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Employee Performance and Appraisal Systems

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Added on  2020/04/13

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This assignment delves into the crucial aspects of employee performance and its evaluation. It examines various factors that contribute to high performance levels, including individual characteristics, work environment, leadership styles, and job design. The analysis further explores different performance appraisal systems, their strengths and weaknesses, and their impact on employee motivation, development, and organizational goals. The student is tasked with conducting research, analyzing relevant theories and models, and presenting a comprehensive understanding of the subject.

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Running head: DISSERTATION
A Critical Analysis of The Effects Of Appraisals On Employee's Performance: A Case Study
of Tesco
Name of the Student:
Name of the University:
Author’s Note:

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1DISSERTATION
Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.0 Introduction............................................................................................................................5
2.0 Background of the Research..................................................................................................5
3.0 Significance of the Research.................................................................................................6
4.0 Problem Statement.................................................................................................................6
5.0 Research Aim.........................................................................................................................7
6.0 Research Objectives...............................................................................................................7
7.0 Research Questions................................................................................................................7
8.0 Structure of Research.............................................................................................................8
Chapter 2: Literature Review...........................................................................................................9
2.0 Introduction............................................................................................................................9
2.1 Concept of Performance Appraisal........................................................................................9
2.2 Concept of Employee Performance.....................................................................................10
2.3 Models for Performance Appraisals....................................................................................10
2.3.1 360 Degree Appraisal Model........................................................................................10
2.3.2 Management by Objectives..........................................................................................12
2.3.3 Graphic Rating Scale....................................................................................................13
2.3.4 Critical Incident Model.................................................................................................14
2.4 Effective Process of Performance Appraisals for Enhancing Employee Performance.......15
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2DISSERTATION
2.5 Issues in Performance Appraisal Process............................................................................16
2.5.1 Biasness........................................................................................................................16
2.5.2 Inconsistent Rating.......................................................................................................17
2.5.3 Lack of Outcome Based Measures...............................................................................17
2.5.4 Poorly Trained Managers.............................................................................................17
2.5.5 Lack of Proper Reward and Recognition......................................................................18
2.6 Significant Factors and Criteria for Effective Performance Appraisal................................18
2.6.1 Clear Objectives of Performance Appraisal.................................................................18
2.6.2 Flexibility......................................................................................................................18
2.6.3 Attendance....................................................................................................................18
2.6.4 Productivity...................................................................................................................19
2.6.5 Quality of Work............................................................................................................19
2.6.6 Teamwork.....................................................................................................................19
2.6.7 Levels of Knowledge....................................................................................................19
2.7 Summary..............................................................................................................................20
Chapter 3: Research Methodology................................................................................................21
3.0 Introduction..........................................................................................................................21
3.1 Research Philosophy............................................................................................................21
3.1.1 Justification of Research Philosophy............................................................................23
3.2 Research Approach..............................................................................................................23
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3DISSERTATION
3.2.1 Justification of Research Approach..............................................................................24
3.3 Research Purpose.................................................................................................................25
3.3.1 Justification of Research Purpose.................................................................................25
3.4 Research Strategy................................................................................................................25
3.4.1 Justification of Research Strategy................................................................................26
3.5 Data Collection....................................................................................................................26
3.5.1 Justification of Data Collection....................................................................................28
3.6 Data Analysis.......................................................................................................................28
3.6.1 Justification of Data Analysis.......................................................................................29
3.7 Ethical Consideration...........................................................................................................29
3.8 Summary..............................................................................................................................30
Chapter 4: Data Analysis and Discussion......................................................................................31
4.1 Thematic Analysis...............................................................................................................31
4.1.1 Theme 1: Performance Appraisal Processes used in Tesco for Enhance employees’
performance...........................................................................................................................31
4.1.2 Theme 2: Comparing performance appraisal process of UK Retail Sector..................32
4.1.3 Theme 3: Issues in Performance Appraisal Process of Tesco......................................34
4.1.4 Theme 4: Impact of Performance Appraisal Process on Employee Performance of
Tesco......................................................................................................................................36
4.1.5 Theme 5: Performance Review Phrases in Tesco.........................................................38

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4.1.6 Theme 6: Best Performance Appraisal Process to be adopted in Tesco for Enhancing
Employee Performance Appraisal.........................................................................................40
Chapter 5: Conclusion and Recommendation...............................................................................42
5.0 Conclusion...........................................................................................................................42
5. 2 Linking with Objectives.....................................................................................................43
5.3 Recommendation.................................................................................................................44
5.3.1 Proper Criteria for Performance Appraisal...................................................................44
5.3.2 Adequate Reward and Recognition..............................................................................44
5.3.3 Proper Training and Development Program.................................................................45
5.3.4 Using Modern Performance Appraisal Method............................................................45
5.4 Limitation of Research........................................................................................................45
5.5 Further Scope of Research...............................................................................................45
Reference List................................................................................................................................46
Appendix........................................................................................................................................54
Personal Statement.....................................................................................................................54
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Chapter 1: Introduction
1.0 Introduction
Performance appraisal is an important career development tool for the employees in an
organization. In modern business environment, it has become the most competent tool for
boosting up the performance level of the employees (Dusterhoff, Cunningham and MacGregor
2014). Such appraisal system does not only benefit the employees but also it enhances their
performance level. Effective performance appraisal process identifies the strength and weakness
areas within the employees. In this way, the managers can help guide the employees on their
corporate advancement through training and development programs (Dong, Seo and Bartol
2014). Such training and development programs actually enhance the performance level of weak
performers. On the other hand, performance appraisal process also motivates the high performers
through career advancement for keeping up their performance level. The research paper will
critical analyze of the effects of appraisals on employee's performance. In order to specifically
focus on the research topic, the research study will choose Tesco of United Kingdom for
demonstrating the effects of appraisals on its employee's performance.
2.0 Background of the Research
The formal performance appraisal system of an organization starts with polishing the
capabilities of the employees. The intension behind formal performance appraisal system is to
assess the deviation of individual employee performance from overall organizational standard
performance level (Bednall, Sanders and Runhaar 2014). Based on the performance assessment,
the managers of an organization motivate the employees towards their capacity building either
through career advancement or through training. This research study will critically highlight the
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key aspects of performance appraisal towards enhancing the performance of employees. The
previous research studies have covered almost every areas of performance appraisal on
developing employee performance. However, such studies have lack of critical penetration on
the research topic. This research will critically point out the issues related to the performance
appraisal in effecting employee’s performance.
3.0 Significance of the Research
Over the years, performance appraisal system has become the most important indicators
of employee’s performance level. Performance appraisal is the most important tool for
measuring the employee’s performance with respect to organizational overall goals and
objectives (Zhang et al. 2014). Effective performance appraisal system is of growing importance
for modern business environment. In such modern business environment, every organization
requires competent personnel for boosting up their overall organizational productivity. This
study will majorly focus on the effect of performance appraisal on overall employees’
performance. Moreover, the thematic analysis of the research study will majorly evaluate the
issues related to performance appraisal in modern business organization.
4.0 Problem Statement
Proper performance appraisal system boosts up the capabilities and skills level of the
employees through motivating them with career advancement. Furthermore, it also motivates the
weak performers towards better performance through training and development programs.
However, proper and effective performance appraisal system is highly dependent on proper
criteria used for performance appraisal and proper rewards and recognition for motivating the
employees. In this context, it can be said that Tesco conducts performance appraisal programs in
regular manner. However, the organization does not use proper criteria for measuring the

