1

To Evaluate the Role and Importance of Effective Performance Appraisal

System While Operating Business at International Level: Case Study of Nike

ABSTRACT
An effective performance appraisal system helps the organization to manage its work in
the international market. It is also helpful for the organization to gain competitive advantages
from the market. It is because; effective performance appraisal system motivates employees to
improve their efficiency and productivity that helps organization to sustain customers in the
international market. This research study helps the researcher to evaluate the role and
importance of performance appraisal system in the international market.
In this research study, researcher described the main aims and objectives in order to
analyze the research study in effective manner. This research study focuses on the importance of
performance appraisal system in international market in the context of Nike. The main objectives
of this research study are, the exploration of theoretical framework of performance appraisal in
international market; identify the role and importance of performance appraisal system in
operating international business, identify different methods of performance appraisal and the
methods that are used by Nike for effective performance appraisal in the international market.
In order to conduct this research study in effective manner, researcher has used
qualitative research design because this research design supports the inductive approach with
interpretive research philosophy, which is essential for this research study for data collection. It
also helped the researcher to generate valid and accurate result for the research study. For
effectively conduct this research, researcher has also used both the data collection methods such
as primary and secondary. These helped the researcher to collect information and data related to
the research topic in effective manner.
To analyze data and information, researcher has used thematic analysis framework and
divided the data in different themes such as managing business operation, improvement in
performance, and increase in competitive advantages and provide training and development
programs. In order to create effective performance appraisal system, researcher also provided
some recommendations to the company such as timely evaluation of performance system and
improvement in communication channel and focus on observable behaviour.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................6
1.1. Structure of the Study:..........................................................................................................6
1.2. Research aims and objectives:..............................................................................................7
1.3. Research Questions:..............................................................................................................8
1.4. Research Background:..........................................................................................................8
1.5. Purpose Statement:...............................................................................................................9
1.6. Scope and Limitation of the Study:....................................................................................10
1.6.1. Scope:..........................................................................................................................10
1.6.2. Limitations:..................................................................................................................12
1.7. Summary:............................................................................................................................12
CHAPTER 2: LITERATURE REVIEW.......................................................................................14
2.1. Introduction:.......................................................................................................................14
2.2. Theoretical Framework of Performance Appraisal:............................................................14
2.3. Role and Importance of Performance Appraisal System:...................................................18
2.4. Different Methods of Performance Appraisal:....................................................................23
2.5. Methods used by Nike for Performance Appraisal:............................................................28
2.6. Summary:............................................................................................................................31
CHAPTER 3 METHODOLOGY..................................................................................................33
3.1. Introduction:.......................................................................................................................33
3.2. Research Paradigm and Philosophy:..................................................................................33
3.3. Research Design:................................................................................................................35
3.4. Research Approach:............................................................................................................36
3.5. Research Strategy:..............................................................................................................38
3.5.1. Case Study:..................................................................................................................38
3.5.2. Strengths of Case Study Research Strategy:................................................................39
3.5.3. Weaknesses of Case Study Research Strategy:............................................................39
3.6. Qualitative and Quantitative Design:..................................................................................39
3.7. Data Collection Methods:...................................................................................................40
3.7.1. Primary Data Sources:.................................................................................................41
3.7.2. Secondary Data Sources:.............................................................................................42
3.8. Summary:............................................................................................................................42

4
CHAPTER 4: DATA ANALYSIS AND FINDIGS.......................................................................44
4.1. Introduction:.......................................................................................................................44
4.2. Thematic Framework:.........................................................................................................44
4.3. Theme Consideration:.........................................................................................................45
4.4. Generalization and Categorization of Themes:..................................................................45
4.5. Posteriori Themes:..............................................................................................................50
4.5.1. Manage Business Operations:......................................................................................50
4.5.2. Improvement in Performance:.....................................................................................53
4.5.3. Increase in Competitive Advantages:..........................................................................57
4.5.4. Provide Training and Development Program:.............................................................60
4.6. Research Outcome:.............................................................................................................61
4.7. Summary:............................................................................................................................63
CHAPTER 5: CONCLUSION AND RECOMMENDATION......................................................65
5.1. Introduction:.......................................................................................................................65
5.2. Assessment of Findings:.....................................................................................................65
5.3. Developing Relationship between Research Findings and Objectives:.............................67
5.3.1. Role and Importance of Performance Appraisal System to Operate Business............68
5.3.2. Different Methods of Performance Appraisal and the Methods Used by Nike...........69
5.4. Recommendations:.............................................................................................................69
5.4.1. Timely Evaluation of Performance System:................................................................69
5.4.2. Improvement in Communication Channel:.................................................................69
5.4.3. Focus on Observable Behaviour:.................................................................................70
5.5. Further Research Directions:..............................................................................................70
5.6. Summary:............................................................................................................................71
REFERENCES..............................................................................................................................72
APPENDIX....................................................................................................................................78
Questionnaire:............................................................................................................................78

LIST OF TABLES AND FIGURES

1. Table 1: Priory Themes: Role and Importance of Effective Performance Appraisal
System................................................................................................................................46
2. Table 2: Posteriori Themes: Role and Importance of Effective Performance Appraisal
System................................................................................................................................47

5
3. Graph 1: Performance appraisal is important for organization to manage
operations. .............................................................................................................................
...............51
4. Graph 2: Most Important Performance Appraisal System that supports the Business at
International Market...........................................................................................................53
5. Graph 3: Performance Appraisal Helps to Improve Performance of employee in
International Market...........................................................................................................55
6. Graph 4: Appraisal System helps to compare Employees Existing Performance with
Previous Performance........................................................................................................56
7. Graph 5: Performance Appraisal is an Effective Tool to Motivate
Employees..........................................................................................................................58
8. Graph 6: 360 Performance Appraisal System helps to Provide Proper Feedback to
Employees..........................................................................................................................59
9. Graph 7: Performance Appraisal helps Employees to develop their Skills and
Knowledge.........................................................................................................................61

CHAPTER 1: INTRODUCTION
1.1. Structure of the Study:
This research study focuses on role and importance of effective performance appraisal
system while operating the business at international level. This research study is also aiming to
describe the various performance appraisal methods adopted by Nike in order to achieve the
results efficiently and effectively. Brief introduction of different chapters of this dissertation are
as follows:
In this dissertation first chapter introduce the research issues that are related to the
performance appraisal methods used by the Nike to achieve the organizational goals efficiently.
Additionally, this chapter also discuss about the aims and objectives of research. Aims and
objectives of the research help to find out research questions, which are related to the research
issues. This chapter also explains the research background. This also helps to understand the
research issues that are related to research topic. Additionally, this chapter also discusses about
the purpose statement and also discuss about the research scope and limitations. Understanding
the research limitations helps in achieving the research aims and objectives efficiently.
Second chapter of dissertation is literature review, which is related to the research topic
that is To evaluate the role and importance of effective performance appraisal system while
operating business at international level: Case study of Nike. At the initial step researcher has
described the theoretical framework of performance appraisal systems. In second step researcher
has described the role and importance of performance appraisal system within the organization.
In the last step different methods adopted by the Nike has been discussed by the researcher in
order to increase the performance of employees.

7
Third chapter of this dissertation is research methodology, in which researcher has
explained the various methodology and approaches used by them to make the research more
effective and sound. In this chapter, researcher has used qualitative data to gather the relevant
data properly. Further this chapter also uses various paradigms and philosophies in order to
describe the research methodology effectively. Researcher has also used primary and secondary
data collection methods to collect the information for performance appraisal. Researcher has also
presented case study analysis to complete the study.
In fourth chapter of this dissertation data analysis and findings are done. In order to make
this chapter effective, researcher has used thematic analysis framework to make the evaluation of
data efficiently. In this chapter researcher has done the evaluation of primary and secondary
collected data. This chapter of the dissertation is also helpful in maintaining the link between the
research findings and research objectives. Chapter five of this dissertation gives the overall
conclusion of research study that provides the gist and outcomes of research study in appropriate
manner.

1.2. Research aims and objectives:

In order to attain the research problem to evaluate the role and importance of effective
performance appraisal system while operating business at international level, researcher will
evaluate the following research objectives:
To explore the theoretical framework of performance appraisal in international market.
To identify the role and importance of performance appraisal system in operating
international business.
To identify the different methods of performance appraisal and also determine the
methods used by Nike for performance appraisal.

8
Suggest the new strategies that can be implemented by Nike in order to improve
performance appraisal system in international market.

1.3. Research Questions:

To conduct the research work effectively and to collect effective data for the research
problem, researcher will explore the following research question:
1. What is the role of performance appraisal in international business?
2. What are the various methods used in performance appraisal?
3. How performance appraisals play an effective role in retention of employees in
international business?

1.4. Research Background:

In todays competitive environment every organization has to adopt different
performance appraisal tools in order to make the employees more competitive and effective.
Different performance appraisal methods help in making the evaluation and identification of
employees performance more appropriately. Effective performance appraisal method helps the
organization in identifying the problem areas within the organization. Further, through
performance appraisal managers can enhance the overall performance of an organization.
Managers can also motivate the employees in terms of achieving the organizational goals and
objectives efficiently. Performance appraisal enables the manager for conducting the various
learning and development programs in order to enhance employees skills and knowledge related
to work.
According to Bacal (2006), in order to make the performance appraisal, effective and
proper communication should be there between the top level and lower level managers.
Performance appraisal is very effective system that evaluates the individuals performance and
provides them chance for future growth. Further employees weakness and strengths related to

9
job can be identified with the help of effective performance appraisal system. Performance
appraisal system helps in motivating the employees in order to increase the production. Effective
performance appraisal system also provides feedback to employees for their performance. After
getting the feedback, employees can take corrective actions in order to improve the performance.
Performance appraisal can be done by using various methods such as graphic rating scale, 360
degree feedback, critical incident method, ranking method etc. All these methods can make
performance appraisal effective. Every organization adopts different methods based on their
objectives and goals.
In the views of Armstrong (2009), in todays competitive environment, it is necessary to
do performance appraisal of the employees. Organization can do recruitment and selection of
employees based on the employees performance. Managers in organization evaluate the
performance according to their job requirement. It is necessary for every organization to adopt
the effective performance appraisal method. Employees can get feedback of their performance
through the managers or from the peer groups. After getting feedback, employees will make
efforts to enhance the performance and achieve the aims and objectives of Nike. Proper training
and development to employees will make the employees capable to adopt the new technologies.

1.5. Purpose Statement:

The main purpose of this dissertation is to provide theoretical framework of performance
appraisal system in the context of Nike, so that other companies can develop their understanding
and knowledge about the different performance appraisal methods in order to build competitive
advantage. The main purpose of this research study is to provide important shares in getting the
quality and large amount of research for the various firms and organization. With the help of this
research organization can do effective recruitment and selection of employees. Organization can
also provide future growth of the employees and make development of their carrier. This

10
dissertation is also helpful for the company to make the sound position in international as well as
domestic market.
Moreover, this dissertation is helpful in adopting more effective performance appraisal
system by the organization. Researcher can also develop training and development programs to
make the employees sustainable in competitive and international market. Other purpose of this
research study is to provide training and development to employees in order to improve their
skills and knowledge. Effective performance appraisal system helps in making the proper
allocation of human resources according to their skills and knowledge. Placing of employees
according to their specialization will enhance the performance and results can be achieved
effectively. This dissertation will also guide the readers to develop an understanding about
different methods of performance appraisal used by the organization.

