THE ROLES OF PERFOMANCE APPRIASAL SYSTEM IN THE MANAGEMENT AND

PERFORMANCE OF EMPLOYEES
Case Study: Adyel Division, Lira Municipality

A Dissertation Submitted To The

Institute of Ethics and Development Studies In Partial Fulfillment Of
The Requirement For The Award Of Degree Of Bachelor Of Arts
(Democracy And Development Studies) Of
Uganda Martyrs University

APIO BETTY
2012-B103-10074

November, 2016

DECLARATION
I Apio Betty hereby declare that this work entitled the role of performance appraisal system in
the management and performance of employees is my original work and that it has never been
submitted in any Institution for any award. I have read the regulations of the University with
regards to plagiarism and here declared I abided by all of them

Signed: Date...
Apio Betty
Registration Number 2012/B103/10074

APPROVAL
This is to acknowledge that this work entitled the role of performance appraisal system in the
management and performance of employees has been done under my supervision and is now
ready for submission to the institute of ethics and development studies.

Signed: ..

Date .

Mr Ssengooba George
SUPERVISOR

ACKNOWLEDGEMENT
I would like to convey my sincere appreciation to the almighty father for his protection and
guidance during the whole three years course at the University.
With great pleasure I would like to extend my appreciation to my lovely Husband Mr. John
Bosco Opio, my children and lastly my lovely Sisters and Brothers for their endless endeavors to
see me through my course at the university.
I also give thanks to my supervisor Mr Ssengooba George for his mature and perfect guidance
given to me during my studies

May God bless you Amen

TABLE OF CONTENT

DECLARATION..............................................................................................................................i
APPROVAL.....................................................................................................................................ii
ACKNOWLEDGEMENT..............................................................................................................iii
TABLE OF CONTENT..................................................................................................................iv
LIST OF TABLES...........................................................................................................................v
LIST OF FIGURES........................................................................................................................vi
LIST OF APPENDICIES..............................................................................................................vii
LIST OF ABBREVIATIONS AND ACRONYMS......................................................................viii
ABSTRACT...................................................................................................................................ix
CHAPTER ONE............................................................................................................................1
INTRODUCTION AND BACKGROUND..................................................................................1
1.0 Introduction................................................................................................................................1
1.1.1

Definition of Key terms and concepts...........................................................................1

1.1.2 Background of the Study........................................................................................................2

1.2 Statement of the Problem...........................................................................................................5
1.3 Overall Objectives of the Study.................................................................................................5
1.3.1 Specific Objectives of the Study.............................................................................................5
1.4 Research Questions....................................................................................................................6
1.5 Significance of the Study...........................................................................................................6
1.5.1 Justification:............................................................................................................................6
1.6 Scope of the Study.....................................................................................................................6
1.6.1 Conceptual scope:...................................................................................................................6
1.6.2 Geographical scope.................................................................................................................7
4

1.6.3 Time scope..............................................................................................................................7

1.7 The Conceptual Framework.......................................................................................................7
1.7.1 Conclusion..............................................................................................................................8
CHAPTER TWO...........................................................................................................................9
LITERATURE REVIEW..............................................................................................................9
2.0. Introduction...............................................................................................................................9
2.1. Performance Appraisal System.................................................................................................9
2.1.1. History of Performance Appraisal.......................................................................................11
2.1.2. Methods of Good Performance Appraisal Systems.............................................................12
2.1.2.1. Traditional Methods..........................................................................................................12
2.1.2.2. 360 Degree Feedback.......................................................................................................13
2.2. Roles of Performance Appraisal to Employees......................................................................14
2.2.1. Importance of Performance Appraisal to Employee............................................................15
2.2.2 Importance of performance appraisal system to Management.............................................19
2.3 Why performance appraisal system has not improved the performance of employees...........22
2.4 Strategies on how performance appraisal can improve performance of employees................24
2.5 The Relationship between Performance Appraisal System and Employees Performance in an
organization...................................................................................................................................25
2.6 Conclusion...............................................................................................................................27
CHAPTER THREE.....................................................................................................................28
RESEARCH METHODOLOGY...............................................................................................28
3.0. Introduction.............................................................................................................................28
3.1Research Design.......................................................................................................................28
3.2 Area of the Study.....................................................................................................................28
3.2 Study Population......................................................................................................................29
3.3 Sampling Size and sampling techniques..................................................................................29
3.4 Data Collection methods and Instruments...............................................................................29
5

3.6 Quality control methods..........................................................................................................30

3.7 Ethical Considerations.............................................................................................................30
3.8 Limitations of the Study..........................................................................................................31
3.10 Conclusion.............................................................................................................................31
CHAPTER FOUR.......................................................................................................................33
PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS.....................33
4.0 Introduction..............................................................................................................................33
4.1. Biography of respondents.......................................................................................................33
4.1.1 Age of the respondents..........................................................................................................33
4.1.2 Sex of Respondents...............................................................................................................34
4.1.3: Level of education of the respondents.................................................................................35
4.1.4 Duration of Service by Employees of Adyel division council.............................................36
4.2 Findings on the role of the users of Performance Appraisal systems to Employees
Performance...................................................................................................................................37
4.3 Findings on why performance appraisal system has not improved the performance of
employees......................................................................................................................................41
4.4 Strategies on how performance appraisal can improve performance of employees................44
CHAPTER FIVE.........................................................................................................................47
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS..............................................47
5.1 Introduction..............................................................................................................................47
5.2 Summary..................................................................................................................................47
5.2.1 Summary of findings on the role of the users of Performance Appraisal systems to
Employees Performance................................................................................................................47
5.2.2 Summary of findings on why performance appraisal system has not improved the
performance of employees.............................................................................................................47
5.2.3 Findings on strategies that performance appraisal can improve performance of employees
.......................................................................................................................................................48
6

5.3 Conclusions..............................................................................................................................48
5.4 Recommendations....................................................................................................................49
5.5 Areas of further study include..................................................................................................49
REFERENCES..............................................................................................................................50

LIST OF TABLES
Table 1:Showing the study population and sample size
Table 2: The Age of Respondents
Table 3: Sex of respondents
Table 4: Level of education
Table 5: showing duration of the employees in Adyel division council
Table 6 showing responses on the roles of Performance Appraisal system in Employees
Performance
Table7: showing responses on why performance appraisal system has not improved the
performance of employees
Table 8: showing responses on strategies on how performance appraisal can improve
performance of employees.

LIST OF FIGURES

Figure 1: Conceptual Framework

Table 2: The Age of Respondents
Figure 2: Pie Chart showing the ages of respondents
Figure 3 Pie Chart showing the Sex of Respondents
Figure 4: Bar Graph showing the Level of Education of Respondents
Figure 5 Bar Graph showing duration of the employees in Adyel division council
Figure 6 Bar Graph showing responses on the roles of Performance Appraisal system in
Employees Performance
Figure 7 showing responses on why performance appraisal system has not improved the
performance of employees

LIST OF APPENDICIES

APPENDIX 1 INTERVIEW GUIDE

APPENDIX II:QUESTIONNAIRES..

10

LIST OF ABBREVIATIONS AND ACRONYMS

BOS

Behavioral Observation Scale

FY

Financial Year

HR

Human Resource

ICT

Information Communication Technology

LDLG

Lira District Local Government

MBO

Management by Objectives

NPA

Negotiated performance appraisal

OCB

Organizational Citizenship Behavior

PA

Performance Appraisals

PMAS

Performance Management and Appraisal System

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ABSTRACT
This study was carried out on the role of Performance Appraisals System in the
performance of employees in Adyel division council, Lira Municipality, Lira District. The
specific objectives were to find out the role of performance appraisal system in the performance
of employees, to find out why performance appraisal system has not improved the performance
of employees, and to find out strategies on how performance appraisal can improve performance
of employees. The researcher used both qualitative and qualitative analysis. The design
suggested enabled the researcher to capture the gist of the respondents views in their own words
which the data collected was then be analyzed and a sample of 38 respondents. The researcher
used purposive sampling method because these are the key person who conducts the
performance appraisal, and there is only one manager who responsible for conducting the
performance appraisal. And the data collection tools used were questionnaires and interview
guide.
The study that performance appraisal plays a great role in giving and receiving Feedback
and here an effective employee appraisal provides an opportunity to give feedback as well as
receive it and that performance appraisal plays a role in Motivation and Satisfaction of the
employees. The study further found that performance appraisal helps in the Recruitment and
Induction of employees and finally that Performance appraisal helps in employee evaluation
The study found that hesitation by management to prepare periodic appraisal of employees
is one the reasons why performance appraisal system has not improved the performance of
employees, and also that failure to act on the results of the Performance Appraisal is another
reason why performance appraisal system has not improved the performance of employees and it
was found that in practice, Performance Appraisals are often made, recorded, filled but are never
used.
The study found out that supporting, understanding and corporation of those who
participate in performance appraisal system, in order to avoid suspicion and failure is of the
strategies that performance appraisal can improve performance of employees for example there is
a need to secure confident of the appraises that the supervisors judgment will be fair and just.
Also that the appraisal should be a continuous process as one of the strategies to improve the
performance of employees, and also that reporting officers need training on how to appraise and
conduct appraisal interviews and they should learn how to come up with objectives for the
interview exercise and appreciate the reason for a regular performance appraisal exercise and the
appropriate ways of carrying it out.
According to the results obtained from the primary sources, there is a very high
relationship between performance appraisal system and employees performance. This is shown by
illustrations of graphs, pie charts and bar graphs.
The researcher recommends that in order for performance appraisal system to help in
determining employees performance, management should commit and make full support to
ensure proper record of employees gaps are address to motivate them. Management in Adyel
Division should actively seek to improve on the quality of management and its function.

12

CHAPTER ONE
INTRODUCTION AND BACKGROUND
1.0 Introduction
Performance appraisal refers to a performance review, performance evaluation, (career)
development discussion, or employee appraisal. It is a method by which the job performance of
an employee is documented and evaluated. Performance appraisals are a part of career
development and consist of regular reviews of employee performance within organizations
annually or with six month from the time of recruitment these various from one entity to another.
Chapter one will focus on the background of the study, the statement of the problem, purpose of
the study, objectives of the study, the research questions, the significance of the study, and the
scope of the study, Limitation and Delimitation.

1.1.1

Definition of Key terms and concepts

Behavioral Observation Scale: is an appraisal method that measures behavior against levels of
performance and also measures

the frequency with which the

behaviors occur.