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performance level of the employees. The organization has also been claimed with discrimination
between male and female employees in distributing performance pay (Topham 2016).
Furthermore, the organization does not also provide overtime pay for the extra efforts of the
employees (Metro 2016). Some biased views of organizational managers also hamper the
effectiveness of appraisal system, which hampers the ultimate performance level of the
employees.
5.0 Research Aim
The aim of the research is to critically analyze the effects of performance appraisals on
employee's performance of Tesco.
6.0 Research Objectives
To recognize the effects of performance appraisals on employee's performance of Tesco
To identify the performance appraisal process of Tesco towards assessing employee’s
performance
To assess the issues related to the performance appraisal of Tesco
To recommend the best of improving employ’s performance of Tesco though effective
appraisal
7.0 Research Questions
What are the effects of performance appraisals on employee's performance of Tesco?
How Tesco appraise the performance level of the employees?
What are the issues related to the performance appraisal of Tesco
How Tesco can improve the employ’s performance though effective appraisal?
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8.0 Structure of Research
Introduction: This chapter will provide the background of the research along with its
significance. The chapter will also formulate effective research objectives and questions for
gathering effective information regarding the research topic.
Literature Review: The literature review chapter will be consisting of previous literature
about the research topic. Moreover, different theories and models about the research topic and
various empirical evidences will provide huge knowledge about the research topic.
Research Methodology: This section of research study will be consisting for various
types of research methodologies ranging from research approach to data analysis process for
extracting quality research outcome.
Data Analysis and Discussion: This chapter of the research study will collect authentic
information regarding the topic of the research from various secondary sources. Moreover, the
thematic analysis will evaluate the collected information for achieving quality research result.
Conclusion and Recommendation: A brief conclusion about the research findings will
be provided in this research. Moreover, the chapter will link the research objectives with research
findings and provide appropriate recommendation for mitigating the research problem.
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Chapter 2: Literature Review
2.0 Introduction
Literature review is all about collecting authentic information about the research topic
from the various secondary sources. Moreover, authentic secondary sources enhance the quality
of the information, which ultimately enhance the quality of ultimate research result. This
literature review will gather effective information about the effect of appraisal on enhancing the
performance of the employees. The wide sources of information will improve the ultimate
research results.
2.1 Concept of Performance Appraisal
Performance Appraisal is the systemic evaluation of employee’s performance level as per
the organizational standard. According to Cullen et al. (2014), performance appraisal process is
majorly used for understanding the abilities of employees towards further growth and
development. Moreover, proper performance appraisal process effectively identifies the strength
and weakness of the employees in comparison with the organizational standard. Based on the
strength and weakness of the employees, the managers propose opportunities for either career
advancement or proper training. On the other hand, Ohme and Zacher (2015) pointed out that
effective performance appraisal maintains and assesses the potential present of an employee
towards their further growth. Moreover, the employees are appraised in respect to their
productivity, efficiency, problem solving skills, intellectual skills and lot more. Highly
performing employees are motivated through reward and recognition for keeping up their
performance intact with organizational standard. On the other hand, appraisal process also takes

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care of weak performers towards enhancing their performance level through various training
programs.
2.2 Concept of Employee Performance
Employee performance is the job related activities expected of the employees and the
way in which those activities are executed by the employees. DeNisi and Smith (2014) opined
that the human resource managers assess the performance level of each employee on an annual
or quarterly basis for helping them in understanding their areas of improvement. The
performance and competence level of the employees builds the foundation of organizational
success. On other hand, Elnaga and Imran (2013) opined that effective employee performance is
closely aligned with organizational goals and objectives. Enhanced employee performance is
highly dependent on proper growth of employee’s skills and development. Therefore, the
organization must have to ensure for the motivation level and efficient performance assessment
of the employees.
2.3 Models for Performance Appraisals
2.3.1 360 Degree Appraisal Model
360 Degree performance review process is the most significant process in which the co-
workers, sub-ordinates and managers all anonymously rate the employees. According to Fisher et
al. (2013), the performance level of the employees of almost 1 year is evaluated from the
feedback taken from other employers and subordinates. Moreover, this multisource feedback
system incorporates the feedbacks from all organizational members, who observes the
performance of the candidate or who are affected by the candidate. On the other hand, Mawritz,
Folger and Latham (2014) opined that 360 Degree Performance appraisal model assesses the
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performance and potentiality of the employees and map their career path based on feedback
collected from their subordinates, superiors, peers and colleagues. Most of the modern business
sectors have started to appraise their employees though 360 Degree appraisal model. The model
also promotes personal development as well as collaborative working relationship. While
considering the evidence of Hamleys, it can be found that the organization assesses the
performance of the employees through 360 Degree Appraisal model. Such appraisal method
drives effective appraisal of the employees through collecting information about their
performance level from multisource.
Figure 1: 360 Degree Appraisal Model
(Source: Bouckenooghe, Raja and Butt 2013)
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2.3.2 Management by Objectives
Management by Objectives (MBO) is an interest and highly popular performance
appraisal model for assessing the performance level of the employees. According to Butts,
Becker and Boswell (2015), MBO model allows an organization towards working together for
setting, recording and monitoring the goals for a particular period of time. Moreover, both the
employees and employers together set the employees’ individual goals and overall organizational
goals. Therefore, it becomes easy for the managers to rate the employees on their performance
on an agreed basis of the employees. Moreover, the managers rate the employees against the
performance standard once set with the employees on an agreed basis. On the other hand, Breuer,
Nieken and Sliwka (2013) opined that MBO model permits disciplined approach and proactive
behavior towards goal achievement. It allows the employees towards preparing the employees in
dealing with the potential contingencies and roadblocks in the plan. In this way, this model
assists in enhancing the performance level of the employees in a smooth way.
While considering the example of River Island of United Kingdom, it can be seen that the
organization follows MBO model for appraising the performance level of the employees.
Therefore, the managers can clearly define the role and responsibilities of the employee in an
agreed basis, which can encourage the employees towards greater productivity. On the hand, the
managers can appraise the performance of the employees effectively and transparently by
matching the employee performance with predefined organizational standards.

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Figure 2: Management by Objectives
(Source: Jacobs, Belschak and Den Hartog 2014)
2.3.3 Graphic Rating Scale
Graphic Rating Scale is an easy and effective way of assessing the performance level of
the employees. Ikramullah et al. (2016) pointed out that the traits and behavior of the employees
are numbered and rated against predefined performance standards. Moreover, the performance
standard is set on the traits and behaviors like quality of work, sense of responsibilities,
teamwork, ethics, sincerity and others. High scores employees are rated high and rewarded for
their high performance against the predefined behavioral standard. On the other hand, Conway et
al. (2016) opined that the employees having ambiguous behavior in the appraisal process are
trained on their behavior improvement for further performance enhancement. The
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standardization of comparison criteria lead to accurate performance appraisal, which improves
the employee performance.
Figure 3: Graphic Rating Scale
(Source: arndale and Kelliher 2013)
2.3.4 Critical Incident Model
Critical Incident Model defines the set of processes for collecting direct observations of
the employees, which has critical significance in meeting the predefined goals of the
organization. Moreover, this method identifies the specific events, where an employee performs
extremely well or performs something that needs to be improved. According to Salleh et al.
(2013), managers provided details of the critical incidents for analysis the problem critical
problem solving skills of the employees. This subjective method provides detailed performance
evaluation of the employees towards effective performance appraisal. On the other hand,
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Cerasoli, Nicklin and Ford (2014) opined that critical incident method highly focuses on
essential duties of the employees for contributing in organizational success. Therefore, the
managers can better plan for enhancing the performance of the employees on their essential
duties. While considering the example of B&M Retail, it can be seen that the organization
effectively uses critical incident model for assessing the critical performance level of the
employees. It has ultimately enhanced the critical performance level of the employees towards
solving the critical organizational problems.
2.4 Effective Process of Performance Appraisals for Enhancing Employee Performance
Establishing Record File Recording employee accomplishment, areas of improvement
and regular feedback throughout the year
Provide Regular Feedback The managers should provide regular feedback on employees’
performance
Regular meetings on discussing the plans and goals
throughout the year
Ensures that the employees are engaging in track as per the
performance standard
Discipline Issues Deciding upon the disciplinary actions for improving the
discipline issues
Disciplinary issues are to be taken into consideration during
annual appraisal meeting
Management by Objectives Organizational goals and objectives should be set on an
agreed basis in consultation with the employees

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MBO should be tracked quarterly for making enough progress
on employee performance
Arranging Appraisal
Meeting
Conducting appraisal meeting in annual basis for keeping
track on employees’ performance
Assessing the strength and improvement areas of the
employees
Follow Up Action Providing reward and recognition for high performing
employees for keeping up their performance level
Providing training and development programs for improving
the skills and talents of low performing employees
Table 1: Process of Performance Appraisals
(Source: Poursafar et al. 2014)
2.5 Issues in Performance Appraisal Process
2.5.1 Biasness
Effective performance appraisal is highly dependent on fair and justified approach
adopted by the managers in assessing employee’s performance. Shuck and Reio (2014) pointed
out that leniency and unjustified criteria set by the manager’s leads to biasness in the
performance appraisal process. Biasness can manipulate the objectivity of overall performance,
which can hinder the effectiveness of the organization. On the other hand, Albrecht et al. (2015)
opined that leniency and biasness in the appraisal process also hamper the consistency of the
performance. It can miss out some actually talent and overemphasize some less talented
employees.
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2.5.2 Inconsistent Rating
In multisource performance appraisal process, some managers put high rating to some
employees, whereas some other managers out low rate to the employees. In such situation, it
becomes quite difficult for the organizations to appraise the performance level of the employees
accurately. In this way, inconsistent rating of the employees leads to inconsistent performance
appraisal for the employees.
2.5.3 Lack of Outcome Based Measures
In some appraisal method, the managers assess the performance level of the employees
on subjective ground. Moreover, Aggarwal and Thakur (2013) opined that the managers do not
provide any objective rating to the employees for their performance appraisal. However, best
performance appraisal is highly dependent on objective review of the appraisal process. In such
situation, subjective appraisal leads to lack of outcome based measures, which impose challenges
in effectively appraising the performance level of the employees.
2.5.4 Poorly Trained Managers
As per García-Chas, Neira-Fontela and Castro-Casal (2014), the managers performing
performance appraisal process need to be highly talented for understanding the key aspects of
employees’ performance. In such situation, poorly trained managers can wrongly assess the
performance level of the employees with lack of proper training. Hence, poorly trained managers
can impose issues in the effectiveness of performance appraisal process. Such managers often
fail to upgrade the skills and talent level of the weak performers by reducing effectiveness of
overall
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2.5.5 Lack of Proper Reward and Recognition
Organizations can also face huge issues in overall performance appraisal process due to
lack of proper reward and recognition. Moreover, Budworth, Latham and Manroop (2015)
opined that lack of proper reward and recognition may discourage the high performing
employees in keeping up their performance level.
2.6 Significant Factors and Criteria for Effective Performance Appraisal
2.6.1 Clear Objectives of Performance Appraisal
According to Kooij et al. (2013), effective performance appraisal needs to be built around
unambiguous objectives. Moreover, the objectives need to cover all the levels and areas of the
organization as well as each employee of the organization. On the other hand, Chadwick, Super
and Kwon (2015) opined that performance appraisal process should have a clear purpose, which
will lead he employees towards greater performance.
2.6.2 Flexibility
As per Alessandri et al. (2015), the process of performance appraisal should be flexible
enough to adapt any changes that might occur in future. Moreover, such adaptable appraisal
system can help in better accommodating any organizational changes.
2.6.3 Attendance
The criteria for the performance appraisal process should be clear enough for better
understanding of both employees and employers. The attendance of the employees clearly
denotes their dedication level in organizational success. Therefore, attendance of the employees
must be included in the appraisal process.

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2.6.4 Productivity
As per Budworth, Latham and Manroop (2015), productivity of the employees decides
the degree to which employees are able to meet the productivity requirement of the organization
consistently. Moreover, it also decides upon the level to which the employees are able to meet
the project deadline of organizations. Therefore, productivity criteria must be considered in the
appraisal process.
2.6.5 Quality of Work
Quality of work decides the positive and negative feedback of the customers about the
quality of employees’ work. Moreover, the quality of works defines the effectiveness of the work
done by the employees. Therefore, the quality of the work must be included in the performance
level of the employees.
2.6.6 Teamwork
According to Shuck and Reio (2014), the ability of teamwork within an employee decides
upon his/her collaboration level with other employees. Such teamwork ability reduced the
complexity level of the organizational goals. Therefore, the human resource managers must
include teamwork criteria in the appraisal method for better employee performance evaluation.
2.6.7 Levels of Knowledge
Cerasoli, Nicklin and Ford (2014) pointed out that the level of knowledge among the
employee decides their ability towards successfully performing their job roles. Such areas must
be improved for better performance enhancement of the employees. Therefore, such levels of
knowledge must be incorporated in the appraisal process for better evaluating employee
performance and enhancing their performance level in future.
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2.7 Summary
While summarizing the literature review, it can be said that performance appraisal has
huge impact on enhancing the performance level of the employees. Proper performance appraisal
process effectively assesses strength and weakness of the employees. Based on the appraisal,
organizations provide reward and recognition to the high performing employees for keeping up
their performance level. On the other hand, the managers of the organizations also provide
training and development programs for developing the skills and development programs of the
weak performers. Most popular appraisal models are 360 Degree appraisal model, critical
incident model, MBO approach and others. However, biasness, lack of outcome based measures,
lack of proper reward and recognition process. Moreover, the managers should majorly consider
productivity, quality of work, teamwork and others for effectively measuring the performance
level of the employees.
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Chapter 3: Research Methodology
3.0 Introduction
The tools and techniques that were required for the research has been described this
chapter. In order to successfully accomplish a research, the selection of most suitable tools is
extremely vital and therefore, this chapter will list the methods that have been considered for
collecting data and analyzing. Each of the methods will be evaluated and justification for the
selection of tools will be discussed. The methods that has been considered for accomplishing the
research are philosophy, approach, purpose, strategy, data collection procedure, sample selection,
data analysis procedure and ethical considerations.
3.1 Research Philosophy
According to Tuohy et al. (2013), consideration of research philosophy is the most
important aspect before analyzing rest of the tools. Research philosophy helps in setting the
source, nature and development based on which the entire research will be conducted. On the
basis of research aim, the philosophy will be evaluated. Following are the important points that
are proposed for a research through research philosophy:
Setting up the belief for constructing the research
Creating most important points and setting up the assumptions before collecting data
Creating a basis on which useful information will be collected
There are three types of research philosophies, which are Positivism, Interpretivism and
Realism research philosophy. According to Choy (2014), positivism philosophy helps in
collecting fact oriented data concerning the research topic and therefore, analysis becomes more

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prominent and authentic. The analysis that is based on positivism is completely dependent on
quantifiable information and therefore, the collected data is quite reliable and trustworthy, which
ultimately helps in enhancing research outcome quality. While considering the viewpoint of Gale
et al. (2013), it can be said that interpretivism research philosophy helps in collecting data that is
socially constructed. This helps in collecting real information about the research topic. However,
since this tool is socially constructed, hence the collected data becomes extremely subjective and
therefore impacts the quality of research outcome. Finally, considering the realism research
philosophy, it can be said that it is the mixture of both Positivism and Interpretivism philosophy
tools and therefore, is most suitable for mixed method of data collection.
Figure: Research Philosophy
(Source: Roberts 2013)
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3.1.1 Justification of Research Philosophy
While considering the three types of tools, it can be said that positivism research
philosophy is the most suitable for the research. This is because socially constructed data is
mixed with feelings, emotions and perceptions from responses provided by individuals, however,
this research will be completely based on factual information collected from various sources.
Therefore, with the use of positivism philosophy the most authentic and unbiased data available
from secondary sources has been used.
3.2 Research Approach
According to Gummesson (2014), research approach ensures the data collection accuracy
that is to be collected from the most reliable sources concerning the research objectives. The
most relevant and accurate information is collected through selection of accurate research
approach. Two most commonly used research approaches are inductive and deductive. Lather
and Pierre (2013) pointed out that through inductive research approach new ideas are created
after the data analysis. Therefore, inductive approach indicates developing new models and helps
in identifying research themes, specific patterns and conceptual framework. However, deductive
tool facilitates in collecting ideas from various literature available from theories that are already
constructed. Inductive approach is more time consuming but new ideas are generated as a
research outcome, which is not possible through deductive approach.
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Figure: Research Approach
(Source: McCusker and Gunaydin 2015)
3.2.1 Justification of Research Approach
While considering the two types of tools, it can be said that inductive tool is most suitable
for the concerned research objective. This is because based on the facts available from secondary
articles; new ideas can be generated in the form of recommendation. Even though this has been
time consuming, however analysis was more accurate. Therefore, inductive approach has been
chosen for this research.

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3.3 Research Purpose
According to King and Mackey (2016), investigating the research topic helps in
developing proper research outcome and for that research purpose creates the pathway or the
guideline for gaining knowledge of research variables. There are three most common types of
research purposes, which are explanatory, exploratory and descriptive. The explanatory purpose
helps in constructing the research variables. Identification of independent and dependent variable
is confirmed and accordingly research objectives are set. Explanatory purpose also helps in
creating the interrelationship among variables and confirms that construction of univariate,
bivariate or multivariate research. On the other hand, Žikić (2016) pointed out that exploratory
purpose involves in finding the background and social causes surrounding the research topic.
However, evaluation of social issues is mostly subjective, due to which authenticity and accuracy
of data is not achieved. Finally, descriptive purpose aims in gathering deeper concepts, ideas and
theories for analyzing the research issue. Analytical procedure through descriptive process is
more time consuming and collection of factual data is the most important.
3.3.1 Justification of Research Purpose
While considering the three types of research purposes, it can be said that for this
research explanatory purpose is the most important. This is because the data that has been
collected are from secondary sources and therefore those are not socially grounded. This research
is based on variable identification and therefore explanatory purpose has been most suitable.
3.4 Research Strategy
According to Gabriel (2015) strategy tool helps in collecting data from the most suitable
source concerning the research topic. It also ensures authenticity and accuracy of data collected.
The most common research strategies are case study, focus group, interview, and survey. Focus
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group is the most suitable when there is large number of respondents and survey is related to
collecting data. The survey process is more budget consumable and data often need to be
tampered to make the analysis error free. Therefore, it can be said that collecting of data through
suitable strategy is the most important tool.
3.4.1 Justification of Research Strategy
While considering the research strategy tools, it can be said that case study is the most
suitable strategy because this research has been based on data collected from secondary sources.
There has been no primary data and ideas from only secondary sources were gathered. Therefore,
case study was the most suitable from where most important data was collected. These case
studies were available in the form of journal articles, therefore previously done research.
3.5 Data Collection
According to King and Mackey (2016), collection of data while doing a research is the
most important part as it directly links the outcome with objectives. Therefore, selection of
appropriate data collection procedure is very important. The two most widely used data
collection procedures are primary and secondary. Through primary data collection procedure
current data is collected directly from respondents. There are two methods of collecting primary
data, which are quantitative and qualitative. In qualitative procedure open ended questions are
designed and in quantitative procedure closed ended questions, which are directly provided to
responders in the form of questionnaire. This process of data collection is known as survey. On
the other hand, Žikić (2016) pointed out that in secondary data collection procedure, only past
data is collected, which does not involve any survey, questionnaire or interview. Data collection
through secondary method involves journal articles, books, company reports, case studies,
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27DISSERTATION
websites, empirical articles and all other forms of sources, which have been already published on
the internet. However, secondary process involves more time in collecting data.
Advantages of Primary Data Advantages of Primary Data
Detailed feedback from respondents
possible
Can add up to the need of business
More in-depth market analysis is
possible
Certain information is gathered, which
are not known to competitors
Specific sample size can be selected
and controlled as per researcher
Aids in collecting data from existing
sources
Less expensive to collect information
Easier to collect data and less time
consuming
Market overview as well as
competitive position of company is
analyzed
Wide category of information can be
accessed with large sample size
Good quality analysis from
inaccessible subjects
Advantages of Secondary Data Disadvantages of Secondary Data
More time consuming while
conducting survey
More expensive as huge respondents
are addressed
Does not provide sufficient details for
analysis
Business competitors can also access
the same sources for evaluation
Table: Data Collection Comparison
(Source: Roberts 2013)

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Figure: Data Collection Types
(Source: McCusker and Gunaydin 2015)
3.5.1 Justification of Data Collection
Considering the above types of data collection, it has been identified that for the research
study secondary data collection was more convenient. This is because both time and investment
were quite limited for accomplishing the study. For survey and questionnaire huge capital would
have been required which was not feasible. Therefore, through historical article analysis the
entire research has been conducted.
3.6 Data Analysis
According to Gabriel (2015), collection of data creates the base for data analysis, which
helps in developing recommendations. The two most widely used data analyses are statistical and
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thematic. Data collected from quantitative method is evaluated and analyzed through statistical
analysis that helps in ensuring numerical and quantifiable output. Thematic analysis is the best
suitable for secondary data where multiple themes are designed based on the research objectives.
Each theme consists of data collected from various secondary sources and tables, graphs and
charts are presented. On the basis of such data, entire analysis is done in descriptive method,
which satisfies the research objectives.
3.6.1 Justification of Data Analysis
Considering the types of data analysis, it can be said that thematic analysis was the most
suitable for this research. This is because data was collected from secondary sources and
presented in the form of tables or graphs. Therefore, such data was considered as authentic as
those were derived from mostly scholarly articles. Finally, based on the research objectives
analysis was done in the form of themes.
3.7 Ethical Consideration
While considering the viewpoint of Lather and St. Pierre (2013), secondary data involves
certain ethical consideration, which is quite different from primary data collection. Individual
subjects and return for content issue are the most identifiable concerns. For this research there
has been no indication of respondents or individuals. Moreover, the information collected has not
been shared publicly and will also not be used in different platform. The researchers in previous
articles have been respected throughout. There has been no manipulation of data and each author
has been cited for justifying the authenticity. Furthermore, this research will be pertinent to only
academic purposes in future.
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30DISSERTATION
3.8 Summary
While summing up, it can be said that the research has been completely based on
secondary data collection technique with inductive approach. Secondary articles available on the
internet fetched from Google search engine, case studies, online libraries and websites
constructed the entire findings section of the research for the concerned company. Furthermore,
in order to analyze data, thematic process has been selected where each of the themes have been
constructed based on research aim and objectives. The following chapter will present the
findings and analysis of the research.

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Chapter 4: Data Analysis and Discussion
4.1 Thematic Analysis
4.1.1 Theme 1: Performance Appraisal Processes used in Tesco for Enhance employees’
performance
Tesco is concerned about appraising the performance level of the employees towards
assessing their performance in comparison with organizational performance standard. However,
the organization is still inclined to use traditional performance appraisal process for assessing the
performance level of the employees. As per Norman and Kabwe (2015) the organization uses
forced choice appraisal method for appraising the performance level of the employees. In this
appraisal method the performance appraisal managers of Tesco are forced to assess the
employees based on some available criteria. Moreover, the rater does not have much control over
assessing the performance level of the employees. The raters are to choose between only positive
and negative set of choices of employee behavior to choose from (Saeed 2016). However, such
appraisal method does not provide much scope to the employees towards improvement, as their
potentiality is not assessed too much.
Tesco also uses paired comparison method for appraising the performance level of the
employees. In this method, the appraisers compare the performance level of one employee with
other employees. Such comparison mostly considers the employee attributes like job skills,
talents, tasks and others. However, such appraisal sometimes disappoints the employees in
unnecessary comparisons among the employees. From the findings of Angrave et al. (2016), the
ranking and grades used in this appraisal method sometimes gets biased with the biased view of
the appraisers. Therefore, the employees of the organization do not often get right appraisal
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32DISSERTATION
benefits for their efforts in organizational success. On the other hand, the organization also used
management by objective for appraising the performance level of the employees. In such
method, the organization set the goals and objectives of the organization and employees’ role
and responsibilities in an agreed term. After that, the performance level of the employees is
assessed against the set performance standard of the organization. This performance appraisal is
also assessed on an agreed term between the appraisers and employees. However, the appraisers
of Tesco often avoid the agreed terms of documented in the appraisal terms. Therefore, the
effectiveness of performance appraisal in Tesco gets affected with lack of adherence to the
agreed terms of performance appraisal (Den Hartog et al. 2013). In this way, the Tesco mostly
uses traditional method of performance appraisal over the modern method of performance
appraisal in assessing the performance level of the employees.
4.1.2 Theme 2: Comparing performance appraisal process of UK Retail Sector
UK retail industry is now highly concerned about appraising the performance level of
employees both for enhancing overall organizational performance as well as individual
organizational performance. Sainsbury has perfectly managed to enhance the performance level
of the employees. According to the findings of Aikens et al. (2014) the organization uses almost
all modern methods of performance appraisals for assessing employee performance. In this way,
they can perfectly assess the performance level of the employees with the overall performance
standard. Moreover, the organization mostly uses Management by Objective method
performance appraisal for appraising their employee performance. Apart from annual review, the
organization also reviews the performance of the employees quarterly, so that the employee
performance remains consistently with overall organizational standard. As per McDermott et al.
(2013), quarterly review of the employees also better identifies the training needs of employees
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33DISSERTATION
and develops frequent training programs for enhancing their performance level. Therefore, the
employee has better improved their weak areas towards enhancing their performance level. It has
ultimately enhanced the retention rate of the employees with reduced employee disappointment.
On the other hand, ASDA is appeared to be more concerned with long-term productivity
enhancement of the employees. This organization mostly uses 360 Degree appraisal method for
assessing the performance level of the employees. The performance appraisal managers mostly
conduct such appraisal in an annual basis for measuring annual performance level of the
employees. Moreover, the organization uses proper criteria for measuring appraising employee
performance for their proper assessment. According to Owens, Johnson and Mitchell (2013), the
organization majorly focuses on the performance criteria like productivity, job efficiency,
teamwork, job skills and many others. Therefore, it becomes easy for the appraisal managers to
assess the performance level of the employees in proper manner. Furthermore, the organization
also effectively compensates the hard working of the employees with lucrative rewards and
recognition for keeping up the performance level of the high performing employees (Tims,
Bakker and Derks 2013). For example, the organization offers performance bonus, quality
incentives, profit sharing bonus and lots more. Furthermore, the organization also offers
international promotional opportunities for valuing the hard work of the employees. In this way,
the employees are less likely to seek for any better job opportunity in other organizations.
Therefore, the organization has become able to reduce the turnover rate of the employees by
enhancing their performance level.
Tesco mostly uses traditional method of performance appraisal for assessing the
performance level of the employees. However, such traditional method often does not fit for the
performance appraisal in modern organizational system. Moreover, the performance checklist

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and ranking method measures the overall performance rate of the employees and does not focus
on specific performance areas of the employees (Gelens et al. 2014). Furthermore, the
organization does not provide attractive reward and recognition, which is ultimately discouraging
the employees and hampering the performance level of the employees.
Sainsbury ASDA Tesco
58
43
76
61.45
49.05
65.0864
51.67
58.15
2012 2014 2016
Figure 1: Employee Performance Level of UK Retails
(Source: Alagaraja and Shuck 2015)
4.1.3 Theme 3: Issues in Performance Appraisal Process of Tesco
Tesco is concerned about appraising performance level of the employees for measuring
the performance level of the employees. However, the intension of the organization is only
concerned with enhancing the overall performance of the organization. It does not have any
concerned about employee benefits for their high performance. Moreover, in the annual
performance review, the organization does not properly identify the training needs of the
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35DISSERTATION
employees for improving the performance level of the weak employees. From the finding of
Topham (2016), it can be seen that in the year 2014, the organization has cut cost by 40% with
layoff of 300 employees, who were underperforming. It was quite frustrating for the remaining
employees that the employees did not get right appraisal and being laid off rather than improving
their performance. Furthermore, the organization does not also provide attractive reward and
recognition to the employees for their high level of performance. Moreover, the organization
does not provide overtime pay or bonuses to the employees for their extra work and contribution
in the organizational success (Metro 2016). Therefore, the employees of the organization are
more inclined towards leaving their current jobs for seeking more beneficial job opportunities.
Furthermore, such appraisal system also makes the employees disappointed, which reduces their
overall job performance.
Apart from that, there is also lack of transparency in the performance criteria for
appraising the performance level of the employees of Tesco. Moreover, the managers of the
organization do not clarify the performance appraisal criteria to the employees properly.
Therefore, the employees do not get right track for enhancing their performance based on the
performance criteria. In this way, the performance level of the employees ultimately gets
hampered. On the other hand, the appraisers of Tesco often include biasness in appraising the
performance level of the employees. As per the findings of BBC News (2016), the organization
is claimed with discriminating between the male and female employees in offering recognition
for their higher performance. Moreover, male employees are more likely to get higher post than
their female employees even if the female employees demonstrate more productivity than the
male employees. According to the newspaper report Metro (2016), it has been found that the
organization also has lack of quarterly review regarding the performance level of the employees.
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36DISSERTATION
Therefore, the managers become failed to identify the core improvement areas of the employees
over the years. In this way, the annual performance level of the employees is reduced with lack
of training or development over the year.
4.1.4 Theme 4: Impact of Performance Appraisal Process on Employee Performance of
Tesco
Performance appraisal can act as the motivation tool for the employees towards
improving their productivity level. Proper performance appraisal system enhances the motivation
of the employees towards their productivity improvement. Moreover, the employee productivity
is automatically increased, when the goals are clearly defined, performance challenges are
identified and proper career development solutions are provided to the employees. However, in
case of Tesco, the managers of the organization do not properly clarify the goals of the
employees (Posthuma et al. 2013). Therefore, the employees suffer from role ambiguity, which
de-motivates the employees. Moreover, the employees cannot properly focus on their own job
roles with ambiguity in their job roles. The employees also face role conflict at their workplace,
which ultimately reduces their productivity level. In this way, the performance level of the
employees is reduced with lack of clarity in the job roles. On the other hand, the biasness and
discrimination in the performance appraisal process lead to confliction between the employees
and employers. Such confliction ultimately becomes the source of employee dissatisfaction in
Tesco.

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2 0 1 0 2 0 1 2 2 0 1 4
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Employee Satisfaction
Employee Satisfaction
Figure : Employee Satisfaction in Tesco
(Source: Dalal, Bhave and Fiset 2014)
From the above figure, it is clear that the satisfaction level of the employees in Tesco is
gradually decreasing year after year. The biasness and discrimination in the appraisal system has
caused such gradual decrease in the satisfaction level of the employees. Furthermore, lack of
overtime pay or proper reward and recognition is undervaluing the contribution of the employees
in overall organizational success. Moreover, as per Singh, Winkel and Selvarajan (2013), Tesco
offers only 5% of the employee salary as the turnaround bonus to the employees. It seems to be
quite less in comparison with other retailers in the retail industry of United Kingdom. Therefore,
the employees are more likely to shift in other organizations for seeking better job opportunities.
In this way, such issues in performance appraisal are ultimately reducing the retention rate of the
employees in Tesco. Moreover, biased appraisal system is increasing the turnover rate of the
employees over years. From the finding of BBC News (2016), it has been found that in the last
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38DISSERTATION
year, the turnover rate of front line employee in Tesco has been increased by 25% from the
previous year. Therefore, the overall productivity of the employees is being reduced with high
level of employee turnover.
0
5
10
15
20
25
30
14
25
30
Employee Turnover
2010 2012 2014
Figure: Employee Turnover Rate in Tesco
(Source: Petrou, Demerouti and Schaufeli 2015)
4.1.5 Theme 5: Performance Review Phrases in Tesco
Performance appraisal phrases are mostly used for ensuring the effectiveness in the
appraisal process for perfect evaluation employee performance. Accountability ensures
transparency in the performance review process. The findings of Topham (2016) have
demonstrated that the managers of Tesco are being incapable of maintaining transparency with
the employees in terms of clarifying the exact performance criteria. Therefore, the employees are
being failed to focus on their job role having lack of clarity in the performance appraisal process.
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39DISSERTATION
Commitment ensures the eagerness of the employers to provide the committed reward and
recognition to the employees. It also ensures the willingness of the employees towards getting
the committed benefits to be offered by the employers. However, the employees of Tesco are
limited to get their rewards based on overall profit level of the organization. As per the review of
Metro (2016) the amount and level of recognition often gets modified with the overall profit
level of the organization no matter what the committed rewards were for the higher performers.
In this way, the employees of Tesco are gradually being disappointed, as they are not getting
their committed rewards. It is also affecting their performance level of the employees in Tesco.
Reliability and equality in the performance appraisal system ensure equal distribution of
performance pay among all the employees based on only their performance and not on any other
factors. In case of Tesco, it has already been alleged with discrimination of performance pay
between the male and female employees.
Women Men
0
1
2
3
4
5
6
7
Perform ance Pay Distr ibution
2012 2014 2016
Figure: Performance Distribution Pay

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(Source: Petrou, Demerouti and Schaufeli 2015)
Cooperation level of employers ensures assistance to the employees for enhancing the
performance level of the weak employers. However, Tesco does not provide adequate training
and development program to the weak performer towards improving their performance (Dalal,
Bhave and Fiset 2014). Therefore, the weak performing employees get frustrated with
completing complex types of jobs. They do not get any confidence on doing their job roles
effectively. In this way, their performance level is ultimately diminished with lack of proper
skills and talent improvement opportunity.
4.1.6 Theme 6: Best Performance Appraisal Process to be adopted in Tesco for Enhancing
Employee Performance Appraisal
Proper and effective employee performance appraisal can act as the best tool for
enhancing the performance level of the employees. Tesco is having huge issue in enhancing the
performance level of the employee due to issues in appraising employee performance. The
employees are mostly disappointed due to ineffective appraisal system conducted in Tesco.
However, Tesco has huge scope in enhancing the performance level of the employees through
using effective performance appraisal method. Moreover, the appraiser mangers should properly
clarify the role and responsibilities of the employees. The managers should also set proper
criteria for performance appraisal so that the employees can properly concentrate on those
performance criteria for enhancing their performance level (Norman and Kabwe 2015). On the
other hand, the organization should also conduct quarterly review of the employee performance
so that the managers can keep track on the employee performance over the year. It will ensure
that the performance of the employees would not deviate from performance standard set by the
organization.
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41DISSERTATION
Tesco should enhance the effectiveness performance appraisal through rewarding and
recognizing performance of the employees. Moreover, the managers should provide attractive
reward and recognition for valuing the high performing employee. It will motivate the high
performing employees in keeping up their performance as per organizational standard.
Moreover, such attractive reward and recognition will also encourage the weak performer in
improving their performance level for getting rewards and recognition (Angrave et al. 2016).
Apart from that, effective performance appraisal is largely dependent on proper training and
development program arranged for the weak performers towards enhancing their performance.
Therefore, the organization should arrange proper training and development program towards
improving their performance level. Moreover, effective training and development program
would also enhance the confidence level of the weak employees towards performing complex
task. Therefore, it will ultimately enhance performance level of weak performer.
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42DISSERTATION
Chapter 5: Conclusion and Recommendation
5.0 Conclusion
While concluding the research study, it can be said that Tesco has huge issue in
appraising the performance level of the employees. Moreover, the organization mostly uses
traditional appraisal method in assessing the performance level of the employees. Such
traditional methods of performance appraisal are incapable of assessing the core improvement
areas of the employees. Therefore, the organization is being failed towards improving the
performance of the employees properly. On the other hand, the managers of the organization do
not also use transparent criteria for assessing the performance level of the employees. Therefore,
the employees do not get right track for enhancing their performance. The organization has also
been claimed with underpaying the employees for their hard work and overtime work. In this
way, such appraisal methods are reducing the overall performance level of the employees.
The phrases of performance review are also getting hampered with lack of accountability,
equality and commitment. Therefore, the organization should initiate quarterly review
employees’ performance management for keeping track on the employees’ performance over the
year. Apart from that, the organization should also provide set proper performance criteria so that
the employees can concentrate on those performance criteria for enhancing their performance
level. Furthermore, Tesco should provide attractive rewards and recognition to the high
performing employees for keeping up their performance level intact with the organizational
standard.

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5. 2 Linking with Objectives
Objective 1: To recognize the effects of performance appraisals on employee's
performance of Tesco
This objective is perfectly aligned with data analysis section for reaching at better
research result. Theme 2 and Theme 4 have been aligned with these research objectives. From
the linking of this objective with the data analysis section, it can be understood that
ineffectiveness of the performance appraisal is reducing the satisfaction level of the employees,
which is ultimately reducing their performance level.
Objective 2: To identify the performance appraisal process of Tesco towards assessing
employee’s performance
This research objective has been perfectly aligned with the data analysis section. Theme 1
has been linked with this research objective for achieving accurate research result. From this
linking, it has been found that Tesco mostly uses traditional method of performance appraisal for
assessing the performance level of the employees. Furthermore, the organization also uses the
modern performance appraisal method like MBO approach. However, the criteria for such
appraisal are unclear to the employees.
Objective 3: To assess the issues related to the performance appraisal of Tesco
This research objective is perfectly aligned with the data analysis theme like theme 3 and
theme 5. From linking this objective with the thematic analysis, it can be seen that the major
issue of Tesco’s performance appraisal is lack of proper reward and recognition. Such lack of
reward and recognition de-motivates the employees towards enhancing their performance level.
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The managers of Tesco do not clarify the performance criteria of the employees. Therefore, the
employees do not get right track for enhancing their performance level.
Objective 4: To recommend the best of improving employ’s performance of Tesco
though effective appraisal
This research objective has been linked with theme 6 of thematic data analysis. From this
linking, it can be said that Tesco should use clear and transparent performance criteria for
assessing performance level of the employees. On the other hand, the organization should also
use attractive reward and recognition for valuing the excellent performance level of the
employees.
5.3 Recommendation
5.3.1 Proper Criteria for Performance Appraisal
Tesco should use proper performance appraisal criteria for assessing the performance
level of the employees. Moreover, the organization should use clear performance criteria like
productivity, job skills, job efficiency and others. It will help the employees in focusing on their
performance based on the criteria, which will enhance their overall performance level.
5.3.2 Adequate Reward and Recognition
Reward and recognition is extremely important for appraising the performance level of
high performing employees. Moreover, reward and recognition help in valuing the highly
performing employees for their excellent performance. Therefore, it assists in motivating the
highly performing employees, which will help in keeping up the performance of the high
performers as per organizational standard.
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45DISSERTATION
5.3.3 Proper Training and Development Program
Effective training and development program helps in enhancing the talent and skills level
of weak employees. The Tesco should arrange effective training and development program for
enhancing the performance level of the weak employers. It will also increase the overall
performance level of the employees in the organization.
5.3.4 Using Modern Performance Appraisal Method
The main issue performance appraisal in Tesco is that it uses traditional method of
employee performance appraisal. Moreover, the organization should use modern performance
appraisal method for assessing the core improvement area of the employees. It will ultimately
help in effectively assessing the performance level of the employees.
5.4 Limitation of Research
Every academic research is associated with some limitation. Such limitation can hamper
quality of ultimate research result. This research study was associated with lack of access to
more authentic secondary sources due to budget limitation. Lack of proper access to the
authentic data sources can hamper the quality of ultimate research result. On the other hand, the
research result can also be hampered due to time limitation.
5.5 Further Scope of Research
This research study can be an effective secondary source for the further researches.
Moreover, this research study can provide effective secondary information to the further
researches, which are based on same types of research study. Furthermore, the research study can
also help the organizations towards solving their performance appraisal related issues for
enhancing employees’ performance.

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Appendix
Personal Statement
This research paper has provided me the best experience in my life. The activities of the
research paper have enhanced my overall knowledge about the academic research. Moreover, the
research study has fostered both my professional as well as personal development. The
theoretical background of the research topic has enhanced my academic knowledge. Moreover, I
have learned a lot about the managing human resources towards leading successful organization.
The models and theories used in this research paper assisted me in aligning the theoretical
content into practical situation. I have faced lot of challenges for successful completion of the
research paper. However, my supervisors and academic guides have assisted me a lot towards
overcoming the critical challenges of the research paper. They have assisted me by directing the
rights ways of conducting the research study. Moreover, my academic guide has also guided me
in framing proper research questions and objectives. It has helped me in getting proper research
outcome. My supervisor has facilitated me data collection for the research through guiding about
the sources of the data collection.
Throughout the research paper, I have learned a lot about the proper ways of research
completion. Such research enhances research skills and talents will assist me in conducting the
further research paper in a better way. I have gained huge knowledge about research topic
through accessing various authentic sources. Such authentic sources have also facilitated me in
enhancing the quality of the research study. Such sources have also enhanced my academic
knowledge. The research paper has also built my professional potentiality having high level of
practical knowledge gained from the information. Moreover, I have learned about the way of

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55DISSERTATION
managing the performance level of the employees through effective performance appraisal. The
knowledge about the performance appraisal and drivers of employees’ performance has
enhanced my potentiality of being an effective human resource manager. In this way, I can apply
such practical knowledge of performance appraisal in managing the performance level of the
employees of the organization, where I can join after completion of my course.
I have also learned about time management towards successful completion of the
research paper. Moreover, I have learned to complete important tasks within a definite time
period for enhancing the effectiveness of those tasks. Such time management ability would also
facilitate me in my career life towards successful completion of my job role within its strict
deadline. Apart from that, I have also learned something about financial management through
completing the research within limited budget constraints. Such ability of financial management
would also assist me in my career life. The research paper has enhanced my problem solving
skills through overcoming the various challenges of the research. Such critical and problem
solving skills would help me in solving critical organizational problems in my career life.
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