guidance for the accomplishment of the goals and/or performance expectations set out in the departmental work plan. At that time, the work plan may be revised if there have been significant changes in the nature of the functions carried out by the staff member, or if such revision is required to pursue revised goals of the Department. At the end of the performance cycle the direct supervisor and the staff member shall meet to discuss the overall performance during the performance period. The direct supervisor will appraise the extent to which the staff member has achieved the performance expectations as agreed in the individual work plan and in the mid-term review. The direct supervisor will seek and take into account, feedback from other supervisors for whom the staff member has worked for a significant amount of time and or on specific assignments. 2.5.1.5 Rating system According to AUC performance accountability and policy framework (2009), the Staff Performance Appraisal System offers a number of performance ratings some of which will be for staff members who have met or exceeded performance expectations while others will indicate the existence of shortcomings of staff which may call for specific remedial measures. Underperformance may justify the withholding of a within-grade increment until the performance of the staff concerned improves or other administrative actions are taken. Staff members who have met or exceeded performance expectations will be given one of the following ratings: 1. 2. 3. Consistently exceeds performance expectation (5 points); Frequently exceeds performance expectations (4 points); Fully meets performance expectations (3 points)

Staff who will not have fully met the above performance expectations will be given one of the following two ratings: 1. 2. Partially meets performance expectations (2 points); Falls below performance expectations (1 point);
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These two ratings indicate the existence of shortcomings or development needs, which may call for a specific remedial plan. A rating of partially meets performance expectations shall justify the withholding of a within-grade increment, for a regular staff member it is grounds for termination for unsatisfactory performance unless at the request of a staff member, in six months the staff member meets performance expectations, and thereafter successfully completes a performance cycle. A rating of falls below performance expectations may lead to a number of administrative actions like the withholding of a within-grade increment, the non-renewal of a fixed-term contract or termination on the grounds of unsatisfactory service. All staff members, including those that intend to rebut the performance rating, are required to sign their annual performance appraisal at the time of the end-of term performance review as an indication of their having completed the annual performance appraisal cycle. 2.5.1.6 Linkages with annual salary increment The granting of salary increment is subject to satisfactory performance of staff members as appraised by their supervisors. Staff members who have met or exceeded performance expectations are subject to annual increments. One annual rating of partially meets performance expectations or lower may justify the withholding of a salary increment. The decision whether to grant or withhold a salary increment shall be taken by the Second Supervisor, on the recommendation of the direct supervisor based on the staff members most recent Staff Performance Appraisal System report. The decision to withhold a salary increment shall be communicated to the staff member in writing, before the Director of Administration and Human Resource Development implements the decision. If the staff member affected is not in a position to accept this decision, she or he will submit a defensive report to the Rebuttal Panel for further study. 2.5.1.7 Rebuttal panels After receiving a copy of the rebuttal statement, the rebuttal panel shall hear the staff member, the first and second supervisors and, at the discretion of the panel, other staff members who may have information relevant to the review of the appraisal rating. The rebuttal panels shall prepare
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with maximum dispatch a brief report setting for the reasons why the original appraisal rating should or should not be maintained. The performance rating resulting from the rebuttal process shall be binding on supervisor and on the staff member concerned , subject to the ultimate approval of the Top Management, who may review the matter as needed on the basis of the record. 2.5.2 Overview of the AUC e-appraisal system

As mentioned earlier the AUC electronic appraisal system is embedded under its enterprise resource planning software SAP/ERP. Employee of the AUC is required to use the e-appraisal system for midterm and yearend performance review. It is a mandatory requirement to use the eappraisal and currently, no appraisal process is done manually. Therefore, AUC performance appraisal process is paperless unless printed under HRMD for documentation and other purposes. 2.5.2.1 AUC e-appraisal platforms According to SAP/ERP training manual for end users (2009), the AUC performance appraisal platform has two parts. One is Employee Self Service (ESS), a platform whereby employees of the organization will be engaged in the electronic appraisal process and the other is Manager Self Service MSS, platform whereby Supervisors will be engaged in the e-appraisal process. ESS is a collection of services designed to provide individual employees access to the system to enable them to request services, view and maintain their own data whereas MSS is a system of integrated applications that give managers information and process initiation capability (workflow) for their staff without the menace of a series of memos. Therefore, all staff will use ESS to perform appraisal and manage basic information on performance appraisal and also to view, manage and update basic details such as address, bank and family. Manager Self Service (MSS) will be used by managers to appraise subordinates. Staff members will use a link and log in with their personal user name and pass word. Similar access is also available for managers. The difference is that after they logged in, they have two icons: Employee Self Service and Manager Self Service to handle their issues as an employee to be appraised and as a supervisor to appraise their subordinates.
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2.5.2.2 AUC e-appraisal steps The ESS/MSS facility for electronic appraisal in the SAP/ERP has the following steps 1. Appraisal form is created by HR officer responsible at the back end of the system. 2. Appraisee will login to the system and click ESS, click carrier development, then click performance appraisal and write five objectives/goals and there is a an icon to write additional ones under each objective/goal. 3. Then it will send to the supervisor. 4. The supervisor will log in to the system and approve the goals and continue with mid-term review and final review based on the time line 5. All the changes will be reflected at the appraise side and there are accept and appeal icons to confirm or not the ratings by the supervisor. 6. It will go the second supervisor for final approval if it is accepted by the appraisee if the appraisee appeals, then it will go to the second supervisor again for further consideration and discussion. 2.5.2.3 AUC e-appraisal facilities and benefits All the above processes are done electronically with in the web based electronic appraisal system under SAP/ERP.To facilitate its use assist in any problems; there is an IMIS help desk facility with the following functions: Tracks service requests through a unique ticket number. Enables staff to make inquiries on submitted requests. Allows staff to view details of their service requests. Provides links to IMIS/SAP training materials and other resources.

It is to be noted that all the ratings and performance appraisal process in the AUC electronic appraisal system are aligned based on the AUC performance and accountability policy framework. The electronic appraisal system automated the appraisal in paper form and facilitated the process with all IT based advantages. As explained SAP/ERP training manual for end users (2009), ESS/MSS functionality has the following benefits:
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Reduce administrative overheads by eliminating the manual steps in common tasks Put data update closer to the source, reduce the need for HR to be data entry specialists Empower employees to take charge of their affairs (leave, travel, and appraisals) Improve interaction between managers and employees.

To streamline all the above issues and all related performance appraisal points, Africa Union Commission has a comprehensivePerformance Management and Accountability Framework (PMAF), it is a framework policy to govern performance appraisal. Moreover, at the back end, the Human Resources Division appraisal desk have has administrative access to process data and all issues related to performance appraisal. Such functionality will help the organization to have clear presentation of the overall e-appraisal process in the form spread sheets and others formats for follow up and subsequent actions. This data also enables the HRMD to take individual actions on promotion or salary increment and other human resource issues.

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CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY

This chapter of the research deals with the research methodology that will be used in gathering data for the study. It contains the research design, sources of data, sample size and sampling technique, data gathering instruments, procedures for methods & data analysis. 3.1 Research Method As indicated in the objectives, this study focuses on assessing the current IT based performance appraisal system and by then stating the challenges and prospects encountered in this regard. To get reliable information of the current status of the issue under study, descriptive statistics were used with simple random sampling technique. Descriptive statistics deals with methods of organizing, summarizing, and presenting data in a convenient and informative way using numerical and graphical means as it is allows the reader to easily capture the outcome of the research (2012, Keller). Moreover, for the outcomes to have a broad impact in the organization and useful in the future, it will help to review quickly for further consideration as time is a critical factor in the organization. Questionnaire was used to get quantitative data, and interviews were used to get qualitative data to extract the relevant information on the issue under the study. All the data collected were analyzed using SPSS (Statically Packages for Social scientists) software as it is the most reliable statistical software to analyze and interpret the quantitative data and it is presented on tables, graphs, charts and other tools. Its outcome will be used to reinforce the findings and to come up with subsequent recommendations. 3.2 Instruments of data collection To gather necessary information from the staff members close ended questionnaire along with very limited options to open-ended responses were used. A set of questionnaire were prepared by the researcher based on review of literature and researchers past experience. In the case of interviews, however, structured interview with few unstructured questions were provided. Questionnaires and interviews for all subjects were prepared and conducted in English which is one of the official languages used in the organization.
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The questionnaire method as instrument of data collection was used because it provided wider coverage to the sample and also facilitated collection of a large amount of data. Hofstee (2006) reasoned that questionnaires will offer confidentiality and also allows getting more volume of data as they can be sent to more people. It was also appropriate as all the staff members were literates and with accesses to the e-mail account of AUC intranet. Two hundred questionnaires were distributed through the e-mail accounts of all the staff members and responses were submitted on-line to the researcher. The e-mails used were the MS Outlook accounts that are used within the AUC network. To protect confidentiality of the respondents, the researcher used google doc software by subscribing from the developer company in which the system does not record your identity and all information provided shall be treated with confidence and your anonymity strictly up-held. This essentially helped the researcher to clearly tabulate the responses for further analysis in SPSS (Statistical Packages for Social Scientists). In addition to this, the researcher conducted structured interview with Officer in Charge of the Appraisal and one staff in the appraisal desk within HRMD. To get reliable information about the issue under investigation, interview conducted are necessary to extract views of the staff which are directly involved. The researcher provided the necessary classification for questions that might be raised on some of the items from individual respondents. As highlighted by Fisher (2007), the questions in a questionnaire are classified as dichotomous, multiple choice, checklists, rating scales and open questions. All these type of questions are included depending on their use and relevance. The questionnaire distributed for the staff had eight parts. Part I was on the Background of the Staff, to solicit information on gender, educational level and years of services. Part II of the questionnaire covered questions on the Existence of Performance Appraisal and E-Performance appraisal practices, Part III, on Performance and E-Appraisal Objectives, Part IV on Performance Appraisal Policy, Part V on Evaluating E-Appraisal System, Part VI on Constraints to the EAppraisal System, and the last one, Part VIII Effect of the E-Appraisal System. Questionnaires were all structured or close-ended questions with only few options to open-ended responses (Appendix B)

