Strategic HR Devolution to Line Management: A Critical Analysis

In today's globalized market, businesses are fighting to capture maximum market shares by devolving HR responsibilities to line managers. This approach has both benefits and drawbacks. Devolution can enhance teamwork, reduce costs, and free up HR professionals to focus on specific duties like performance appraisal and training. Additionally, technological advancements in HR have simplified procedures, making it easier for line management to oversee them. As jobs become more complex, integrating HR skills into all management positions is essential. Managers must take on responsibilities that were previously handled by HR, such as motivating and appraising team members.

RUNNING HEAD: LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 1
Line Managers’ Role in Performance Appraisal
Name
Institution

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 2
Table of Contents
Abstract ......................................................................................................................................2
Introduction ...............................................................................................................................4
Performance appraisal
review...........................................................................................................................................5
Performance Appraisal theories………………………………………………………………6
Types of performance appraisal methods…………................................................................9
Advantages and disadvantages of performance Appraisal…………………………………11
The role of line manager..........................................................................................................16
Responsibilities of line managers in HR……………………………………………………..18
Challenges faced by line managers
In performance appraisal…………………………………………………………………….20
Human Resource challenges………………………………………………………………….21
Strategic HR and Devolution to
Line management……………………………………………………………………………..24
Research
References…………………………………………………………………………………….26
Abstract
To begin with, strategic HRM literature is argued to influence company’s performance, although
a connecting chain of arbitrating variables for instance attitude of employees such as
commitment, behavior, and productivity performance of the employees is assumed to influence
the firm’s performance. Moreover, current hypothetical frameworks insist that particularly the
employee’s insight concerning human resource management in the organizations seem critical in
changing attitudes and behavioral responses.
Significantly, the meaningful abstract in this context is regarded as social exchange theory. It
states the existence of reciprocity norm, which implies that whenever an individual or a firm
favors another, the sense of the favor is received as logic to reciprocate.
.

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 3
The rationale behind application of this research is to perceive investments in human resource
management that can offer employees the sense that organizations appreciate their productivity
and cater for their welfare; this in turn will influence employee’s attitudes and behaviors that are
quite important to the organization.
Usually, an omitted fact in this context is that there are various actors implementing human
resource management in the organization. Obviously, ‘HRM’ regularly hold synonym with ‘the
HR department’ while line managers too share significant accountability in implementing HR
practices in many modern organizations. Line managers’ optional behavior in using HRM proves
to be more crucial in advancing employee commitment, job satisfaction even additional role-
behaviors.
Notably, this proposes that both the HR department and line managers are significant to establish
positive social exchange relations in the Organization. The aim of this paper is to assess if this
statement is relevant. Empirically, this paper attempt to explore the performance appraisal of
employees and line manager’s influence of HRM investments contributed by two main HR
actors, which comprise of line managers and the HR unit, regarding employees’ emotional
commitment. More precisely, it tests the free and combined effect of three distinct independent
variables: this comprise of enactment of Human resource practices by line managers, relations-
adapted management behavior and service quality by the human resource department.
Subsequently, these effects will improve the perceptions towards the role and involvement of
every HR actor, as well as provision of effort to support the actors and their involvement equally
(Boone, Kurtz & Qualman, 2011). Additionally, this paper also contributes a literature through
reviewing employee sentiments on the performance appraisal through line managers and the

