(PDF) Effectiveness of Performance Appraisal System

Research project

Table of Contents
TOPIC: To identify role of performance appraisal in order to enhance business performance
effectively....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Introduction:................................................................................................................................1
Statement of research problem....................................................................................................1
Scope of research........................................................................................................................2
Research Questions.....................................................................................................................2
LITERATURE REVIEW................................................................................................................3
What is performance appraisal?..................................................................................................3
What are the various tools and methods to evaluate performance of an individual?..................3
What is the role and importance of performance appraisal practices to enhance business
performance?...............................................................................................................................4
DATA INTERPRETATION...........................................................................................................5
RESEARCH METHODOLOGY...................................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES .............................................................................................................................20

TOPIC: To identify role of performance appraisal in order to enhance business performance
effectively.
INTRODUCTION
Introduction:
Performance appraisal is an chain of systematic activities for evaluation of performance
of an employee for understand ability of an individual for further development and growth
(Ayers, 2015.). It is also known as performance evaluation,development discussion and
employee appraisal to give right kind of feedback to employees regarding their performance and
work for justification for increasing their pay and give bonuses with their termination decisions.
This research report is based on Hotel Hilton which is an global brand of full hotel services and
resorts and important part of hospitality industry. This research report is based on role and
significance of performance appraisal on an individual and organisation to get desirable results in
proper way. Performance appraisal not only helps in gaining competitive advantage by giving
motivation by different ways and methods to their employees but also helps to organisation to
gain competitive advantage.
Background of the research:
Performance appraisal is one of most important part of human resource activities to
evaluate and understand the competence and ability of the employees to attain goals and
objectives (Bednall, Sanders and Runhaar, 2014.). It is a great chain of activities that helps to
give motivation level by understanding abilities of an individual and it can be possible when
supervisor evaluates and measure pay of their employees by comparing with their targets and
plans in proper way. Supervisor examine the factors behind performance of their employees in
better way. By all there major efforts organisation can be easily evaluate performance level of
their employees in best way. This research report is based on Hotel Hilton which is an important
part of hospitality industry in UK. So major cause to conduct research on specific subject matter
to reach at level of motivation of employees so that organisation can give them best services and
facilities to attain competitive advantage.
Statement of research problem
This research is based on role and importance of performance appraisal for enhancing
productivity of an employee by giving their best satisfaction level. Performance appraisal is one
1

of most important and significant part of organisational growth and it is directly related with
growth of an individual to giving best working conditions to them. So major concern or objective
of the organisation to reach at desirable goals and objectives.
Scope of research
Scope refers to importance of the research and its subject matter to get important results
in better way. The major objective behind conducting research is significant for an organisation.
Ways by which needs and wants can be identified in better way to give satisfaction level to
consumers in better way.
Research Aim
To identify role of performance appraisal in order to enhance business performance
effectively. A study on Hotel Hilton.
Research Objectives
 To analyse and evaluate concept of performance appraisal.
 To examine various methods used by organisation to evaluate performance of an
individual.
 To determine role of performance appraisal practices in order to increase business
performance.
Research Questions
 What is performance appraisal?
 What are the various tools and methods to evaluate performance of an individual?
 What is the role and importance of performance appraisal practices to enhance business
performance?
Timescale:
Timescale is one of important attribute for researcher to divide works and activities in
systematic format as per specific time period in which it has been accomplished (Bernardin and
Wiatrowski, 2013.).
Rationale of research:
Research is very important for an researcher to reach at desirable outcome in positive
way by collecting knowledge and information in proper way. It is very much important for an
organization to find out major importance of that particular research and their respective results.
2