Financial Year: Accounting period that can start on any day of a calendar year but has twelve
consecutive months (52 consecutive weeks) at the end of which account books are closed, profit
or loss is computed, and financial reports are prepared for filing. It may or may not match a
calendar year. Called fiscal year in the US.
Human Resource: are the people who make up the workforce of an organization, business
sector, or economy. "Human capital" is sometimes used synonymously with "human
resources", although human capital typically refers to a more narrow view (i.e., the knowledge
the individuals embody and economic growth).
Information Communication Technology: is an umbrella term that includes any
communication device or application, encompassing: radio, television, cellular phones,
computer and network hardware and software, satellite systems and so on, as well as the various
services and applications .
Lira District Local Government: Lira District is located in Lango sub-region in Northern
Uganda and is bordered by the districts of Pader and Otuke in the North and North East,
Alebtong in the East, Dokolo in the South and Apac in the West. Physically, the district lies
1

between: Latitudes 1o 21N, 2o 42N Longitudes 320 51E, 340 15E The district covers
approximately a total area 1326 km2 of which 1286.22 km2 is land area.It is one of the Districts
that suffered the wrath of the Lords Resistance Army (LRA) insurgency, which resulted into an
influx of people from other Districts.
Management by Objectives: is a personnel management technique where managers and
employees work together to set, record and monitor goals for a specific period of time.
Organizational goals and planning flow top-down through the organization and are translated
into personal goals for organizational members.
Negotiated performance appraisal:Model, a facilitated performance appraisal process
designed to enhance supervision-subordinate dialogued.
Organizational Citizenship Behavior: is a person's voluntary commitment within an
organization or company that is not part of his or her contractual tasks. Organizational
citizenship behavior has been studied since the late 1970s.
Performance Appraisals: also referred to as a performance review, performance evaluation,
(career) development discussion, or employee appraisal is a method by which the job
performance of an employee is documented and evaluated.
1.1.2 Background of the Study
In other words performance appraisal is a systematic and periodic process that assesses an
individual employees job performance and productivity in relation to certain pre-established
criteria and organizational objectives. To collect performance appraisal data, there are three main
methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations
are the most commonly used with a large variety of evaluation methods.
Historically, PA has been conducted annually (long-cycle appraisals); however, many companies
are moving towards shorter cycles (every six months, every quarter), and some have been
moving into short-cycle (weekly, bi-weekly) Performance appraisal. The interview could
function as providing feedback to employees, counseling and developing employees, and
conveying and discussing compensation, job status, or disciplinary decisions. Performance
appraisal is often included in performance management systems. Performance appraisal helps the
subordinate answer two key questions: first, "What are your expectations of me?" second, "How
am I doing to meet your expectations?"
2

Performance appraisal is a very important process in human resource management. It involves

organizations rating their employees' abilities to perform and also assessing their worth for
organizational rewards and Performance management systems are employed to manage &
align" all of an organization's resources in order to achieve highest possible performance. How
performance is managed in an organization determines to a large extent the success or failure of
the organization. Therefore, improving PA (Performance appraisal) for everyone should be
among the highest priorities of contemporary organizations.
Different researchers like Schraeder, Becton, &Portis, (2007, Spring). A critical examination of
performance appraisals have noted at different points of time that many employees are not
satisfied with the performance appraisal systems that runs in their in their organizations its on
this concept that the research wants to investigate and find out the role and importance of
performance appraisal system in Lira Municipal Council and the divisions which includes Adyel
division among others.
According to DeNisi. (2000). Performance appraisal and performance management is
increasingly important with the public and other stakeholders expecting as the norm and not the
exception, good service, integrity, transparency and accountability. Government institutions are
often held to a higher level of accountability, and understandably so, as the public requires value
for taxes paid. People implement policies, plans and programmers and therefore the contribution
of human effort to an organizations success are as important as any other resource input.
The quality of the performance of civil servants is critical to achieving the outcomes sought by
government, the general development of the country and the expectations of the people. In light
of this, the Performance Management and Appraisal System (PMAS) have been introduced as a
means of managing and improving staff performance and accountability in the Public Service.
While a multilevel analysis. In Klein & Kozlowki (Eds.) 2002 said that the PMAS is an
improved system of performance management and evaluation. It clearly defines how your work
contributes to the achievement of the organizations goals and identifies what needs to be done to
ensure each person is given the opportunity for personal growth and development in their work
life. Properly implemented, this is a win-win system.
The employees skills, talents and interest will be honed and guided for maximum performance
and the organization will benefit from the combined performance of all staff. Proper
management of the System is therefore critical to ensure that the expected benefits are realized as
3

Too
long

stated by Katz, Ralph in his book (Motivating Technical Professionals Today) Gomez-Mejia,
Balkin, and Cardy, (1998). Managing human resources (2nd ed.). Prentice-Hall, New Jersey said
that the Human Resource Management Division is a key guardian of the system as well as an
important conduit for feedback that will inform changes to the System.
Furthermore Performance appraisal is a very important process in human resource management.
It involves organizations rating their employees' abilities to perform and also assessing their
worth for organizational rewards. Different researchers have noted at different points of time that
many employees are not satisfied with the performance appraisal systems that runs in their in
their organizations.
Furthermore, performance appraisals provide a formal review of performance where both the
employee and the manager can provide feedback as a result of the evaluation. (Pulakos, 2007).
Also performance appraisal is not the sole responsibility of the management but it should be used
by employees as a tool to discover self-development needs (Patrick, 2006).
In the two studies conducted by Levy and William in 1992 and 1998, there is a perceived
knowledge in predicting appraisal reaction in terms of job satisfaction and organizational
commitment. The conclusion from the studies was drawn as:The employees who believe they understand the appraisal systems used in the organization are
most likely to favor important organizational variables in the future and also have the following
characteristics:
They are more accepting and largely favor the appraisal system and its feedback.
They have more satisfaction on their job.
They are highly committed to the organization.
They are most likely to rate the performance appraisal as fair
According to Mount 1984 for performance appraisal to be conducted in an effective manner and
for it to be accepted, the unique perceptive ability of both the employees and the mangers must
be taken into consideration. In summary for employees to have a positive attitude towards
performance appraisal, the following should be taken into consideration.
There should be a system of formal appraisal.
4

It should be conducted frequently; Supervisors should have more knowledge about the appraisal
process and also Employees should have an opportunity to appeal their ratings and finally the
organization environment should be cooperative rather than competitive.
The plan of the organization should also deal with weakness rather than only acknowledge
strength. In most cases for any performance appraisal to be considered as fair the leadership
conducting the process must be perceived in a positive light. This helps to determine whether
there is appositive relationship between Performance appraisal and leadership. Eventually it is
the individual employee who either performs, or fails to perform; a task. In order for any
organization to perform all individual must set aside his personal goals, to strive for the
collective goals of the organization (Cummings and Schwab, 1973). In an organizational context,
the very nature of performance is defined by the organization itself (Cummings and Schwab,
1973). Employees and their attitude to work are of paramount importance to the achievement of
any organizational goals. Thus, effective leadership enables greater participation of the entire
workforce, and can also influence both individual and organizational performance (Bass, 1997;
Mullins, 1999).
1.2 Statement of the Problem
Performance appraisal a systematic and periodic process that assesses an individual employees
job performance and productivity in relation to certain pre-established criteria and organizational
objectives. However, this has been a challenge in Adyel Division because of the following: There
is complains from the employees that having work for a long time, there has been neither
promotion nor motivation. Secondly the employees performance are far below the set targets,
thirdly, most employees are saying their manager do not sit down with them during the process
of performance appraisal.
1.3 Overall Objectives of the Study
The objective of the research is to determine the role of Performance Appraisals System in the
performance of employees of Adyel division council.
1.3.1 Specific Objectives of the Study
i. To find out the role of performance appraisal system in the performance of employees.
ii.

To find out why performance appraisal system has not improved the performance of
employees.

iii.

To find out strategies on how performance appraisal can improve performance of

employees.

1.4 Research Questions

i.
What is the Role of the Performance Appraisal System in the performance of
employees?
ii.

Why has performance appraisal not improved the employees performance?

iii.

What are the strategies on how performance appraisal can improve the employees
performance?

1.5 Significance of the Study

At the end of this study, the research findings are expected to benefit in the following ways;
i.

Academic: The study can be used for academic purposes especially by other

researchers by expanding their knowledge about management and employees

ii.

performance appraisal system especially human resource department of Adyel division.

Policy: To aid Policy makers like the government in improving the general management of

iii.

employees and performance appraisal system.

Implementation: It is one way of advocating for positive responses towards employees
performance system.
1.5.1 Justification:
I was surely motivated to carry out this research in Adyel Division because of the complain of
low level of motivation, promotion, and above all why are the employees not performing to the
expectation.
This dissertation will be used as a partial fulfillment of thes award of bachelors degree of
Uganda martyrs University.
1.6 Scope of the Study

1.6.1 Conceptual scope:

The study covered the specific aspects of management and employees performance of appraisal
system with a look at the role of human resource department in the use of the performance
appraisal.

1.6.2 Geographical scope

The study was carried out in Adyel division, Lira Municipality. I was motivated to choose on
Adyel division because of the complains by employees that there is no motivation, promotion
and above all employees are not performing to the expectations.

