Effectiveness of Performance Appraisal System on Employee Motivation

This research paper explores the effectiveness of performance appraisal system on employee motivation. It discusses different types of performance appraisal systems and their impact on employee performance. The study focuses on Waitrose, a British supermarket, and its use of the Annual Review of Performance. The paper also highlights the importance of motivated staff for the overall performance of Waitrose.

The Business Professional
Individual Research Project
STUDENT NAME:GERALD DUODU
STDENT NUMBER:U1953882

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of Research.............................................................................................................1
Rationale of Research.................................................................................................................1
Research Aim..............................................................................................................................1
Research Objectives....................................................................................................................2
Research Questions.....................................................................................................................2
Overview of remaining chapters.................................................................................................2
LITERATURE REVIEW................................................................................................................3
Different types of performance appraisal system........................................................................3
Effectiveness of performance appraisal system for employee motivation..................................4
Importance of motivated staff for overall performance of Waitrose..........................................4
RESEARCH METHODOLOGY ....................................................................................................6
Research philosophy...................................................................................................................6
Research Approaches..................................................................................................................6
Research Choice..........................................................................................................................7
Research Strategies.....................................................................................................................7
Time horizons..............................................................................................................................7
Data collection............................................................................................................................8
Sampling.....................................................................................................................................8
Ethical consideration...................................................................................................................8
RESULTS......................................................................................................................................10
CONCLUSION AND RECOMMENDATIONS..........................................................................23
Conclusion.................................................................................................................................23
Recommendations.....................................................................................................................23
REFLECTION...............................................................................................................................24
REFERENCES................................................................................................................................1

Topic: Performance appraisal system.
INTRODUCTION
Background of Research
Performance appraisal is explained as review of job performance of employees on
continuous basis and contribution to an organisation. This is a systematic process under which
performance of employee is examined in context to projects on which the employee worked and
gives contribution in company (Bednall, Sanders and Runhaar, 2014). The managers focus of
improving the performance appraisal by using different ways such as goals setting development
tool for staff members and communication while operating within needs of system of the
performance related evaluations. The performance appraisal permits managers to discuss about
matters for an instance job satisfaction and pay without possibility of upsetting other staff
members. This helps in enhancing employee’s performance effectively and from this they will
sustain at workplace for long time period. Waitrose is a British supermarket and specialise in
selling the groceries. This company was founded in year 1904 through Wallace Waite, Arthur
Rose and David Taylo. Waitrose uses the Annual review of performance. It takes place once in a
year with section managers.
Rationale of Research
Present report is taken into consideration on effectiveness of performance appraisal
system on employee motivation. The main reason behind conducting the present investigation is
to gain the understanding about performance appraisal and its system for enhance performance
of staff members. There will be proper understanding about the employee’s motivation because
this impact in positive manner on organisational performance. Researcher investigates from
personal and professional context (Budworth, Latham and Manroop, 2015). In personal context,
researcher enhances its capabilities and skills in an effective manner. In professional context,
researcher can able to enhance knowledge and aware about the ways to conduct an investigation
in systematic manner to deal with hurdles in future. In this research literature review part has
been discussed that identify the gap in research. There has been discussion about the
effectiveness of the performance appraisal system on the employee’s motivation. It provides the
better systems of performance appraisal that will help the employees to analyse their

performance and also motivate them to work effectively for getting the set organisational
objectives within given time period.
Research Aim
“To identify the effectiveness of performance appraisal system on employee motivation”.
A study on Waitrose.
Research Objectives
 To identify different types of performance appraisal system.
 To analysis the effectiveness of performance appraisal system for employee motivation.
 To determine importance of motivated staff for overall performance of Waitrose.
Research Questions
 What are the different types of the performance appraisal system used through
organisation?
 What is performance appraisal system effectiveness for motivating the employees at
workplace?
 What can be considered as importance of motivated staff for overall Waitrose
performance?
Overview of remaining chapters
Other than introduction, there are summary of some remaining chapters given below:
Literature review- This chapter of research is based on the research objectives. The data
and information have been collected by using secondary sources for getting the detailed
information.
Methodology- It provides the tools and techniques for collecting as well as analysing
data on specific research area. It gives the effective understanding and the way to examining the
data by using different sources (Cerasoli, Nicklin and Ford, 2014).
Results/ Discussion- This part considered the analysis of collected information by using
primary and secondary sources. In primary sources, data will be analysed by using thematic
analysis and on secondary basis, information will be analysed by using content analysis.
Conclusion and Recommendations- In this chapter, conclusion will be based on the
whole project report and these states about the outcomes. Based on whole research project, some
suggestions would be made for better improvements.