1.6. Scope and Limitation of the Study:

1.6.1. Scope:
This research study provides the wide discussion various performance appraisal methods
used by Nike. This research study is very much useful in analyzing the various methods used by
the companies for doing the performance appraisal. This study is also useful for the organization
in enhancing the performance of employees. Further performance appraisal also motivates the
employees for better performance. Selection of appropriate methods of performance appraisal
will help in evaluating the employees performance. Evaluation of employees performance
enables the managers to conduct the learning and development programs if required. This
dissertation is also helpful in providing information to other companies regarding the
performance appraisal criteria. It is also helpful in understanding the significance of effective
performance appraisal system in terms of operating the business into international market. This
dissertation explains the scope of performance appraisal system for understanding the techniques

11
used in international market. Further managers can motivate the employees for enhancing the
performance at international level. Effective and proper performance appraisal system will attract
more employees and also boost up the morale of them. This research study also focuses on
various methods that can be used for conducting the performance appraisal.
This research study will also provide methods that are used by the Nike for conducting
the performance appraisal system according to international level. Performance appraisal system
is also helpful in analyzing the training and development needs for the employees. Further this
research study will provide various drawbacks and advantages of performance appraisal system.
This research study will also helpful for the experts in making the comparison between various
methods used by the other firms within the market and helps in building the competitive
advantage. This research study will also helpful in understanding the employee needs and wants.
Performance appraisal helps in integrating organization goals with individual goals that helps in
enhancing the performance of employees. This research study also provides information to the
readers regarding the impact of performance appraisal system in the domestic as well as
international business.
This research study is also helpful in selecting the appropriate method of performance
appraisal by Nike. Selection of effective performance appraisal method helps in giving
competition to other firms within the market. Employees can also able to cope up with changing
environment and adopts the new technology. This research study can also be used as secondary
data for conducting another research study. Researcher can take reference for making another
research projects and enhance the effectiveness. Scope of this research is very wide in
understanding the various methods used by Nike for doing the performance appraisal. With the
help of performance appraisal Nike can make the employees sustainable in international market.

12
1.6.2. Limitations:
For conducting the research study in an effective manner researcher has to face certain
problems or issues related to research. Some of the problems are discussed below:
Cost Constraints: To gather the relevant data for doing the research is very expensive
process. Due to this constraint, researcher is not able to conduct the research efficiently. In order
to collect the secondary data researcher needs journals, articles, and books, etc. that requires lot
of cost. Limited use of secondary data will also affect the effectiveness of research study.
Time Constraints: Researcher has to face the problem of time while doing the research
study. Researcher gets limited time for doing the research that affects the quality of data and
information that has been collected. Reduction in quality of data may also affect the effectiveness
of research and aims and objectives of research cannot be achieved. Moreover researcher cannot
gather the enough information in order to conduct the research effectively.
Access Constraints: Some articles and websites are not authentic for doing the research
that creates problem in using the data for the research study. For conducting the research in
appropriate and effective manner researcher has used secondary data only. Dependency on
secondary data may affect the performance of research study. Primary data need to be used to
make the research efficient and also able to achieve the research aims and objectives. Reliability
of collected data can be affected due to the use of outdated articles and some environmental
changes.

1.7. Summary:
From the above discussion, it can be concluded that this chapter of dissertation is very
useful in developing the knowledge regarding theoretical framework about various performance
appraisal methods used by Nike, so that performance of employees can be enhanced. This
chapter also provide the base for answering the research problems. This chapter also give

13
discussion about the research background, research objectives, purpose of the study, scope and
limitation of study etc. that helps the researcher in making the conclusion that methods used in
performance appraisal helps Nike in improving the performance of employees. It can also be
concluded that effective performance appraisal is helpful in motivating the employees for better
and effective performance.

14

CHAPTER 2: LITERATURE REVIEW

2.1. Introduction:
In this dissertation, main objective of this chapter is to critically analyze different books
and articles, which are related to the research problem, which is Effective performance appraisal
of Nike. This chapter helps in identifying the theoretical framework of effective performance
appraisal. This chapter also enables the researcher to identify the role and importance of
performance appraisal system in the domestic as well as in international market. This is also
helpful for the researcher to develop and understand different methods of performance appraisal
system. Researcher has also analyzed the different methods that have been used by the Nike in
order to do the performance appraisal of their employees.
Therefore, different method of performance appraisal used by Nike helps in attracting and
retaining the employees. Further, effective performance appraisal also influences the morale of
employees and motivates them for the better performance. Effective performance appraisal
system creates healthy working environment and brings cooperation among employees.

2.2. Theoretical Framework of Performance Appraisal:

According to Sandler and Keefe (2003), performance appraisal is the method of
evaluating and measuring the employee performance in order to analyze the future growth of
business. Researcher states that performance appraisal helps in identifying the outcomes of the
present performance of employees as well as in taking the future decisions. Kuvaas (2011) also
supports the view of Sandler and Keefe (2003) and stated that the main objective of performance
appraisal is to give the feedback to employees for their performance and motivates them for
better performance. Feedback is given by the line managers to their employees. In contrast,

15
Prowse and Prowse (2009) asserted that performance appraisal cannot be conducted efficiently, if
the line manager does not have intellectual skills to measure the performance of employees.
Further they stated that managers should have the capacity to evaluate and provide
feedback on employee performance. It can be stated that effective performance appraisal system
helps in achieving the goals of organization efficiently.
In the views of Warner (2002), performance appraisal helps in providing protection to the
company legally against any misconduct or underperformance. It also provides identification of
poor performers and also provides various methods to enhance the performance. It also creates a
healthy relationship among the employees and it can be done through proper communication and
observation. In the support of Warner (2002), Hellqvist (2011) explained that performance
appraisal helps in managing the workforce properly within the organization. Effective
performance appraisal system helps in making the employees adaptive according to the
technological changes. Managing and developing the employees for international market is the
major challenge for the managers while doing the performance appraisal.
Maley (2011) also supports the arguments of Hellqvist (2011), and stated that managers
have to give training and development to the employees according to the international market.
Due the emerging globalization, diversified workforce has been adopted by the organization.
Various multinational corporation measure the performance of their employees according to the
international market conditions. Organization analyzes the performance appraisal system in
various countries. Scroggins and Benson (2010) stated that now a days organization has to show
their skills worldwide in order to make the competitive advantage. Effective performance
appraisal system helps the organization in giving competition to the rivalries in international
market. Most of the multinational companies adopt the performance appraisal system according

16
to the international market. Effective performance appraisal leads to the optimum utilization of
resources.
According to Cardy and Leonard (2011) performance appraisal helps the manager in
identifying the overall working of the organization. Additionally through the performance
appraisal, line managers can identify the problem areas and take corrective actions accordingly.
Appraisal of employees ensures the better performance and also motivates them to work hard in
order to achieve the organizational goals. Researcher stated that in order to motivate the
employees for better performance, line managers have to integrate the organizational goals with
the individual goals. Banfield and Kay (2011) has supported the view of Cardy and Leonard
(2011) and suggested that with the emergence of multinational companies, organization has to
recruit the diversified workforce. With the help of diversified employees, organization can cope
up with the technological changes in the external environment. Line managers have to adopt the
performance appraisal methods according to the diversified workforce.
Vergara and Gardner (2011) explained that performance of employees needs to be
evaluated at the level of international market. After doing the appraisal of employees, managers
can provide training and development facilities to the employees. Performance appraisal helps
the managers in identifying the suitability of employees according to the job. This identification
helps in identifying the need for further recruitment and selection of suitable candidate. In the
support of Vergara and Gardner (2011), Fons (2011) suggested that with the help of performance
appraisal, managers can give remuneration accordingly and also provide rewards for improved
performance. Promotion and demotion can be done on the basis of performance appraisal.
Employee performance helps in measuring the level of results that have been achieved and future
benefit of organization.

17
In against of Fons (2011), Forslund (2011) argued that performance appraisal cannot be
effective unless, it is used in proper way. Sometimes performance appraisal system will lead to
underestimation of the employees performance. Managers with less intellectual skills cannot
measure the performance and take corrective actions. Proper training and development should be
given to the managers if necessary for doing the appraisal. In case of the multinational
companies, managers should have knowledge about the various cultures and values. They also
have the capability to integrate different cultures within the organization. Proper management of
diversified workforce helps in enhancing the performance of organization. Hunter and Renwick
(2011) has given the example of Tesco and explained various policies and procedures used by
them. Tesco has defined the formal policies and procedures in order to give guidance to the line
managers for doing the human resource management properly. Tesco has to manage the
employees properly in order to maintain the competitiveness in US market.
According to Lambert (2010), for the performance appraisal of international companies,
managers have to ensure that international employees and subsidiaries have to be concentrated
towards the goals of home company. In contrast of Lambert (2010), Alexander and Doherty
(2010) stated that performance appraisal in international market is a difficult process to perform.
Goals of the parent company do not match with subsidiaries and also creates communication
barrier. Sometimes, any information related to job does not pass to the subsidiaries at appropriate
time; this affects the performance of employees. It can be stated that performance appraisal
system adopted the by the various international companies depends on their goals, objectives and
policies.
Tsai (2011) explained that performance appraisal can be done by comparing the actual
performance with the planned goals. Any deviation in the in the stated objectives will need

18
corrective actions to be taken. Some principles of the performance appraisal states that
employees should get merit according to their performance. This fact is supported by Morden
(2007) and he stated that employee should be promoted as per their capability and skills not on
the basis of position. While doing the performance appraisal, performance of the employees
should be measured individually in the collaborative efforts.

2.3. Role and Importance of Performance Appraisal System:

According to Morse (2010) performance appraisal system plays a very important role in
human resource management. Performance appraisal of individuals enhances the overall
efficiency of any business entity. Managers in the organization can gather various benefits from
the effective performance appraisal system. Performance appraisal helps in making the career of
the individual employee in the organization. Tatum and Eberlin (2006) explained three functional
areas of performance appraisal in an organization. Firstly performance appraisal plays
administrative role for the line managers. Managers can identify the salary and rewards for
employees based on their performance. Managers can also take decisions regarding salary
increase after evaluating the performance. Through the performance appraisal delegation of
authority and responsibility can also be given to capable employees. With the help of authority,
employees can take decisions by their own related to their work (Tatum and Eberlin 2006).
Secondly, performance appraisal also plays a role in providing adequate information
related to the task. Appraisal system can be effective if managers have the information about
individuals specialization and weakness. Specialization of employee in particular field helps the
managers in allocating the resources to the employees accordingly that improve the efficiency.
After analyzing the weakness proper training and development programs could be conducted in
order to overcome the weakness. Mosley and Pietri (2010) also supported this by saying that

19
while operating any international business; managers have to recruit the diversified workforce in
order to meet the domestic as well as international demands efficiently. Training and
development of diversified employees are provided to integrate the different views of employees
towards common goals. For the operation of international business, managers have to integrate
different cultures and values within the organization.
According to Erasmus and Schenk (2009), performance appraisal plays a fundamental
role in motivating employees for better performance. Managers should create the learning
experience, which boosts up the morale of employees. Managers also have the capability to
influence the employees in order to improve productivity. In the view of Chan, Wu and Leung
(2011) performance appraisal gives benefits to the organization in many ways such as it is
helpful to reap out the expected outcome and after analyzing the strengths and weakness
managers can set the organization behaviour accordingly. Moreover, managers can give feedback
to the employees about their performance and allows them to increase the outcome. In the
support of Chan, Wu and Leung (2011), Cook and Crossman (2004) stated that performance
appraisal also plays an important role in identifying the different needs and expectations of
employees within the organization. It is very much important for the managers to do the
performance appraisal, while operating the international business. Managers should give training
and development to the employees for adopting new technologies.
For doing the international business employees should be adaptive according to the
change in technologies. There are various factors such as change in government policies,
exchange rate fluctuations, change in taste and preferences of outside customers, etc. which arise
the need of performance appraisal at regular interval. Performance appraisal helps in giving
guidance to the employees by the managers regarding the international business management. In

20
contrast of Cook and Crossman (2004), Crosby, Devaney and Law (2011) stated through the
performance appraisal employees get motivated only for short term. Employees do hard work
only for getting appraisals, they always do not perform effectively. They are not always prepared
to perform creative and new things in the organization. Sometimes deviation in the performance
could not be found by the managers. Organization can acquire the third party in order to do
performance appraisal. With the help of performance appraisal, managers can highlight the
changes that have been adopted by the employees after getting feedback of their previous
performance.
According to Bernardin (2008), appraisals of the employee should be given both on
qualitative and quantitative measures. This will help in doing the overall performance analysis of
employees. Some organization gives feedback either on quantitative basis or on qualitative basis,
which creates problems. In support of Bernardin (2008), Smither and London (2009) stated that
performance appraisal plays a fundamental role in enhancing the performance of employees as
well as the organization. Adaptability and innovations in the organization helps in accepting the
internal and external environmental changes. With the appropriate performance appraisal
managers can develop various learning programs for doing the international business.
For doing the international business, performance appraisal has some importance in
managing the business. According to Farndale, Hailey and Kelliher (2011) performance appraisal
is considered as indispensible tool for maintaining the performance of organization. With the
help of appraisal information, managers can take the decisions regarding recruitment and
selection of employees. It is also helpful in taking decisions for some personal aspects such as
promotion, demotions, and increase in merits. Managers can also frame various policies and
strategies for the employees in order to achieve the results efficiently. This fact is also supported