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The interview questions were structured and covered issues on the nature of the human resources appraisal and e-appraisal system at AUC. The challenges AUC faces in implementing its eappraisal system were also solicited. 3.3 Sources of data Both primary and secondary data collection were used in order to generate relevant information to the research. Primary data are gathered from bodies that claimed to have adequate proximity or exposure to the issue under investigation. Therefore, these bodies include: Staff members and relevant human resources and management information systems staff. As to the secondary data, both published and unpublished sources were used after evaluating their relevance. Among others, various documents, internet (on-line) sources and books were reviewed in order to seek information about previous achievements, constraints on electronic performance appraisal systems. Moreover, an observation of the system was done by the researcher in the Human Resources Division and also while staff members use the current online appraisal system. 3.4 Sample size and sampling technique Kothari (2004) refer sampling in a research study as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. Meaning, it is a process of gaining information about the whole population by examining only part of it. Therefore, not all the members of the study population were surveyed. Also, it is considered economically feasible to use part of the population. This enabled the research to be conducted within the limited time frame. Determining sample size is very important because samples that are too large may waste time, resources and money, while samples that are too small may lead to inaccurate results. The respondents of the study were sampled from the total population, which will be drawn from the employees of the AUC. The sample size is determined using survey system software. The formula which is used by the software given as:

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Z2 * (p) * (1-p) ss= c2 Where: Z = Z value (e.g. 1.96 for 95% confidence level) p = percentage picking a choice, expressed as decimal (.5 used for sample size needed) c = confidence interval, expressed as decimal (e.g., .04 = 4) Correction for Finite Population ss new ss= ss-1 1+ pop

Computation of the sample size using the above software resulted in a sample size of 97 with 95% confidence level and a confidence interval of 7.15%. Because of the time limitation and the rather busy schedules of the AUC staff, the researcher decided 7.15% precision. A confidence interval is a standard way of describing the precision of a measurement (Kaplan, 1999). Moreover, published table to select sample size showed similar sample size for a precision of 7.15%. Among the 1138 staff of the AUC, questionnaires were distributed to 200 staff; using simple random sampling 97 staff members were selected. In the selection of the sample size, lists of all staff members were obtained and e-mail requesting staff members to fill the questionnaire were sent. One Human Resources Division staff dealing with appraisals and one staff from Management Information systems Division were, however, purposively selected for interviewing. Thus, the sampling technique is simple random sampling (probability sampling). According to Fisher (2007), it is the best form of sampling because all elements in the population have equal chance of being selected. Moreover, the sampling used in this research was also

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purposive sampling to realize the main focus of the research as most Masters dissertation resort to purposive sampling for practical reasons (Fisher, 2007). 3.5 Techniques of data analysis

Qualitative procedures in combination with quantitative procedures were used to analyze the data collection for this study. Descriptive statistics were used in graphical and numerical aspects. In the numerical aspect, percentages were used to explain the personality characteristics of the respondents and to show the disparity in responses among the respondents. In the graphical aspect, tables, graphs, charts and other tools used to show the outcomes of the data analysis with descriptions attached to each of the figures. In analysis of the data generated through qualitative techniques, summaries and short narrations were used. Such information is believed to fill the gap that the descriptive statistics may not. Therefore, the data from the interviews were analyzed qualitatively and the results were presented in the form of summary while the quantitative results were presented in tables and charts. It is important to note here that the researcher used SPSS for data analysis to re-enforce findings. Finally, the findings were discussed in relation to the research questions and the literature reviews. 3.6 Ethical consideration

The respective organization officials were contacted and informed about the whole purpose of the research project. Also, written authorization and approval from the concerned department was obtained. The respondents were informed about the objectives of the study and their right to participate or not to participate in filling the questionnaire. Moreover, staff members were informed that their answers will be held confidential. Moreover, the mechanism used to collect the responses had a specific technical feature to hide identity of the respondents.

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CHAPTER FOUR PRESENTATION AND ANLYSIS OF DATA

This part of the study deals with presentation, analysis, interpretation and discussion of the data gathered through questionnaire and interview. The chapter consists of two parts. The first part of the chapter describes about the characteristics of the respondents while the second part deals with the analysis and discussion of the findings of the study. 4.1 Characteristics of the Respondents In this part, the characteristics of the respondents in the first part of the questionnaire, that is, background of the respondents at response rate of 48.5%. It will give the overall picture with regards to the background of the respondents with regards to gender. Moreover, it will also give the picture of the respondents background on IT as the research deals with electronic appraisal. Table 4.1 Gender

Gender Male Female Total

Frequency 59 38 97

Percent 60.8 39.2 100.0

Valid percent 60.8 39.2 100.0

Cumulative percent 60.8 100.0

Source: Own survey, July 2013 Based on the sampling procedure described in Chapter three, a total of 200 questionnaires were distributed to respondents at the AUC. As a result, 97 of the questionnaires were filled and submitted. This shows that the response rate was 48.5% as described above. The researcher had to close the survey to start the analysis as per the sample size determined initially taking into consideration the time limitation and the rather busy schedules of the AUC staff members. Out of the 97 respondents 59, (60.8%) were male and 38 (39.2 %) were female. Reasonable percentages of the two genders were responded for the questionnaire. Thus, there is no gender disparity in this research and both genders reasonably represented.
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Table 4.2 Educational background of the respondents

Educational levels Diploma Degree Masters PHD Total

Frequency 8 61 25 3 97

Percent 9.3 61.9 25.8 3.1 100.0

Valid percent 9.3 61.9 25.8 3.1 100.0

Cumulative percent 9.3 71.1 96.9 100.0

Source: Own survey, July 2013 It can be observed from the above table that 25.8% of respondents had Masters, about 61.9 % of respondents had first degree, 25.8% of respondents had Diploma and 3.1 % of respondents had PHD. The majority of the staff members who responded to the questionnaire are first degree holders. This shows that the respondents have adequate educational background to respond to the questionnaires distributed by the researcher. Moreover, it could be believed that they can give unbiased replies to the questions in the questionnaire. Hence, this helped the researcher to minimize errors with regard to responses. Chart 4.1 Years of service

Source: Own survey, July 2013

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As the pie chart above shows, the data for the study also revealed that33.0 % of the respondents had been employed for more than 8 years. 9.6 % had been employed for 7-8 years, 6 % had been employed 5-6 years, 28.9% had been employed for 2-4years and 4.1% had been employed for less than two years. Thus, the highest number of respondents worked in AUC for more than 8 years and also respondents of the questionnaire had various experiences within the organization. This enabled the researcher to get the desired response among different levels of experiences with in the organization. Chart 4.2 Working on computers/Knowledge of IT Have you been working with computers or have some Knowledge of IT?
0.9 0.8 0.7 0.6 0.5 yes 0.4 0.3 0.2 0.1 0 1 No

Source: Own Survey, July 2013

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As the above bar chart shows, the study revealed that 93.8% of the respondents are working on computers or has knowledge of IT whereas only 6.2% were not. From the background of the respondents, it can easily be concluded that the organization had a fertile ground for the implementation of IT based applications and HR tools such as e-appraisal or IT based performance appraisal. 4.2 Analysis and Interpretation of the Findings This part deals with the main part of the questionnaire which leads to the data analysis and interpretation of findings. It has different parts dissected under different titles as it goes with the different parts of the questionnaire. It is very critical to the final outcome of study. 4.2.1 Existence of performance appraisal/ e-appraisal practices This is the foundational part of the research and it deals with different issues under performance appraisal practices. It deals with various components with in performance appraisal in general and e-appraisal in particular Table 4.3 Awareness of a separate section responsible for human resources performance appraisal

Response yes No Total

Frequency 75 22 97

Percent 77.3 22.7 100.0

Valid percent Cumulative percent 78.1 21.9 100.0 78.1 100.0

Source: Own survey, July 2013 One of the important issues in managing human resources performance appraisal is the management of the processes within it. Therefore, the researcher tried to know the view of the respondents with regards to structure in managing the appraisal system. As it can be seen from the above table 77.3% of the respondents confirmed that there is a separate section whereas 22.7% of the respondents responded that there is no separate section for Human resources performance appraisal. Therefore, majority of the respondents are aware of the existence of
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performance appraisal section within Human Resource Management Division. Also, interview with coordinator of the performance appraisal desk confirmed that there is an appraisal desk within Human Resource Management Division which is responsible for performance appraisal. Chart 4.3 Initiatives for performance appraisal

Source: Own survey, July 2013 As the above pie chart shows, the data for the study also revealed that 17.5 % of the respondents think that the initiatives for performance appraisal is the performance gap seen on the job, 18.6% thinks the initiatives is analyzing performance gap, 8.2 % thinks lack of competent personnel are the initiatives while the majority from the respondents, 51.5 % thinks interests of the organization, only 4.1 % have other thinks other reasons than those mentioned. Therefore, majority of the respondents think that performance appraisal is about the interest of the organization, which is one sided. This could show whether the appraisal initiative is understood by staff members so that it would help in performance objectives.