Reflection- It states about the whole experience while conducting an investigation in an
effective manner. It consists the learning, hurdles and some other things faced at the time of
conducting research (Cheng, 2014).

LITERATURE REVIEW
Literature is defined as the gathering of published information on particular subject
matter by using different secondary sources for an instance books, articles, journals, internet
sources and others. Literature review includes finding and also reviewing the available literature
in a particular area of research. This demonstrates that the readers have an in-depth subject grasp
and contribute to established accepted body of knowledge (Collings, 2014). This part helps in
examining the research objectives and gives the relevant answers of arisen research questions.
Different types of performance appraisal system
On the basis of Fleur Tucker (2020) Appraisal works as reward system which assists in
awareness and opportunity to get recognized and identified in entity. The performance appraisal
system helps in examining the perform of staff members across the different dimensions to
assure that company is pay for what. They give the valuable feedback to managers and staff
members and also helpful for determining issues and promotable people. The appropriate method
for company will base on variety of various roles within company. Appraisal is important in
organisation because it motivates employees and increases their morale high. In context to
Waitrose, they uses two types of appraisal methods which are discussed below-
360 Appraisal- This is a method through which employee performance is tracked and
evaluated by feedback of co- colleagues, subordinates, seniors, managers etc. This method is
used mostly to create a positive environment in the business and to determine the productivity as
well as efficiency of business. Waitrose uses this method to evaluate overall performance of both
entities as well as employees.
Manager performance appraisal- Manager Performance appraisal is another method
which is used by manager to decide the overall performance of business. This assist firm to
determine the manager point of view towards employees and resources in the organisation. In
relation with Waitrose, they use this method to to easily evaluate subordinates performance and
their effort that they have put in organisation (DeNisi and Murphy, 2017).
Annual review of performance- This kind of performance appraisal helps in promotes
the communication and gives the useful feedback regarding job performance, give historical
performance record, contribute towards professional development and create positive working

environment. This kind of performance is based on the annual basis and it is conducted through
section manager.
Management by Objectives (MBO) - It is appraisal methods where the staff members
and managers together determine plan and communicate objectives. After setting the objectives,
subordinates and managers discuss about progress to control as well as debate on feasibility. This
kind of process mainly lays more stress on career-oriented objectives. This performance
appraisal method is time- intensive and expensive.
Waitrose Company uses the Annual review of performance type of performance
appraisal. This permits the managers to discuss on the different matters with employees such as
job satisfaction and also pay scale. In this, interview is taken place where each partner enables to
discuss about any issues and keep confidential (Gupta and Shaw, 2014).
Effectiveness of performance appraisal system for employee motivation
According to opinion of Michelle Seidel (2020) Performance employees of employees
can act as the motivation for staff members to make improvement in their productivity. The
performance appraisal system is between an ancient management practices that mainly used to
examine employees performance in company. These can be considered as motivational tool as
this consists in the counselling, appraisal interviews, work planning and also participation in the
goals setting. Employee motivation is level of the commitment and energy that employees of
company bring to staff members to their job roles. Employee motivation is helpful in enhance the
performance level of staff members and sustain them for long period of time at workplace. The
performance appraisal system in Waitrose is helpful in motivating the employees as enhance
their performance level. There are different kinds of performance appraisal systems 360-Degree
Appraisal, Manager Performance Appraisal, Management by Objectives (MBO) and Annual
review of performance. These all are the effective methods to analyse performance level of staff
members. Waitrose Company uses the Annual review of performance and appraise the
performance of staff members on annual basis. On the other hand, performance appraisal system
helps the staff members to get the incentive treatment on the basis of their capabilities, potential
and sincerity.
Importance of motivated staff for overall performance of Waitrose
As per opinion of Heryati R (2020) in an organisation, motivation and appraisal are
considered as crucial tool which helps employee to be active towards their goals and objectives.