21
by Delisle and Grissom (2011), they described that with the help of performance appraisal
system employees can judge their performance by their own. Self assessment helps in motivating
the employees for taking more responsibility for their own performance. They try to focus on
improvement in their own performance. Further, it is helpful in reducing confusion for the
performance and employees will change their job behaviour.
Grote (2002) also argued that self appraisal of performance helps the employees in
analyzing their job duties. Further, they are able to handle the issues related to their jobs and also
able to give rating by their own. With the help of self rating, employees can discuss the problems
and issues related to job with the managers. After analyzing the issues managers can make job
improvement plan. The view of Grote (2002) also supports the view of Hellqvist (2011), who
stated that managers can identify the worth of employees in relation to the job. On the basis of
that managers can take decisions regarding recruitment, selection, training, development and
promotions. Additionally, they can also decide about the transfer and punishment of employees.
Employees can be transferred to their suitable jobs.
According to Sims (2002), performance appraisal is also important in analyzing the
effectiveness of recruitment and selection. Managers can adopt better recruitment and selection
programs after doing the performance appraisal, if required. He also stated that managers can
also identify the problems that have been faced by the employees, while performing the job. In
the support of Sims (2002), Azzone and Palermo (2011) stated that managers can place the
employees in the organization according to their capability and skills. Further, managers can also
divide the efficient and inefficient employees and fixes them accordingly. Superiors can also
know their subordinates more closely and analyze their working behaviour. In every
organization, performance appraisal system is adopted according to their working environment.

22
In some organization appraisal is done with salary increment. Main motive of every organization
is to achieve the stated goals and objectives. After doing the performance appraisal, managers
can disperse these goals in whole organization based on capabilities and suitability of employees.
According to Lawton and Jankowski (2009), without the performance appraisal managers
cannot correctly identify the results and performance of employees. Managers can only guess
whether employees are performing towards right way and according to desired standard. One of
the main motives of organization is to maintain and enhance the workforce. In todays business,
employees play a very important role in achieving the desired results of the organization
efficiently. In support of Lawton and Jankowski (2009), Appelbaum, Roy and Gilliland (2011)
states that employees performance need to assessed properly in order to achieve the desired
results. With the global expansion of business, managers have to face the problem of employing
people in more than one country. Performance appraisal is important in analyzing the capability
of employees. Individuals with the higher adaptability and creativity can be employed in more
than one country and able to compete globally.
According to Rudge (2011), due to the globalization, every organization has to adopt the
diversified workforce and adopt efficient diversity management programs. In the diversity
management programs, managers have to integrate the performance appraisal system to make the
program successful. With the performance appraisal system, managers can identify, whether
employees have integrated different cultures and values towards the organizations common
goals (Kuvaas 2011). Various multinational companies have to do the import and export of
product and services in various countries. Employees should be capable of operating the
international business activities. In future, organization can be successful, if they are able to
increase their productivity by improving the performance of employees.

23
According to Forslund (2011), performance appraisal has a very considerable role and
importance in operating international business. Without the proper assessment of employees
performance, organization cannot achieve their goals efficiently. In contrast of Forslund (2011),
Hunter and Renwick (2011), performance cannot be improved until organization will adopt the
suitable system. Managers should have the skills to place the employees according to their
capabilities. Allocation of employees according to their specialization will produce the results
more effectively and efficiently.

2.4. Different Methods of Performance Appraisal:

According to Bogardus (2009) organization has to use various methods to do the
performance appraisal of employees. Every organization adopts suitable methods in order to do
the performance appraisal. There are various types of performance appraisal methods such as
graphic rating scale, ranking method, 360 degree appraisal, critical incident method, field review,
forced distribution, assessment centres, etc. are used by the organization. All these methods are
discussed below in detail:
Graphic Rating Scale: Pemberton, Hoskins and Boninti (2011) have explained that in this
method one evaluator is required to indicate the level of performance on the rating scale. It is one
the most important methods of doing performance appraisal. Rating levels are formed by using
number of scales. Each scale predict the different dimension of performance or the job such as
knowledge, responsibility, quality of work, accountability, time taken etc. (Bohalander and
Snell). In each scale, series of numbers are indicating the level of performance such as high to
low, good to poor, most to least effective, etc. according to this performance is measured. In the
support of Pemberton, Hoskins and Boninti (2011), Sukirno and Siengthai (2011) stated that
performance dimensions of the organization should be clearly defined before adopting this

24
method. Scales that have set should be based on the organization behaviour, so that ratter can
able to give ratings accordingly. This method of performance appraisal helps in analyzing the
employee knowledge and skills carefully. Comparison between the performances of various
employees can be done easily with the help of this method.
In contrast of Sukirno and Siengthai (2011), Vidgen, Sims and Powell (2011) stated that
sometimes one dimension of the appraisal may affect the rating of other dimensions of same
person. Evaluator need to be competent to measure the results accurately and give appropriate
rating to every employee. Employees sometimes have to face with the rating errors, which affect
the morale of employees.
Ranking Method: After analyzing the graphic rating method Besseris (2008) has
explained ranking method for doing the performance appraisal. In ranking method, comparison
between the employees can be done. Merits are given to the employees on the basis of their
overall performance. This type of method helps in assessing the overall traits of employees. This
fact is also supported by Mehdizadeh (2010) and he stated that employee performance is not
measured on the basis of specific job components. On the basis of ranks, employees are placed in
the organization to make efficient use of manpower. Further this method help in assessing the
employees skills in every field. Analysis on the basis of specific components makes the
employees specialized in that particular field (Mathis and Jackson 2009). Overall analysis of the
employees makes them adaptive according to the changing organization conditions. This type of
performance appraisal helps the managers in arranging the employees from good to bad and
more effective to least effective.
In contrast of Mehdizadeh (2010), Besseris (2008) argued that evaluators are sometimes
reluctant to make discrimination in the employee performance. Without analyzing the efforts of

25
individual performance, employees are given the rank the randomly. This type of method is not
very much popular in the organization. Moreover, it is very difficult to create the difference
between performances of different units. Hanafizadeh, Kazazi and Bolhasani (2011) suggested
that rating method of performance appraisal are very easy to understand and simple to use.
Moreover, all the employees are treated equally and measured on the same rating criteria.
Appraisal process of performance is same for all the employees in the organization. Further,
traits that have been selected should be relevant and justified with the job. This method is helpful
in motivating the employees for better performance and employees itself can compare their
performance with other employees.
Critical Incident Method: According to Gatewood, Feild and Barrick (2010), critical
incident method is the type of qualitative approach, which can be used to achieve the description
of work. This method is very much useful in analyzing the training need or performance
development programs for employees. In this method individuals are reported with some
incidents, which reflect either good or bad performance. Evaluator can measure the performance
from some critical issues that separates the ineffective from the effective job performance. In
support of Gatewood, Feild and Barrick (2010), Bernardin (2010) stated that managers prepare
the list of critical incidents of each employee and make performance evaluation. This method
creates a base for the managers that will help in doing comparison. This method is very much
useful as it makes the difference between the successful and unsuccessful performance.
Employees with lot of critical incidents need to give training for the improvement.
According to Mikulic and Prebez (2011), critical incident method helps the managers in
improving their working environment. Employees will also make changes in their working
behaviour and perform more efficiently. Further this method entails the description of situation

26
that and various consequences. Gorman and Evers (2011) argue that critical incident method
cannot measure the performance in quantitative terms. Further managers have to note down all
the incidents of employees regularly, which cannot be practically possible.
Forced Distribution: This method use the specific distribution for giving rates to the
employees. In forced distribution, evaluator uses the various components of job instead of single
factor for doing the job evaluation. Employees are rated according to the distribution such as
10% low, 20% above, 40% average, etc. that avoids the problem of neglecting and central
tendency (Denisi and Griffin 2005). On the other side, this method uses the not very much
popular among the managers of different organization. Moreover, this method sometimes creates
mistrust and reduces the morale of employees. This method creates discrimination, even if
employees have almost similar performance, which does not motivate the employees (Mathis
and Jackson 2009).
According to Goel and Bourell (2011) in forced distribution, managers make group of
employees according to predefined frequencies and give rates to the performance of employees.
Frequencies are determined in advance by the organization, which helps in easy evaluation of
performance.
360 Degree Appraisal: According to Mason, Power, Baker and Swift (2009), 360 degree
feedback performance appraisal is the process in which employees get feedback of their
performance. Feedback is given by their managers, peers, direct reports, subordinates, team
members etc. at timely intervals. Sometimes employee getting feedback also has to give the self
rating. In this method around eight to twelve people fill up the feedback form including the
organization competencies. In feedback form, some question are included that are evaluated
through rating scale and person giving feedback can also write the comments for the

27
performance. In support of Mason, Power, Baker and Swift (2009), Dai, Tang and Meuse (2011)
states that feedback that is given to employees is confidential and are provided by the workers
around them. This method helps in analyzing the strength and weakness of the employees. With
the help of feedback form, employee can analyze the critical areas and can make development
plan.
This method is also known as multi rater method because rating is given by various
people within the organization. Self rating of employees helps in making self assessment. 360
degree feedback is very much useful for the organization in taking the administrative decision
such as promotion, merit rating and transfer. Further, it is helpful in changing the perception of
other employees and in taking justified decision (Lepsinger and Lucia 2009).
Management by Objectives (MBO): According to Sommerville (2007) in this method
managers and employees decide the common goals and objectives in advance. Earlier stated
standards and objectives provide a base for the employees in doing self assessment. Employee
performance can measure by analyzing the extent to which objectives have been met (Pecora,
Cherin and Bruce 2009). Joint decision of superior and subordinates helps in satisfying the needs
and wants of both. Moreover, it is helpful in enhancing the performance. In this method,
performance is evaluated on the basis of earlier stated objectives. This help in analyzing any
deviation in the stated objectives and corrective actions can be taken if required. According to
Sorensen and Minahan (2011), after setting the objectives, employees can do the self audit and
can apply the required skills and knowledge for making the performance effective.
Earlier stated objectives help the managers in identifying and measuring the employee
traits suitable for the job. Superiors appraise the performance on the basis of actual results not by
employee traits. Human resource can be utilized optimally through the MBO method. In against

28
of Sorensen and Minahan (2011), Bipp and Kleingeld (2011) stated that employee cannot take
decision or make changes according to the environmental changes. Sometimes employees in the
organization are not clear about the objectives that affect the overall performance of
organization. Almqvist, Catasus and Skoog (2011) give suggestion and states that objectives
should be framed after considering the previous performance of employees. Managers have to
develop the action plan and also provide training to the employees in order to achieve the desired
objectives efficiently. Managers can also guide the employees on how results can be efficiently
achieved. Various method used by the managers helps in measuring and evaluating the
performance properly.