By conducting research and development organization can be able to reach at hidden facts and
figures that are helpful to reach at ultimate goal.
LITERATURE REVIEW
Literature review also known as narrative review which is an type of review article. It is
a kind of scholarly paper in which includes current knowledge and information by collecting
substantive findings by using theoretical framework on a particular subject matter (Culbertson,
Henning and Payne, 2013).
What is performance appraisal?
As per the view of Chitra Reddy (Performance appraisal: Meaning, objectives, Methods
and Process 2016) it is a systematic evaluation or examination of performance of various
employees by that organization can be understand their abilities for their development and
growth. It can be possible by measuring the pay of employees by comparing with organizational
plans and activities, evaluating performance of an individual and skills and capabilities that are
obligatory for performing work in better way. There are some major objectives behind
conducting performance appraisal in an organization that are to review and evaluate performance
of an individual to get desired performance level of a employee. To exercise control over
activities of an individual so that they execute works and activities as per need of an
organization. By giving summary or gist about goals and objectives of an organization employee
can give their best for both for their own development as well as organizational. It helps in
giving satisfaction level to employees in giving their best efforts to achieve organizational goals
and objectives in proper way. So performance appraisal is one of most significant aspect for
Hotel Hilton to attain high ratio of competitiveness and potential members to remain always
competitive in between their rivalries.
What are the various tools and methods to evaluate performance of an individual?
As per the view of Danielle Shepherd (Top methods and techniques for evaluating
employee performance 2019), evaluation of the performance level of an individual is very much
important for an organization for improving their performance, to amend quality of work and
give motivation level. In a comprehensive performance evaluation process consist of various
kinds of methods and tools that helps to evaluate performance of an individual in better way that
are as follows:
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Peer review:
Peer review is one of important strategy to get results after evaluating performance of an
employee by taking continuous feedback from colleagues, team members and their peers on an
specific subject matter to get right kind of results. Peer review used by Hotel Hilton to evaluate
performance of their employees that they are up to the mark or not. It proved beneficial in
providing skills and capabilities by finding out networking of an individual, leadership skills and
collaboration skills are very much important aspect to identify skills of an individual.
Critical incident technique:
This technique of performance appraisal concerned with making and building statements
that describe both positive and negative reactions or answers to stimulus by personnel at
workplace. All the statements are recorded in cumulative time period that helps in evaluation of
performance of an individual in great manner regarding their job and their performance. That
techniques of performance appraisal under which employee serving in best manner and utilized
at time of interview period. Interviewer give scenario for that interviewee have to react and give
answers.
What is the role and importance of performance appraisal practices to enhance business
performance?
As per the view of Gaurav Akrani (Importance of Performance Appraisal- Advantages
uses 2019) performance appraisal is very much important for an organization as well as
individual to get right kind of information and knowledge about employees skills and capabilities
to lead in market. There are some advantages of performance appraisal that are as follows:
Performance feedback:
With help of performance appraisal organization can be able to give remarks to their
employees as most employees always remain curious to know how they perform and their efforts
at present and in future. By that information employees can easily improve their performance
level for get promotions and merit pays. So it proved beneficial to get desirable level of
performance of an individual to remain always competitive in marketplace. In context of Hotel
Hilton they as per the demand of employees provide performance remarks so that they can
improve in better way.
Employee training and development decisions:
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Performance appraisal is one of most important part of Human resource activities in
taking important decisions regarding employee needs additional training and development to
perform in better way. Deficiencies arise due to the inadequate knowledge and information
regarding subject matter and about work. With help of performance appraisal Hotel Hilton can
be able to take proper decision regarding that employees have to need training and development
to get right kind of outcomes in proper way.
DATA INTERPRETATION
QUESTIONNAIRE
Name:
Age:
Gender:
Contact no.:
Q1) Do you have knowledge about performance appraisal?
a) Yes
b) No
Q2) which method of performance appraisal used by Hotel Hilton?
a) Peer review
b) Critical incident technique
c) Both of them
Q3) Is performance appraisal helps in achieving meaningful goals and objectives?
a) Yes
b) No
Q4) Is performance appraisal helps in improving performance of an individual after its
implementation?
a) Yes
b) No
Q5) How performance appraisal helps in enhance employee motivation and satisfaction in
job?
a)Total output level
b) Behavioural efficiency
5