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Table 4. 4 Frequency of performance appraisal

Response Quarterly Every six months Once a year Other Total

Frequency 9 63 17 8 97

Percent 9.3 64.9 17.5 8.2 100.0

Valid percent 9.3 64.9 17.5 8.2 100.0

Cumulative percent 9.3 74.2 91.8 100.0

Source: Own survey, July 2013 As it was described in the literature review, frequency of performance appraisal is one of the aspects in managing performance appraisal. Thus, the researcher sought opinions of the respondents in this respect how the organization is dealing the matter. The above table shows that, most of the respondents, 64.9 % said that the performance appraisal is done every six months while 9.3% of the respondents responded that it is exercised quarterly. This result confirmed that most of the respondents responded in accordance with the planned annual and mid-term performance review which is currently performed in the organization. Table 4.5 The respondents rating about the current e-appraisal system How do you rate the current e-appraisal system at AUC with regards to? Ease of use Poor Fair Good Very good Privacy Very poor Poor Fair Good Very good
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Frequency 11 22 38 26 4 3 19 47 24

Percent 11.3 22.7 39.2 26.8 4.1 3.1 19.6 48.5 24.7

How do you rate the current e-appraisal system at AUC with regards to? Security Very poor Poor Fair Good Very good Flexibility Very poor Poor Fair Good Very good Simplicity Very poor Poor Fair Good Very good Completeness Very poor Poor Fair Good Very good Clarity Very poor Poor Fair Good Very good Source: Own survey, July 2013

Frequency 4 6 17 40 30 25 27 25 16 4 5 25 26 34 7 6 23 46 17 5 10 19 28 32 8

Percent 4.1 6.2 17.5 41.2 30.9 25.8 27.8 25.8 16.5 4.1 5.2 25.8 26.8 35.1 7.2 6.2 23.7 47.4 17.5 5.2 10.3 19.6 28.9 33.0 8.2

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As it can be easily observed from the above two tables, the ratings for the current e-appraisal in terms of factors which impact staff ability to interact with the e-appraisal system is interpreted as follows. About the security of the system, 41.2 % and 30.9 % of the respondents rated the eappraisal as good and very good whereas only 6.2% and 4.1% rated the security of the eappraisal as poor and very poor. This reveals that majority of the respondents confirmed that they have a belief in the security of the e-appraisal system which is also an important component on personnel data security. In terms of flexibility, 27.8% and 25.8% of the respondents responded that the e-appraisal is poor and very poor respectively. However, 25.8% and 16.5% of them responded fair and good. This shows that majority of the respondents have a short fall on the flexibility of the e-appraisal though a third of the respondents have affirmative response. Regarding simplicity, 35.1% and 26.8% of the respondents responded that the e-appraisal is simple whereas 25.8% of the respondents responded that the e-appraisal is poor in simplicity. This shows that more than 50% of the respondents have belief in the simplicity of the system, however, considerable percentage of the respondents (25%) have concerns on the simplicity. Though the e-appraisal is simple to do it in eyes of respondents, there is still poor aspect with regards to simplicity. With regard to completeness, 47.4% responded that the e-appraisal has fair completeness (in between good and poor), 23.7% responded that it has poor completeness and 17.5% responded that the e-appraisal has good completeness. There is fair and good thinking about the completeness of the e-appraisal system. However, it is important to note here that reasonable percentage of respondents (23.7%) revealed that the e-appraisal is still poor in completeness. In terms of clarity, 33.0% and 28.9% of the respondents responded respectively that the e-appraisal is good and fairly clear to use it whereas 19.6% and 10.3% responded poor and very poor respectively. The e-appraisal has a positive standing in terms of clarity, however, there are still reasonable percentages observed which revealed poor and very poor completeness. Completeness is a characteristic which shows the all-round aspect of the e-appraisal and the response is quite important.

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Chart 4.4 Awareness on the need for requisite skills such as IT for performance appraisal

Source: Own survey, July 2013 As shown in the pie chart above, 68% of the respondents responded that staffs do not have the requisite skills such as IT for performance appraisal practices where as 32% of them responded otherwise. It can be easily drawn that staff at the AUC do not have the requisite skills such as IT for performance appraisal practices bearing in mind that a third of the respondents also responded favorably.

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Chart 4.5 Knowledge on human resource tools in SAP/ERP Do you know about human resource tools in the SAP/ERP system?
0.7

0.6

0.5

0.4 yes 0.3 No

0.2

0.1

0 1

Source: Own survey, July 2013 As the above bar chart shows, 63.9% of the respondents responded that they do not know about SAP/ERP whereas the rest of the respondents, 36.1% responded that they know about SAP/ERP. The majority of the respondents have no knowledge about the SAP/ERP. This shows that the organization will have an uphill battle to be able to adapt with staff about tools within the SAP/ERP such as performance appraisal. The understanding of SAP/ERP helps to enhance the performance appraisal usage with in this platform because this is a new phenomenon in IT.

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Chart 4.6 Frequency of orientation for performance appraisal

Source: Own survey, July 2013 As the above pie chart shows, 46.4% of the respondents responded that the frequency is other than six months and yearly basis. In the questionnaire, respondents were also requested to write to the frequency which they think other than the six months and once a year. Most of them responded that there is no consistency in maintaining the frequency of doing it. It is rather on a need to serve basis. On the other hand, 42.3% of the respondents responded that orientation is done once a year and the rest of them, 11.3% of the respondents responded that it is done every six months. Majority of the respondents responded that the orientation is infrequent and not even consistent. Since performance appraisal process needs a follow up and also e-appraisal is a new phenomenon, the response is really essential.
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Chart 4.7 Staff Knowledge on e-appraisal system

Source: Own survey, July 2013 As the above histogram shows 79.4% of the respondents responded that they know about eappraisal and 20.6% of the respondents responded that they dont know about e -appraisal. Thus, majority of the respondents know about e-appraisal. It is a good potential for the organization to better improve the e-appraisal system.

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Table 4.6 Competency of staff in terms of their performance on the e-appraisal

Response Very poor Poor Average Good Very good Total

Frequency 3 23 44 20 7 97

Percent 3.1 23.7 45.4 20.6 7.2 100.0

Valid Percent 3.1 23.7 45.4 20.6 7.2 100.0

Cumulative Percent 3.1 26.8 72.2 92.8 100.0

Source: Own survey, July 2013 As the above table shows, 45.4% of the respondents responded that the competency of the staff is average while the rest of the respondents responded that 23.7% of them is poor, 20.6% of them is good, and 7% of them is very good and only 3%is very poor. It is revealed that majority of the respondents put competency of the staff on the performance of e-appraisal is average and above average. This is a commendable outcome; however, considerable percentage of respondents (23%) showed poor performance. This is a signal that there is a point that the organization need to see. Chart 4.8 Rating of the e-appraisal system by the respondents
[

Very poor Poor Average Good Very good

Source: Own survey, July 2013

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As the above bar chart shows, 40.2% of the respondents responded that the e-appraisal system is in the average level and the rest of the respondents with 26.8%, 19.6%, 8.2%, 5.2% responded good, poor, very good and very poor respectively. Thus, these shows that majority of the respondents rated the current e-appraisal in the organization as average and good. It is a commendable outcome for the organization; however, the 19% poor response by the respondents will enquire for further attention by the organization as it should be reduced so that it could not hamper the positive outcomes. Chart 4.9 Lack of appropriate appraisal on staff decision to leave the organization