2.5. Methods used by Nike for Performance Appraisal:

Performance appraisal is an important tool that helps in motivating the employees to give
their best on the job. It also helps in determining the efforts made by an individual to complete
their job on time and within available resources. There are various performance appraisal
techniques that help the employees to get fair and correct remuneration for their work and
motivate them to work for the development of the organization. For providing effective and
efficient appraisal to employees there are certain appraisal techniques that are used by Nike to
decide the actual value of appraisal that is sufficient for an employee to get motivated towards
his work such as 360 degree appraisal and Behaviourally anchored rating scales (BARS).
According to Daft and Lane (2009) behaviourally anchored rating scales technique is
used by the organization in order to provide rating to each employee based on his performance
for performing his work on the job. The criteria for observing the success of the work is based on
the work done by employees in critical situations or the performance of an employee from his
fellow beings. In favour of Daft and Lane (2009), Daft and Marcic (2010) said that this technique

29
is beneficial for the organization as well as for the employees, as it is easy to measure the
performance of each employee for the management. At the same time employees can also judge
their performance in compare to their co-workers.
Cassidy, Kreitner and Kreitner (2009) stated that organization use the technique of
behaviourally anchored rating scales by dividing the performance into scale points ranging from
five to seven such as extremely good performance, good performance, slightly good
performance, slightly poor performance, poor performance and extremely poor performance.
This rating scale facilitates the manager to effectively rate the performance of their subordinates
in order to provide deserved appraisal to each employee. In support of the Cassidy, Kreitner and
Kreitner (2009), Schermerhorn (2011) discussed that it helps in analyzing the work of the
employees and give importance to the work done by employee on the job rather than looking at
more general employee characteristics such as personality and vague work habits. In order to rate
the performance of each employee in Nike, manager at each level effectively observe the
performance and rate their performance according to the predefined rating scale.
In against of Cassidy, Kreitner and Kreitner (2009), Decenzo (2009) stated that
behaviourally anchored rating scales technique is not an effective technique to judge the
performance of the employees as sometime rating is based on the perception of the manager and
the process is time consuming. In support of Decenzo (2009), Grobler and Warnich (2005) stated
that this technique required high observational skill in the managers and also requires proper
determination of critical behaviours of the employees, so that manager can rate the employee in
an effective manner. The researcher also stated that behaviourally anchored rating scales
technique required large time to collect data and make effective decision. He also stated some

30
disadvantages such as it requires high observational technique and some time leads to misleading
data.
Along with the behaviourally anchored rating scales technique (BARS), Nike also uses
360 degree performance appraisal technique, where the top management collect the information
about the employee does not only from his supervisor but also from his co-workers. According to
Sommerville (2007), 360 degree performance appraisal technique does not only judge the
working ability of an employee but also determines the overall skills in order to maintain
effective training system in the organization. The researcher further stated that this helps in the
overall development of an employee by imparting new skills. Nike is conducting performance
appraisal by determining the overall work of the employee. For example, if the assessor is the
manager, his/her staff will be often asked for feedback in order to understand the style and
methods for doing the task.
In support of Sommerville (2007), Armstrong (2009) stated that 360 degree appraisal
system is beneficial for both the organization as well as employees. It helps in understanding the
performance of the employee in more comprehensive manner that will increase the creditability
of the appraisal. The researcher also stated that 360 degree performance appraisal facilitates the
top management in making more accurate assessment of the performance. It also motivates
employees to perform their best for completing the task and helps in maintaining good relation
with their client. Collecting information from large sources results into getting more accurate and
precise information and thus helps the top management to take effective decision for the
appraisal for their employees.
Mondy (2008) defined that 360 degree appraisal technique is best suitable for the Nike as
it motivates employees to take effective participation in the performance appraisal and creates

31
honesty in the culture of organization. In against of Mondy (2008), Catano (2009) stated that this
appraisal technique consumes lots of time and become complex work for the administrator to
manage the information in proper format. The researcher also describes that mismanagement in
the collected information creates confusion and frustration among many employees of the
organization that may result into decreases in the moral of the employees. In favour of Mondy
(2008), Robbins (2008) stated that this appraisal technique helps in motivate those employees,
who undervalue themselves and are not confident in their work. Positive feedback from their
supervisor, colleagues and other employees leads to the development of self confidence within
them. This development of self confidence is also beneficial for the organization as they work
with more enthusiasm and therefore work for the development of organization.
Both the appraisal techniques used by Nike is beneficial for the organization as one of the
technique provides power to the supervisor to rate the working of the employee that is helpful for
the organization. This technique creates good working environment in the organization as
employees obey the order given by the supervisor and thus work efficiently for the development
of the organization. At the same time, 360 degree appraisal technique motivates the employees to
take part in the appraisal system. It also motivates employees to work effectively as this
technique takes feedback from different sources that bounds employees to show his capability in
every field.

2.6. Summary:
From the above discussion, it can be summarized that this chapter of dissertation helps in
identifying the aims and objectives of research topic. This chapter also explains various
performance appraisal methods used by Nike for evaluating the performance. Performance
appraisal method helps in measuring and identifying the performance of individuals. This chapter

32
of dissertation also discusses about the theoretical framework of performance appraisal method.
From the above discussion, it can also be concluded that, performance appraisal has various roles
and importance in managing the workforce of organization. Performance appraisal is very much
important for assessing the performance of employees. Nike has adopted various training and
development program after doing the performance appraisal.
Nike has adopted two performance appraisal methods such as 360 degree feedback and
behaviourally anchored rating scale (BARS). 360 degree feedback helps individuals in doing the
self assessment and self audit whereas behaviourally anchored rating scale measures the
employee performance according to their traits. Performance appraisal helps in taking the
justified administrative decision such as promotion, merits, transfer, etc. and also fair
remuneration to the employees. Every organization adopts the suitable performance appraisal
methods based on their organization. Nike collects information about their employees through
360 degree feedback method.

33

CHAPTER 3 METHODOLOGY
3.1. Introduction:
This chapter is related with selecting the appropriate methodology for collecting the data
for the research work. It shows the work done by the researcher for collecting the authenticated
and reliable data for the research activity. With the help of this chapter, researcher creates link
between the research question and the research objectives. This chapter emphasis on the different
methods and the techniques that are used by the researcher for collecting data from the different
data sources and also shows which source is more reliable.
This chapter presents the philosophy, paradigm, research design, research approach and
different data collection technique used by the researcher for collecting information in order to
increase the creditability of the research work. At the same time, this chapter consists of
appraisal the framework to examine the authenticity and applicability of method utilized by the
researcher in the dissertation and also recommends different approaches to enhance the
efficiency of the research strategies and process.

3.2. Research Paradigm and Philosophy:

Research paradigm and philosophy is important tool for the researcher for designing the
research strategy and to select the appropriate method for collecting the data in an effective
manner. According to Maxwell (2005), research paradigm is a perspective held by the group
researchers, in order to define the set of assumption, concept, value and practices for conducting
the research work. Paradigm is an interpretative framework, which is guided by a set of beliefs
and feelings about the world and how it should be understood and studied (Hammell 2004).

34
In other words, paradigm helps the researcher in conducting the research work by
explaining the proper set of beliefs and values in order to persuade the direction of the research.
It helps in finding the appropriate way to complete the research work by presenting the valid and
applicable argument for fulfilling the aim of the research problem. There are three types of
research paradigm that defines the research into three different types based on their issues;
therefore it is important to understand all the three types (Blaikie 2007). They are defined as
positivist paradigm, interpretive paradigm and realism paradigm.
Positivist Paradigm: This is an approach that is based on the scientific methods to show
the truth and reality in the objective of the research problem. This technique is based on the
assumption that natural science helps in finding the true knowledge of the problem. Positivistic
researcher applies this method for exploring the facts and figure of the research problem with the
help of general sources. In order to conduct the research work under positivism, researcher has to
collect large number of data sample instead of collecting specific and precise data. In this
method, researcher has to focus on quantity of data rather than quality for finding the specific
solution (Polit and Beck 2008).
Interpretivism Paradigm: Interpretivism paradigm is helpful in understanding the
multiple truths and meanings of a single fact. These multiple truths and facts are suitable in
different situations and therefore with the help of this research technique, researcher can easily
identify the appropriate meaning of the fact in the current situation. This research technique is
based on understanding the facts rather than explaining the problem, i.e. it focuses on
interpreting the rules and regulation according the need of the researcher (Cohen, Manion,
Morrison and Morrison 2007). Interpretive philosophy helps the researcher to show interest

35
among people and their style in order to create interrelationship between their ideas and real
world.
Realism Paradigm: Realism focuses on the real situation and helps the researcher in
determining the thought process of an individual toward the real time situations. There are two
types of realism viz. Direct and critical realism. Direct realism helps the researcher to determine
the reaction of individuals on the real time situations. It helps in identifying the response of
people on the basis of what they see, hear and feel about the research problem (Cohen, Manion,
Morrison and Morrison 2007). On the other hand, critical realism researcher evaluates the
response of the individual in order to respond to the real world situations.
Along with the research paradigm, research philosophy also helps the researcher in
determining the data sources for conducting the research work in an effective and efficient
manner. It helps the researcher to select the appropriate data and facilitates him to find the
authenticity of the data. In this research problem, researcher has to focus on understanding the
importance of the effective performance appraisal system in Nike in order to maintain good
working climate in international business (Goddard and Melville 2004).
In this research, researcher used interpretive paradigm technique in order to determine the
appropriate data collection technique as it helps the researcher to find the meaning and
importance of various performance appraisal technique used by organizations. On the other hand,
positivism and realism philosophies are not appropriate as it focus on the general information
and do not satisfy the demands of the research problem.

3.3. Research Design:

Research design is an important step for before proceed for conducting the research work.
It is also known as the blueprint of the research that helps in finding the answer to the research

36
problem and suggests the way to collect and analyze the relevant data in most suitable way.
There are mainly two types of research design namely, descriptive research design and
explanatory research design.
Descriptive Research Design: Descriptive research design is used by researcher in order
to provide description about the naturally occurring phenomenon or the act, which is not
artificially manipulated. In this type of research work researcher generally finds answer of the
questions such as how, what, when and why (Goddard and Melville 2004). In other words, in
descriptive research study, researcher starts with general question about the research problem and
collects the data in order to find the effective result for the problem. Descriptive research might
be conducted for heuristic reasons, for example to find out more detailed information about the
research problem or to test for priori hypothesis.
Explanatory Research Design: Explanatory research focus on the why question of the
research problem. It helps in defining the nature of the research problem i.e. generalizing the
result based on the population from which sample is drawn. Unlike descriptive research,
explanatory research shows the general information and reveals casualty between the given
variables. In this research approach, researcher use experimental method for showing the
creditability of the report (Krysik and Finn 2010).
In this research work, researcher use descriptive research design for collecting the
relevant data for the research. This approach helps the researcher to collect the information about
the given question and shows the specific result to the given research problem. Also, the
explanatory research design is not suitable here as researcher has not to conduct and experiment
for finding the accurate result of the research.

3.4. Research Approach:

37
Research approach helps the researcher to select the right path for collecting the
information as well as helps in conducting the research work efficiently. It provides a well
defined way to researcher for completing the research work. There are two types of research
approach i.e. inductive research approach and deductive research approach.
Inductive Research Approach: Inductive approach is also known as bottom to top
approach as researcher has moves, its research work form specific to general observations. In this
research approach, researcher has to collect the specific information and then make the
observation to the broader and generalize way in order to understand the topic in more detailed
way. It helps the researcher to broaden the research area and thus collect more and more
information for making hypothesis. In this type of research work conclusion is generally based
on assumption and involve a degree of uncertainty (Engel and Schutt 2005).
Deductive Research Approach: this approach is just opposite to the inductive research
approach as in this research approach researcher has to move his research work from general to
specific. Deductive research approach is also known as top to bottom approach, where researcher
collects information in broader sense and move the research work to find the specific solution of
the problem. In this type of research work, conclusion is based on logic and available facts hence
must be certain in nature (Engel and Schutt 2005). In this approach, researcher has to show
arguments based on the laws, rule and accepted principles for increasing the creditability of the
research work.
In this dissertation inductive approach is used by the researcher as initially, analysis of
data is based on the various approach of the performance appraisal technique and then research
has to find the impact of these techniques on international business of the Nike. The deductive

38
approach is not used as the research is associated with positivism philosophy that is not
appropriate for this research.

3.5. Research Strategy:

There are number of strategy for collecting the information about the research study and
to determining the accurate result for the given problem. In order to collect information for
conducting the research work, research can use various methods such as literature review, case
study, observation, etc. In this research work, researcher uses literature review, case study and
survey through questionnaire technique for collecting the information. Researcher adopts
literature review technique to study the academic articles and book in order to understand the
various concept of the performance appraisal system (Walsh and Wigens 2003). Survey is taken
by researcher from the employees of the organization for determining the practical implication of
the appraisal system and case study helps the researcher to understand the problem faced by the
organization in the current appraisal system.
3.5.1. Case Study:
There are various forms of case study that helps in building the in-depth knowledge of
the case. It helps the researcher in providing the description of the experience and provides exact
information regarding the objectives of the research problem. Case study can be defined as
explanatory and exploratory methods that are used by researcher in order to find the reliable data
for conducting the research work (Pellissier 2008).
Therefore, the case study of Nike for understanding the various methods used by the
organization for performance appraisal helps the researcher to understand the importance of
system in maintain good organizational environment in the international business. At the same
time this helps the researcher to provide effective suggestion for making the system more

39
effective that will help in increasing the moral of the employees and work for the development of
organization (Pellissier 2008).