Motivated employees are important because they help in higher output and provide entities with
more productivity. In context to Waitrose, they always keep engaging management and
personnel in motivation process so that they does not distracted from roles and responsibilities
they have to perform. This helps business to maintain their functions and operation in a proper
manner.
 Efficiency- Efficiency is crucial for maintaining the overall process of management of
business. Organisation with better efficiency is able to produce reliable output and better
performance. So, motivation is necessary amongst employee as well as management
because behaviour as well as attitude depends upon motivation and appraisal. In relation
with Waitrose, they use extrinsic motivation to improve product as well as organisation
efficiency.
 Productivity- Productivity is important in organisation because it determine the level of
efficiency. A higher productivity leads to more profit and market growth whereas low
productivity slow does the profit area of business. Motivation in productivity is crucial
because employee with high morale put more efforts in achieving the targets and
provides organisation effective results. Waitrose uses productivity as well as motivation
at same level which assists both management and personnel so that they work as goal
oriented to achieve common goals within the organisation (Hameed, Ramzan and Zubair,
2014).
 Guidance and Direction- In organisation, everyone need guidance as well as direction at
every phase so that chances of errors does not arise and work flow smoothly in business.
Management is systematic procedure in which mapping and creating a path for business
is necessary. Direction as well as guidance both play important role in organisation and
helps employee/ subordinates to achieve the task within in a given period of time. In
context to Waitrose, they uses motivation as a tool to guide and give direction to
employee so that they put their skills and knowledge in effective way (Hu and Liden,
2015).

RESEARCH METHODOLOGY
Research methodology is explained as the specific process that mainly used to determine
and analyse the information on specific research area. It is helpful in critical examine the
relatability as well as validity of an investigation. There has been research onion used by
considering the different layers. Research onion was mainly developed through Saunders et. al.
(2007). The research onion considered the research philosophy, research approaches, choice,
strategies, time horizon, data collection and sampling. This illustrated stages which should be
covered when developing an investigation. The various layers of research onion are given below:
Research philosophy
There has been interpretivism philosophy has been used because it assists in interpreting
the people to participate in the arising research related activities. The main reason behind using
this philosophy is that it provides the better understanding and give specific reason about the
specific area.
Research philosophy is regarded as the most important research aspect that leads in the
right direction to execute the study. It's a set of the beliefs that at the time of carrying out study
related activities, the researcher includes (Jiang and Liu, 2015). There are different philosophies
of research given below:
Interpretivism philosophy- This research philosophy is helpful for the people in
interpretation and understand about the own actions.
Positivism philosophy- This comes up with research hypothesis and questions which a
research can test. With this philosophy, research can search explanations measuring accepted
knowledge.
Research Approaches
In conducting the present investigation, inductive research approach has been used because
this runs from the research questions to observation. The reason for using this research approach
is that it starts with particular observation and provides the authentic information regarding the
effectiveness of the different systems of performance appraisal on employee’s motivation.
As Inductive and deductive are two different research approaches and this helps in provide
the knowledge about research aim and limitations. Different research approaches are given
below:

Inductive approach- This permit to develop theory than adopt pre-existing one as n
deductive. It outlines difference in two hypothesis (Kuranchie-Mensah and Amponsah-Tawiah,
2016). This method is generally used for the qualitative investigation and data is examined and
used to inform results generation.
Deductive approach- This develops hypothesis on the pre-existing theory and also
formulated research approach. This is characterised as development from the general to specific.
This many used in the quantitative method as formed through the pre- existing investigation that
would be developed differently by the hypothesis testing.
Research Choice
Under this, researcher used the qualitative method in mono method because this assist in
getting better knowledge in context to various perspectives of respondents and connected to
various employees which are part of an organisation.
Under this, there are three different research choices which given below:
Mono method- It is used when there is a need to collect only one kind of information
either qualitative or quantitative methodology (Lăzăroiu, 2015).
Mixed method- It permits combine the qualitative and quantitative methodology in an
investigation to develop precise data set.
Multi method- It is same with the mixed method because it consists the qualitative and
quantitative methodology in study.
Research Strategies
There has been questionnaire used as a research strategy. With the help of using
questionnaire, researcher can able to collect the information and data from large number of the
participants in minimum time period (Wang, Noe and Wang, 2014).
The research strategy is related to carried out an investigation in an effective manner.
Strategy can consists various approaches for an instance action research, interviews,
questionnaire, experimental research and others (Lee, Back and Chan, 2015).
Time horizons
In the present investigation, there have been cross sectional time horizon used because this
can help in compare the various population groups in specific time. From using this time