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 4
entire HR department. With regard to this, the focus shift from the obvious studies intended for
HRM to the hardly studied HRM perception.
The paper is prepared in the following context. In subsequent section, it initially offers a
literature
Overview concerning the performance appraisal and the whole HR department. It moreover
advances a plethora of hypotheses concerning the free and mutual outcome of the part of both
HR actors in navigating employees’ sentimental obligation. Secondly, it defines research strategy
and identifies actions used. Thirdly, it presents the results. Finally, it discusses the key findings
combined with practical implications for future research.
Introduction
The aim of this section is to reflect the background to the research problem. An outline
exemplifies the evolving role of the line manager in management, in human resource
management activity transference. The overall research problem is enlightened. Moreover, the
hypothetical and applied importance of this study is identified. The research questions and initial
framework of the research are presented. Furthermore, a precise overview of performance
appraisal, literature review, methodology, data analysis and the study limitations also provided.
Ultimately, this part accomplishes with a summary of the sections, and explanation of
terminologies applied throughout the thesis.
Performance appraisal overview
Notably, Performance appraisals also referred to performance evaluations, performance
assessments, or worker appraisals, equate to the whatsoever technique applied by s supervisor,

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 5
manager or business owner. They are regarded as a fundamental element in developing a career
that frequently occurs at different times in a year, or annually as established by the employer.
Generally, performance evaluations are achieved through some kind of aim evaluation planned,
it hypothetically measure individual worker’s productivity within their specified tasks.
Additionally, appraisals review in connection to the workers capability to operate as a team in
the organization, evaluate their strength, weaknesses, and establishing future job expectation as
well as identifying potentials in the organization. Significantly, there exist numerous reviews
considered through performance evaluation determination using different subjective level
assessments, personnel welfare, objective production, peer reviews, and amount of objects
manufactured (Abraham, 2014).
Historically, many organizations undertake workers evaluation annually, or in a span of the
initial three to six months of the new employee’s recruitment in the organization. Some firms
move toward smaller cycle evaluations to identify an area of interest or issues existing among
workers and their performance.
The ancient employer’s main aim for performance appraisals appears to emphasize on the notion
of assessing workers success and performance, however, many elements in this method that
challenge the exercise. In addition, appraisals focus on developing better communication
amongst workers and employer, clarification and conveying supervisors and managers
expectations to offer official stage to air problems affecting performance of employees, detecting
inspirational tools and methods, endorsing trust to strengthen employees’ relationship with
employers and the supervisors, and planning future goals as well as endorsing future success of

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 6
the organization. Since performance appraisals are standard, workers might never be conscious
of many aims and intentions of the employer.
Markedly, several performance appraisals methods provide a background in addressing
circumstances consequential from several optional jobs organizations, as well (Abraham,
2014). The contract employees and freelancers frequently accomplished according to project
basis; however, if employees work regularly, it may necessitate and useful to designated the
course to appraise the continuing relationship amongst as contradicted to addressing issues
existing in individual workers’ project.
Performance appraisal theories
Social exchange theory
Intrinsically, Social exchange theory was first broadcasted through scholars such as Emerson in
1970s. Conferring to social exchange theory, individuals interact for some time, and develop the
urge to counter assistance and support for other person, are also referred to as reprocity custom.
Practically, individuals feel a solid urge to return favors. Certainly, individuals sense more
motivation to return a favor more than supporters actually predicted.
This norm can provoke bitterness in relationships. For instance, if individuals provide an
inconvenient support, that does not benefit the other person, there is a major expectation but
minor favor in return. This tends to provoke bitterness hence compromising trust and relationship
stability with the parties involved.
Strengths

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 This theory is simple; it allows most people to appreciate its general norms and share
them.
 Though viewed as a weakness through most theory critics, the economical tactic
regarding relationships might assist the issue faster.
 It aids in explaining several family issues, including failed relationships. For instance, the
relationship ought to fail due to one party costs more than benefits.
 Whenever individual gain knowledge on the theory, it might work to balance
relationships, this also provides consciousness to other people’s interests.
Weaknesses
 It is viewed as a measured heartless technique to interpret human relations.
 The costs of applying this theory overshadow the benefits.
 The theory perceives the final relationship aim is affection as this is not always true.
 Lastly, the theory positions affairs in a linear structure, while some relationships opt to
skip phases or go intimacy.
Self-efficacy theory
Self-Efficacy refers to a belief concerning one's capability to plan and perform a fundamental
action to accomplish an objective. In line with this, individuals having firm efficacy beliefs seem
very assertive in their capability to implement a behavior. Significantly, beliefs regarding self-
efficacy impression on the objectives and endeavors by impelling personal choice, inspiration,
patterns and emotional responses. For instance, individuals tend to decline intimidating