3.6. Qualitative and Quantitative Design:

There are two approaches for conducting the research work in an effective manner. In
qualitative research approach researcher has to collect the data more precisely and more close to
the research problem. In this research approach researcher concentrates on quality of the data
collected and tries to collect data from most authentic sources (Creswell 2003). On the other
hand, in quantitative research approach researcher collects data in large quantity and do not focus
on the preciseness of the data from the research problem. In this approach research approach to
large number of participant and collect their views for conducting the research work in an
effective manner (Creswell 2003).
In this research work researcher has selected qualitative research approach for finding the
effective solution for the given problem. Qualitative research approach is also suitable as
researcher has selected interpretive research philosophy and inductive research approach. At the
same time, this research is based on constructive parameters, which comprises descriptive and
applied research studies (LeCompte and Schensul 2010).
In order to understand the importance of performance appraisal and to select the best
appraisal technique in the international market researcher has to collect the data more precisely
from the employees of the organization as well as from the top management. Therefore the data
collection technique must be based on quality information not on quantity. In this research work,
researcher has collected data from both primary as well as secondary sources therefore
qualitative approach is more suitable to increase the creditability of the research work.

40

3.7. Data Collection Methods:

Data collocation is an important step for conducting the research work. It helps in
understanding the problem effectively and provides base to the researcher to find solution for the
given problem of the research. There are two ways to collect data such as primary data collection
technique and secondary data collection technique. Primary technique also subdivides into
various categories such as interview, questionnaire survey, focus group analysis, etc. At the same
time, secondary data collection includes journals, articles, scholarly books, websites, annual
reports, censuses reports, projects, etc. (Phillips and Stawarski 2008).
3.7.1. Primary Data Sources:
Primary data are those data that are collected especially for a particular research and are
not used in any other research work. In this technique, researcher collets data directly from the
target audience and understand the feeling and behaviour of the people in concern to the research
problem. There are various methods to collect primary data such as interview, questionnaire
survey, focus group analysis, observation, etc. In this dissertation, researcher use survey through
questionnaire for collecting primary data from the employees of the Nike organization for
understanding the performance appraisal technique (Phillips and Stawarski 2008).
This primary data also helps the researcher to understand the problem faced by the
employees from the current appraisal technique in the organization, so that researcher can
provide effective recommendation to improve the current system. There are two types of
sampling strategy that can be implemented by the researcher to select the sample size for
collecting primary data for the research. These include probability sampling and non probability
sampling technique. Under probabilistic sampling stratified random, cluster, systematic and
simple random are classified that are useful for selecting the sample size from the entire

41
population (Cohen, Manion, Morrison and Morrison 2007). On the other hand, non probabilistic
sampling technique includes convenience, quota and purposive.
Primary data collection is a time consuming process but provides most authentic and
valid data to the researcher. In order to collect primary data from the employees of Nike,
researcher have allocated time duration from 05th November 2011 to 15th December 2011 and
for collecting the primary data researcher has used simple random sampling strategy under nonprobability sampling strategy and therefore selected 50 employees on the random basis.
3.7.2. Secondary Data Sources:
Secondary data are the data that are utilized by some other researcher in their research
work. Researcher has to analyse and take effective in order to understand the research problem
and to find the effective solution for the research problem. There are various sources for
collecting secondary data such as books, newspapers, academic journals, scholars, literature
review companies report and other authorized source to address the research questions (Porche,
D. J. (2004). It helps in critically review the research problem and finds out result for the
predefined problem. Additionally, this method facilitates the researcher to find the relevant data
and information for showing the recommendations in order to improve the current system of the
organization (Marlow 2010).
In other words, secondary data collection method is an effective way for collecting data
and information for the research work as it facilitates the researcher to collect effective and
reliable data. This method also helps the researcher to evaluate the existing studies about the
research problem and can compare the studies of other researcher for presenting the result in
effective manner (Boslaugh 2007). In this research work, researcher uses secondary data from
various sources such as journals, articles, scholarly books for enhancing the understanding about

42
the performance appraisal techniques. This method is cheaper and less time consuming from the
above discussed method.

3.8. Summary:
This chapter explain the introduction of the methodology that is used by the researcher in
order to collect authentic and appropriate information for conducting the research work. Further,
this chapter describe the research philosophy that is helpful for researcher for increasing the
creditability of the research work. Research approach and design used by researcher are also
explained in this chapter that makes the work easier for the researcher and describes the blueprint
of the research work in order to show direction for the efforts of the researcher.
This chapter also explains that case study strategy is helpful for the researcher to
understand the problem of the performance appraisal technique used in Nike and also explain the
advantage and disadvantage of it. This chapter is also helpful in understanding the data collection
technique used by the researcher for understanding the problem in the critical way and provides
recommendation for improving the appraisal technique in the company. Lastly, the chapter
explain the other research approaches that can be used by researcher for making the research
work effective and efficient.

43

CHAPTER 4: DATA ANALYSIS AND FINDIGS

4.1. Introduction:
This research work focuses on the importance of effective performance appraisal system
in order to operate business in international market. This chapter of dissertation helps the
researcher to create detailed discussion about the findings of the research study. This chapter of
dissertation also helps the researcher to explore the main findings related to the research topic
that is the role and importance of performance appraisal system for the successful operations of
business in international market. This chapter is also quite significant to explore the analysis and
findings about different performance appraisal methods that can be used by the organizations to
achieve competitive advantages in international market. The main aim of this research is to
explore the theoretical framework of performance appraisal that is related to the research topic.
To conduct this chapter in effective manner, researcher has used thematic framework. It helps the
researcher to analyze each and every objective.

4.2. Thematic Framework:

Thematic framework is the tool that is used for classifying and dividing the data based on
their themes and concepts. Thematic framework is prepared on the basis of research study. Each
research study has different framework according to their themes and subtopics (Ritchie and
Lewis 2003). Conducting evaluation through thematic framework helps the researcher in
analyzing the gathered data in appropriate manner. Thematic framework assigns the codes to the
collected data and also helps the researcher in developing the qualitative structure. Further, this
framework also uses interview records, video footage, filed notes etc. to analyze the research
effectively.

44
Researcher creates link between the peoples attitude and beliefs for examining the data
properly. Further, it is also supportive to compare the attitudes and beliefs in order to find out the
solutions for research problems (Loenen and Delft 2006). Moreover, thematic framework
considers the written records that help the researcher in translating the data into actual situation
and find out the outcomes of research issues.

4.3. Theme Consideration:

According to Ryan and Bernard (2003) theme is a group of different linked categories
that depicts the similar meaning. Theme plays a very crucial role, while framing the process of
thematic analysis. Theme considers the significant data in order to find out the solutions for the
research related issues. Further, this is also helpful in finding maximum output from the gathered
data and information. Thematic analysis helps the researcher in framing the various themes for
the research. Additionally, it is flexible in nature and solves the research issues effectively and
efficiently. This type of research study creates the theme based models and with the help of this,
researcher finds out the issues in collected data. Themes are prepared through the collected data
as well as investigators theoretical understanding. Themes can be prepared through the
characteristics of phenomenon that has been studied (Ryan and Bernard 2003).

4.4. Generalization and Categorization of Themes:

To create an effective analysis of the data and information, researcher use template
framework with thematic analysis. It helps the researcher to provide different codes for collected
data and information in effective manner. It also helps the researcher to generate themes in
advance to effectively conduct this chapter. For this, researcher can divided data and information
in two most important themes such as priori and posteriori themes. These themes helps the
researcher to generate initial templates and also helpful to record participants responses during
the research process. According to Bernard and Ryan (2009), priori themes help the researcher to

45
conduct qualitative research in effective manner. It also helps the researcher to use wide range of
data and information and interpret them in effective manner in order to generate result for the
research study. On the other hand, researcher also uses posteriori themes that help the researcher
to identify important themes from the research study.
Table 1: Priory Themes: Role and Importance of Effective Performance Appraisal System:
A Priory Theme

Role and Importance of Performance

Service Rationale

Management of

Appraisal System
Effective performance appraisal system helps

Develop monitoring

Human Resources

the organization to manage employees

system to judge

according to their skills and ability in the

employees performance.

organization.
Improve in moral of An effective performance appraisal system

It helps to improve

employees

also helps employees to develop their moral

personal skills and

by creating personal experience and

knowledge.

Identify employees

knowledge.
Performance appraisal also identify basic

Different performance

needs and demand

needs and demand of employee, which gives

appraisal system such as

employee satisfaction in the organization

360 degree, graphic

rating scale, ranking
methods, critical incident
method, etc.

To effectively accomplish this table, different important themes and codes are useful. In
order to successfully complete this table, both primary and secondary resources helps during the
implementation process. With the help of priori themes, researcher is also able to create

46
differentiate the major themes or points to make posteriori themes. It is because, this table
follows the response collected from survey through questionnaire method (Creignou and Kolaitis
2008). With the help of this table, researcher has become able to develop the understanding about
role and importance of performance appraisal system to operate business in international level.
The researcher also used posteriori themes to analyze and interpret the data and
information in effective way. The posteriori themes are quite effective for the researcher to
propose valid result from the collected data and information. It also helps the researcher to
generate accurate result for the research study by the collected data and information.
Table 2: Posteriori Themes: Role and Importance of Effective Performance Appraisal
System
A Posteriori

Role and Importance of Performance Appraisal

Service Rationale

System
Manage business

System
By motivating employees towards the work or

Quick response to

operations

special assignment, organization manages

change, improve in

Improve in

business operations.
Identification of training need helps the

moral of employees etc.

Increase in skills and

performance

organization to improve employees performance knowledge and

in order to achieve organizational goals and

understanding about

Increase in

objectives.
An effective performance appraisal system

specific task.
Increase in market

competitive

motivates employees and gives rewards that

share and satisfy

advantages

directly related to the achievement of

employees

competitive advantages from the international

expectations in

market.
Effective performance appraisal system also

effective manner.
Improve skills and

Provide training

47
and development

identify the skills of employees and also helpful

knowledge that support

programs

to provide effective training and development

the organization to

program.

improve its business in

the market.

In order to create effective research and to complete this chapter in effective manner,
researcher has used survey through questionnaire method. It helps the researcher to find out
appropriate result for the research study. To create effective result, researcher concentrated on
each and every data and information during the implementation process of the research study. In
this process, researcher provides the effective and valid result with the help of in-depth analysis
of data and information. It also helps the researcher to achieve research aims and objectives in
effective manner.
It has been discussed in the literature review that an effective performance appraisal
system plays an important role in the organization and helps the organization to manage human
resource in effective manner. With the help of effective appraisal system, managers can identify
employees skills and knowledge that helps them to manage business operations in international
market. Researcher also identified that an effective performance appraisal system helps the
organization to develop an system that support the employees to improve their performance and
judge employee performance in the international market. Use of appropriate performance
appraisal system also helps the organization to divide particular work according to the
employees ability and skills. It helps the organization as well as employees to satisfy their needs
and demands in effective manner in the organization.
It has been investigated by the researcher that an effective performance appraisal system
is also helpful for the employees to improve their moral in the organization. It is identified by the

48
researcher that performance appraisal system helps the employees to improve their experience
and knowledge. Researcher also investigated that an effective performance appraisal system
motivates employees for better performance in the organization. It is because a performance
appraisal includes the reward system that motivates employees to create better work on specific
task or assignment. Performance appraisal system also provides the feedbacks to the employees
that help the employees to improve their skills and knowledge in effective manner. In
quantitative data collection, researcher finds out that:
An effective performance appraisal system leads the organization to evaluate employees
performance in the international market and also helps to give specific task or job to the
required skilled employee. It helps the organization as well as the employee to get satisfaction
from the job.
With the help of different performance appraisal system, an organization can evaluate
their employees performance on a specific task or job. Different performance appraisal systems
have their own advantages that help the organization to improve employee performance in the
organization. It has been investigated by the researcher that an effective performance appraisal
system also helps the organization to identify the needs and demand of the employees. It helps
the organization to improve employees skills and knowledge in effective manner. With the help
of effective performance appraisal system most of the organization achieve organizational goals
and objectives in effective manner. It is because performance appraisal system leads the
organization to fulfil employees demand and provide effective working environment that
motivate employees to work effectively in the organization. According to one of the respondents:
With the help of effective performance appraisal system, organization can determine that
the employee perform his or her job effectively or not. This leads the employees as well as

49
organization to improve skills and knowledge that is directly related to the effective performance
in the organization. Organizations use different performance appraisal system according to the
nature of the organization. This helps the organizations to evaluate employees performance in
effective manner. These methods also help the organizations to find out the basic needs and
demand that are related to the development of organization at international level.
This analysis also helps the researcher to explore some posteriori themes such as manage
business operations, improve in performance, increase in competitive advantages and provide
training and development programs, etc. These themes are also helpful for the researcher to
define the role and importance of effective performance appraisal system to manage business in
international market.