c) Both of them
Q6) what are the benefits of performance appraisal?
a) Motivated workforce
b) efficiency in work
c) competitiveness in market.
Q7) What are the negative side of performance appraisal?
a) High cost and time
b) Biassed results
c) sometimes demotivated employees
Q8) Is implementation of performance appraisal program obligatory for Hotel Hilton?
a) Yes
b) No
Q9) Is performance appraisal is sufficient tool to evaluate performance of the employees
either need some changes?
a) Alternative
b) Sufficient
Q10) To improve level of performance what important measures an organisation can
adopt?
a) Training and development
b) continuous performance
Q11) Recommend some ways through which employees retention can enhance
profitability of company.
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Q1) Do you have knowledge about
performance appraisal?
Frequency
a) Yes 20
b) No 10
Interpretation:
Performance appraisal is one of most important human resource activity for an
organisation. With help of performance appraisal organisation can be able to give best working
conditions and motivation level to reach at desirable goals and objectives in proper way. As
respondents give remark that they are know about performance appraisal in better way. It helps
to give motivation level to employees in giving their best. In that majorly respondents gives
remark that they know about performance appraisal.
Q2) Which method of performance
appraisal used by Hotel Hilton?
Frequency
a) Peer review 10
b)Critical incident technique 10
c) Both of them 10
7
a) Yes b) No
0
10
20
20
10
Column B

Interpretation:
from the above graph it has been summarised that there are various kinds of tools and
techniques to evaluate performance of an individual in better way. Different kinds of methods
perform various functions by evaluating work performance of an individual in better way. In
context of Hotel Hilton that uses both peer review and self evaluation method of performance
appraisal to evaluate skills and capabilities of an individual and that helps in taking important
decisions. In that concept all respondents equal remarks for evaluation about performance
appraisal methods that all are very much important.
Q3) Is performance appraisal helps in
achieving meaningful goals and objectives?
Frequency
a) Yes 25
b) No 5
8
10
10
10
a) Peer review
b) Self evaluation
c) Both of them
a) Yes b) No
0
10
20
30
25
5 Column B

Interpretation:
Performance appraisal is one of most important factor to give important measures by
which performance of the employees should be evaluated to judge their skills and capabilities. In
context of Hotel Hilton they use performance appraisal to get right kind of value from their
employees so that they can gain competitive advantage. For that 25 respondents favours that
performance appraisal proved beneficial for organisation to gain competitive advantage in
positive way.
Q4) Is performance appraisal helps in
improving performance of an individual
after its implementation?
a) Yes 28
b) No 2
Interpretation:
Performance appraisal is one of most important aspect and important part of human
resource. It helps in giving motivation level to employees so that they can give their best in
organisational development and enhancement. With help of performance appraisal employees
are able to give their best in organisational development by improving working conditions. In
that aspect 28 respondents give their remarks that performance appraisal helps in improving
performance of an individual in positive way.
Q5) How performance appraisal helps in
enhance employee motivation and
9
a) Yes b) No
0
10
20
30
28
2 Column C

satisfaction in job?
a)Total output level 20
b) Behavioural efficiency 5
c) Both of them 5
Interpretation:
Performance appraisal is very much important for an organization to give motivation
level so that they can give their best in organizational development and enhancement. With help
of performance appraisal organization can be able to not only moderate their total output level
but also their behavioral aspect that they think in development of their respective firm and their
actions are also always in favor of them. So it helps in develop total output level and also
moderate in behavior that helps to achieve organizational growth and enhancement in positive
way. So respondents give their remark in favor of that performance appraisal helps in enhancing
total output level and 5 for behavioral efficiency and and 5 for both of them.
Q6) what are the benefits of performance
appraisal?
a) Motivated workforce 15
b) efficiency in work 10
10
20
5
5
a)Total output level
b) Behavioural efficiency
c) Both of them

c) competitiveness in market. 5
11
15
10
5
a) Motivated workforce
b) efficiency in work
c) competitiveness in market.