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 8
circumstances believed to surpass coping skills. Moreover, apparent self-efficacy influence
successfully objectives accomplished through effort level effort and perseverance of a person
that validate challenges. That is, the tougher the self-efficacy perception, the more active efforts.
Furthermore, advanced self-efficacy is also linked to more perseverance, a quality that permits
gaining of remedial experiences to strengthen the logic of self-efficacy.
Motivational Progressions
Self-beliefs of efficacy contribute a major part in self-regulation of inspiration. Most motivation
is psychologically created. Individuals inspire themselves and direct their actions to anticipate
the fore thought exercise. They create beliefs regarding their actions. Since they anticipate
possible effects of likely actions. They set their objectives and plan action courses intended to
understand esteemed futures.
Goal theory
The major source of motivation comes from the inclination to attain a specific goal. Equally
important is that goals often have the following desirable characteristics.
 Specific and clear. This leads to better performance on account of few cases that are
ambiguous. In effect, it hinders misunderstanding.
 Realistic and challenging. Generally, there is a greater reward for a more challenging
goal. It also brings about a feeling of pride and triumph in an individual. Subsequently, it
sets up the individual to attain the next goal.
The importance of feedback.

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 9
– It directs the behavior of the employees and leads to higher performance.
– It is a means of attaining clarifications and regulating complexity in a given goal.
– Eventually, it leads to job satisfaction.
However, it should be noted employees’ participation in goal attainment has less preference.
Notably, including the employees in setting the goals leads to more involvement and thus more
acceptable.
Advantages of Goal Setting Theory
 Goal setting theory is a method employed in raising motivations for workers to finish
work fast and efficiently.
 The theory results in better performance through abundant motivation and efforts, and
feedback quality improvement.
Types of performance appraisal
Fundamentally, Worker appraisals serve as a critical element of running approximately every
business as well as efficient evaluation method used. Besides this, appraisals in realizing
employee attainments, comparison of several workers and identifying areas that require
improvement
1) Numerical Rating Scale
Its simplicity makes it the most common technique used and proves to be efficient. In addition, it
permits workers to evaluate their performance in different areas, which include group work,
communication techniques and consistency. A numerical rating scale is advantageous since the

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 10
organization can modify the method to evaluate significant traits and features. This regularly
encompasses rating workers on a scale of 1-10 with lesser numbers considered unacceptable and
greater numbers considered acceptable. Consequently, employers utilize physical data to define
and categorize employee’s performance as weak, average, good, and excellent.
2) Objective-Based
This is also a simple appraisal system and it clearly tracks progress. In this method, organization
and employees agree on a particular objective the employee need to meet tied with a time limit.
Whenever the worker achieves the objective, then it highly congratulates them and vice versa.
Therefore, this is possibly black and white of the entire systems; it also seems the real method in
monitoring the whole success of workers.
3) 360-Degree Appraisal
This method provides complete feedback on workers ‘performance to create deep insights. A
360-degree appraisal operates through collecting feedback from several persons, which include
managers, customers, coworkers, and vendors. The more data you collected, the more correct the
review of performance becomes and the more emphasis on the image. Though this evaluation
technique is rather strenuous and time-consuming compared to other systems, most employers
favor it due to unbiased data it receives and its creation of multi-dimensional vantage point.
4) Critical Incidents
This system refers to performance assessment method, which involves identification and
description of particular events where workers excelled or an issue subject for improvement. In