Source: Own survey, July 2013 As performance appraisal is an important aspect in staff life in an organization, respondents were also asked about their response in this aspect. As it is shown above on the pie chart, 44.3% of the
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respondents responded that performance appraisal is not likely an influential factor in leaving the organization whereas 28.9% of the respondents responded otherwise. Also, 18.6% of the respondents responded that they are not sure about the issue and 8.2% of the respondents responded that it is very likely to be an influential factor. From the above response, it could be drawn that performance appraisal is not likely to be an influential factor in leaving the organization. However, it is below 50% and there are considerable percentages of undecided respondents as well as those who responded likely. Therefore, it could also be drawn that somehow performance appraisal is also has a part in respondents decision in leaving the organization. Chart 4.10 Whether the organization did overall assessment to identify skills and abilities

yes No

Source: Own survey, July 2013 As the above bar chart shows 92.8% of the respondents responded that the organization did not conducted overall assessment of knowledge, skills and abilities whereas 7.2% of them responded
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otherwise. Also, 80% of the respondents disagreed with any of the components given for the assessment. This shows that almost all the respondents affirmed the organizations weakness in this area, which is one of the important aspects to develop an appraisal system in an organization. For any new system implementation, be it IT based or not, assessing staff knowledge, skill and ability is very important. Table 4.7 The method to gather information to design/develop performance appraisal

Response Conducting survey Observing how individuals perform their task Performance appraisals Conducting group discussion Assessing skills Other Total Source: Own Survey, July 2013

Valid Frequency Percent Percent Cumulative Percent 2 10 60 1 3 21 97 2.1 10.3 61.9 1.0 3.1 21.6 100.0 2.1 10.3 61.9 1.0 3.1 21.6 100.0 2.1 12.4 74.2 75.3 78.4 100.0

As the above table shows, 61.9% of the respondents responded that performance appraisals itself is the one to be used to gather information to develop performance appraisals, 21.6% of the respondents responded that other methods than those listed and 10% of them responded that observation on performing tasks to be used to design performance appraisal and the rest of the respondents response is insignificant. This means that majority of the respondents responded that performance appraisals are used to develop performance appraisals. Though performance appraisals are used to design a new appraisal system other methods such as skills assessment are also very helpful in designing performance appraisals. Like the previous responses, assessing skills has an insignificant response, 3%, as the above table shows.

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Table 4.8 Major objective considered by the organization for performance appraisal

Response Improving performance Importance and urgency Salary increment Raters capability and level of motivation Consistency of the system All are equally treated Total

Frequency Percent Valid Percent Cumulative Percent 10 6 59 4 9 9 97 10.3 6.2 60.8 4.1 9.3 9.3 100.0 10.3 6.2 60.8 4.1 9.3 9.3 100.0 10.3 16.5 77.3 81.4 90.7 100.0

Source: Own survey, July 2013 As it is shown in the above table, 60.8% of the respondents responded that the major factor for performance appraisal is salary increment, 10.3%, 9.3%, 9.3%, 6.2% and 4.1% responded for Improving performance, consistency of the system, all are equally rated, importance and urgency as well as raters capability respectively. Thus, majority of the respondents responded that the major factor is salary increment. Therefore, the organization need to give attention important issues of performance appraisal other than salary increment only. The performance appraisal of the organization currently focused on salary increment. The main objective of performance appraisal requires the improvement of performance and other components as well.

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Chart 4.11 Main reason for problems of e- performance appraisal

Source: Own survey, July 2013 As it is shown above in the pie chart, 56.7% of the respondents responded that raters do not have the skill. The rest of the respondents responded in such a way that 14.4%, 10.3%, 7.2%, 6.2%,5.2% for the organization did not given attention, absence of experts, network and IT systems, lack of IT skills and there is no separate action to handle it respectively. Therefore, majority of the respondents responded that the main reason for problems in e-appraisal is that the raters do not have the skills. It could be concluded that the organization should give adequate attention in improving skills of raters or supervisors which is the main problem in the current eappraisal system.

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Chart 4.12 Formal orientation programs for the staff about e-appraisal

yes No

Source: Own survey, July 2013 As it is shown above on the bar chart, 56% of the respondents responded that there is no formal plan and arrangement of orientation programs for performance appraisal/e-appraisal and 43.3% responded otherwise. Thus, more than 50% of the respondents responded that there is no formal plan and arrangement of appraisals/e-appraisal though considerable percentage of the respondents responded otherwise. It implies that the organization should give attention about orientation programs regarding performance appraisal to curb the problems associated with the current e-appraisal. This will reasonably reduce the major problems encountered in the eappraisal process.

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4.2.2 E-performance appraisal objectives Every process has an objective so is e-performance appraisal process. Thus, the researcher sought opinions of the respondents regarding e-performance appraisal objectives. Table 4.9 The organizations reason or objective to design and implement e- appraisal Response Yes No Total Frequency Percent Valid Percent 61 36 97 62.9 37.1 100.0 62.9 37.1 100.0 Cumulative Percent 62.9 100.0

Response Yes No Do not know Total

Frequency Percent Valid Percent 20 63 14 97 20.6 64.9 14.5 100.0 20.6 64.9 14.5 100.0

Cumulative Percent 20.6 85.5 100.0

Source: Own survey, July 2013 As the above tables show, 62.9% of the respondents responded that the organization explained the reason to design and implement an e-appraisal system. However, from those responded yes, 64.9% of the respondents responded that the objective did not clearly and precisely indicate the expected outcome. Thus, majority of the respondents responded that the objective is not clearly and precisely explained to have the expected outcome. The organizations precise clarity on issues related to e-appraisal is very important from respondents point of view since clear communication is vital in any work related processes.

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Table 4.13 The organizations main focus for designing e-appraisal

Source: Own survey, July 2013 As it is shown above on the pie chart, 48.5% of the respondents responded that the main focus for e-appraisal was introducing new methods, procedures, technologies, etc., 32% of them responded that improving job performance was the main reason for designing e-appraisal system and 11.3% of the respondents responded that attaining organizational objective is the main reason for designing new appraisal system. It could be drawn that introducing new methods is the majoritys response. This could indicate that IT based system is considered by the respondents as new method, however, improving performance could also be a second reason as IT based tools helps to save time.
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4.2.3

Performance appraisal policy

Policy is a binding document in any organization to effectively implement any process. Therefore, the study tried to have the responses of the respondents with regard to the performance appraisal policy. Table 4.10 Does the organization have formal and written appraisal policy? If yes, is the policy well communicated? Response Yes No Total Frequency Percent Valid Percent 47 50 97 48.5 51.5 100.0 48.5 51.5 100.0 Cumulative Percent 48.5 100.0

Response Yes No Total

Frequency Percent Valid Percent 14 83 97 14.5 85.5 100.0 14.5 85.5 100.0

Cumulative Percent 14.5 100.0

Source: Own survey, July 2013 As the above tables show, 51.5% responded that the organization has no performance appraisal policy whereas 48.5% responded that the organization has performance appraisal policy. On the other hand, from those who responded that the organization has performance appraisal policy, most of them (85%) responded that the policy is not well communicated. Therefore, the respondents didnt know there is a performance appraisal policy and even if they know, majority of them are not well communicated. The issue of communicating about performance appraisal policy is very important. It could be one of the major issues for problems related to performance appraisals because policy is a binding document in any process.

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4.2.4 Evaluating performance appraisal and e-appraisal system The evaluation of the e-appraisal will enable the organization to have the overall picture about the e-appraisal and issues which need attention. In this aspect, the researcher tried to extract the views of the respondents. Table 4.11 Respondents reaction to various critical issues involved in the performance appraisal process Variables The organization keeps records of all performance ratings by each staff member Strongly disagree Disagree Indifferent Agree Strongly agree Each division holds discussion about performance Strongly disagree Disagree Indifferent Agree Strongly agree The organization has a formal assessment format to get feedback from staffs Strongly disagree Disagree Indifferent Agree Strongly agree The organization has a scheme by Strongly disagree which the outcome/effect of the system Disagree is evaluated Indifferent Agree Strongly agree Source: Own survey, July 2013 Frequency 5 3 13 51 25 19 48 17 9 4 26 48 9 11 3 23 36 21 14 3 Percent 5.2 3.1 13.4 52.6 25.8 19.6 49.5 17.5 9.3 4.1 26.8 49.5 9.3 11.3 3.1 23.7 37.1 21.6 14.4 3.1

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As the above table shows, 52.6% and 25.8% responded that they agree and strongly agree about the organization having records of performance appraisal ratings. Whereas, 49.5% and 19.6% responded that they disagree and strongly disagree that they hold discussion about performance, 49.5% and 26.8% responded that they disagree and strongly disagree that the organization have a formal assessment to get feedback from staffs as well as 37.1% and 23.7% responded that they are also disagree and strongly disagree about a scheme whereby outcome/ effect of the system is evaluated. The above response shows that the except for recordings for performance appraisal ratings, the respondents either disagree or strongly disagree about the other components of performance appraisal process. Disagreement shows the situation is critical regarding the current performance appraisal system since performance appraisal is a process by which various actions or functions involved. 4.2.5 Assistance rendered on e-appraisal In a new system like e-appraisal specially which is embedded with ERP system assisting staffs and supervisors are very important. Taking this aspect in to consideration, the researcher tried to get responses from respondents in this respect. Table 4.12 Is there adequate assistance by Human Resource Division

Response Yes No Do not know Total

Frequency Percent Valid Percent 61 22 14 97 62.9 22.7 14.4 100.0 62.9 22.7 14.4 100.0

Cumulative Percent 62.9 85.6 100.0

Source: Own survey, July 2013 The above table shows that 62.9% of the respondents responded that they have received adequate assistance from Human resources Division whereas 22.7% of them responded otherwise. Thus, it could be drawn that the staff received adequate assistance from Human Resources Division. The organization can continue to maintain its assistance in such manner to have better outcome from

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the e-appraisal system. The routine explanation of the HR staff is very important for the success of e-appraisal process. Table 4.13 Is there adequate assistance by Management Information Systems Division?