Interpretation:
Performance appraisal is very important aspect in Human resource management to give
appraisal and rewards in against of employee performance. Performance appraisal helps in
enhance motivation level of employees with help of it they can be able to give their best in
effective way. When employees are satisfied with their job they devote their best in
organisational development and enhancement in positive way. It directly give positive outcomes
regarding efficiency level of their performance by giving competitive advantage. In that aspect
20 respondents remark that motivation is important result of performance appraisal and 10
respondents said that it brings efficiency in their work and carry out competitiveness.
Q7) What are the negative side of
performance appraisal?
a) High cost and time 18
b) Biassed results 2
c) sometimes demotivated employees 10
12
18
2
10
a) High cost and time
b) Biassed results
c) sometimes demotivated
employees

Interpretation:
In an organization performance appraisal is very much important by evaluating major
strengths and skills of an individual to get right kind of results in positive way. But while
adopting performance appraisal in an organization they face some kind of problems and impact
negatively on organizational growth and enhancement. In that aspect 20 respondents give remark
that it takes high cost and time that hinders self interest of Hotel Hilton to deal in effective
manner. 2 respondents states that it creates biased results that bring negativeness in employees
and it directly affects their productivity level.
Q8) Is implementation of performance
appraisal program obligatory for Hotel
Hilton?
a) Yes 20
b) No 10
13
20
10
a) Yes
b) No

Interpretation:
It is very much important for an organization to apply performance appraisal
program that not only proved beneficial for individual but also for organization to remain
competitive in marketplace. If an organization not apply it in their system they are not able to
retain competitive staff members that are very much important for an organization. In context of
Hotel Hilton they adopt performance appraisal to achieve best results by motivating people in
better way. In that context 20 respondents give remark in favor of that organization have to apply
these practices.
Q9) Is performance appraisal is sufficient
tool to evaluate performance of the
employees either need some changes?
a) Alternative 20
b) Sufficient 10
Interpretation:
For an organization no tool and technique sufficient to get right kind of solution of any
problem. They have to evaluate many more options that helpful in solving problems that faced
by an organization. It is very important to evaluate various options that proved advantageous for
an organization. Such as Hotel Hilton have to use 360 degree performance appraisal system in
which each and every aspect of an individual should be evaluated in proper way so that biased
can be eliminated at maximum level. So 20 respondents are in favor to adopt other alternatives
present system of evaluation is not sufficient in itself.
14
a) Alternative b) Sufficient
0
10
20
20
10
Column B

Q10) To improve level of performance what
important measures an organisation can
adopt?
a) Training and development 15
b) continuous performance 15
15
a) Training and development
b) continuous performance
0
10
20 15 15
Column B

