Impact of Performance Management and Appraisal on Employee Performance - A Case Study of BHP Billiton, Australia

This study investigates the impact of performance management and appraisal on employee performance of BHP Billiton, Australia. It aims to identify the relation between performance management, appraisal and employee performance, investigate the impact of performance management and appraisal on employee performance in BHP Billiton, and develop employee performance management and appraisal system to influence the performance of BHP Billiton.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Content
1.0 Introduction..........................................................................................................................2
1.1 Background..........................................................................................................................2
1.2 Problem Statement...............................................................................................................3
1.3 Research aim and Objectives...............................................................................................3
1.4 Research Questions..............................................................................................................4
2.0 Literature Review.................................................................................................................4
3.0 Methodology........................................................................................................................5
3.1 Data collection methods...................................................................................................5
3.2 Data Analysis...................................................................................................................5
References..................................................................................................................................7

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Topic- Impact of performance management and appraisal on employee performance -A
case study of BHP Billiton, Australia
1.0 Introduction
The proposed study focuses on the impact of performance management and appraisal
on employee performance of the organization BHP Billiton, Australia. Performance
management is usually defined as strategic as well as integrated approach to deliver sustained
success to organizations by enhancing performance of human capital and by particularly
enhancing the capabilities of individuals within the organization. Likewise, performance
appraisal is also the most critical function of human resource management as effective
performance management of a firm is the most fundamental component of enhancing
effectiveness human resource management of the organization. The purpose of the study is to
identify and investigate the impact of performance management and appraisal system on
employee performance of BHP Billiton. This means that proposed study is determined to
cause effect relationship between performance management and employee appraisal and
employee performance.
1.1 Background
It has been identified that performance appraisal has been studied broadly in many
organizations in the western context (Dusterhoff, Cunningham & MacGregor, 2014).
Nonetheless, such particular context has not been studied and investigated appropriately in
the Australian context in perspective of mining organizations. Decramer, Smolders and
Vanderstraeten (2013) also mentioned that performance appraisal is not appropriately
developed process within mining organizations in Australia and thus, evidence and existing
literature in the topic is rare. It has particularly been identified that existing studies aim

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mainly at observational aspect and limited emphasis has been put on the empirical findings of
effective performance appraisal as well as its impact on employees.
Thus, it is highly important to derive empirical findings on the evaluation of effective
performance appraisal. Likewise, Salleh et al. (2013) performed a study and mentioned the
fact that performance management process is more a technique for ensuring focus on the
work of employees in ways that certainly contribute to achievement of organization’ mission
which is indispensable for any business organization. Literature state the fact that
performance management system is a kind of performance management and supervisors and
managers are responsible for managing the performance of their employees. Therefore, in the
case of BHP Billiton, it is important to learn how the human resource management of the
organization is managing employee performance aligning their organizational goals.
1.2 Problem Statement
Employee performance management is significant HR functions because employee
performance determines the outcome of business or productivity of the organization (Mone
and London, 2018). Likewise, employee appraisal system is no exception. Both of these
variables influence employee performance in the organization. BHP Billiton is a large mining
organizations and running its operation for decades; so, it is important to learn how
organization is managing its employees for long. It is also important to learn the relationship
between performance management and appraisal and employee performance.
1.3 Research aim and Objectives
The research aims to identify and investigate the impact employee performance
management and appraisal on employee performance of BHP Billiton, Australia. Following
are the key objectives to meet the stated aim.