1.6.3 Time scope

In conducting this research, the researcher reviewed literature from July 2010 to December
2015and report produced and submitted to the University at the end of the study. However, the
study aimed at establishing roles of Performance Appraisal System in the management and
performance of employees was considered a timely effort to justify the attention being given to
human resource department. Special references were made to a few critical matters outside this
period to enrich the study.
1.7 The Conceptual Framework
Performance appraisal is a very important process in human resource management it involves
organization like Adyel Division rating their employees ability to perform to the expectation by
comparing performance against the set target, by looking at how resources has been used
effectively to maximize the outcome, and above all observing the quality of output displayed.
Assessing the worthy of employees for organizational rewards is best done through creation of
performance management system whereby the employee/appraise, manager/appraiser sets a
target to be met and this appraisal is done annually or quarterly according to the local
government guidelines. A well conducted appraisal leads to improvement in service delivery and
efficiency in resource utilization. Then religion can also affects service delivery in such that
Muslim personnel/employee works only for 4 days a week and in a month (16days) which is
detrimental to performance/service delivery and here the appraiser and will

appraise the

employee in the way that will not please the employee hence leading to slugging in performance
of that particular employee.
Culturally, there are some cultures which does not allow their women to work and yet they have
better chances in service delivery to the people in the community they live in. Tribes like the
Alur dynasty do not their women to involve themselves in any service delivery or any work
related situation. Finally poor attitudes towards work affects also service delivery. For instance
work with little pay yet so beneficial to the people.
7

Figure 1: Conceptual Framework

Independent Variables

Dependent Variables

Performance Appraisals System

Performance of Employees

The appraiser and the appraisee set targets to

Accomplishment of the task.

be met.
It is done annually or quarterly. Both

Effective and efficient utilization of

resources.

manager and employees sit to evaluate the

Quality of the out put.

performance.
Intervening Variable
Attitude
-

Culture
Religion

1.7.1 Conclusion
Chapter one basically talk of various scholars who came out with research regarding
performance appraisals system in various organizations, the chapter constitute additions to other
scholars research too. The strategy, implementation and functional steps in any performance
management system rest squarely on a human resource leader and his/her human resource
department. The next chapter two we look into details the literature review of the variables in
relations to the topic under discussion

CHAPTER TWO
LITERATURE REVIEW
2.0. Introduction.
This chapter will look into the supporting literature of performance appraisal systems and its
importance to employees. As in the recent Times research, in the area of performance and its
technical justice and fairness should be categorized as all the decisions and producers for
employees in their working capacity and the management should highlight the importance of
performance appraisal and its different tools. Furthermore, this part of research study will stick
the significance of banking industry and usage of different performance appraisal systems and
what are the linkage of motivation, job satisfaction and employee loyalty and strategic
importance of performance appraisal systems.
2.1. Performance Appraisal System
The process in which human resource management department obtains, analysis and makes
decisions on the performance of an employee over a period of time is called Performance
Appraisal Process and the methods which are used to appraise the employees are called
Performance Appraisal Systems (Yee 2009). The main objective of performance appraisal system
is to focus on the performance, key attributes of the job, what is the improvement in the
performance and the proportion of the performance that the employee will make in future in the
productivity of the organization. It aims towards the employee and it's his performance over the
period of time (Dobbins, 1994).
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In the field of human resource management a prominent name of Flippo (1999) says that
"Performance appraisal is the systematic, periodic and an impartial rating of an employee's
excellence in the matters pertaining to his present job and his potential for a better job." (Flippo,
1999) .This systematic process allows the management to look into employee's activities in last
fiscal year or the performance time periods and analyze where it is falling, what improvement
has he made and what is the future planning regarding job and activities.

Management should educate the employees about their individual goals and share the aims and
objectives with the organization. Employees should have the knowledge and freedom to
participate in the decision making process. Here, if the management has the full corporation of
the employees and on the same hand if employees coordinate with management then this
performance and participation can actually help in the appraisal for the next period. In all this,
the right of expressing of opinion will certainly add to their performance (Beach, 1995).
Performance appraisal systems are the powerful tool to measure the performance of an employee
and to issue or offer the rewards on that quality performed job. This process allows the
management to evaluate the achievements and contribution to the success and productivity of the
organization to get the overall organizational aims and objectives (Dobbins, 1994). Moreover
these systems are standardizing for all the employees.
Performance appraisal is a system in which HR managers measures the performance of the
employee, either he or she is performing his job rightly, is he achieving what organization wants
from his job, what is his behaviour and attitude towards his job, either he is showing positivity
towards his job, is he the right employee for the right job, as all this comes under the HR
function of an organization (Randhawa 2007). The main objective of performance appraisal is to
make sure that employees performance is up to the mark, to communicate this job performance
measurement makes the employee enable to enhance his productivity and cover his loopholes
where he is lagging behind. The main idea behind performance appraisal is to insure that
organizational goals are being met, because meeting organizational objective is an individual as
well collective effort. Strategic objectives on banking sector and any financial institution are to
multiply their profits by gaining the top performance from its employees.
By monitoring employee's performance, they actually see what the criticality of the importance
is and the effect that job is making on the organizational objectives. An effective performance
appraisal must have collaboration between the management and the subordinates. An employee
should work according to the job description, which is decided by the immediate manager. By
doing this, there will be no conflict between the management and the employees (Propper, &
Wilson, 2003).

10

The objective of performance appraisal is to influence the employee's job performance with a
systematic process appraisal, what are the major impacts on the employees to get the certain
level of motivation to improve the productivity of the organization as well as the job satisfaction
(Natalie & Ann 2005). In the past, the sole purpose of performance appraisal was just to calculate
the financial position of the company, either it has made some progress in terms of monetary
growth, what influence it has made on the department growth and what are the affects of
performance on organizational objectives. But now, things have changed. Now researchers are
seeing beyond the monetary terms, they are not discussing the financial aspect but they are
measuring the job performance in terms of employee's job satisfaction and his level of
motivation, because ultimately the manpower of an organization is its labour force. If this labour
force is getting what they want, then they will perform according to the job description they have
with them within their departments.
In the banking sector as credit crunch has been taken place all the investment and financing in
Pakistan has stopped, it has very negative impact on the employees working in the banking
industry, and the HR department of the banks are actually working on the moral and motivation
of the employees.
2.1.1. History of Performance Appraisal
Performance appraisal has a brief history starting from earth 20th century where the need of
performance appraisal was felt and some measures developed. This history shows that Taylor
(1964) who is the revolutionary person in times and motion studies brought the real sense of
performance appraisal and performance measurement. But in the modern human resource
management it can be seen that the thread of performance measurement is linked with the
Second World War. This tells the history that it is not more than sixty years ago. Yet the guru of
human recourses says that the art and procedures of performance measurement and appraisal is
very ancient art and people of old times had some tools to appraise their employees on the basis
of activities and job they performed. On these historical felt notes it can be said that performance
appraisal management is the world's second oldest profession too. Here Dulewicz (1989) says
that It is a basic human tendency to make judgments about those one is working with, as well as
about oneself."

11

If the management has a concept that performance and its appraisal is inevitable then it will be
wrong that performance of an employee cannot be judge in advance. In the absence of a
structured appraisal system then it will ultimately affects the performance of employees, the
productivity of the organization and moreover the reputation of the organization in the industry.
It will de-motivate the employees, they will lose satisfaction from their jobs and loyalty with the
organization will be most likely finished and labour turn over will increase. One serious offence
can be seen in the absence of appraisal system that organization can go unlawful, harassing the
employee and unfair judgment on their performance. Consequently, it helps the management and
employees to go lawful, fair and accurate with the performance over the period of time (Murphy,
1989).
2.1.2. Methods of Good Performance Appraisal Systems
There are different systems and methods for measuring performance and appraising the
employees. These methods and systems are categorized as the traditional methods and the
modern methods.
2.1.2.1. Traditional Methods
In the traditional methods there are various systems to measure the performance employees. In
the traditional method of measurement Behaviorally Anchored Rating Scale is widely used by
many organizations across the globe. In this system it focuses on specific behaviours, either
affective or ineffective performance is given by the employee. It involves critical incident
technique (CIT) and different combinations of rating scale. However, in Graphic Rating Scale
supervisor or evaluator simples checks the different blocks in the appraisal form to measure the
performance.
Though this a old technique to appraise the employees but broadly used method. Unlike scaling
system, in Essay Evaluation Method asks the managers, supervisor and evaluators to write an
essay or a descriptive narration about the strength and weakness of the employees and also the
overall behaviour towards the job. This is a qualitative measure to appraise the employees.
Another ranking system is Performance ranking Method in which evaluator or supervisor rank
the performance of employee from best to worst. This method differs from other methods as it
compares the employee to employee but not with the standards and benchmarks for performance
12

measurement. In Critical Incident Method (CIT), evaluators appraise the performance depending
upon the critical incident and the positives and negatives behaviours occur in the period of time
to measure the performance (Dessler, 2000). Like other ranking and scaling methods in Weighted
Checklist Method evaluator makes a checklist of all the job responsibilities and all the narrative
statements about the effective and ineffective attitude or behaviour of job. As weighted method
weights the narrative statements, in Paired Comparison Analysis, it weights the relative
importance of the different options available and listed. Every option is compared with all the
option listed (Mondy, 2008). After comparison of all option, the one with most weight is
preferred option for the performance measurement. In the traditional methods qualitative
methods and systems have more frequency of usage, here another method of Behavioral
Observation Scale evaluates the performance with negatives and positives happens on workplace
and also the critical incidence the employee has performed. In the tradition method there is a
quantitative method called Forced Distribution or Forced Ranking, unlike other method it
involves the percentages. In the top category it ranked from 10 to 20 percent, middle category
ranges from 70 to 80 percent and it ranked employees with worst performance 10 percent in the
bottom line (Mondy, 2008).
2.1.2.2. 360 Degree Feedback
360 Feedback is a systematic technique which also known as the multi-rater feedback system. In
this method evaluator or the appraiser takes feedback from all the people who are inter-linked
with the person to be appraised. The 360 Feedback can be defined as:
The systematic collection and feedback of performance data on an individual or group derived
from a number of the shareholders on their performance. (Ward , 1997)
This method of performance appraisal is detailed and comprehensive where evaluator asks from
all sources about the performance of the employee. In this method all the sources are involved
as: customers, suppliers/ vendors, team member and colleagues, superiors, juniors, subordinates
and all the other parties who has link with the particular employee. These sources provide all the
information that is significant in the performance appraisal process (Anderson, 1987).
There are four main parts of 360 feedback appraisal system:
a. Self-appraisal
13

b. Superior's appraisal
c. Subordinate's appraisal
d. Colleagues' appraisal
The 360 Feedback systems can be an ongoing process throughout the year to keep an eye on the
performance and other's perception about the employees and also it can be measured that how
well employee is keeping with its required tasks and responsibilities (Natalie & Ann, 2005). 360
Feedback is also helpful for the managers and leaders to insight of their leadership and
managerial styles. 360 feedback systems are widely used across the globe for the effective
appraisal of employees (Anderson, 1997).
2.2. Roles of Performance Appraisal to Employees
Where performance appraisal allows the employees to get the monetary and non-monetary
rewards from the management, here it also give the most significant benefit for employees that it
gives the chance to get reasonable time for one to one discussion on the performance over the
period of time. This discussion between employee and supervisor allows discussing the main
issues that are hurdle in the performance and work concerns addressed. It can observe from all
over the world organizations, the feedback of performance appraisal says that it creates a strong
bond between subordinate and supervisor only if the appraisal is conducted properly and fairly.
This process also gives the opportunity to employees to review their performances and discuss
the issues and difficulties they are facing in the work and also it gives the path to gain the aims
and objectives in the future time. This interaction of subordinates and supervisors give the
opportunity to help the future goals. Therefore it enhances the productivity. So, this process gives
the best time to employees to have chat with the supervisors without any hindrance and
instruction (Orpen, 1997). The importance of this process should not be underestimated as this is
the integral part of performance appraisal system. Moreover this process allows the supervisors
and employees to discuss the future targets and, training and rotation need orientation and
development, if needed. In this discussion, the supervisors and the subordinates discuss the
various problems about the present as well as the absent working skills, career development and
what is to be done in the future (DYCK, 1997). Here, supervisor highlights the key skills of the
subordinate and makes or arranges for the future career inspirations. This discussion can be
14