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crucial occasions, appraisal system is applied effectively. Therefore, there is demand to keep
detailed records to increase objectivity.
Understanding the perception of various sorts of worker performance appraisals offers a choice
that suits the organization. Consequently, objective measures of the employee's progress are fine-
tuned.
Advantages and Disadvantages of performance appraisal methods
Critical incident method
This method is employed in the identification and description of specific occasions where
employees did something exemplary well. It as well points areas that need improvement during
their performance period.
Advantages
The critical incident method is applied in various sectors. Subsequently, evaluation of each
employee is achieved, and one's performance appraisal will be established on the logs placed in
the evaluation form. The manager is in charge of the logs of each employee. He periodically puts
into record critical incidents of the employee's behavior. These recorded critical incidents are
later used in the evaluating the performance of the workers.
Disadvantages
In contrast, there are factors underpinning the application of this method. These are:

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 12
 Negative incidents may be more conspicuous than positive incidents.
 It results in very close supervision which may render the employee to work under
pressure.
 Since the recording of events is the manager's work, he or she may be too absorbed in
other activities hence forget to do it.
 Critical incidents method of evaluation is used to evaluate the performance of superiors
rather than of peers of subordinates.
Graphic rating scales method
This format is antique hence the most popular method in assessment of the employee’s
performance. Simply, the management checks on the performance levels of their staff.
Advantages
 It allows for quantitative comparison.
 Graphic rating scales are less time consuming to develop.
Disadvantages
 There are slightly different ways by which different supervisors will use the same graphic
scales.
 There is a preferred validity in comparing workers ratings from a single supervisor rather
than from different supervisors.
Behaviorally anchored rating scales method

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This format of performance appraisal is structured around the rating of behaviors or collection
of indicators to recognize the effectiveness or ineffectiveness of working performance. It entails
a combination of the rating scale and critical incident techniques to assess the staff performance.
It is worthwhile to note that this method is very useful and exact in assessment of the working
performance (Buhler & Worden, 2013). Nonetheless, developing this method proves to be a hard
task since one has to identify a good level first.
Management By Objectives (MBO) method
MBO is another technique of performance appraisal whereby employers or managers come up
with a list of objectives and make regular-based assessments on their performance. Eventually,
the managers make rewards on the basis of the results achieved.
Advantages
 It puts emphasis on the future rather than in the past. Consequently, appraisal thus
becomes constructive.
 It presumes that the employee knows more than anyone else about her/his own
capabilities, strengths, weaknesses, and goals.
 It is mostly achieved using set targets thus came up with the SMART (Specific,
Measurable, Achievable, Relevant, and Time-Specific) criteria (Falcone& Tan, 2013).
Disadvantages:--
 Truly verifiable goals are not easy to formalize.
 Excessive use of quantitative goals endangers the qualitative aspect which is more
important than quantification in some cases

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 Emphasis is put in short-range goals as long-range goals are neglected.
 Goals remain rigid and inflexible. For instance, changes desirable in annual budgets are
not easily incorporated in the middle of the year.
 Active and positive participation from subordinates are not easily forthcoming.
Performance ranking method
This method is employed in assessing the working performance of employees from the highest to
lowest levels. On the contrary, employers will make comparisons of an employee with the
others, and not with certain standards.
360 degree performance appraisal
The 360 degree performance appraisal technique enables employees to give confidential and
anonymous assessments on their colleagues (Falcone& Tan, 2013).
Advantages
 It improves credibility of performance appraisal.
 The colleague’s feedback will help strengthen self-development
 A more accurate assessment due to the mix of ideas.
 It provides a more comprehensive view towards the performance of employees.
 It increases responsibilities of employees to their customers.
 People who belittle themselves are occasionally motivated by feedback from others.
 Participation of the staff in the process of performance appraisal reinforces honesty in the
organizational culture of the company.
Disadvantages