Interpretation:
From the above graph it has been summarised that to give competency level to employees
in an organisation various activities should be conducted. It can be only possible by giving
training and development to them and by identifying their weak areas in which important
rectification are very much important to get right kind of value and important results out of it. So
with both of these factors organisation can be able to give skills and capabilities that are very
much potential to remain always competitive in marketplace. Respondents give equal remarks
that both training and development with continuous performance plan both are very much
important for an organisation to deal in effective manner with situations.
RESEARCH METHODOLOGY
Research Methodology
This is refers as a method of collecting and analysing data which will help in business
decision making. Research methodology provides a proper plan to researchers for developing
research (.DeNisi and Murphy, 2017). There are various methods which help in conducting
effective and efficient research. This pay a very crucial role achieving goals and objective of
organisation by identifying data and analysing data. Systematic plan for conducting research is
mention below.
Research design
It is a detailed framework for researchers which help in identifying how investigation will
take place. Research design include all techniques or set to methods which will help in collecting
data as well as analysing data to get use full information. Design of research is used to explain
what type of research should be used to which help in solving research problem in organisation.
Research approach
Research approach can be define as a proper plan or procedure that provides detailed
methods of collecting data, analysing data as well as interpretation of data (Dusterhoff,
Cunningham and MacGregor, 2014.). In this approach of research is identified and which will
help in achieving objective and goal of organisation. Research approach is classified into
deductive, inductive, abductive research approach. According to nature of research problem is
being addressed and data is collected as well as analysed.
Data collection
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This is a way of gathering and collecting data which help researcher to conduct an
effective research (Iqbal, Akbar and Budhwar, 2015.). Data collection consist of various
methods for measuring and analysing information for identifying accurate insight of research by
using validated techniques. Data can be collected through various methods such as primary and
secondary methods. These methods will help in collecting useful information for conducting
research.
Primary method
This is refer as a method of collecting data which will help in conducting a fruitful
research (Elliott, 2015). Primary data is known as data which is first hand data and information
collected in this type of data is never used in any other research. Researchers who are collecting
data by primary methods are called as owner of data. Primary data is can be collected by various
methods such as interview, survey, force group, observation etc. data collected or information
gathered in this methods are original and fresh. This method is useful for collecting specific data
for research or to analyse any problem. It is very cost and time consuming methods as well as
require high skill and knowledge. In this research primary data is used to develop questionnaires.
Secondary method
This method helps in collecting data which is already gathered and used by other
researchers. Secondary data is basically collecting information from data which is gathered in
primary research (Gupta and Kumar, 2012.). There are various methods used in this research for
collecting data through secondary research such as data collected through internet, books or
journals, business documents, government data etc. Secondary data is a second hand data which
is already previously used. Researchers can collected data by this methods as it is easy to use and
gather data. This method is less time and cost consuming to organisation. Secondary data is not
very specify and authenticity of these data can be questioned.
Qualitative research
This is define as a research which focus on collecting and analysing data to conduct
exploratory research. Qualitative research is can not be determine in a numerical or number
form. Data collected and analyse in this research are by using methods such as in depth
interview, group discussion, careful observation to conduct effective research.
Quantitative research
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This research can be analysed by gathering numerical data and this data can be
transformed into statistics. Quantitative data can be collected by various methods which includes
online or offline survey, interview, systematic observation. These methods are used to quantify
attitudes opinions or behaviour of many variables to generalise results of large population
sample.
Sampling
Sampling is a way or procedures for selecting sample members from a larger population.
It is refers as selection of some sample from population which needs to be study to gather and
analyses information (Espinilla and et.al ., 2013. ). Sampling method can be classified into three
common ways which is simple random sampling, stratified sampling and cluster sampling.
Sample size is a number of individual taken form large population to conduct a study of
research. Researcher have to identify numbers of observation taken from a population which
represent statistical inference for whole population. Sample size taken for this research is 30
respondents who is students and employees which help in representing data of large population.
Conclusion, Recommendation and anticipated limitation
Recommendations
From the above report it is recommended that organisation should to use right methods