useful to measure the productivity of the organization, for the recruitment and orientation
process. For example, the feedback can identify how employees are performing those who hired
in the past two years and so.
Appraisal data can also tell how well the recruiting strategies are working, what developmental
process are good enough and what the effectiveness of employees is. Performance appraisal
process could be a data sheet highlighting the overall performance of all employees; telling has
productivity improved, remains same or fall. Evaluation is the ongoing process and its run
throughout the year but some clash can be noted in the evaluations and developmental process
but in a nutshell it's a process of evaluating, analyzing and giving feedback of that process
(THOMPSON & DALTON, 1970).
2.2.1. Importance of Performance Appraisal to Employee
The managers are aware of the importance and criticality of performance appraisal, and its
ultimate effect on the motivation, loyalty, job satisfaction plus its has a big effect on the growth
and success of the organization, so while documenting, communicating, and describing the job
particulars, they are more concerned. It has been noticed that in the current time, job
performance systems have improved a lot, but still the outcome shows that it has a negative
impact on the job satisfaction and motivation of the employees if it is not appraised
systematically (Robert, 2002). So, it results in counter of an organization that employees are
demoralized and also lose their loyalty, which affects the organizational aims and objectives.
Human resource officials use performance appraisal for decision making such as planning
payments and salary scale of the employees, they also determine what professional developments
are needed to equip their employees with a proper feedback. Performance appraisal can also help
the officers to decide what are the factors that can be employed to increase the productivity of
employees (Natalie & Ann 2005)?.
In the growing age of business and markets, human resource is the big asset of the organization;
if the organization is not keeping well with its labour work force then it might get into trouble.
As the employees are the main features of the progress of the organization. In order to have
productivity, employee should be motivated and should be satisfied with their job and have
loyalty with the organization (EPstein,1992). HR professionals are making it possible to motivate
the employees with the performance appraisal systems by giving them fair appraisals as per their
15

performance over a period of time. It has been noticed that there is a strong relationship between
performance appraisal and motivation, job satisfaction and loyalty (bonnie, 2002). Keeping aside
the main objectives of performance appraisal, it can be use as a mechanism to create a
completion between employees to get the job done with all the linked targets and benchmarks
(Robert, 1984).
It is also mandatory that employees gets the accurate performance appraisal results to get
motivate, if the feedback of appraisal is according to their performance over the period of time
that will be a great source of motivation to them. Inaccurate performance can create
dissatisfaction from job and ultimately can affect the loyalty with organization. One employee
always expects that evaluator recognize his efforts and achievement in the professional life and
also support him to overcome on his failure and allows the opportunity to make improvements in
his performance in future (bonnie, 2002). If the performance appraisal has some shortcoming in
it and is actually creating some discrepancy in the process, then it will affect the motivational
level of the employees and ultimately it will affect their efforts and the risk taking ideas for the
betterment of the organization. Also they will lose interest in the affairs of the organization
(Robert & Kim, 2007). Plus this de-motivation leads the employees to the lack of loyalty and
they will look other options of good job and hikes in the rewards (bonnie, 2002).
Accurate performance appraisal is always preferable but if there is any inaccuracy then
employees always prefers to have accurate performance appraisal with no hikes in rewards but
not an inaccurate system that never encourages or recognises their efforts. Employees who tend
to receive accurate performance appraisal over the period of time and also have all the rewards
associated with that appraisal is most motivated employee among all of them and similarly he
tends to be more satisfied with job and more loyal to the organization. Therefore, the process
should be fair as this is the ultimate system to motivate, satisfied with job and creates the loyalty
(Storey& Sisson, 1993). The performance appraisal may be one of the few times during the year
where an employee and the reviewer, typically the employee's supervisor, can sit down and have
a lengthy face-to-face discussion about all aspects of the job. Thus, the appraisal can serve a
number of important functions. If done effectively, the appraisal can offer a large degree of
satisfaction for both the employee and the reviewer.

16

Giving and Receiving Feedback

An effective employee appraisal provides an opportunity to give feedback as well as receive it.
The employee receives important information as to what areas of the job she is performing well
and those that need improvement, so she knows exactly where she stands. The reviewer can also
receive feedback from the employee that can help her make improvements in the work
environment. The reviewer may also uncover issues that could be impeding employees from
performing their best, and she can take corrective measures if necessary.
Setting Goals
In addition to reviewing performance based on previously established goals, the performance
appraisal is also a good time to establish new goals. If deficiencies are identified during the
appraisal, the reviewer and employee can work together to establish new goals as well as develop
a plan to reach them. For example, if a salesperson missed his sales quota for the year, he and the
reviewer can establish a plan to reach next year's quota by increasing call activity by a certain
percentage.
Improving Communication
Employee appraisals are important for improving communications between the employee and
reviewer. By speaking openly about the job performance and issues that may be affecting it, the
employee and reviewer can develop a sense of trust that may have been lacking. Employees who
previously did not feel comfortable approaching the reviewer with a problem may become more
likely to voice her concerns, which can prevent a small issue from escalating into a major
problem over time.
Measuring Recruitment Efforts
Performance appraisals can provide key information that can help evaluate recruiting practices.
For example, if a high percentage of workers who were hired within a recent time frame scored
well on their appraisals, the company may conclude that its recruiting process is working
effectively. On the other hand, the presence of many poor performers may indicate that the
recruiting efforts are missing the mark and the hiring process may need an overhaul.
Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse. Performance appraisal provides employees with
17

recognition for their work efforts. The power of social recognition as an incentive has been long
noted. In fact, there is evidence that human beings will even prefer negative recognition in
preference to no recognition at all. If nothing else, the existence of an appraisal program
indicates to an employee that the organization is genuinely interested in their individual
performance and development. This alone can have a positive influence on the individual's sense
of worth, commitment and belonging.
The strength and prevalence of this natural human desire for individual recognition should not be
overlooked. Absenteeism and turnover rates in some organizations might be greatly reduced if
more attention were paid to it. Regular performance appraisal, at least, is a good start.
Training and Development
Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - for
a supervisor and subordinate to recognize and agree upon individual training and development
needs. During the discussion of an employee's work performance, the presence or absence of
work skills can become very obvious - even to those who habitually reject the idea of training for
them! Performance appraisal can make the need for training more pressing and relevant by
linking it clearly to performance outcomes and future career aspirations.
From the point of view of the organization as a whole, consolidated appraisal data can form a
picture of the overall demand for training. This data may be analysed by variables such as sex,
department, etc. In this respect, performance appraisal can provide a regular and efficient
training needs audit for the entire organization.
Recruitment and Induction
Appraisal data can be used to monitor the success of the organization's recruitment and induction
practices. For example, how well are the employees performing who were hired in the past two
years?. Appraisal data can also be used to monitor the effectiveness of changes in recruitment
strategies. By following the yearly data related to new hires (and given sufficient numbers on
which to base the analysis) it is possible to assess whether the general quality of the workforce is
improving, staying steady, or declining.
Employee Evaluation
18

Though often understated or even denied, evaluation is a legitimate and major objective of
performance appraisal. But the need to evaluate (i.e., to judge) is also an ongoing source of
tension, since evaluative and developmental priorities appear to frequently clash. Yet at its most
basic level, performance appraisal is the process of examining and evaluating the performance of
an individual.
Though organizations have a clear right - some would say a duty - to conduct such evaluations of
performance, many still recoil from the idea. To them, the explicit process of judgment can be
dehumanizing and demoralizing and a source of anxiety and distress to employees. It is said by
some that performance appraisal cannot serve the needs of evaluation and development at the
same time; it must be one or the other. But there may be an acceptable middle ground, where the
need to evaluate employees objectively, and the need to encourage and develop them, can be
balanced.
2.2.2 Importance of performance appraisal system to Management
In many organizations, the feedback on job performance is ambiguous or is given annually as a
ritualistic exercise. Many subordinates therefore have trouble in gasping how their efforts are
perceived by the organization. Almost every one who has worked at a job can remember times
when they were unclear on how their performance was being judged.
The annual performance appraisal system tends to serve only a little purpose: salary
administration, training and succession planning. But this is not the sole objective of
performance appraisal. These objectives will only dilute and weaken the clarity and validity of
any appraisal system. Most organization ties the formal appraisal system directly to salary
increase, which decrease their validity.
Performance appraisal system is therefore very important for organizations to:(a) Link Salary and Status Realistically to the Performance Appraisals
Most personnel departments have a very narrow outlook to appraisals. The general view is to
receive the appraisal forms at a date (which usually is the deadline), issue instructions regarding
increments and promotions, receive the data regarding the same and they issue letters to the
concerned employee informing of their salary increase. The appraisal process gets polluted as the
19

appraiser and appraise have at the back of their minds promotion and salary increase, rather than
performance plans and participative reviews. This dilutes the objectives of appraisal to great
extent. In fact, if organizations create, a culture of continuous feedback on the performance they
would be making the appraisal system more relevant. Several organizations have already started
delinking performance appraisal from salary increase.
(b) Making Objectives of Performance Appraisals Clear to All Employees
If performance appraisal should not directly be linked to salary increase the question then arises,
what should the objectives of performance appraisals be that could be realistically achieved?
Some suggestions:

To do joint goal setting, and link the goals to the organizational objectives

To provide role clarity by defining Key Result areas for Accounting.

To establish a level of performance in the current job and seek ways of improving it.

To identify potential for development and to support the total process of planning

To increase communication between the appraiser and the appraise.

To identify factors that facilitate performance and other factors that hinder performance.

To help the employees identify and recognize their own strengths and weaknesses. To
make them assess their own competencies and how the same can be multiplied and
improved.

To generate data about the employee for various decisions like transfers, rewards, jobrotation, etc.