Response Yes No Do not know Total

Frequency Percent Valid Percent 47 32 18 97 48.4 33.0 18.6 100.0 48.4 33.0 18.6 100.0

Cumulative Percent 48.4 81.4 100.0

Source: Own survey, July 2013 The above table shows that 48.4% of the respondents responded that they have received adequate assistance from Information Systems Management Division whereas 33% of them responded otherwise. Thus, it could be drawn that the staff received adequate assistance from Management Information Systems Division. However, reasonable percentage of respondents (33%) also responded that they do not receive adequate assistance from Management Information Systems Division. Though the organization is in a good standing in terms of this response, due consideration must also be given as the appraisal system is IT based and it needs adequate assistance particularly from this Division. 4.2.6 Constraints to the appraisal system Identifying constraints of the appraisal system will enable the organization to counter or reduce potential problems and help to put appropriate measures to rectify the problems. Understanding this, the researcher tried to have the respondents response with regard to this.

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Chart 4.14 Has you organization faced problems in designing/implementing e- appraisal?

yes No Do not know

Source: Own survey, July 2013 As it is observed from the above bar chart, 60.8% of the respondents responded that the organization has faced performance appraisal problems whereas 34% of them said they do not know. Only 5% of them responded that they are no problems regarding performance appraisal. It is evident that there are e-performance appraisal problems and it is a good signal for the organization to take the matter seriously. Table 4.14 If yes, rate the major problems encountered on the e-appraisal system. The major problems encountered on the e-appraisal system in the organization Commitment of the management Very low Low Average High Very high Awareness of IT/ computer systems Very low Low Average High Very high
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Frequency 1 6 57 21 12 7 67 13 8 2

Percent 1.0 6.2 58.8 21.6 12.4 7.2 69.1 13.4 8.2 2.1

Absence of guidelines for the eappraisal system

Very low Low Average High Very high

7 7 6 17 60 6 2 8 61 20

7.2 7.2 6.2 17.5 61.9 6.2 4.1 8.3 60.8 20.6

Lack of capacity of the raters

Very low Low Average High Very high

Absence of training on e-appraisal

Very low Low Average High Very high

4 11 7 55 20 6 8 62 5 6

4.1 11.3 7.2 56.7 20.6 6.2 8.2 74.2 5.2 6.2

Commitment of staff members

Very low Low Average High Very high

Source: Own survey, July 2013 As the above table shows, the respondents rated with regard to the problems encountered in the organization. From those, who responded yes to whether there are problems faced in the organization, respondents rated the problems as 58.8% of them for average, 69.1% of them for low, 61.9% of them for very high, 60.8% for high, 56.7 for high and74.2% for average with regards to commitment of the management, IT/computer systems, absence of guidelines for the e-appraisal system, lack of capacity of the raters, absence of training on e-appraisal and commitment of staff members respectively.
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This revealed that majority of the respondents have rated the problems with regards to commitment of the management and staff on average level where as they have rated very high, high and also high for problems with regards to absence of guidelines for the e-appraisal system, lack of capacity of the raters and absence of training on e-appraisal. This could prevent the organization further exploit and use the e-appraisal system and prevent the organization to achieve its objectives. 4.2.7 Effect of the e-appraisal system The researcher had also sought the opinions of the respondents on the effect of the e-appraisal system and the relevance of the rating format and methodology in the AUC. The outcome is given below as per the questions forwarded to the respondents in the questionnaire by figurative as well as narrative means. Chart 4.15 Is the e-appraisal system helped to give the input that was intended to give?

Not effective at all Not effective Not sure Effective Very effective

Source: Own Survey, July 2013 As it is observed from the above bar chart, the input intended to be given by the e-appraisal system 45.4% of the respondents responded that they are not sure about it, 23.7% responded that it is not effective, 22.7 said that it is effective and the rest of the responses were insignificant. Majority of the respondents are not sure and the next highest responded it is effective. It could be drawn that the input from the effect of the e-appraisal is not at a desired level.
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4.2.8 Relevance of the rating format and methodology Table 4.15 Relevance of the components of the rating format and methodology

Response Not relevant at all Not relevant Not sure Relevant Very relevant Total Source: Own survey

Frequency 3 18 22 51 3 97

Percent 3.1 18.6 22.7 52.6 3.1 100.0

Valid percent 3.1 18.6 22.7 52.6 3.1 100.0

Cumulative percent 3.1 21.6 44.3 96.9 100.0

As it is shown on the above table, 52.6% of the respondents responded that the rating format and methodology in the e-appraisal are relevant, 22.7% of the respondents responded that they are not sure about it and 18.6% of the respondents responded that the rating format and methodology is not relevant in the e-appraisal system. This shows that majority of the respondents are comfortable with the rating format and methodology. The relevant aspect should increase so that the 18.8% not relevant and 22.7% undecided to be encouraged to make use of the e-appraisal system effectively.

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Chart 4.16 Complexity and inflexibility of the e-appraisal system

Source: Own survey, July 2013 As it is shown on the above pie chart, the respondents response on the complexity and inflexibility of the e-appraisal is almost similar. However, 52.5% responded that the e-appraisal is complex and inflexible whereas 47.4 responded otherwise. This shows that more than 50% of the respondents responded that the e-appraisal system is inflexible and complex. 4.2.9 Assessment of the e-appraisal system by respondents In view of understanding the respondents opinion on the matter, respondents were asked to about the e-appraisal system. In a response to the level of appraisal ratings and raters role,
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majority of the respondents responded that there is skill and competency problem with regards to raters in the appraisal system and low involvement of the raters in the objective setting process. Some of them responded that it is good and the rest of them expressed their disappointment about it. Thus, the organization has to give weight on the skill of the rater and this is critical in the overall appraisal process in the organization. The view of the respondents on what they like and disliked were also examined by the researcher. Most of the respondents liked the e-appraisal system because it is transparent, quick and easy. Some respondents also responded that they like the e-appraisal because it is secured, well documented and reducing paper work. However, most respondents disliked that the eappraisal system is not clear, inflexible and not user friendly. Some of them responded that it is lifeless and it is done as a matter of procedure. Some of them also mentioned that it is done for just for the purpose of contract renewal and salary increment. Again, some of the respondents also responded that what they dislike is the problem with skills of supervisors about how to use the system appropriately. 4.2.9 Summary of interview session As part of the research, an interview was conducted with Human Resources Division Official who is in charge of the appraisal system. It is understood that there is a separate section for human resources performance appraisal and there is a comprehensive policy for performance appraisal as well. However, how well it is communicated depends on the way understood it. He mentioned that during 2009/2010 information sharing sessions were prepared between staff of various categories. Besides, there is also a guideline prepared for the e-appraisal process and orientation programs The HR Official also admitted that the organization were not done knowledge and skills assessment with regards to performance appraisal though there were needs assessments done for training and development. It is confirmed that the organization set objectives for e-appraisal as well as performance appraisal in general. Regarding the methods the organization used to develop performance appraisal, the organizations performance appraisal system was measured by a policy shift from activity based to results based management. This policy requires performance efficiency and a different
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appraisal method. That is, under results based management, what is achieved is the important part. As to the achievements of the organization with regard to e-appraisal: e-appraisal enabled to have real time data to generate reports since it is within the SAP system, effective management of performance data, secure storage of data (never get lost unlike the previous system) and it is also enabled to do other HR activities such as quick issue of salary increment, quick release of confirmation of appointment and quick contract renewal process since the system is integrated with in the system. As to the challenges, majority of the supervisors are not positive and prioritize to use the system. Besides, they dont do objective assessment. Tall in all, there is no best use of the system to make best out of it.