4.5. Posteriori Themes:

4.5.1. Manage Business Operations:
The main aim of performance appraisal system is to manage human resource in effective
manner and to generate effective work that helps the organization to manage their work
effectively. An effective performance appraisal system helps the organization to motivate
employees towards the work or special assignment that helps the organization to effectively
manage their operations in international market. It also helps the organization to judge the
performance of employees on a specific task. From the survey through questionnaire process, it
has been identified by the researcher that with the help of effective performance appraisal
system, managers can identify the decent salary and reward packages for the employees
according to their skills and knowledge in the organization. One of the respondents in semistructure interview stated that:
An effective performance appraisal system helps the employees as well as organization to
identify employees skills and knowledge in order to perform a specific task in the organization.

50
Performance appraisal system also helps the employees to receive feedbacks from his or her
seniors, colleagues and management team to improve their skills and knowledge in effective
manner. An effective performance appraisal system also helps the organization to evaluate the
performance of employees and delegate the responsibilities and authorities to perform the work
in effective manner.
From the survey through questionnaire process, it has been also identified by the
researcher that with the help of effective performance appraisal system, organization operates
their business operations in effective manner in the international market (See Graph 1).

Graph 1: Performance appraisal is important for organization to manage operations.

Form the process, it has been identified that approx 48 percent employees believed that
an effective performance appraisal system is important for the organization. They believed that
performance appraisal boost them to operate business activities in international market and
perform very well. After analyze the questionnaire, it has been also identified by the researcher
that only 14 percent employees believed that effective performance appraisal system has low

51
influence on managing operational activities at international market. They argued that there are
some other factors also that help the organization to manage its operational activities such as
behaviour of employees, their attitude towards the work and other employees, etc.
From the survey through questionnaire process, it has been also identified by the
researcher that there are several performance appraisal systems that helps the organization to
record feedbacks from the employees and provide effective assistance to develop the skills and
knowledge of employees. An effective performance appraisal system also helps the organization
to achieve its organizational goals and objectives in effective manner. An effective performance
appraisal system also helps the organization to manage its operational activities in efficient
manner. In the semi-structure interview process, one of the employees of Nike stated that:
The use of 360 degree performance appraisal system helps the company to create
effective working environment for the employees. With the help of this performance appraisal
system, employee receives timely feedback. It helps the employees to improve their performance
in the organization. This method also helps the employees to develop the understanding about
strengths and weaknesses to perform a specific task within the organization.
According to survey through questionnaire process, 360 degree performance appraisal
system is a most important performance appraisal system that helps the employees as well as
organization to get feedback on their performance from the different level of employees and
management teams (See Graph 2).

52

Graph 2: Most Important Performance Appraisal System that supports the Business at
International Market.
After analyzing the questionnaire, it has been identified that approx 54 percent employees
believed that 360 degree performance appraisal is important for the organization to judge the
performance of employees. It helps the employees to receive feedbacks from all the levels of
employees and management team within the organization. After that, approx 18 percent
employees preferred graphic rating scale performance appraisal system and approx 16 percent
employees want critical incident method for performance appraisal in the organization.
4.5.2. Improvement in Performance:
An effective performance appraisal system also plays an important role in improving
performance and productivity of organization as well as employees performance in the
international market. From the literature review analysis, it has been identified by the researcher
that an effective performance system helps the employees to develop their skills and knowledge
on specific field that helps the employees to create effective work on the assignment or task. In

53
Nike, 360 appraisal system and behaviourally anchored rating scale system helps the company to
collect information and data related to the employee performance. It helps the organization to
develop employees skills and knowledge according to their ability. One of the human resource
employees of Nike stated in semi interview process that:
The use of 360 degree appraisal system and behaviourally anchored rating scale system
helps the company to collect information about employees not only from the co-workers but also
from top management team in order to create effective development of employees skills and
knowledge on some specific tasks. To collect information about employees, organization asks to
fill the appraisal form that helps the organization to evaluate overall performance of employees
in effective manner. It also helps the company to decide training needs of the employees to
develop the personal as well as professional skills and knowledge.
From the survey through questionnaire process, it has been identified by the researcher
that an effective performance appraisal system also helps the employees to develop their
performance in the international market. Most of the employees believes that effective
performance appraisal system motivate them to share their knowledge and skills with other
employees and gain some extra experience from the other employees that helps them to improve
their performance in the market (See Graph 3).

54

Graph 3: Performance Appraisal Helps to Improve Performance of employee in

International Market.
After analyzing the questionnaire, it has been identified by the researcher that approx
52% employees or participants agreed that performance appraisal system helps the employees to
improve their performance in the market. It has been also identified from the questionnaire that
only 8% employees were disagreed on that. They argued that performance appraisal system is
not only a technique that help the organization to improve performance of employees but also
with the help of other effective tools and techniques such as working environment, culture, etc.
employees can improve their performance in the organization.
In current scenario, most of the organization uses effective performance appraisal system
to judge the performance of employees. This helps the organization to compare employees
existing performance with previous performance in the organization. With the help of this
comparison, organization is able to develop and implement some effective training and
development programs that help the employees to develop their skills and knowledge about the

55
organization and its function in order to achieve organizational goals and objectives. In the
interview process, one of the respondents stated that:
Company uses dual performance appraisal system to evaluate adequate performance of
employees in effective manner. With the help of both of performance appraisal system such as
behaviourally anchored rating scales techniques and 360 degree performance appraisal system,
company has become able to compare employees performance with the previous performance.
In the questionnaire process, most of the employees or participants agreed that
performance appraisal system helps the organization to compare employees existing
performance with the previous performance. According to the questionnaire, approx 46 percent
employees believed that an effective performance appraisal system helps the organization to
compare employees existing performance with pervious performance in effective manner. They
argued that effective performance appraisal system record the data and information related to the
employees that help the organization to find out the previous data of employees. It also helps the
managers to decide, whether the employee is suitable for the specific task or not (See Graph 4).

56
Graph 4: Appraisal System helps to compare Employees Existing Performance with
Previous Performance.
4.5.3. Increase in Competitive Advantages:
In todays competitive environment, most of the organizations use performance appraisal
system to develop employees skills and knowledge about the organization and its functions in
international market. It also helps the organizations to achieve competitive advantages from the
international market. It is because effective performance appraisal system includes some rewards
for the employees that motivate employees to achieve effective performance within the
organization to receive efficient rewards from the organization. It also helps the organization to
increase in productivity of employees as well as organization in the international market.
Through survey by questionnaire process, it also has been investigated by the researcher that
performance appraisal system is an effective tool that helps the organization to motivate
employees at international market. One of the executive level employees of Nike stated that:
Effective performance appraisal system helps the organization to define its activities in
front of employees and management team. It also helps the organization to motivate employees
towards the organizational function and provide effective platform to improve efficiency and
productivity in order to achieve organizational goals and objectives in international market.
After analyzing questionnaire, researcher identified that most of the employees of Nike
believed that an effective performance appraisal system is a tool that motivate employees at
international market and perform their best in order to achieve competitive advantages from the
market. In the questionnaire process, approx 68 percent employees agreed that performance
appraisal system helps the employees to improve their existing skills and knowledge in the
organization and gain experience from the old and senior employees to create effective work in
the organization. On the other hand, approx 22 percent employees were not in favour and argued

57
that there are also some other factors that helps the organization to motivate employees towards
the work such as working environment, behaviour of seniors, work timing, etc.
These factors also motivate employees to give their best in the organization and to
achieve competitive advantages from the market (See Graph 5).

Graph 5: Performance Appraisal is an Effective Tool to Motivate Employees

From the analysis of data and information, it has been found by the researcher that in the
performance appraisal system, 360 degree performance appraisal helps the organization to
receive proper feedback about the employees and their performance in effective manner. With
the help of 360 degree performance appraisal system, organization collects the different point of
views of employees, management team and co-workers about the specific employees that helps
the organization to decide proper salary or incentive for the employees in the organization. This
performance appraisal system also helps the organization as well as to the employees to judge
their performance with the co-workers and try to improve skills and knowledge in effective
manner. This performance appraisal system develops some standards that help the organization
to evaluate employees performance on such parameters. One of the executive employees of
Nike presented his views during the interview process and stated that:

58
The 360 performance appraisal system helps the company to evaluate employees
performance with his or her co-workers. It helps the organization to motivate employees towards
their work. This performance appraisal system is also helpful for the employees to rate their
performance in the organization. It also explores the characteristics of employees in effective
manner that help the employees to create effective work within the organization.
It has been also investigated by the researcher that 360 degree performance appraisal
system helps the organization to determine overall development of employees to achieve
organizational goals and objectives. It is also found by the researcher that 360 degree
performance appraisal system also motivates employees to perform their task in timely manner
and to maintain their relationships with the other employees and with the client effectively (See
Graph 6).

Graph 6: 360 Performance Appraisal System helps to Provide Proper Feedback to

Employees

59
After analyzing the questionnaire, it has been found that approx 66 percent participants
strongly agreed that 360 performance appraisal helps the organization to provide proper feedback
about the employees. The participants argued that with the help of this performance appraisal
system, organization also develop some training program that support the employees to develop
their skills and knowledge in order to achieve competitive advantages and to achieve
organizational goals and objectives in international market.
4.5.4. Provide Training and Development Program:
An effective performance appraisal system also helps the organization to implement
training and development programs for the employees in order to develop their skills and
knowledge in the competitive environment. An effective performance appraisal system provides
the platform for the employees to compare their performance with the co-workers or
management executives to get a position or incentives within the organization. An effective
performance appraisal system also helps the organization to provide proper feedbacks of
employees performance. It also helps the organization to implement effective training and
development program, which helps the employees to improve their management skills to achieve
organizational goals and objective. By providing training and development programs,
organization also improve employees behaviour and attitude that help the employees to create
good relationship with other employees as well as with the clients in international market.
According to one of the respondent An effective performance appraisal system helps the
organization to find out lacking areas of an employee and provide effective training to improve
these areas for personal as well as professional satisfaction. In todays competitive environment,
most of the companies use different appraisal system that helps the employees to evaluate their
performance with other employees within the organization. It creates better working
environment and helps the organization to achieve its objectives and goals in effective manner.

60
It has been identified from the survey through questionnaire process that approx 54
percent participants were strongly agreed that an effective performance appraisal system helps
the employees to develop their personal as well as professional skills and knowledge in the
international market. On the other hand, in the questionnaire process approx 8 percent
participants were disagreed on that and stated that there are also other factors that helps
employees to increase in performance in the organization such as policies, guidelines for work
etc. These factors also help the employees to develop their skills and knowledge to achieve
organizational goals and objectives in effective manner (See Graph 7).

Graph 7: Performance Appraisal helps Employees to develop their Skills and Knowledge

4.6. Research Outcome:

From the above analysis, researcher has proposed several outcomes that help the
researcher to generate effective result for the research study. According to the given findings, an
effective performance appraisal system plays an important role in organization to develop the
employees skills and knowledge as well as manage business operations at international level.