(c) Focus on Developmental Appraisals

Managers should develop part ownership in the employees future. Any good appraisal system
should focus on developmental appraisal. Developmental appraisal mean that an organization
20

needs to develop not just isolated performance appraisal tool/system, but the total frame work for
the individuals development, improvement in job and level of competence and preparing
employees for future jobs. Thus, appraisal of people, which is a part of the total HRD system,
lies to be linked to long-term development activity and carrier planning.
Organizations have to show vision for the future. Vision, strategies and objectives will give rise
to individual objectives and performance standards. The immediate rewards and recognition do
not lead to enduring performance and upgrading of competence and therefore are not real
motivators. The appraisal as a tool not only gives the individual and the organization the idea of
where the individual stands in terms of his skills, competencies and abilities, but also monitors
the process of growth and development, together with the inputs that are required to develop a
high level of competence by individuals.
(d) Let Employees Appraise Their Own Performance
Subordinates need feedback more often on their performance. The best way to do it is to let them
appraise their own performance.
Self-appraisal should have the following indicators:1. Motivate the employee to take more responsibility for his/her own performance.
2. Focus on the job behavior only.
3. Reduce ambiguity in performance and focus on change in job behavior.
When subordinates undertake self-appraisal, they analyze their job duties and how key issues in
a job they handle. Each individual may rate himself or herself.
Self-appraisal may focus on cost control, communication, planning, training, delegation and
decision-making. After self-appraisal, the subordinate discusses the ratings with his/her direct
report or superior to get a feed back on performance. Both then come to an agreement in areas of
convergence and draw a job improvement plan.
(e) Create a Climate for Open Appraisals in Organizations

21

In most organizations, the concept of open appraisal is misunderstood. Open appraisal does not
mean that the appraisal ratings are shown by the subordinate and his/her signature is then
obtained. What it does mean that both the appraiser and the appraise share their views on
performance with each other, identify the areas of improvement and work towards it. One of the
objectives of open communication between the appraiser and the appraise is to bring them
together to solve organizational problems and performance related problems. The quality of
ratings is likely to improve if there is shared understanding between the appraiser and the
appraisee.
(f) Muscle Builds the Organization
In todays competitive world, raising performance goals is essential. This entails analyzing the
companys current situation, projecting the future, establishing higher expectations, and selling
the top management on the upgrading process and developing an action plan. Muscle builds the
organization by;
1. Enhancing your own performance
2. Accelerating the professional growth of the best performers
3. Not tolerating managerial performers. One cannot muscle build the organization, unless
marginal performers are replaced.
4. Developing multiple skills and competencies by worshiping success and potential.
(g) Build Commitment in the Workplace
Change is an inevitable part of managers job. As conditions change, individual responsibilities
are also expected to change. In commitment-based approach, the workplace, jobs are designed to
be broader than before, team accountability is as important as individual accountability for
performance. The performance expectations are high and emphasize continuous important in the
workplace.
2.3 Why performance appraisal system has not improved the performance of employees
Hesitation by management; Supervisors are often reluctant to prepare periodic appraisals of
each of their subordinates. This is especially true in case the results of the appraisal have to be
22

discussed with their subordinates. Supervisors may at times appraise the staff not discuss their
results with relevant people (Schraeder, M. Becton, J., &Portis, R. (2007, Spring).
Failure to act on the results of the PA; IN practice, Performance Appraisals are often made,
recorded, filled but are never used. Decisions on individual cases are made without referring to
them, e.g training, salary increase, promotion etc, yet Performance is related to performance and
reward. (Harris, D. 2000).
Basing Performance Appraisal on comparisons; Performance Appraisal is based on
comparisons between expected performance and actual performance. Expected performances
however may sometimes be based on descriptions that are out of date.
Hesitation to judge workers; Supervisors may be hesitant to judge fellow workers and commit
their views in writing. This is common in the cases whereby the person`s performance is not the
desired expectation. Pettijohn, C., & Kent, J. (2001).
The problem of lack of skills on how to handle the exercise, especially the appraisal interview.
The Performance Appraisal is difficult and few appraisal supervisors are able to carry on the
exercise successfully. At times the interview is not appropriate which means that the objective of
the exercise will not be achieved. (Jacobson, W. 2001).
Stereotyping; stereotyping is common in many organization. In such a case, judgments are
effected when supervisors carry along with them a collection of mental features of what they
imagine people to be like. These pictures s are used to classify employees. Most performance
appraisal report are linked to salary increment, promotion and training, and therefore, there is
tendency for raters to inflate appraisal for fear of damaging the relationship with their
subordinates. (Wells, B., &Meche, M. (1999).
Role conflict. The supervisor is expected to be both a judge and counselor. This dual role
conflict makes it difficult for the appraiser to be imperial and this may lead to misunderstanding
between the supervisors and the staff.
Lack of feedback. There is often lack of feedback, where by subordinates are not given result of
performing appraisal. At time they are given the feedback but it may be given late, or it may
come as a surprise. The appraise see themselves at the mercy of appraisers, yet they dont get a
chance to appraise their bosses. The lack of feedback or the feedback which is not discussed with
the employee will not yield the desired results. (Natalie & Ann 2005).
23

Lack of objectivity and consistency. There may be a problem of lack of objectivity and
consistency. For example, if the appraisal is done ones in two or three years it would mean that
there would be lack of continuity in the exercise. This may make managers place greater
importance on more recent performance, thereby falsely ignoring incidence that occurred earlier
consequently leading to lack of objectivity (Richard Charles Grote (2002).

2.4 Strategies on how performance appraisal can improve performance of employees

Support, understanding and corporation of those who participate in performance appraisal
system, in order to avoid suspicion and failure , for example there is a need to secure confident of
the appraises that the supervisors judgment will be fair and just. Supervisors too, need to accept
their role as supervisors and evaluators and play it willing rather than an administrative routine.
When there is a mutual trust and respect between the subordinates and the supervisors,
communication becomes effective and easy. (Anderson, 1997).
Aspect to be appraised should be clearly defined and communicated. This means that the
person designing the instrument to appraise the staff should have clear objectives about what he
wants to achieve. At the end of the exercise, he can carry out an evaluation to confirm he has
achieved the target or not.
The appraisal should be a continuous process, where by supervisors continuously access how
their staff get on with their job by motivating them and taking corrective action throughout the
year, rather than once or twice a year.
Many people should be involved in the performance appraisal process so that the people being
accessed do not feel that they are at the mercy of the prejudiced executive. The whole exercises
should be fairly carried out.
Reporting officers need training on how to appraise and conduct appraisal interviews. This is a
common problem in much organization. The officers should learn how to come up with
objectives for the interview exercise and appreciate the reason for a regular performance
appraisal exercise and the appropriate ways of carrying it out

24

The appraisal system should be simple to administer. It should have clear instructions and easy
to understand questions. When questions are difficult for the respondent to understand, they will
be filled in at random and that means the objectives of the Performance Appraisal system will not
be achieved; Mitchell, et al., 2000).
Appraisal should be supported by follow -up action if they are to be of any use. Objectives
agreed upon by the appraiser and the appraise should be monitored to ensure that they are
achieve and recommendation are acted upon. This is very important if the appraisal is going to
make any sense and achieve the set objectives of the organization.
There is a need to create awareness in the all organization on the meaning of performance
appraisal, its importance and how it can be carried out to achieve the required results.
2.5 The Relationship between Performance Appraisal System and Employees Performance
in an organization
Employee performance is argued to be the greatest contribution an employee can make to an
organization as it contributes to an organization achieving its strategic goals (Arvey&
Murphy,1998). There are a number of studies which show that a high performing employee can
produce between two to ten times the output of a low performing employee (Ackerman &Kanfer,
1993; Campbell,Gasser, & Oswald, 1996; Rimland& Larson, 1986; Rothe, 1978).
Although acknowledging that the amount of output a person may be able to produce can be
affected by other factors, such as the difficulty of the task (Hunter, Schmidt, &Judiesch, 1990),
the differences between the performance of low performers and high performers gives
organizations a right to be concerned about the performance of their employees.
Researchers have used a variety of techniques, such as critical incident and job analysis to
develop models of work performance to help them define what is meant by the term work
performance (Arvey& Murphy, 1998). However, the range of techniques used has led to
confusion in what is meant by this term as each technique provides a different perspective of
work performance (Arvey& Murphy, 1998; Viswesvaran& Ones, 2000). In order to draw some
conclusions from the studies that have investigated how to define work performance, a recent
meta-analysis was conducted to ascertain what consistent themes might underpin the models of
work performance (Koopmans, et al., 2011). The results show that there are two factors which
25

are common to most models of work performance: task performance and contextual
performance.
The terms task and contextual performance were originally developed by Borman and
Motowildo (1997). Task performance refers to employee behaviours which they need to perform
in order to carry out the tasks which are part of their job description, e.g., closing a sale.
Contextual performance is based on the concept of organizational citizenship behaviour and
refers to the behaviours which employees carry out in order to help an organization, but which
are not part of the employees formal job description, e.g., volunteering to help a new employee.
Borman and Motowildo argue that as organizations continue to face external pressures, e.g.,
global competition, which can create internal organizational changes, e.g., team work and
restructuring, both types of performance are important to organizations. Therefore, the current
study will define work performance as behaviour which relates to tasks, both within and outside
of an employees job description.
The research which has investigated what predicts task and contextual performance illustrates
that both types can be affected by factors found at the organization, job, and individual level
(Motowildo, Borman, &Schmit, 1997; Nasurdin& Soon Lay, 2007). What is apparent from these
studies is that there are a large number of factors which can impact on work performance,
therefore organisations often use a range of policies and practices to take these factors into
consideration (Williams, 2001), one of which is the performance appraisal system. Although the
focus on how these systems can increase work performance has predominantly focused on task
performance, there is also evidence to show that these systems have the potential to affect
employees contextual performance (Findley, Giles, &Mossholder, 2000; Zheng& Li, 2012).
Although a number of motivational theories exist which provide an explanation as to why
performance appraisal systems relate to task performance, goal setting theory is argued as being
the theory of choice as at the center of many of these theories is the concept of goals (Buchner,
2007). While goal setting theory does not fully explain employee work motivation, the evidence
that has accumulated over the last 40 years shows that goal setting has an important part to play
in increasing employees task performance (Mitchell, Thompson, & George-Falvy, 2000).
The evidence that has accumulated regarding this theory shows that the setting of goals which
are difficult and specific impacts on task performance (Latham, 2004, 2007; Locke, Shaw, Saari,
& Latham, 1981; Mitchell, et al., 2000). The findings from these studies show that this
26