for evaluation performance of employees. Right evaluation of employee performance will he
very helpfully in performance appraisal. It is recommended that organisation should effective
communicate expectations from employees as well as goals that they have to achieve.
Organisation should avoid biasses while conducting performance appraisal process. These
recommendations will help in satisfying employees and motivating them to work more effective
in organisation.
Limitations
While conduction this research, researcher have to face some limitation. Researcher have
to maintain business ethics and should consider moral values while conduct research. It is a
limitation that researcher can not use data from anywhere. While conduction an effective
research it is responsibility of a research that they should use correct and authentic data in their
research. Researches must have right skill and knowledge about topic and should provide right
information in their research.
Reflection:
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From the research project it has been analysed that it proved so much beneficial for me to
understand the important aspects about importance of performance appraisal to give motivation
to employees in better way. While conducting research I learn lot of things and attributes that
helps to enhance my career in positive way. It helps in deal in effective manner by managing
large no. of people with efficiency. Some major deficiency while conducting that particular
research that I face problem of lack in resources and fail to collect accurate knowledge and
information in proper way.
CONCLUSION
From the above report it can be concluded that performance appraisal is very important
process within organization as it will help in identifying and evaluating performance of each and
every employees. By this performance firm can identify contribution of employees to achieve
objective of organization. There are various methods of performance appraisal which can be used
by organization to evaluate perform of employees. Performance appraisal system can help
management of organization to decide about transfer or promotion of employees. This is a
continuous and systematic process which is conducted after some period of time in firm.
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REFERENCES
Books and journals:
Ayers, R.S., 2015. Aligning individual and organizational performance: Goal alignment in
federal government agency performance appraisal programs. Public Personnel
Management. 44(2). pp.169-191.
Bednall, T.C., Sanders, K. and Runhaar, P., 2014. Stimulating informal learning activities
through perceptions of performance appraisal quality and human resource management
system strength: A two-wave study. Academy of Management Learning & Education.
13(1). pp.45-61.
Bernardin, H.J. and Wiatrowski, M., 2013. Performance appraisal. Psychology and Policing.
257.
Culbertson, S.S., Henning, J.B. and Payne, S.C., 2013. Performance appraisal satisfaction.
Journal of Personnel Psychology.
DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and performance management:
100 years of progress?. Journal of Applied Psychology. 102(3). p.421.
Dusterhoff, C., Cunningham, J.B. and MacGregor, J.N., 2014. The effects of performance rating,
leader–member exchange, perceived utility, and organizational justice on performance
appraisal satisfaction: Applying a moral judgment perspective. Journal of business
ethics. 119(2). pp.265-273.
Elliott, K., 2015. Teacher Performance Appraisal: More about Performance or Development?.
Australian Journal of teacher education. 40(9). p.n9.
Espinilla, M., de Andrés, R., Martínez, F.J. and Martínez, L., 2013. A 360-degree performance
appraisal model dealing with heterogeneous information and dependent criteria.
Information Sciences. 222. pp.459-471.
Gupta, V. and Kumar, S., 2012. Impact of performance appraisal justice on employee
engagement: a study of Indian professionals. Employee Relations. 35(1). pp.61-78.
Iqbal, M.Z., Akbar, S. and Budhwar, P., 2015. Effectiveness of performance appraisal: An
integrated framework. International Journal of Management Reviews. 17(4). pp.510-
533.
Mohrman, A.M. and Lawler, E.E., 2017. Motivation and performance-appraisal behavior. In
Performance measurement and theory (pp. 173-194). Routledge.
Peretz, H. and Fried, Y., 2012. National cultures, performance appraisal practices, and
organizational absenteeism and turnover: A study across 21 countries. Journal of
Applied Psychology. 97(2). p.448.
Pichler, S., 2012. The social context of performance appraisal and appraisal reactions: A meta‐
analysis. Human Resource Management. 51(5). pp.709-732.
Villanova, P. and BERNARDIN, H.I., 2013. IMPRESSION MANAGEMENT 18 IN THE
CONTEXT OF PERFORMANCE APPRAISAL. Impression management in the
organization, p.299.
Zheng, W., Zhang, M. and Li, H., 2012. Performance appraisal process and organizational
citizenship behavior. Journal of Managerial Psychology. 27(7). pp.732-752.
Online:
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Top methods and techniques for evaluating employee performance. 2019. [Online]. Available
through:<https://www.assessteam.com/top-methods-and-techniques-for-evaluating-
employee-performance/>.
Importance of Performance Appraisal- Advantages uses. 2019. [Online]. Available
through:<https://kalyan-city.blogspot.com/2011/05/importance-of-performance-
appraisal.html>.
Performance appraisal: Meaning, objectives, Methods and Process. 2016. [Online]. Available
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methods-process/>.
Appraisal: Meaning,
Objectives, Methods &
Process
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Performance Appraisal:
Meaning, Objectives,
Methods & Process
Performance Appraisal:
Meaning, Objectives,
Methods & Process
Performance Appraisal:
Meaning, Objectives,
Methods & Process
Performance Appraisal:
Meaning, Objectives,
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