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 Feedback can be useless if it is not carefully and smoothly dealt.
 It is time-consuming and complex in administration.
 Extension of exchange feedback leads to tensions among workers.
 Can impose an environment of suspicion if the information is not honestly managed.
 Training is required so as to achieve efficient working.
 It will be very difficult to understand the results.
Behavioral Observation Scales
On the other hand, the scales of observation on behaviors forms the basis of this method. In this
method, important tasks that workers have done during their working time will be assessed on a
regular basis (Buhler & Worden, 2013).
Role of line managers in reward management
Line managers have various crucial roles which contribute to the positive outcomes of the
activities of an organization. These roles are listed below:
 Line managers form intrinsic parts in reward managing
 They create effective team functioning.
 They provide coaching and guidance to the new employees.
 They have a modest role in conducting performance appraisals and affirming
development funds.
On the other side of the coin, though, research undertaken by Chartered Institute of Personnel
and Development realized that many reward policies are formalized without the inclusion of the
line manager’s important role (Buhler & Worden, 2013).

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In particular, line managers take modest part in creating a strong link between employees’
satisfaction/commitment and their rewards. In spite of this fact, one of the major problem cited
by the research is that the involvement of line managers in the design of strategy and their
pivotal role in communicating that strategy faces negligence from many organizations.
In the same fashion, many studies probing into the role of line managers and reward have
focussed on the element of the description of a line manager’s role in formulating decisions over
the allocation of performance-related pay awards. As a matter of fact, line managers have various
ways of rewarding staff which are linked to their discretion. For example, access to training, time
to work at home and decisions on job allocation among others( Jamie ,2009).
Markedly, there are three major influences on reward practice.
 Types of employee
 ownership
 different groups within the same organization
A case in point, temporary staff will have different needs opposed to those on permanent
contracts. Additionally, there may exist various groups of employees that may be motivated in
very different ways within an organization.
Equally important, it should be known that line managers are involved in financial and non-
financial reward management. Although this is true, line managers are faced with a range of
problems when delivering financial rewards. This include:
 it is hard to differentiate performance and allocate performance-related awards

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 there are constraints that arise from forced distributions included into such schemes
 conducting performance appraisals
Expressly, non-financial rewards involve the practice where line managers make symbolic
gestures to employees to indicate appreciation for a job well done. This has the potential to be a
powerful motivation.
Notably, a performance management systems should be in place so as to provide the means by
which performance-related pay and training and development needs can be recognized. In
addition, they impose a way of achieving greater ownership and commitment, and thus
strengthen relationships between the manager and their staff ( Jamie ,2009).
Although the behavior and management technique of the line manager is vital, good training and
well-formulated HR practices are also crucial to motivating and reward employees. In addition,
line managers are at the need for a support framework such as:
 Line managers need tools at their disposal in order to reward good performance
regardless of their nature since immediacy means they have the potential to be highly
valued by staff.
 Better training of line managers so as to enable them to comprehend the need for, cost
controls necessary in merit pay systems.
 There should be more line manager involvement in the design and communication of
reward systems.
Responsibilities of the Line Managers in HR

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Expressly, Small organization with small number of workers normally lack specialized human
resource staff. Line managers carry out recruitment and management of employees. The Bigger
organization might have a specialist in HR department to supervise and manage employee
management guidelines and measures. Even if an organization recruits a specialist in HR
department, it is only line managers who run daily responsibilities in implementing HR
activities.
Engagement of Employee
The tactic line managers employ to supervise their workers is a crucial element in engaging
employee. Line managers create the organizational culture for their teams. Whenever, managers
emphasize on their workers' strengths and inspire free communication, line managers are in
positions to engage and inspire their subjects. Line managers with attention to negative sides of
worker performance, interfere with their employees or pursue intensify their own status that
detached and irritate employees. HR specialists evaluate worker engagement via surveys;
nevertheless, engagement is initiated or smothered by line managers.
Performance Appraisal
While HR professionals may design performance appraisal processes, line managers implement
them. Worker performance and conducts are evaluated and ranked through direct line managers.
The response is delivered through an interpersonal meeting between line managers and
employee. For effectiveness of a feedback, it ought to be communicated in a sincere and simple
way.