relationship exists primarily because the setting of difficult and specific goals focuses peoples
attention on what needs to be achieved (direction), energizes people into action (intensity),
provides a reason to maintain effort over time (persistence), and encourages a person to come up
with plans on how to achieve the goal (strategies). In addition, the setting of difficult and specific
goals provides employees with immediate benefits, such as a sense of purpose and challenge, and
the achievement of these goals can result in both internal (e.g., self-esteem and job interest) and
external (e.g., pay rise and promotions) rewards (Latham, 2004).
To build a broader understanding of how the theory works, later studieshave investigated factors
which might impact on the goal performance relationship (Locke & Latham, 1990, 2002;
Locke, et al., 1981; Mitchell, et al., 2000). Although a number of findings have resulted from this
additional research, with regards to performance appraisal systems there is now evidence which
illustrates that financial rewards, participation, and feedback provide further explanation as to
why goals increase task performance. In short, both financial rewards and participation have
beenfound to increase employees commitment to a goal, as while money acts as an incentive,
openly discussing the purpose of a goal and working alongside the employee to develop action
plans (participation) has been found to help increase a persons understanding of the importance
and direction of a particular goal (Locke & Latham, 1990, 2002; Locke, etal., 1981; Mitchell, et
al., 2000).
The third factor which has been found to add value in the understanding of why there is a
positive association between goal setting and work performance is feedback. Research has found
that feedback explains unique variancesin work performance, over and above the variance
explained by goal setting (Locke & Latham, 2002).
Providing employees with feedback both while the employee works towards a goal and at its
completion is important (Earley, Northcraft, Lee, &Lituchy, 1990;Kluger&DeNisi, 1996; Locke
& Latham, 2002). For example, feedback at the completion ofa goal helps to increase selfefficacy and therefore increase the probability of the person setting higher goals in the future,
whereas providing on-going feedback while the person istrying to achieve the goal helps the
person to build their ability to develop new strategies in achieving goals.
2.6 Conclusion
Human Resource Management, 18(1), 75-84 says an individual establishes his/her personal goals
by aligning his/ her development activities to the organizations needs. For example, a strategic
Human Resource department can publish self-assessment tools that allow an employee to
determine how he/she rates in terms of attributes. These attributes might include accountability,
27

reliability, integrity and customer-centric behavior. Performance gaps may reveal a need to
improve in one or more areas.
Performance of employees deserves a lot to be desired from both management and the
employees themselves for required output which is beneficial to the entity as a whole. In
conclusion the topic The role of performance appraisal system in the management and
performance of employees which in this chapter two I discuss into details with critical
observations and examples from other scholars the brilliant information relating to the role of
performance appraisal system in the management and performance of employees.

CHAPTER THREE
RESEARCH METHODOLOGY
3.0. Introduction
The previous chapter discussed the literature about the role of performance appraisal system in
the management and performance of employees. The literature review gives an insight into the
topic under study by presenting what had been established by several scholars in regard to
performance Appraisal and employees performance. In this chapter the methods that was used to
get the findings, the methods employed in order to get representative data that are applicable in
Adyel Division Council.
3.1Research Design
This was the programme that guided the researcher on the process of collecting, analyzing the
data and interpreting the results. In this the researcher used a descriptive survey because the data
obtained could easily be generalized. A descriptive survey is a research design where information
is collected from a sample population of a cross section targeted population of different age
group (Leedy and Ormrod,2013).The study used both qualitative and qualitative analysis. The
design suggested enabled the researcher to capture the gist of the respondents views in their own
words which the data collected was then analyzed.
3.2 Area of the Study
The focus of this study was to establish the roles of Performance Appraisal System in the
management and performance of employees in Adyel division which is located in Lira
Municipality, Lira District-2km North West of Lira town. Adyel Division is one of the
28

administrative units; it has its own way of delivering the services to the community. It composed
of technical staff and political representatives who are directly responsible for service delivery in
totality to the community therefore performance appraisal is paramount.

3.2 Study Population

Table 1:Showing the study population and sample size
Study Population
Sample
Data
collection Data
collection
size
methods
instruments
Human Resource Manager

Purposive

Questionnaire form

Permanent Staff

20

Randomly

Questionnaire form

Probation Staff

10

Randomly

Questionnaire

Contract Staff

Randomly

Questionnaire form

Total

38

Source: Primary data

3.3 Sampling Size and sampling techniques
A sample of 38 respondents which includes human resource manager (1), permanent staff (20),
probation staff (10) and contract staff (7).
The researcher used purposive sampling method because these are the key person who conducts
the performance appraisal, and there is only one manager who responsible for conducting the
performance appraisal.
Simple random sampling was also used to select the permanent, probation and the contract staff
to limit on the biasness of purposive sampling.
3.4 Data Collection methods and Instruments
The researcher used questionnaire form as data collection instrument. These questionnaires was
administered by the researcher herself for purpose of explaining to the respondents the reason for
the research to ensure that information received are appropriate and reliable from the
respondents.
29

The researcher interviewed 38 respondents majority said Performance Appraisal System always
achieve its objectives 32respondents[60.5%],12out of 38[31.6aa%]say that employees and
management do not achieve fully the objective and 3 out of 38 said that management and
employees don`t achieve the objectives as a result of no motivation and recommendation made
during the exercise.
3.6 Quality control methods
Validity of research instruments; The correctness of an instrument to measure a variable was
ensured through content analysis where ambiguities and incorrect questions were identified and
corrected so as to come up with clear and more relevant items on instrument. The data collection
tools was pretested to 20% of the required sample size outside the study area to ensure that
responses collected are valid and reliable for the study. Research assistants were trained on both
sampling and data collection (interviewing). This was critical in reducing selection and
information biases that otherwise would lower the authenticity of the study.
Reliability
Leedy and Ormrod [2013] defines Reliability as consistency with which a measuring instrument
yields a certain, consistent result when the entity being measured has not change. The researcher
ensured thorough Cronbach`alpha reliability tests of all the variables in the study using statistical
package for social sciences [SPSS] Computer Programme. Low alpha values below 0.5 the
instrument need redesigning.
Data analysis techniques
Qualitative data analysis; information obtained from qualitative findings was sorted and items
generated according to the study objectives. The content was analyzed together with quantitative
findings.
Quantitative data from questionnaire were edited, coded and analyzed using SPSS Programme,
descriptive analysis using percentages were done and interpretation also done. Quantitative
analysis using correlation to test hypothesis and find out if there is any relationship between the
independent variables and dependent variables.

3.7 Ethical Considerations

The research used the introductory letter from the university introducing her to the Division
authority and the respondent was given assurance on the confidentiality of the information that it
30

is specifically for academic purposes only. Informed consent was observed as integral to respect
for persons and indivduals are treated as capable of making decisions, well-being [Beneficence]
of participant are protected either mentally or physically. Lastly, justice was observed though
equitable recruitment of participants.
3.8 Limitations of the Study
The researcher was faced with a number of limitations during the course of conducting and
compiling the research report, they include the following; The researcher used a lot of money in the printing of materials from the internet,
publications and surfing for the information. However, well-wishers donated funds to
help mitigate the problem of expense towards printing material, and internet, and
publication of information.
The time given was short for the researcher to get enough information on the study and
time to discuss with the respondents. However, the researcher used question guides,
conduct interviews and use of questionnaires to shorten the timeframe and hence
information necessary was summarize and analyzed.
The researcher also experienced the problem of getting information from respondents
since most of them were very busy. However, the researcher gave them some days to fill
the questionnaire forms.

3.10 Conclusion
This chapter explains the methods that researcher used to gather information relating to the study
topic. The researcher believes that the above explained methodology would mark her come up
with clear information about performance appraisal before next chapter four which discuss the
results of the findings.

31

CHAPTER FOUR
PRESENTATION, INTERPRETATION AND DISCUSSION OF FINDINGS
4.0 Introduction
This chapter presents and interprets statistical results using tables, Pie chart and Graphs. Result
are discussed and conclusion drawn later.
To get final results, data analysis was carried out using descriptive statistics, tables, pie charts
and Graphs analysis to measure the relationship and significance of the study variables.
4.1. Biography of respondents
4.1.1 Age of the respondents
Table 2: The Age of Respondents
Ages
Frequency

Percentage

25-30

10

26.3

31-40

18

47.4

41-50

15.8

Above 51

10.5

Source: Primary Data

Figure 2: Pie Chart showing the ages of respondents

The Age of Respondents

Above 51; 11%
41-50; 16%

25-30; 26%

31-40; 47%

32

The researcher wants to find out the age group of the respondents in Adyel Division Council and
the results obtained showed that the majority of the employees of Adyel division council fall in
the age range of 31-40 with 47.4%, these are the production age of an average Ugandan who are
very active and provide services as explained by Muchinsky. (2012). Psychology Applied to
Work (10th ed. Pages 43 to 68) and Summerfield, NC: Hypergraphic Press. . While 26.3% are
between the age of 25-30 and 15.8% between the ages of 41-50 with 10.8% above 51 as
represented in table 2 and figure 1.
4.1.2 Sex of Respondents
Table 3: Sex of respondents
Sex
Frequency

Percentage

Male

28

73.7

Female

10

26.3

Source: primary data

33

Figure 3 Pie Chart showing the Sex of Respondents

Sex of Respondents

26%

Male
Female
74%

Source: primary data

According to the results obtained 73.7% of the respondents were Male and 26.3% were Female,
meaning that men forms the majority of the employees in Adyel division council more than
women because most women are engaged in farm activities and house work.Trust in
management and performance: Who minds the shop while the employees watch the
boss.Academy of Management Journal, 48(5), 874-888 which says for an effective service
delivery by employees of an organization, gender equality is a necessity as share of knowledge
from different sex is of paramount importance as detailed in table 3 and chart 2.

34

4.1.3: Level of education of the respondents

Table 4: Level of education
Level of education
Frequency

Percentage

Certificate

21

Diploma

10

26.3

Degree

15

39.5

Masters

13.2

Source: primary data

Figure 4: Bar Graph showing the Level of Education of Respondents
45
40
35
30
25
20

Masters

Degree

Diploma

Certificate

15
10
5
0
Certificate

Diploma

Degree

Masters

Source: primary data

The employees of Adyel division council level of education are as follows a Degree with a
frequency of 15 which is 39.5%, Diploma 10 representing 26.3% while those with a certificate is
8 frequency with 21% and lastly are those with master degree qualification with 5 frequency
representing 13.2%. The majority of the degree holders are those who acquire the job in their
section of study at the university or higher institution of learning with vast knowledge which
enables them to perform as required through effective and efficient out deliverance through
performance appraisal system amplified byCawley, Keeping. Levy, (1998). Participation in the
performance appraisal process and employee reactions: A meta-analytic review of field
investigations. Journal of Applied Psychology, 83, 615-633.Shown in Table 4 and figure 3.

35

4.1.4 Duration of Service by Employees of Adyel division council

Table 5: showing duration of the employees in Adyel division council
Duration of Service Frequency
Percentage
Less than one year

13.2

One-two years

10

26.3

More than two years

23

60.5

Source: primary data

Figure 5 Bar Graph showing duration of the employees in Adyel division council
25
20
15
10

More than two years

One to two years

Less than one year

0

Source: primary data

The results on the findings reveal that 60.5% of the employees are experience people with more
than two years, 26.3 % have been with Adyel division for 1-2years old, and only 13.2% have
work for a period less than a year showing that majority are employees that deliver services and
their performance are not doubtable with high performance and excellent output performance
during the appraisal exercised as

agreed on by DeNisi, A. & Pritchard, R. (2006, July).