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CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter discusses the finding of the study and draws conclusion based on the findings that emerged. Recommendations of improving the e-appraisal system at the AUC have also been included in this chapter. 5.1. Summary of major Findings The main purpose of this study was to explore the e-appraisal system in the AUC by looking at the various aspects, investigate related challenges and prospects. Hence, appraisal and eappraisal practices of the AUC were assessed by trying to check on the emphasis given by the organization on appraisal and e-appraisal, the awareness level of the staff regarding the appraisal and e-appraisal, seeing the various components and areas which important for the appraisal and e-appraisal practices of the AUC. In addition, the competency of the staff and the reasons for main problems, the methods that the organization uses to design performance appraisal and other essential issues of the e-appraisal were examined. To this effect, the core point of the study focused on addressing the following basic questions. How performance appraisal and e-appraisal is processed and managed by the organization? What are the major factors that affect the electronic performance appraisal in the organization? What are the prospects in connection with the IT based performance appraisal in the organization? What are the ways forward for future improvement?

A descriptive survey study with both quantitative and qualitative method was employed in this study. The subjects of the study were AUC staff members. This study used questionnaire, however, in the case of an official in charge of performance appraisal and one HR staff in the appraisal desk, structured interview with few unstructured questions were provided.
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The following are summary of the findings: With regards to the existence of performance appraisal practices, the study showed that majority of the respondents was aware of the existence of separate section responsible for performance appraisal in AUC; the Official in charge of performance appraisal also confirmed that. As to initiatives of performance appraisal, the highest number of respondents indicated that performance appraisal is the interest of the organization, which looks the understanding performance appraisal is only from the organization side. About the frequency of performance appraisal, majority of the respondents were aware of the twice year performance appraisal performed in the organization. About the current e-appraisal system, majority of the respondents are comfortable with the security, simplicity, completeness and clarity of the e-appraisal system though considerable percentages also responded otherwise. However, majority of the respondents are not comfortable about the flexibility of the system. Regarding the requisite skills and knowledge necessary for the IT based performance appraisal, majority of the respondents were really showed that most of the staff didnt have the requisite skills for IT based performance appraisal. Moreover, majority of the respondents did not know about SAP/ERP as well. However, majority of the respondents know about the e-appraisal system. Most of the respondents have a positive attitude towards the competency of the staff and IT based performance appraisal system. Majority of the respondents have the view that the competency of the staff and the current e-appraisal is on average level though some considerable percentage responded below average. Skills assessment is important to develop performance appraisal, however, most of the respondents were not aware of any knowledge, skills and abilities assessment. The Official in charge of performance appraisal also confirmed that the organization do this in connection with training needs assessment, however, it has not been done in relation to performance appraisal. Majority of the respondents also confirmed the above response that the organization mostly gather information from performance appraisals in designing and developing performance
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appraisal as indication that the organization limited itself to performance appraisal than other methods though the Official in charge of performance appraisal confirmed that the methods shifted to results based management. It was also found out that the major factor consider by the organization for performance appraisal system is salary increment. Majority of the respondents considered salary increment as the major factor though there are other essential factors which could be taken as the main factor for performance appraisal. Staff positively link performance appraisal with their salary. Regarding to problems with e-appraisal system, respondents have concerns about skill of the raters. Majority of the respondents confirmed that the main reason for problems for IT based performance appraisal at the AUC is that the raters do not have the skill. Lack of capacity of the raters was considered to be the main challenge for the e-appraisal system. Moreover, the official in charge of performance appraisal pointed out that there are challenges with regard to supervisors in effectively implement the e-appraisal system. The Official in charge of performance appraisal pointed out that there are orientation programs for the staff to be aware of the current e-appraisal system However, more than 50% of the

respondents showed in their response that the organization did not formally plan and arrange orientation programs to all staff about its IT based performance system. The main focus of designing e-appraisal was also an issue that needed respondents view. Majority of the respondents affirmed that introduced new methods, procedures, technologies etc. are the main focus of designing e-appraisal system. Without an objective, no success can be achieved. In view of this, the respondents responded positively on whether the organization explained the reason or objective to design and implement the e-appraisal system. However, about the objectives clearly and precisely indicated the expected outcome, majority of the respondents responded the opposite. Majority of the respondents didnt have clear idea on the objectives and the expected outcome. The performance appraisal policy was obtained, examined though 50% of the respondents dont know about the existence of the policy. It has all the major requirement of performance
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appraisal policy. The Official in charge of performance appraisal confirmed that the policy has been in place and communicated to all staff. He also mentioned that during 2009/2010 information sharing sessions were prepared between staff of various categories. The above thus confirm that AUC has a well versed performance appraisal policy. However, the majority of the respondents indicated that they are not aware of the policy and they were not sure if the policy is well communicated to the staff. In evaluating the performance appraisal system, the respondents showed their disagreement about the reaction to various important aspects of performance appraisal such as holding discussion about performance appraisal, formal assessment format to get feedback from staffs and a scheme by which the outcome /effect of the system evaluated. However, they have in agreement about the organization keeps record of all performance appraisal ratings by each staff member. Except one, majority of the respondents are in disagreement on this part. It was also found out that majority of the respondents confirmed that they have received adequate assistance from Human Resource Management Division and Management Information Systems Division about the e-appraisal system. This is commendable and the organization should continue to do that to have the necessary outcomes from the e-appraisal system. For the view on any challenges the organization faced in designing and implementing e-appraisal to see the constraints of the e-appraisal system, majority of the respondents affirmed that the organization has faced problems in designing/implementing the e-appraisal/IT based performance appraisal system. The respondents also showed their response with regards to the particular problems under consideration. Consequently, it is revealed that majority of the respondents have rated very high, high and also high for problems with regards to absence of guidelines for the e-appraisal system, lack of capacity of the raters and absence of training on eappraisal whereas the respondents have rated the problems with regards to commitment of the management and staff on average level. In soliciting responses on the effect of the e-appraisal system, respondents were not sure about whether the e-appraisal system helped with the input that was intended to give. On the other

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hand, majority of the respondents are comfortable with the rating format and methodology. They affirmed that the rating format and methodology are relevant. More than 50% of the respondents have a concern about the complexity and inflexibility of the eappraisal system. In this, the respondents confirmed that the e-appraisal is complex and inflexible. 5.2 Conclusion Based on the review of related literature so far and summary of the findings of the study, the following conclusions are drawn: Currently, performance management is becoming a dominant and comprehensive approach in aligning performance with organizational objectives. The concept of performance management incorporates some of the notions and approaches of management by objectives and performance appraisal but it includes a number of significantly different features. Apparently, effective performance appraisal helps the organization to achieve its objectives and to enhance employees competence to perform their jobs satisfactory and beyond. Moreover, the performance appraisals are needed as we are in a dynamic world, with everything changing including changes in technology. Hence, rapid advance in technology and improved processes are important factors that will help the organization to meet these challenges. One of these is the e-appraisal system, which is technology enhanced performance appraisal system. It is therefore not surprising that organizations are taking strategic decisions on aggressively, systematically and widely developing IT based systems in order to create a working environment that will make things effective and efficient. The practice of appraisal and e-appraisal system is in existence in AUC and there is an eappraisal system implemented under SAP/ERP platform. Therefore, from the above findings, it can be concluded that the organization is practicing e-appraisal and the choice of the best ERP software to implement its e-appraisal system with in the frame work of its policy is also encouraged. However, this should also be complemented to escalate with the participation on eappraisal issues by the staff through creating awareness using various means such as distributing guidelines, frequent orientation programs, skill development for supervisors as well as staff and
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other initiatives. Management should also be aware of the problems highlighted in the study and take the necessary measures. The fact that that performance appraisal meant to be for salary increment by the majority of the respondents has to be taken seriously in to consideration by the organization as performance appraisal is instrumental to meet organizational objectives. Moreover, the issue of skills assessment is also an important matter that should be undertaken by the organization as majority of the respondents responded that there was no knowledge, skills and abilities assessment. This is an important element in developing performance appraisal and e-appraisal systems. Orientation on the e-appraisal system has not sufficiently been given for the staff and competency of the staff on e-appraisal was also questionable as responded by majority the respondents. Consequently, the organization has to take adequate measures in preparing formal orientation programs and skill training until staff members are adapting the e-appraisal system. Finally, any IT based system is not complete and perfect by its very nature as it needs improvement and update. In this regard the organization is advised to look in to the e-appraisal system under the SAP platform and enhance flexibility of the e-appraisal as the respondents have concerns on the flexibility of the system. 5.3. Recommendations The following recommendations are made based on the findings and conclusion of the study: 1. The responsible directorate should prepare well planned and formal programs though out the year to create awareness on appraisal and e-appraisal issues in the organization. 2. The Management should take appropriate and necessary measures to ensure that performance of staff is critical for attaining organizational objectives and in the process, performance appraisal is instrumental to meet organizational objectives beyond salary increment only.