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Disciplining Employees
Punishment within the place of work starts whenever a line manager sets his objectives with his
subjects. These anticipations might be reinforced by guidelines and measures formed within the
human resource department. Nevertheless, line manager's dedication is to enforce the policies
influence worker performance and conduct compared to any smooth worker handbook.
Whenever a line manager breaks the rules, he must struggle to implement them to his group.
Moreover, if he wants official disciplinary action against an employee he will be discouraged by
his conducts.
Performance-Related Pay
When an organization uses a performance-linked pay design, then the line manager must
significantly determine if direct reports ought to receive an increase in payment. Performance
rankings from line managers influence the number of increase workers to receive, with highest
talents getting above average workers. For a performance-linked pay system to be reliable, it
ought to be professed as rational and objective. In addition, Line managers need teaching to
warrant their rankings basing on objective principles and fair.
Challenges faced by line managers in performance appraisal
Human resource management includes directing job analyses, preparing personnel requirements,
recruiting right and qualified employees, familiarizing and teaching, handling wages and salaries,
benefits and incentives provision, appraising performance, solving differences, and interacting
with every worker in every level. Instances of fundamental abilities of HR management include

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 20
widespread knowledge concerning the industry, governance, and actual mediation skills,
previously known as personnel management (Machado& Davim, 2014).
Classically, HRM operates within an organization emphasizing on staff recruitment, and
directing employees to work in the organization. Moreover, line managers can perform human
resource management. It may be defined as the organizational operation dealing with matters
associated with people such as hiring, compensation, managing performance, organizing
development, wellness, safety, worker motivation, benefits, administration, communication, and
teachings.
It is also a strategic and comprehensive approach to managing people and the workplace culture
and environment. Effective HRM enables employees to contribute effectively and productively
to the overall company direction and the accomplishment of the organization’s goals and
objectives.
Currently, HRM is transforming from outdated personnel, management, and transactional
responsibilities, which increases outsourcing. HRM is nowadays is anticipated to enhance value
to the planned usage of workers and programs that impact in the organization in calculable
means, therefore, the original HRM role involves tactical direction and HRM calculations and
dimensions to validate value (Machado& Davim, 2014).
Human Resource Management Challenges
Recently, there has been an increase in the number of international organizations. The
international movement of labor comes with its challenges to HR managers.

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The quick-transforming business landscape imposes that there are currently many human
resource management challenges which will evolve gradually for years to come. This gives HR
departments the torrid task of adding real business value to their organizations.
On account of the fluctuating economy and local and international advancements, there are many
changes occurring rapidly that bedevil HR with a wide variety of issues. The Survey of Global
HR Challenges conducted on behalf of the World Federation of Personnel Management
Associations (WFPMA) reveals various challenges for human resource management ( Bredin,
Söderlund & Palgrave Connect, 2011) .
This survey, outlined the major sectors of challenges regardless of national and regional
differences. The top HR management challenges were uncovered as follows:
 Leadership development (35%),
 Change management (48%),
 HR effectiveness measurement (27%),
 Organizational effectiveness (25%) ( Phillips& Phillips, 2012).
Typically, the key challenges of HR managers include adding value to an organization, not only
to the labor force but also the business itself, Information Technology, talent management within
the organization – attempting to attract, keep and maintain talented and hard-working people in
the company; Information-workers and info-management, managing globalization, and business
control.
It is a difficult task for the modern business to effectively operate in the business world if the
human force does not have the latest technology and techniques at their disposal. Hence, it