Performance appraisal, performance management, and improving individual performance: A

motivational framework, management and organization review, 2(2), 253-277.Shown in table 5
and figure 4

36

4.2 Findings on the role of the users of Performance Appraisal systems to Employees
Performance
Table 6 showing responses on the roles of Performance Appraisal system in Employees
Performance

Variable

0(0)

Response from respondents

Disagreed Didnt Agreed
Strongly
Know
agreed
No. (%)
No.
No. (%)
No. (%)
(%)
4(9)
7(19)
12(32)
15(40)

3(8)

5(13)

4(9)

10(27)

16(43)

38(100)

4(11)

3(8)

5(12)

8(21)

18(48)

38(100)

0(0)

2(5)

6(15)

13(35)

17(45)

38(100)

0(0)

0(0)

14(37)

24(63)

38(100)

Strongly
disagreed
No. (%)

Giving and

Total
No. (%)
38(100)

Receiving Feedback
Setting Goals
Motivation

and

Satisfaction
Recruitment

and

Induction
Employee
Evaluation

Source: Primary data.

The same Information is also depicted in the bar graph below

37

Figure 6 Bar Graph showing responses on the roles of Performance Appraisal system in
Employees Performance
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Strongly Disagree

Disagree

Not Sure

Agree

Strongly Agree

Source: primary data

From the table and the graph above, 15(40%) of the respondents strongly agreed that
performance appraisal plays a great role in giving and receiving Feedback and here an effective
employee appraisal provides an opportunity to give feedback as well as receive it. The employee
receives important information as to what areas of the job she is performing well and those that
need improvement, so she knows exactly where she stands. The reviewer can also receive
feedback from the employee that can help her make improvements in the work environment. The
reviewer may also uncover issues that could be impeding employees from performing their best,
and she can take corrective measures if necessary. Meanwhile none of the respondents strongly
disagreed with the statement, 4(9%) of the respondents disagreed and finally 7(19%) of the
respondents did not about it
On the other hand 16(43%) of the respondents strongly agreed that performance plays a big role in goal
setting while 10(27%) agreed in support of the statement though 4(9%) of the respondents didnt

38

know about the statement and 5(13%) of the respondents disagreed, 3(8%) of the respondents
strongly disagreed with the statement.
In an interview, one of the key respondents said;

Reviewing performance based on previously established goals, the

performance appraisal is also a good time to establish new goals. If
deficiencies are identified during the appraisal, the reviewer and
employee can work together to establish new goals as well as develop
a plan to reach them. For example, if a salesperson missed his sales
quota for the year, he and the reviewer can establish a plan to reach
next year's quota by increasing call activity by a certain percentage.
(Key informant interview with the assistant town clerk at his office in
the division headquarters on the 11/11/2016 at 3:40pm)
Then from the same table, the study findings revealed that 18(48%) of the respondents strongly
agreed that performance appraisal plays a role in Motivation and Satisfaction of the employees
and they said Performance appraisal can have a profound effect on levels of employee
motivation and satisfaction - for better as well as for worse. Performance appraisal provides
employees with recognition for their work efforts. The power of social recognition as an
incentive has been long noted. In fact, there is evidence that human beings will even prefer
negative recognition in preference to no recognition at all. If nothing else, the existence of an
appraisal program indicates to an employee that the organization is genuinely interested in their
individual performance and development. This alone can have a positive influence on the
individual's sense of worth, commitment and belonging. The strength and prevalence of this
natural human desire for individual recognition should not be overlooked. Absenteeism and
turnover rates in some organizations might be greatly reduced if more attention were paid to it.
Regular performance appraisal, at least, is a good start. Meanwhile 8(21%) of the respondents
agreed in agreed in support though 5(12%) of the respondents didnt know about it and 4(11%)
of the respondents strongly disagreed with the statement followed by 3(8%) of the respondents
who also disagreed in the either way.
The study finding also revealed that performance appraisal helps in the Recruitment and
Induction of employees this was indicated as responded upon by 17(45%) of the respondents,
13(35%) of the respondents agreed in support of the statement, 6(15%) of the respondents didnt
39

know about this statement meanwhile none of the respondents strongly disagreed with the
statement and only 2(5%) of the respondents disagreed with the statement.
In another interview one of the respondents said this;
.. Well performance Appraisal data can be used to monitor the success
of the organization's recruitment and induction practices. For example,
how well are the employees performing who were hired in the past two
years? Appraisal data can also be used to monitor the effectiveness of
changes in recruitment strategies. By following the yearly data related to
new hires (and given sufficient numbers on which to base the analysis) it
is possible to assess whether the general quality of the workforce is
improving, staying steady, or declining.(Key informant interview with the
sub county chief of Adyel Division at his Office on the 11/11/2016 at
11:30am)
Finally 24(63%) of the respondents strongly agreed that Performance appraisal helps in
employee evaluation and they said evaluation is a legitimate and major objective of performance
appraisal but the need to evaluate is also an ongoing source of tension, since evaluative and
developmental priorities appear to frequently clash. Yet at its most basic level, performance
appraisal is the process of examining and evaluating the performance of an individual.
In an interview one of the key respondents had to say this;
I am Dorah Apio student who is on contract, performance appraisal
originate from the requirements of the employees performance which later is
check through performance system at the end of the year as also agreed upon
Then the role here is identification of employees weakness that hinders him
or her performance can be noted during performance appraisals and this can
be easily addressed by management for the betterment of employees
development.(key informant interview with Dorah Apio at her Office in Adyel
Division on the 10/11/2016 at 2:00Pm)

40

4.3 Findings on why performance appraisal system has not improved the performance of
employees
Table7: showing responses on why performance appraisal system has not improved the
performance of employees
Total
Strong
Not
Items
ly
Disagr
Agree
Strongl
No.
sure
N0.
Disagr
ee
y Agree
(%)
N0.
N0.(%)
(%)
N0.(%)
ee
(%)
N0.(%)
1
2
3
4
5
3(8)

5(13)

4(9)

10(27)

16(43)

38(100)

appraisal of employees
Failure to act on the results

4(11)

3(8)

5(12)

8(21)

18(48)

38(100)

of the PA
Basing Performance

4(11)

3(8)

5(12)

8(21)

18(48)

38(100)

Appraisal on comparisons
The problem of lack of

0(0)

2(5)

6(15)

13(35)

17(45)

38(100)

0(0)

4(9)

7(19)

12(32)

15(40)

38(100)

Hesitation by management
to prepare periodic

skills on how to handle the

exercise
Lack of feedback
Source: primary data

41

Figure 7 showing responses on why performance appraisal system has not improved the
performance of employees
18
16
14
12
10
8
6
4
2
0

Strongly Agree
Agree
Not Sure
Disagree
Strongly Disagree

Source: primary data

From the table and the figure above, 16(43%)of the respondents strongly agree that hesitation by
management to prepare periodic appraisal of employees is one the reasons why performance appraisal
system has not improved the performance of employees , while 10(27%) agreed in support whereas
4(9%) of the respondents didnt know about the statement, 5(13%) disagreed and 3(8%) of the
respondents strongly disagreed with the statement nor strongly disagreed with the statement.

In an interview, one of the respondents said this;

If the Supervisors are often reluctant to prepare periodic appraisals
of each of their subordinates. This is especially true in case the results
of the appraisal have to be discussed with their subordinates.
Supervisors may at times appraise the staff not discuss their results with
relevant people and if the out becomes negatives in the ears of that
particular, it may leads to poor performance as a result of
discouragement(key informant interview a staff on probation at the
division headquarters on 22/11/2016 at 2pm)
42

On the other hand 18(48%) of the respondents said they strongly agree that Failure to act on the
results of the Performance Appraisal as another reason why performance appraisal system has not
improved the performance of employees and they said in practice, Performance Appraisals are often

made, recorded, filled but are never used. Decisions on individual cases are made without
referring to them, e.g training, salary increase, promotion etc, yet Performance is related to
performance and reward and with such phenomena employees performance cant be improved
meanwhile 8(21%) agreed in support of the statement whereas 5(12%) of the respondents didnt

know of it, 3(8%) disagreed and 4(11%) strongly disagreed with the statement.
Also the study found out that basing Performance Appraisal on comparisons as another factor why
performance appraisal system has not improved the performance of employees. This was responded to by
18(48%) of the respondents and they said Performance Appraisal is based on comparisons between

expected performance and actual performance. Expected performances however may sometimes
be based on descriptions that are out of date hence leading to no improvement in performance and
8(21%) of the respondents agreed in support to the statement, 5(12%) of the respondents didnt know
of the statement 3(8%) disagreed, 4 (11%)strongly disagreed about the statement.

The study finding also revealed that the problem of lack of skills on how to handle the exercise,
especially the appraisal interview is also a reason why performance appraisal has failed to
improve performance of employees. This was responded upon by 17(45%) of the respondents who
strongly agreed to the statement, 13(35%) agreed in support, 6(15%) of the respondents didnt know of it
and 2(5%) of the respondents disagreed with the statement though none of the respondents strongly
disagreed with the statement.

In an interview, one of the respondents said this;

The Performance Appraisal is difficult and few appraisal
supervisors are able to carry on the exercise successfully. At
times the interview is not appropriate which means that the
objective of the exercise will not be achieved.(key informant
interview with the CDO of the division at 2pm on the
23rd/11/2016)
And finally 15(40%) of the respondents strongly agreed that Lack of feedback is also of the
reason why performance appraisal has failed to improve performance of employees and they
further said there is often lack of feedback, where by employees are not given result of
performing appraisal. At time they are given the feedback but it may be given late, or it may
43

come as a surprise. The appraise see themselves at the mercy of appraisers, yet they dont get a
chance to appraise their bosses. The lack of feedback or the feedback which is not discussed with
the employee will not yield the desired results. 12(32%) of the respondents agreed,7(19%) didnt
know of it 4(9%) disagreed with the statement and finally none of the respondents strongly disagreed

with the statement.

2.4 Strategies on how performance appraisal can improve performance of employees
Table 8: showing responses on strategies on how performance appraisal can improve
performance of employees.
Variable

Agreed

No. (%)
4(9)

Didnt
Know
No. (%)
7(19)

Total

No. (%)
12(32)

Strongly
agreed
No. (%)
15(40)

5(13)

4(9)

10(27)

16(43)

38(100)

Reporting officers need 4(11)

training on how to
appraise and conduct
appraisal interviews

3(8)

5(12)

8(21)

18(48)

38(100)

Reporting officers need 0(0)

training on how to
appraise and conduct
appraisal interviews

0(0)

0(0)

14(37)

24(63)

38(100)

Aspect to be appraised 0(0)

should be clearly defined
and communicated

2(5)

6(15)

13(35)

17(45)

38(100)

Support, understanding
and corporation
The appraisal should be a
continuous process

Strongly
disagreed
No. (%)
0(0)

Disagreed

3(8)

No. (%)
38(100)

Source: Primary data.