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3. Every effort hast to be made so that the appraisal and e-appraisal issue wouldnt be one sided and only be in the interest of the organization. Rather, to increase performance to achieve organizational objectives as well as well as other essential issues in the organization and inclusive of staff as well. 4. There is a need for the Management to ensure that all staff members are aware of and have adequate knowledge of the performance appraisal policy. An emphasis should also be given using trainings, orientations and general staff meetings with staff members. 5. Although the e-appraisal is developed and according to the policy at hand, the staff members were not fully aware of the policy, the e-appraisal practices and procedures. Hence it is recommended that the organization should consolidate an orientation program on the e-appraisal. Moreover, there has to be an information propagated about it by any available communication media in the organization so that all staff are part of the program. 6. The researcher recommends that the organization can also tackle the challenges by working closely with the supervisors (line managers) with regards to the e-appraisal in which the follow up necessary in doing the e-appraisal. Moreover, supervisors should be given a briefing on the e-appraisal twice a year and also necessary skill training to increase their effective participation on the e-appraisal system. Staff members should also be included in the program to have the necessary skills for effective implementation the e-appraisal system. It is recommended to have intensive skill training programs which include IT for supervisors as well as staff regarding the e-appraisal system. IT based tools such as e-appraisal is a continuous process and it requires continuous skill building activities. 7. It is mandatory to have e-appraisal guidelines for the supervisors as well as staff for the proper functioning of the system. In this respect, the organization need to develop comprehensive e-appraisal guideline exclusively for supervisors as well as staff and make easily accessible or distribute the materials so that they can equip themselves and use it effectively.
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8. The organization need to consult the software company to enhance the flexibility of the system so that it couldnt frustrate supervisors and staff in using the e -appraisal system. It is possible to make the system user friendly so that the system will attract staff and use it better. This aspect of the system is very important in satisfying users of the system. Hence, the organization must give attention to improve the flexibility of the system which is essential for staffs and supervisors to use it quickly and effectively in the interest of saving time. 9. The concerned department has to assess staffs skill, output and effect of the e-appraisal system periodically which enable the organization to strengthen its follow up on the matter, the achievements gained, understand the challenges and redesign the e-appraisal system accordingly. 10. Performance appraisal also has other objectives other than salary increment. This belief will force supervisors and staffs to do the e-appraisal system as a mechanical exercise rather than an important part of their job. Therefore, the organization is suggested to make every effort to explain the purposes of the e-appraisal exercise formally as part of the job.

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References
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Bondarouk, Tanya and Looise, J (2009) Encyclopedia of Human Resource Information Systems: Challenges in e-HRM, pp.197-201. Borman, Daniel et al. (2003) Handbook of Psychology: Industrial and organizational psychology, 12(1).pp 171. Byars, Lloyd and Rue, L (1979) Personnel Management: Concepts and Application. London:W.B. Saunders Company. Cardy, Robert, Miller, J (2005). E-HR and performance management: A consideration of positive potential and the dark side. In: Gueutal, Hal, Stone, D (eds.) The brave new world of eHR. Human resources management in the digital age. San Francisco: Jossey-Bass. pp. 138-166. Cascio, F (2006) Managing Human Resources: Productivity, Quality of work life, Profits .7thedn. New Delhi: Tata McGraw-Hill Company Limited. Case, Thomas and Hoell, R (2009) Encyclopedia of Human Resource Information Systems: Challenges in e-HRM, pp.307-312. Coronas, Torres and Oliva, M (1981) e-Human Resource Management: Managing knowledge people. Hershey: Addison-Wesley, Inc. Cummings, M (1972) Theory and Practice of Personnel Management. London: William Heinemann Ltd. Delpo, A (2007) The performance Appraisal Hand Book: Legal and practical rules for managers. 2ndedn. Berkeley: Nolo publishing Inc. Fisher, C, (2007) Researching and Writing a Dissertation: A guidebook for business students. 2ndedn. Essex: Pearson Education Limited. Gomez, Balkin et al. (2001) Managing Human Resources. New Jersey: Prentice-Hall, Inc. Greengard, S (1999), 'Putting HR software to work: human resources management.' Workforce Management Magazine, 78 (9), pp. 4-8.
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Grote, D (2002) The performance Appraisal Question and Answer Book: A survival guide for managers. New York: AMACOM, a division of American Management Association. Gueutal, Hal, Stone, D (2005), The brave new world of eHR. Human resources management in the digital age. San Francisco: Jossey-Bass. Hayes, M (2003) Goal oriented: Companies are using software to help their employees set and meet individual and business goals. Available at: http://www.informationweek.com/goaloriented/8700312. (Accessed: 2 June 2013) Hofstee, E (2006) Constructing a Good Dissertation: A practical guide to finishing a Masters, MBA or PHD on schedule. Johannesburg: EPE. Hoon Nah, F (2002) Enterprise Resource Planning Solutions and Management . Hershey: IRM Press. Jacobs, Ditsa et al. (1980). Expectations of Behaviorally Anchored Rating Scales. Personnel Psychology. 33(3), pp. 595. John, M (2010) Key Concepts in Human Resource Management. London: SAGE publications Ltd. Kaplan, D (1999) Resampling Statistics in MATLAB Arlington: Resampling Stats Inc. Keller, G (2012) Statistics for Management and Economics guidelines. 9thedn. Mason: SouthWestern Cengage Learning. Koontz, H (1971) Appraising Managers as Managers. New York: McGraw-Hill Inc. Kothari, R (2004) Research Methodology: Methods and techniques. 2ndedn. New Age International (P) Ltd: New Delhi Lloyd, K (2009) Performance Appraisals and Phrases for Dummies. Indianapolis: Wiley Publishing, Inc.

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Locke, Edwin, Latham, G (1990). Work motivation: The high-performance cycle. In: U. Kleinbeck et al. (eds.), Work motivation: Series in applied psychology. pp. 3-25. MacMillan, A (2004). What can an employee performance management solution provide?. Journal of International Association for Human Resource Information Management, 49(10), pp.24-27. Mondy, Noe et al. (1999) Human Resource Management. 7thedn.New Jersey: Prentice-Hall, Inc. Monk, Ellen and Wagner, B (2011) Concepts in Enterprise Resource Planning. Boston: Course Technology, Cengage Learning. Nao, Hayane et al. (2011) Fundamentals of human resource development. New York: McGraw Hill companies Inc. Obisi, C (2011) Employee performance Appraisal and its implications for individual and organizational growth. Australian Journal of Business and Management Research 1(9), pp. 93.
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(Accessed: 2 June 2013). Pulakos, E (2009) Performance Management: A new approach for driving business results . West Sussex: Wiley-Blackwell, John Wiley and Sons Ltd. Robb, D (2004). Building a better workforce. Journal of International Association for Human Resource Information Management, 49(10), pp.87-92. Roberts, G (2003) Employee performance appraisal system participation: A technique that works. Public personnel Management, 32 (1), pp. 1. Robison, Paul and Simpson, L (2011) E-Appraisal: A guide for primary care. Oxon: Radcliffe Medical Press Ltd.

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Rowley, Chris and Jackson, K (2011) Human Resource Management: Key concepts. New York: Routledge. Samuels, D (2013) Advantages and disadvantages of electronic performance appraisals. Available at: http://work.chron.com/advantages-disadvantages-electronic-performanceappraisals-20351.html (Accessed: 2 June 2013). Silverstein, B (2007) Best Practices: Evaluating performance, how to appraise, promote, and fire. Pymble: HarperCollins Publishers (Australia) Pty. Ltd. Spinks, Wells et al. (1999) Appraising the appraisals: computerized performance appraisal systems Career Development International, 4(2).pp. 97. Steen, Noe et al. (1999) Human Resource Management. 2ndedn.New York: McGraw-Hill Inc. Torres, Teresa and Arias, M (ed.) (2009) Encyclopedia of Human Resource Information Systems: challenges in e-HRM, electronic employee performance management systems. Information Science Reference: Torres and Arias. Yahoo Answers (2013) What are the advantages and disadvantages to computerized and web based performance appraisals? Availableat:http://answers.yahoo.com/question/index?qid=20081019160909AAiwe8n (Accessed: 2 June 2013).