61
With the help of effective performance appraisal system, organization can easily evaluate
employees performance in the organization. On the other hand, effective performance appraisal
system also helps employees to compare their performance with their co-workers and other
employees of the organization. According to the findings, the researcher also proposed that an
effective performance appraisal system helps the company to increase competitive advantages
that directly related to the overall performance of the organization.
In the findings, it has been cleared that effective performance appraisal system helps the
organization and employees to improve their performance in the global competitive environment.
An effective performance appraisal system also helps the employees to increase morale and
motivate them to put their best efforts in order to perform a specific task or assignment. With the
help of effective performance appraisal system, Nike is able to manage their business operations
in international market that directly affect the profits in positive manner. In todays scenario,
Nike use duel performance appraisal system such as 360 degree performance appraisal and
behaviourally anchored rating scale that helps the organization to rate employees performance in
some defined standards. It also helps the employees to create self assessment and also helpful in
providing ratings according to the performance. It helps the employees to evaluate their
performance with other employees within the organization.
With the help of these two performance appraisal systems, organization is also able to
identify training needs of employees. These performance appraisal systems help the organization
to measure the performance of employees according to their strengths and weakness. According
to the findings, it also has been identified that an effective performance appraisal system also
helps the organization to create effective decision making within the organization. It helps the
company to take important decisions related to the employee satisfaction and improvement of

62
employees skills and knowledge. It has been cleared that companies in todays environment
adopt different performance appraisal techniques to improve employees performance in the
market.
Different performance appraisal systems such as 360 degree performance appraisal,
management by objectives, forced distribution, critical incident method, ranking method and
graphic rating scale adopt by the organizations according to the nature and need of the
organizations. These also help the organization to operate its business at international level.

4.7. Summary:
From the above discussion, it can be summarized that the thematic analysis framework
helped researcher to effectively evaluate data and information in order to generate proper result,
which are related to the research topic. Thematic analysis framework also helped the researcher
to create some effective themes related to the collected data and information. With the help of
priori and posteriori themes, researcher is able to find out the outcomes of the research study in
effective manner. With the help of this chapter, researcher has become able to develop the
understanding about the role an importance of performance appraisal system in Nike to operate
business at international level. An effective performance appraisal system helps the organization
to create effective competitive advantages at the international level.
It can also be summarized that effective performance appraisal system also helps the
employees to develop their skills and knowledge in effective manner. In todays competitive
market, most of the organizations use different performance appraisal systems that help them to
evaluate accurate performance of employees in order to achieve organizational goals and
objectives. With the help of 360 performance appraisal and behaviourally anchored rating scale,
Nike motivates employees towards the work and develops the skills and knowledge of

63
employees. It also helps the organization to improve its position and also helpful to achieve
competitive advantages in the international market.

64

CHAPTER 5: CONCLUSION AND RECOMMENDATION

5.1. Introduction:
With the help of this chapter, researcher is able to present overall summary of the
research study. This chapter of dissertation also helps the researcher to present some
recommendations that are effective for Nike to improve its performance appraisal system to
manage operational activities at international market. With the help of this chapter, researcher
can summarize the findings that were collected in the previous chapter. This chapter is also
helpful for the researcher to create relationship with research findings and research objectives in
order to achieve research aims and objectives.
In addition, this chapter also provides some recommendations that help Nike to improve
its performance appraisal system to give more satisfaction to the employees. With the help of
these recommendations, company is also able to evaluate employees performance in the
international market more effectively. These recommendations are based on the realistic and
valid information that helps Nike to develop its performance appraisal system in order to develop
the participation of employees in decision making process and to develop skills and knowledge
of employees for successful operations in international market.

5.2. Assessment of Findings:

An effective performance appraisal system plays an important role in the company. With
the help of effective performance appraisal system, organization can motivate employees to do
their best in order to perform a specific task in the organization. A well planed performance
appraisal system is also helpful for the organization to achieve goals and objectives at
international market. Different company uses different types of performance appraisal systems to
motivate employees towards their work in international market. With the help of 360 degree

65
performance appraisal system, Nike is able to receive feedbacks about the employees from their
co-workers and management team in effective way.
360 degree performance appraisal system helps the company to evaluate employees
performance in efficiently. This performance appraisal system also helps the organization or
managers to develop the understanding about the particular employees strengths and weakness.
Additionally, it also helps the organization to divide work according to the individuals ability in
the organization. An effective performance appraisal system also supports the employees to
develop their personal skills and knowledge. With the help of performance appraisal system,
employees motivate to share their experiences with other employees that help new employees to
gain experiences about the particular situation. It helps the new employees to develop their
personal as well as professional skills and knowledge to manage the work.
The outcome of his research study also focuses that with the help of effective
performance appraisal system, employees can also develop the effective relationship with other
employees and external stakeholders. It is because effective performance appraisal system helps
the employees to create effective co-ordination with other employees and external stakeholders
to perform a specific task or assignment within the company. It develops the effective
relationship among the employees. The outcomes of this research study also stated that an
effective performance appraisal system also helps the organization to manage its operational
activities at international market. It is because an effective performance appraisal system helps
the organization to divide responsibilities and duties according to the ability of employees. It
makes easy for the organization to manage its operations in effective manner in the international
market.

66
In the literature review of this research study, it is identified that Nike use duel
performance appraisal system that help in managing its operations at international level. Use of
360 degree performance appraisal system and behaviourally anchored rating scale system, Nike
is able to rate their employees performance. It helps the company to evaluate accurate
employees performance with compare to their co-workers within the organization. It is also
identified from the findings that effective performance appraisal system also helps the managers
to identify an effective salary or incentive packages for the employees in international market. It
is because with the help of effective performance appraisal system, managers can evaluate
accurate performance of employees that helps the organization to decide salary packages for the
employees.
It is also identified from the outcomes that an effective performance appraisal system is
also helpful for the organization to provide effective training and development programs for the
employees according to the need and demand of the employees within the organization. With the
help of effective performance appraisal system, managers can develop the understanding about
employees strengths and weakness. To resolve these weaknesses, managers can propose some
training programs that help the organization as well as employees to develop skills and
knowledge in effective manner.

5.3. Developing Relationship between Research Findings and Objectives:

With the help of developing relationship between research findings and research
objectives, researcher is able to solve research problems in effective manner. Following
description helps the readers to understand the relationship between research findings and
objectives.

67
5.3.1. Role and Importance of Performance Appraisal System to Operate Business
Literature review and survey through questionnaire method helps the researcher to
develop the understanding about the role an importance of effective performance appraisal
system to operate business at international level. The findings describes that an effective
performance appraisal system helps the organization to improve its market shares by increasing
skills and knowledge of employees at international level. In order to evaluate employees
performance in the international market, an effective performance appraisal system helps the
organization to create effective working environment. It also helps the organization to motivate
employees towards the work or a specific assignment. With the help of effective performance
appraisal system, organization develops the skills and knowledge of employees that helps the
organization to manage its operations at international level.
Performance appraisal system plays an important role in the organization. With the help
of an effective performance appraisal, organization is able to find out training needs of the
employees. With the help of this, organization is also able to communicate organizational
mission and vision to the employees in effective manner. It helps the organization to motivate
employees towards the work. It is directly related to the improvement in market share and to
achieve competitive advantages from the market.
In order to manage business operation in international market, Nike uses duel
performance appraisal system such as 360 degree performance appraisal system and
behaviourally anchored rating scale system. These systems help the company to effectively
evaluate performance of employees and team members. With the help of these performance
appraisal systems, Nike also makes the decisions about the salary and incentive packages of
employees according to their skills and knowledge.

68
5.3.2. Different Methods of Performance Appraisal and the Methods Used by Nike
As indentified in the findings there are various methods of performance appraisal that are
used by the organizations according to the nature. Different performance appraisal methods such
as 360 degree performance appraisal, graphic rating scale, ranking method, critical incident
method and forced distribution help the organizations to evaluate performance of employees in
accurate manner. From the findings, it has been identified that different performance appraisal
systems help the employees as well as organization to improve performance and skills and
knowledge of employees in effective manner and provide a decent salary for their work. In Nike,
company use effective performance appraisal systems that help the company and employees to
provide feedbacks to improve the performance in international market.

5.4. Recommendations:
5.4.1. Timely Evaluation of Performance System:
In order to improve the effectiveness of appraisal system, company should evaluate its
performance system in timely manner. It can be helpful for the organization to create an effective
performance appraisal system for the employees. For this, company should include analysis of
different markets, competitors, etc. It can helpful for the company to receive feedbacks from the
different stakeholders of the company about the employees.
5.4.2. Improvement in Communication Channel:
Company should also focus on improvement of communication channels within the
organization. Improved communication channels would be helpful for the company to increase in
skills and knowledge of the employees in effective manner. It can help the employees to create
effective work with his/her ability and efficiency in the organization. It can also help the
organization to create effective performance appraisal system in the organization. It is because
with the help of increased communication channels, organization can also receive feedbacks

69
about the employees easily. It can help the organization to identify an accurate salary packages
for the employees in the organization.
5.4.3. Focus on Observable Behaviour:
In order to improve performance appraisal system within the organization, company
should more focus on observable behaviour. For this, managers should interact with employees
and observe the behaviour and attitude of employees towards their co-workers, seniors and
management team. In order to observe employees behaviour, manager can implement an
interview session within the organization and receive feedbacks from the employees about the
organization, environment, etc. It can be helpful for the organization to create an effective
performance appraisal system in which employees receive feedback and improve their
performance to achieve organizational goals and objectives in effective manner.

5.5. Further Research Directions:

In this research study, researcher defined several roles and importance of effective
performance appraisal system. This research study also identifies various performance appraisal
systems that are used by the organizations to create effective performance appraisal of employees
within the organization. During the research study, some constrains effect the research study and
reduce the reliability and effectiveness of collected data and information. These constrain also
affect the research study in terms of effectively conduct research study. Constrains such as time
and cost affect the research study and creates the problem to conduct research study in effective
manner. Due to these constrains, researcher has avoided some important elements that are
essential for the research study. In future, proper management of these constraints can assist the
future researcher to conduct an effective research study in the same research topic.
With the help of proper management of these constrains, researchers can reduce the
impact of limitations and also helpful to provide an effective, valid and reliable results. In this

70
research, researcher has described the importance of performance appraisal system in the
international market with the example of Nike. Due to some constrains, researcher has ignored
some importance such as increase in market share, improve in company morale, communicate
organizational messages, etc. are also important for the organization, which can be achieved by
the effective performance appraisal system in the organization. In future, researchers can also
take case study method to generate more accurate information and data related to the company
and topic. With the help of case study method, researchers can develop the understanding about
the role and importance of performance appraisal system.

5.6. Summary:
From the above discussion, it can be concluded that this chapter helps the researcher to
develop the understanding about the relationship between research findings and research
objectives. With the help of this chapter, researcher is able to create link between research
objectives and findings and produce effective result that are helpful for the company in decision
making process. In this chapter, it is identified that performance appraisal system helps Nike to
achieve competitive advantages from the international market. This chapter also provides some
recommendations that are effective for Nike to improve its performance appraisal system to
calculate accurate performance of employees at international level.

71

REFERENCES
Alexander, N. and Doherty, A.M. (2010) International retail research: focus, methodology and
conceptual development. International Journal of Retail & Distribution Management,
38(11), p. 928-942.
Almqvist, R. Catasus, B. and Skoog, M. (2011) Towards the next generation of public
management. International Journal of Public Sector Management, 24(2), p. 122-145.
Appelbaum, S.H., Roy, M. and Gilliland, T. (2011) Globalization of performance appraisals:
theory and applications. Management Decision, 49(4), p. 570-585.
Armstrong, M. (2009) Armstrong's Handbook of Performance Management: An Evidence-Based
Guide to Delivering High Performance. Britain: Kogan Page Publishers.
Azzone, G. and Palermo, T. (2011) Adopting performance appraisal and reward systems. Journal
of Organizational Change Management, 24(1), p. 90-111.
Bacal, R. (2006) How to Manage Performance: 24 Lessons for Improving Performance. New
York: McGraw-Hill Professional.
Banfield, P. and Kay, R. (2008) Introduction to Human Resource Management. UK: Oxford
University.
Beiske, B. (2007) Research Methods: Uses and Limitations of Questionnaires, Interviews, and
Case Studies. Germany: GRIN Verlag.
Bernardin, J.H. (2008) Human Resource Management, 4th ed. USA: Tata McGraw-Hill.
Bernard, H. R. and Ryan, G. W. (2009) Analyzing Qualitative Data: Systematic Approaches.
USA: SAGE.
Besseris, G.J. (2008) Multi-response optimisation using Taguchi method and super ranking
concept. Journal of Manufacturing Technology Management, 19(8), p. 1015-1029.
Bipp, T. and Kleingeld, A. (2011) Goal-setting in practice The effects of personality and
perceptions of the goal-setting process on job satisfaction and goal commitment.
Personnel Review, 40(3), p. 306-323.
Blaikie, N. (2007) Approaches to social enquiry: advancing knowledge. UK: Polity.
Bohlander, G. and Snell, S. (2009) Managing Human Resources, 15th ed. USA: Cengage
Learning.