From the table above, 15(40%) of the respondents said they strongly agree that Support,
understanding and corporation of those who participate in performance appraisal system, in order
to avoid suspicion and failure is of the strategies that performance appraisal can improve
performance of employees for example there is a need to secure confident of the appraises that the
supervisors judgment will be fair and just. Supervisors too, need to accept their role as
supervisors and evaluators and play it willing rather than an administrative routine. When there is
a mutual trust and respect between the subordinates and the supervisors, communication becomes
effective and easy. 12(%) agreed in support of the statement whereas 7(19%) of the respondents
44

didnt know of it, 4(9%) disagreed and none strongly disagreed with the statement.
Also the study found out that 16(43%) strongly agreed that the appraisal should be a continuous
process as one of the strategies to improve the performance of employees, 10(27%) of the
respondents agreed in support to the statement, 4(9%) of the respondents didnt know of the statement
5(13%) disagreed, 3(8%) strongly disagreed about the statement.
Then in an interview with one the respondents this came out;
..Well To me, I see that the appraisal should be a continuous
process, where by supervisors continuously access how their staff
get on with their job by motivating them and taking corrective
action throughout the year, rather than once or twice a year.(key
informant interview with one of the permanent staff of Adyel
division council at 3:00pm on the 24th/11/2016)
The study finding also revealed that 18(48%) of the respondents strongly agreed that reporting
officers need training on how to appraise and conduct appraisal interviews and they said this is a
common problem in much organization as the officers should learn how to come up with
objectives for the interview exercise and appreciate the reason for a regular performance
appraisal exercise and the appropriate ways of carrying it out , 8(21%) agreed in support, 5(12%) of
the respondents didnt know of it and 3(8%) of the respondents disagreed with the statement and 4(11%)
of the respondents strongly disagreed with the statement .

And conclusively the study findings revealed that 17(45%) of the respondents strongly agreed
that aspect to be appraised should be clearly defined and communicated where by this means that
the person designing the instrument to appraise the staff should have clear objectives about what
he wants to achieve. At the end of the exercise, he can carry out an evaluation to confirm he has
achieved the target or not. 13(35%) of the respondents agreed in support of the statement, 6(15%)
didnt know of it and 2(5%) disagreed with the statement meanwhile none of the respondents strongly

disagreed with the statement.

.
4.4 Conclusion
This chapter presented statistical results and tests using tables. Discussion of the results was
presented. The results of interviews held with senior managers in some of the small and medium
45

enterprise where data was collected was also presented in this chapter. The chapter also presented
findings from literature that was related to the issues under discussion

46

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter presents summary of findings, conclusions and recommendations arrived at the end
of the research study
5.2 Summary
5.2.1 Summary of findings on the role of the users of Performance Appraisal systems to
Employees Performance
The study that performance appraisal plays a great role in giving and receiving Feedback and
here an effective employee appraisal provides an opportunity to give feedback as well as receive
it and that performance appraisal plays a role in Motivation and Satisfaction of the employees.
The study further found that performance appraisal helps in the Recruitment and Induction of
employees and finally that Performance appraisal helps in employee evaluation
5.2.2 Summary of findings on why performance appraisal system has not improved the
performance of employees
The study found that hesitation by management to prepare periodic appraisal of employees is one
the reasons why performance appraisal system has not improved the performance of employees , and also

that failure to act on the results of the Performance Appraisal is another reason why performance
appraisal system has not improved the performance of employees and it was found that in practice,

Performance Appraisals are often made, recorded, filled but are never used. Also the study found
out that basing Performance Appraisal on comparisons is another factor why performance appraisal
system has not improved the performance of employees meanwhile the problem of lack of skills on

how to handle the exercise, especially the appraisal interview is also a reason why performance
appraisal has failed to improve performance of employees. And finally Lack of feedback is also
of the reason why performance appraisal has failed to improve performance of employees and
employees are at times given the feedback but it may be given late, or it may come as a surprise.

47

5.2.3 Findings on strategies that performance appraisal can improve performance of

employees
The study found out that supporting, understanding and corporation of those who
participate in performance appraisal system, in order to avoid suspicion and failure is of the
strategies that performance appraisal can improve performance of employees for example there is
a need to secure confident of the appraises that the supervisors judgment will be fair and just.
Also that the appraisal should be a continuous process as one of the strategies to improve the
performance of employees, and also that reporting officers need training on how to appraise and
conduct appraisal interviews and they should learn how to come up with objectives for the
interview exercise and appreciate the reason for a regular performance appraisal exercise and the
appropriate ways of carrying it out and finally the study found out that aspect to be appraised should
be clearly defined and communicated and here the person designing the instrument to appraise the
staff should have clear objectives about what he wants to achieve. At the end of the exercise, he
can carry out an evaluation to confirm he has achieved the target or not.
5.3 Conclusions
Management are mostly involved in the implementation of performance appraisals system
and evaluating employees performances in a organization should ensure that the feedback of the
exercised is used to help both the organization and the employee in particular to developed him or
her to achieved his or her goal and the objectives of the entity, Management support is very
important to the implementation of performance appraisal systems without it the chances of the
system success are low especially to the employees performance and output.
The combined effect of high management support and good performance appraisal system ensures
a higher level of success that the individual variables acting on their own.
In the Adyel division council context it was possible for this study to show that performance
appraisal systems contribute positively to employees performance and growth.
According to the results obtained from the primary sources, there is a very high relationship
between performance appraisal system and employees performance. This is shown by illustrations
of graphs, pie charts and bar graphs.

48

5.4 Recommendations
The results that managers being involved in the implementation of performance appraisal
system which contribute positively to successful performance of employees. The
researcher recommends that management of Adyel division especially human resource
department should make an extra effort to involve employees of the division in the
implementation and monitoring of their performance through the performance appraisal
systems.
The researcher recommends that in order to for performance appraisal system to help in
determining employees performance, management should commit and make full support
to ensure proper record of employees gaps are address to motivate them.
Management in Adyel Division should actively seek to improve on the quality of
management and its function. This can be done thru recruiting well-qualified staff,
providing appropriate training to the staff and by setting quality standard of performance
plan with set up goals to be achieved at the end of the year by the employees.
The researcher also recommends that employees strived to accomplished their set goals
designed during the performance appraisal plan and take advice from their supervisors
and those in authority so that at the end of the year during the performance appraisal they
will have achieved the outputs as required of them.
5.5 Areas of further study include
1

Constraints to the growth and development of Employees performance in Uganda.

The Impact of performance appraisals on the growth and development of Employees.

Factors affecting the success of performance appraisals system and its application in

Local Governments.

49

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Cederblom, D. (1982). The performance appraisal interview: A review, implications, and
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51

APPENDIX 1
INTERVIEW GUIDE
BACHELOR OF DEMOCRACY AND DEVELOPMENT STUDIES
Dear respondent,
I am a student of Uganda Martyrs University Ukozi pursuing a bachelors degree of Democracy
and Development Studies in my Fourth year of study .A questionnaire on Performance
Appraisals as a basis of Human renounce management. This research is specifically for academic
purposes and your response and the information will be confidential.
Section A
Interview Guide for Key Informants
Personal information of respondents
1. Age of the respondents
25-30
Above 51

31-40

41-50

2. Gender of the Respondents

Male

Female

3. Level of education of the respondents

Certificate

Diploma

Degree

Masters

4. Duration of Service by Employees of Adyel division council

Less than one year

One-two years

52

More than two years

Section B
1.

What is the Role of the Performance Appraisal System in the performance of

employees?

2.

Why has performance appraisal not improved the employees performance?

3.

What are the strategies on how performance appraisal can improve the employees
performance?

4.

Is there a relationship between Performance Appraisals and Employees Performances?

5.

How relevant is Performance Appraisals system to the Individual employees

Performances?

53

APPENDIX II
QUESTIONNAIRES
BACHELOR OF DEMOCRACY AND DEVELOPMENT STUDIES
Dear respondent,
I am a student of Uganda Martyrs University Ukozi pursuing a bachelors degree of Democracy
and Development Studies in my Fourth year of study .A questionnaire on Performance
Appraisals as a basis of Human renounce management. This research is specifically for academic
purposes and your response and the information will be confidential.
Section A
Personal information of respondents
1. Age of the respondents
25-30
Above 51

31-40

41-50

2. Gender of the Respondents

Male

Female

3. Level of education of the respondents

Certificate

Diploma

Degree

Masters

4. Duration of Service by Employees of Adyel division council

Less than one year

One-two years

54

More than two years

SECTION B

The roles of Performance Appraisal systems to Employees Performance

1. What is the Role of the Performance Appraisal System in the performance of employees?

To what extent do
you agree/disagree

Strongly
disagreed
No. (%)

Response from respondents

Disagreed Didnt Agreed
Strongly
Know
agreed
No. (%)
No.
No. (%)
No. (%)
(%)

with the following

statements?
Tick the scale
Giving and
Receiving Feedback
Setting Goals
Motivation

and

Satisfaction
Recruitment

and

Induction
Employee
Evaluation

55

Total
No. (%)

Why performance appraisal system has not improved the performance of employees
2. Why has performance appraisal not improved the employees performance?

Strong
Items

ly

Disagr

Disagr

ee
N0.(%)

ee
N0.(%)
1

Not
sure
N0.

Total

Agree
N0.
(%)

(%)
3

Strongl

No.

y Agree
N0.(%)

(%)

Hesitation by management
to prepare periodic
appraisal of employees
Failure to act on the results
of the PA
Basing Performance
Appraisal on comparisons
The problem of lack of
skills on how to handle the
exercise
Lack of feedback
Strategies on how performance appraisal can improve performance of employees
3. What are the strategies on how performance appraisal can improve the employees
performance?
Variable

Strongly
disagreed
No. (%)

Disagreed
No. (%)

Support, understanding
and corporation
The appraisal should be a
56

Didnt
Know
No. (%)

Agreed
No. (%)

Strongly
agreed
No. (%)

Total
No. (%)

continuous process
Reporting officers need
training on how to
appraise and conduct
appraisal interviews
Reporting officers need
training on how to
appraise and conduct
appraisal interviews
Aspect to be appraised
should be clearly defined
and communicated

Thank you very much for your time

57