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Appendix A
ACADEMIC SURVEY ON ASSESSMENT OF THE PRACTICE AND EFFECT OFEAPPRAISAL: THE CASE OF AUC Dear Participant, This is to kindly request you to participate on this survey. Your participation in this survey is invaluable to me and very useful in understanding the topic I am dealing with. I am sincerely requesting less than 15 minutes of your day to complete the questionnaire. This questionnaire is designed for a research work approved by International Leadership Institute to be conducted for Masters Degree in Business Administration. The purpose of the study is to have an in-depth look at the IT based performance appraisal/e-appraisal system in the African Union Commission and investigate related challenges and then give appropriate recommendations. This study is purely for academic purpose and your response will be treated with strictest confidentiality and anonymity. Kindly note that there is no right or wrong answers, what is important is that you complete your responses truthfully to the best of your knowledge. Click the following link to access the electronic version of the questionnaire https://docs.google.com/forms/d/1yWBkxga2Rvdthh7esBvq9voHeQv-UxdY XJx5AUk5 g/viewform When you have completed filling your responses, simply click on submit to return your completed questionnaire. A confirmation of submission shall be provided upon successful submission of the electronic version. When you submit, the system does not record your identity and all information provided shall be treated with confidence and your anonymity is strictly upheld. This survey does not require your individual identity to be disclosed. I thank you in advance for taking your time to respond to the questionnaires. Sincerely yours. Sebsebe Tereda P.O.Box 200074 Addis Ababa E-mail:sebsebet@yahoo.com Tel.0911600543
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Your views on IT based performance appraisal

I. Background of respondents 1. Sex
o o

Male Female 2. Educational background Diploma Degree Masters PHD Other: 3. Years of services in your current organization Less than 2 years 2-4 years 5-6 years 7-8 years More than 8 years 4. Have you been working with computers or have some knowledge of Information Technology? Yes No Part II. Existence of performance appriasal/e-appraisal practices 1. Is there a separate section responsible for Human Resources Performance Appraisal in your organization?

o o o o o

o o o o o

o o

o o

Yes No

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2. What do you think are the initiatives for performance appraisal?

o o o o o

Performance gap seen on the job Analysing performance gap Lack of competent personnel Interest of the organization Other: 3. How often is appraisal performed in AUC? Quarterly Every six months Once a year Every two years Other: 4. How do you rate the current e-appraisal system at AUC with regards to ? Very poor Ease of use Privacy Security Flexibility Simplicity Completeness Clarity Poor Fair Good Very good

o o o o o

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5. How do see the level of appraisal ratings and raters role in the e-appraisal system?

7. Do you think that all staff at Africa Union Commission has the requisite skills such as IT for performance appraisal practices?
o o

Yes No 8. Do you know about human resource tools in the SAP/ERP (Enterprise Resource planning) system? Yes No 6. How often is an orientation given on the e-appraisal system? Monthly Quarterly Every six months Once a year Other: 9. Do you know about e-appraisal/ IT based performance appraisal system? Yes No 10. How do you rate the competency of staff in terms of their performance with the current IT based appraisal/e-appraisal system in Africa Union Commission? Very poor Poor Average Good
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o o

o o o o o

o o

o o o o

o o

Very good Excellent 11. How do you rate the current IT based appraisal/e-appraisal system in Africa Union Commission? Very poor Poor Average Good Very good Excellent 12. Would lack of appropriate appraisal system be an influential factor in your decision to leave Africa Union Commission? Very likely Likely Not likely Not sure 13. What do you like about the current e-appraisal/ IT based performance appraisal system at Africa Union Commission?

o o o o o o

o o o o

14. What do you dislike about the e-appraisal/IT based performance appraisal system at Africa Union Commission?

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15. What problems do you face at Africa Union Commission with regard to the current e-appraisal system or the apprisal system in general?

16. Has your organization conducted overall assessment to identify the knowledge, skills and abilities in the past five years? (If your answer is Yes go to Question No.17 below)
o o

Yes No 17. If your answer to the above question is Yes, indicate your reaction to the following statements Strongly disagree Staff assessment by its own Assessment is done by Department Heads Human Resources/Training department identify needs Top-level managers decide by themselves It is identified at organizational
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Disagree

Indifferent

Agree

Strongly agree

Strongly disagree strategic level Assessment done by analysis of tasks performed by each jobholder Assessment done through analysis of the knowledge, skills, and attitude of individual staff member

Disagree

Indifferent

Agree

Strongly agree

18. How does your organization mostly gather information in developing/designing performance appraisal system
o o o o o o

Conducting survey Observing how individuals are performing their tasks Performance appraisals Conducting group discussion Assessing skills Other: 19. Which of the following major factor is considered by your organization for performance appraisal system? Improving performance Importance and urgency Salary increment Raters capability and level of motivation Consistency of the system All are equally treated Other:
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o o o o o o o

20. What do you think is the main reason for problems in the IT based performance appraisal/e-appraisal system at the AUC?
o o o o o o o

Absence of the experts Raters do not have the skill There is no separate section to handle it The organization has not given the attention Lack of IT skills Network and IT systems Other: 21. Did the organization formally plan and arrange orientation programs to all staff about its IT based performance appraisal/e-appraisal system? Yes No 22. What do you think are the initiatives for IT based performance appraisal? Maximizing the use of IT Reducing paperwork Simplifying how things are done Increasing potential Data security and privacy Other: Par III E-performance appraisal objectives 1. Did the organization explained the reason or objective to design and implement the e-appraisal/IT based performance appraisal system

o o

o o o o o o

o o

Yes No 2. If you answered Yes on item No 1, did the objectives clearly and precisely indicate the expected outcome? Yes No Do not know
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o o o

3. When your organization designed the e-appraisal/ IT based performance appraisal system to its staffs, what was the main focus?
o o o o o

Improving job performance Building capacity and potentials Introducing new methods, procedures, technologies, etc. To attain organizational objectives Other: Part IV Performance appraisal policy 1. Does your organization have formal written performance appraisal policy?

o o

Yes No 2. If you answered Yes on item No 1, is the policy well communicated to all staffs? Yes No Part V. Evaluating Performance Appraisal System 1. Indicate your reaction to the following questions by ticking in the box (strongly disagree, disagree, Indifferent, agree, or strongly agree) that corresponds to each item. Strongly disagree The organization keeps records of all performance ratings by each staff member Each division holds discussion about performance Disagree Indifferent Agree Strongly agree

o o

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Strongly disagree The organization has a formal assessment format to get feedback from staffs The organization has a scheme by which the outcome/effect of the system is evaluated

Disagree

Indifferent

Agree

Strongly agree

2. Is there adequate assistance for staff members on e-appraisal process from Human Resources Division?
o o o

Yes No Do not know 3. Is there adequate assistance for staff members on e-appraisal process from Managment Information Systems Division? Yes No Do not know Part VI. Constraints to e-performance Appraisal System 1.Has your organization faced with any problem in designing/implementing the eappraisal/ IT based performance appraisal system ?

o o o

o o o

Yes No Do not know

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2. If Yes, how do you rate the major problems encountered on the e -appraisal system in your organization? Rate by ticking (Very low, Low, Average, High, or Very high) that corresponds to each item. Very low Commitment of the management Awareness of IT/ computer systems Absence of guidelines for the e-appraisal system Lack of capacity of the raters Absence of training on e-appraisal Commitment of staff members Low Average High Very high

Part VII. Effect of the e-appraisal appraisal system 1. Have the e- appraisal system helped you with the input that was intended to give?
o o o o o

Not effective at all Not effective Not sure Effective Very effective

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2. How relevant were the components of the rating format and methodology in the e-appraisal?
o o o o o

Not relevant at all Not relevant Not sure Relevant Very relevant 3. Do you think the e-appraisal system is complex and inflexible? Yes No 4. In what ways do you think the current e- appraisal/performance appraisal at Africa Union Commission can be improved?

o o

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Appendix B
Interview guideline This interview guide is prepared to direct the interviews to be conducted with the Senior Officer in Charge of Performance Appraisal and HR Secretary at the Appraisal Desk in the Human Resources Management Division of the AUC. The purpose of this guide is to help the interviewer and the interviewee to focus the discussion on issues related to the research questions so that only relevant information will be gathered. Leading questions for the interview 1. Did you have performance appraisal/section in your organization? 2. Did your organization have performance appraisal policy? If yes how well is it communicated to the employees? What benefits does it offer? If no, what is the reason(s) behind for not having it? 3. Is there a guideline for staff members prepared for the current e-appraisal system within the framework of this policy? 4. Is there formal orientation and training programs for staff members on the current eappraisal system? 5. If your organization had never conducted knowledge and skills assessment, what is (are) the reason(s) for that? 6. Did the organization set objectives for performance appraisal in general and for eappraisal system in particular before the implementation of electronic appraisal systems? 7. What methods did your organization used for developing performance appraisal systems? Was there any participation of staff members/line managers in developing the current eappraisal system? 8. How is the commitment of management in the performance appraisal system in general and in the e-appraisal system in particular? 9. Do you think line managers/supervisors see performance appraisal and their involvement in the e-appraisal system as an important part of their job? 10. Do line managers take the e-appraisal system seriously for subsequent actions to follow? 11. What are the main challenges with e-appraisal system? What are the achievements?
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ANNEX C DECLARATION
I, Sebsebe Tereda hereby declares that the work which is being presented in the thesis entitled Assessment of the Practice and Effect of E-Appraisal: The case of Africa Union Commission is an original work of my own and prepared under the guidance of my thesis supervisor Mr. Mesfin Lemma (Assistant Professor). It has not been presented for any scholastic achievement and level of study (Bachelors or Masters or PhD programs) in any other institute, College and University. All the sources of the materials used in this dissertation paper have been fully acknowledged.

_______________________________ The Candidate

Date:__________________

This is to certify that the above declaration made by the candidate is correct to the best of my knowledge.

_______________________________ Supervisor of the Thesis

Date:__________________

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