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 To identify the relation between performance management, appraisal and employee
performance
 To investigate the impact of performance management and appraisal on employee
performance in BHP Billiton
 To develop employee performance management and appraisal system to influence the
performance of BHP Billiton
1.4 Research Questions
 What is the relation between performance management, appraisal and employee
performance?
 What is the impact of performance management and appraisal on employee
performance in BHP Billiton?
2.0 Literature Review
According to Harrington and Lee (2015), employee performance appraisal is highly
effective tool for assessment of employee performance as well as the implementation of
strategic initiatives for the enhancement of employee performance. Nonetheless, a
considerable literature tend to denote the fact that there is a clear distinction in employee
about employee appraisal system. Bednall Sanders and Runhaar (2014) performed a study
and mentioned the fact that performance appraisal in several organizations is not able to meet
the basic expectations of employees and likewise, the existing study of DeNisi & Murphy
(2017) reveal the fact that almost 90% of the managers reflect that performance appraisal has
not been effective in enhancing employee and even organizational performance.
Nevertheless, it is undeniable that performance management strongly influences employee
performance because according to DeNisi and Smith (2014) if employee performance is not
monitored and rewarded accordingly, desired organizational productivity cannot be certain

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from organizational perspective. Thus, Harrington and Lee (2015) mentioned that employee
performance can be evaluated through different sources as supervisors, managers, self-peers
or even the consumers. So, scope of such evaluation only exist in employee performance.
Authors of this study has also mentioned the fact that employee performance systems are
particularly utilized for several purposes which could range from development and
administrative purposes.
3.0 Methodology
3.1 Data collection methods
According to Flick (2015), data collection falls under three fundamental groups of
methods namely quantitative, qualitative and mixed method. However, these three methods
again fall under primary data collection method (Alvesson & Sköldberg, 2017). So data
collection as a whole can be divided into two different categories namely primary data
collection and secondary data collection method. Nonetheless, in the proposed study, to
perform the analysis, secondary data analysis method will be applied and the data will be
collected from reliable secondary sources. So, to perform the analysis, data will be collected
from BHP’s Annual report, sustainability report, blogs, newsletter and published journal
article.
On the other side, primary data will not be used because use of the primary data
requires time and consent from the organization. It is not certain that organization and its
members take part in the study. In addition to this, use of primary data collected from
organizational members of BHP Billiton could be biased. Thus, considering such
discrepancies in the process, the idea of using primary data in the study has been eliminated.
In contrast, collection of secondary from the stated sources is convenient and free of hassle.

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3.2 Data Analysis
The collected data will first be converted to meaningful format and then the data will
be presented with table and graph for interpreting them suitably. As secondary data will be
used in the analysis, analysis will hold a depth insight regarding performance management
and appraisal system creates impact on employees. A thematic data analysis process will be
used in the study to make the analysis. Themes will be prepared based on how topics and
ideas found in the existing papers. When interpreting the themes, findings of existing paper
will be linked to secondary findings in the theme. To denote specific data set, graph and
tables will be used.

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References
Alvesson, M., & Sköldberg, K. (2017). Reflexive methodology: New vistas for qualitative
research. Sage.
Bednall, T. C., Sanders, K., & 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), 45-61.
Bresler, L., & Stake, R. E. (2017). Qualitative research methodology in music education.
In Critical Essays in Music Education (pp. 113-128). Routledge.
Decramer, A., Smolders, C., & Vanderstraeten, A. (2013). Employee performance
management culture and system features in higher education: relationship with
employee performance management satisfaction. The International Journal of Human
Resource Management, 24(2), 352-371.
DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance
management: 100 years of progress?. Journal of Applied Psychology, 102(3), 421.
DeNisi, A., & Smith, C. E. (2014). Performance appraisal, performance management, and
firm-level performance: A review, a proposed model, and new directions for future
research. Academy of Management Annals, 8(1), 127-179.
Dusterhoff, C., Cunningham, J. B., & 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), 265-273.

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Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Harrington, J. R., & Lee, J. H. (2015). What drives perceived fairness of performance
appraisal? Exploring the effects of psychological contract fulfillment on employees’
perceived fairness of performance appraisal in US federal agencies. Public Personnel
Management, 44(2), 214-238.
Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design.
Routledge.
Mone, E. M., & London, M. (2018). Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Salleh, M., Amin, A., Muda, S., & Halim, M. A. S. A. (2013). Fairness of performance
appraisal and organizational commitment. Asian Social Science, 9(2), 121.