72
Boslaugh, S. (2007) Secondary data sources for public health: a practical guide. UK: ambridge
University Press.
Cardy, R.L. and Leonard, B. (2011) Performance Management: Concepts, Skills, and Exercises,
2nd ed. New York: M.E. Sharpe.
Cassidy, C., Kreitner, B. and Kreitner, R. (2009) Supervision: Setting People Up for Success.
USA: Cengage Learning.
Catano, V. M. (2009) Recruitment and Selection in Canada. USA: Cengage Learning.
Chen, T. Wu, P. and Leung, K. (2011) Individual performance appraisal and appraisee reactions
to workgroups. Personnel Review, 40(1), p. 87-105.
Cohen, L., Manion, L., Morrison, K. and Morrison, K. B. (2007) Research methods in education.
Britain: Routledge.
Cook, J. and Crossman, A. (2004) Satisfaction with performance appraisal systems A study of
role perceptions. Journal of Managerial Psychology, 19(5), p. 526-541.
Creignou, N. and Kolaitis, P. G. (2008) Complexity of Constraints: An Overview of Current
Research Themes. Germany: Springer.
Creswell, J. W. (2003) Research design: qualitative, quantitative, and mixed method approaches.
USA: SAGE.
Daft, R. and Lane, P. (2009) Management. USA: Cengage Learning.
Daft, R. and Marcic D. (2010) Understanding Management. USA: Cengage Learning.
Dai, G., Tang, K.Y. and Meuse, K.P. (2011) Leadership competencies across organizational
levels: a test of the pipeline model. Journal of Management Development, 30(4), p. 366380.
Decenzo, D. (2009) Fundamentals Of Human Resource Management. USA: John Wiley and
Sons.
DeLisle, J.and Grissom, T. (2011) Valuation procedure and cycles: an emphasis on down
Denisi, A.S. and Griffin, R.W. (2005) Human Resource Management, 2nd ed. USA: Dreamtech
Press.
Engel, R. J. and Schutt, R. K. (2005) The practice of research in social work. USA: SAGE.
Erasmus, B. and Schenk, H. (2009) South African human resource management: theory and
practice, 4th ed. South Africa: Juta and Company Ltd.

73
Fons, S.A.L. (2011) Measuring economic effects of quality management systems. The TQM
Journal,23(4), p. 458-474.
Forslund, H. (2011) The size of a logistics performance measurement system. Facilities, 29(3), p.
133-148.
Gatewood, R., Feild, H.S. and Barrick, M. (2010) Human Resource Selection, 7th ed. USA:
Cengage Learning.
Goddard, W. and Melville, S. (2004) Research Methodology: An Introduction. South Africa: Juta
and Company Ltd.
Goel, A. and Bourell, D. (2011) Electrochemical deposition of metal ions in porous laser sintered
inter-metallic and ceramic performs. Rapid Prototyping Journal, 17(3), p. 181186.
Gorman, C. and Evers, N. (2011) Network intermediaries in the internationalisation of new firms
in peripheral regions. International Marketing Review, 28(4), p. 340-364.
Grobler, P. A. and Warnich, S. (2005) Human Resource Management in South Africa. USA:
Cengage Learning EMEA.
Grote, R.C. (2002) The performance appraisal question and answer book: a survival guide for
managers. New York: AMACOM Div American Mgmt Assn.
Hammell, K. W. and Carpenter, C. (2004) Qualitative research in evidence-based rehabilitation.
USA: Elsevier Health Sciences.
Hanafizadeh, P., Kazazi, A. and Bolhasani, A.J. (2011) Portfolio design for investment
companies through scenario planning. Management Decision, 49(4), p. 513-532.
Hellqvist, N. (2011) Global performance management: a research agenda. Management
Research Review, 34(8), p. 927-946.
Hunter, W. and Renwick, D. (2009) Involving British line managers in HRM in a small nonprofit work organization. Employee Relations, 31(4), p. 398-41.
Kelliher, C., Hailey, V.H. and Farndale, E. (2011) High commitment performance management:
the roles of justice and trust. Personnel Review, 40(1), p. 5-23.
Krysik, J. L. and Finn, J. (2010) Research for Effective Social Work Practice. USA: Taylor &
Francis.
Kuvaas, B. (2011) The interactive role of performance appraisal reactions and regular feedback.
Journal of Managerial Psychology, 26(2), p. 123-137.
Lambert, D.M. (2010) Customer relationship management as a business process. Journal of
Business & Industrial Marketing, 25(1), p. 417.

74

Lawton, P. and Jankowski, T. (2009) Investment Performance Measurement: Evaluating and

Presenting Results. San Francisco: John Wiley and Sons.
LeCompte, M. D. and Schensul, J. J. (2010) Designing & conducting ethnographic research: an
introduction. USA: Rowman Altamira.
Lepsinger, R. and Lucia, A.D. (2009) The Art and Science of 360 Degree Feedback, 2nd ed.San
Francisco: John Wiley and Sons.
Loenen, B. and Delft, T.U. (2006) Developing Geographic Information Infrastructures: The Role
of Information Policies. UK: IOS Press.
Maley, J.F. (2011) The influence of various human resource management strategies on the
performance management of subsidiary managers. Asia-Pacific Journal of Business
Administration, 3(1), p. 28-46.
Marlow, C. R. (2010) Research Methods for Generalist Social Work. USA: Cengage Learning.
Mason, R., Power, S., Swift, J. and Baker, E. (2009) 360-degree appraisal: a simple pragmatic
solution. Clinical Governance: An International Journal, 14(4), p. 295-300.
Mathis, R.L. and Jackson, J.H. (2010) Human Resource Management, 13th ed. USA: Cengage
Learning.
Maxwell, J. A. (2005) Qualitative research design: an interactive approach. USA: SAGE.
Mehdizadeh, E. (2010) Ranking of customer requirements using the fuzzy centroid-based
method. International Journal of Quality & Reliability Management, 27(2), p. 201-216.
Mikulic, J. and Prebez, D. (2011) A critical review of techniques for classifying quality attributes
in the Kano model. Managing Service Quality, 21(1), p. 46-66.
Mondy, R. W. (2008) Human Resource Management. South Africa: Pearson Education.
Morden, T. (2007) Principles of strategic management, 3rd ed. USA: Ashgate Publishing, Ltd.
Morse, S. (2010) Utilising a virtual world to teach performance appraisal An exploratory study
Journal of European Industrial,34(8), p. 852-868.
Mosley, D.C.and Pietri, P.H. (2010) Supervisory Management, 8th ed. USA: Cengage Learning.
Pecora, P.J., Cherin, D. and Bruce, E. (2009) Strategic Supervision: A Brief Guide for Managing
Social Service Organizations. USA: SAGE.
Pellissier, R. (2008) Business Research Made Easy. South Africa: Juta and Company Ltd.

75

Pemberton, A., Hoskins, J. and Boninti, C. (2011) Minding the gap Identifying performance
issues using the Human Performance Technology model. Reference Services Review,
39(2), p. 206-222.
Phillips, P. P. and Stawarski, C. A. (2008) Data Collection: Planning for and Collecting All
Types of Data. USA: John Wiley & Sons.
Polit, D. F. and Beck, C. T. (2008) Nursing research: generating and assessing evidence for
nursing practice. USA: Lippincott Williams & Wilkins.
Porche, D. J. (2004) Public & community health nursing practice: a population-based approach.
USA: SAGE.
Prowse, P. and Prowse, J. (2009) The dilemma of performance appraisal. Measuring Business
Excellence, 13(4), p. 69-77.
Rigolosi, E.L. (2005) Management and leadership in nursing and health care: an experiential
approach, 2nd ed. USA: Springer.
Robbins, S. P. (2008) Management. South Africa: Pearson Education.
Ritchie, J. and Lewis, J. (2003) Qualitative Research Practice: A Guide for Social Science
Students and Researchers. London: SAGE.
Rudge, A. (2011) Workforce planning helps Birmingham to ride storms of change. Human
Resource Management International Digest, 19(1), p. 12-14.
Sandler, C. and Keefe, J. (2003) Performance Appraisals Phrase Book: The Best Words,
Phrases, and Techniques for Performance Reviews. Canada: Adams Media.
Schermerhorn, J. R. (2011) Exploring Management. USA: John Wiley and Sons.
Scroggins, W.A. and Benson, P.G. (2010) International human resource management: diversity,
issues and challenges. Personnel Review, 39(4), p. 409-413.
Sims, R.R. (2002) Managing organizational behaviour. USA: Greenwood Publishing Group.
Smither, J.W. and London, M. (2009) Performance management: putting research into action.
San Francisco: John Wiley and Sons.
Sommerville, K. L. (2007) Hospitality Employee Management and Supervision: Concepts and
Practical Applications. USA: John Wiley and Sons.
Sommerville, K.L. (2007) Hospitality Employee Management and Supervision: Concepts and
Practical Applications. San Francisco: John Wiley and Sons.

76
Sorensen, P.F. and Minahan, M. (2011) McGregors legacy: the evolution and current application
of Theory Y management. Journal of Management History, 17(2), p. 178-192.
Sukirno, D.S. and Siengthai, S. (2011) Does participative decision making affect lecturer
performance in higher education. International Journal of Educational Management,
25(5), p. 494-508.
Tatum, C.B. and Eberlin, R.J. (2006) Organizational justice and conflict management styles
Teaching notes, role playing instructions, and scenarios. International Journal of Conflict
Management, 17(1), p. 66-81.
Tsai, S. (2011) Strategic relationship management and service brand marketing. European
Journal of Marketing, 45(7), p. 1194-1213.
Vergara, J.A. and Gardner, D. (2011) Stressors and psychological wellbeing in local
humanitarian workers in Colombia. Journal of Managerial Psychology,26(6), p. 500-507.
Vidgen, R., Sims, J. and Powell, P. (2011) Understanding e-mail overload. Journal of
Communication Management, 15(1), p. 84-98.
Walsh, M. and Wigens, L. (2003) Introduction to research. UK: Nelson Thornes.
Warner, J. (2002) Performance Management System. USA: Human Resource Development.

77

APPENDIX
Questionnaire:
Name:

Gender:

1. Is performance appraisal an effective tool to motivate employees at international level?

a. Yes
b. No
c. Cant Say
2. To what extent, do you believe that performance appraisal is important for the
organization to operate its business in international market?
a. Low Influence
b. Influential
c. High Influence
d. No Response
3. Do you agree that performance appraisal helps the employees to improve their
performance in the international market?
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
4. To what extant do you believe that an effective performance appraisal system helps the
organization to compare employees existing performance with the previous
performance?
a. Low Influence
b. Influential
c. High Influence
d. No Response
5. Do you agree that an effective performance appraisal system helps the employees to
develop their personal as well as professional skills and knowledge in the international
market?
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree

78
6. Do you agree that 360 degree performance appraisal system helps the organization to
provide proper feedback to the employees?
a. Strongly Agree
b. Agree
c. Neutral
d. Disagree
e. Strongly Disagree
7. Which performance appraisal method is used in your organization? Is it effective?
Answer:
8. In your opinion which is the most important performance appraisal system that support
the business of organization in international market?
a. Graphic Rating Scale
b. Ranking Method
c. Critical Incident Method
d. 360 Degree Appraisal
9. Which elements of your performance appraisal system do you find most effective to
enhance your performance?
Answer:
10. In your opinion, what are some necessary steps that Nike can take to improve its
performance appraisal system?
Answer: