Case Study on Tesco's Appraisal Employee Performance

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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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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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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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

7DISSERTATION
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?