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 22
comes as a daunting task for the human force manager who is required to properly train the work
force. Additionally, he/she has to identify the basic things the human force needs for the
achievement of the competitive advantages of business in 21st century.
It is important to note that the average HR manager is met with a range of challenges. Therefore,
to satisfy these challenges for the future, HR manager or department must be much sophisticated
when compared to their predecessors. This is a fact since a multinational or international
organizations cannot carry out their activities well when their HR manager does not know the
diversity of technique to hack it with these issues. The HR manager should be conversant with
ways of preparing a pleasant force for the organization so as to annihilate challenges that come
along with the rapid competitive business world( Phillips& Phillips, 2012).
In the same way, all the organizations are expected to make pleasant preparation in the human
resource keeping in mind the multinational market or environment. This is to ensure a
constructive and competitive advantage. In effect, the human resource manager is faced with the
need to create or set up a framework that can incorporate flexibility. This subsequently develops
a workforce that will be continually effective in the future.
In like manner, other research studies have cited that most challenges faced by the HR in the 21st
century are also, women workforce, retention of the employees, multicultural workforce,
globalization, retrenchment of employees, change in the demand for the government, technology
and initiating the process of change (Bredin & Söderlund, 2011) .
The World Federation of Personnel Management Association (WFPMA) survey disclosed the
most important top ten HR challenges are leadership development, change management,

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 23
organizational effectiveness, staff retention, compensation, health and safety, learning and
development and succession planning. In the sector of staffing, recruitment and skill labor posed
a significant challenge. Together with these, Liz Weber has cited that the most vital business
challenges of the HR are layoffs. As a matter of fact, most of the owners and managers are facing
this difficult issue. Expressly, laying off is brought about by a variety of issues (Bredin &
Söderlund, 2011) . This includes the economic uncertainty, the employee's job instability and less
effectiveness of HR.
Correspondingly, the most vital challenges of HRM are:
 Technology.
 Ethical consideration of the organization. This may directly or indirectly affect the
competitive advantages of the organization. To be specific, technological advancement
has an effect on recruitment, training and development and job performance with great
extent can be studied in the organization.
 e- Commerce.
 globalization,
 Workforce diversity.
In summation, from the endless list of challenges faced by HR, globalization has been
highlighted as the foremost challenge to the HR. Definitively; globalization is the present flow of
goods, services, information, ideas, capital, and people. Extensively, it is the movement of these
things devoid of any usage of the human resource. With regards to this modern business world,
markets have become battlegrounds where both the domestic and foreign business institutions

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 24
combat to capture as maximum market shares as they can. This globalization is a challenge for
HRM.
Strategic HR and Devolution to Line Management
Simply, in line with this context, devolution is a process of moving some of the HR
responsibilities to the line managers. There is a crucial need in altering modern organizational
structure to devolve some of the administrative functions of HR to Line Management. However,
this approach may attract both the benefits and drawbacks. Speaking of the benefits, if the line
managers acquired some of the HR responsibilities, it would spruce up teamwork (Macky et.al
2012). This will leave HR with more specific duties such as performance appraisal, planning the
training and development just to name a few. Secondly, companies being cost-sensitive, they will
include some simple HR duties in line management duties so as to cut down on expenditure
(Baporikar, 2016). Moreover, cost-centre managing has led to the integration of LM with HR on
a daily basis. In consequence, transfer of such duties gives more room to HR for effectiveness in
carrying out its specific duties. Additionally, there is an increasing awareness of the significance
of customers and service supply which has resulted in an increase in need of people with skills
across organizations as a whole. As a result, these changes stimulated the devolution of HR
functions to LM, which is more cost-effective.
Furthermore, technological changes within HR has simplified and speeded up procedures by use
of advanced IT management. These procedures hence can be supervised by line management and
thereupon facilitating devolution.

LINE MANAGERS’ ROLE IN PERFORMANCE APPRAISAL 25
Presently, most jobs nowadays are changing in nature regarding complexity. Consequently, there
is the emphasis to integrate HR skills into all management positions rather than remain the
function of one department.This increased job complexity goes hand in hand with an increase in
the managers’ role of a leader, motivating and appraising his or her team members. Therefore,
managers are required to perform the responsibilities of HR that are embedded in their roles
(Simons, 2011).

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