horizon, researcher can able to conduct the research activities within the specific period of time.
It is a snapshot of specific activities at given time.
This explains necessary time for completion of whole project work. Under this, there are
two different kinds of time horizon which given below:
Cross- sectional- It is establish already established whereby data and information should
be gathered. It is used when a research is related with study of specific phenomenon at set time.
Longitudinal- It is related to collection of data and information repeatedly over extended
period of time. It is mainly used where necessary factor for an investigation is evaluating over a
time period (Milliman and Clair, 2017).
Data collection
In performing the present research, researcher has considered the primary method of data
collection as this will assist an investigator to conduct a researcher with authenticity and
reliability of the data to getting positive results (Mone, London and Mone, 2018). Under this,
questionnaire has been developed by consisting the different questions regarding the
performance appraisal system.
Data collection is related to collecting the data by using authentic sources and also
enables to give the answers of stated research questions and examine outcomes effectively. There
are primary and secondary data collection methods given below:
Primary method- This is gathered through investigators from first hand sources by using
the different sources for an instance questionnaire, observation, interviews and others.
Secondary method- It is related to gathered the data through some other person that user.
In this method, data has been collected as well as examinee through some other persons.
Common sources to collect secondary data are magazines, books, articles, internet sources and
some others.
Sampling
It is process of taking the samples for analysis. Through using the random sampling
method, research select the specific sample size. Under this present research, 50 respondents has
been chosen and they are the managers of company because they are aware about the
performance appraisal system and the effective ways to appraise employees in an effective
manner (Upadhaya, Munir and Blount, 2014).

Ethical consideration
Ethics is concerned with the norms and values which need to follow when conducting an
investigation in significant manner. Conflict can emerge in any case, and an investigator needs to
establish some strategies to resolve the emerging situations. This is necessary for a researcher to
keep respondents ' information confidential and not to distract respondents ' information from
everyone. In the current research, the ethical problem that the researcher has faced is directly
linked to data collection methods, as the researcher was not quite sure which tool related to data
collection would explicitly and honestly pull out beneficial accurate sources of information. To
solve this problem, researcher uses some credible sources and collects accurate information in
order to getting the positive outcomes (Shaw and Gupta, 2015).

RESULTS
On Primary basis
QUESTIONNAIRE
Name:
Age:
Gender:
Q1) Do you have the understanding about performance appraisal?
a) Yes
b) No
Q2) What are the benefits of performance appraisal to organisation?
a) Motivate employees
b) Promotions and Transfers
c) Improve Relationship among Management and Employees
Q3) What are the different ways to used by Waitrose to motivate its staff members for
enhancing organisational productivity?
a) Focus on intrinsic rewards
b) Create positive work environment
c) Career-pathing
d) Provide flexibility
Q4) What advantages Waitrose can get to motivate its staff members at workplace?
a) Enhance employees performance
b) Positive atmosphere
c) Reduce employee turnover
Q5) Does performance appraisal helps in enhancing the motivational level of employees in
Waitrose?
a) Yes
b) No
Q6) What are the different types of performance appraisal systems?
a) 360-Degree Appraisal
b) Annual review of performance

c) Manager Performance Appraisal
Q7) What are the various issues faced by Waitrose company in performance appraisal?
a) Stereotyping
b) Bias
c) The Recency Effect
d) Attribution Error
Q8) What are different ways Waitrose adopt to overcome from the performance appraisal
related issues?
a) Give Regular Employee Feedback
b) Make discussion
c) Use Employee Self-Appraisals
Q9) According to your opinion, does performance appraisal helps in enhancing employees
performance?
a) Yes
b) No
Q10) Recommend some ways to sustain employees for long period of time and gain
competitive benefits.
DATA SHEET
Q1) Do you have the understanding about performance appraisal? Frequency
a) Yes 46
b) No 4
Q2) What are the benefits of performance appraisal to organisation? Frequency
a) Motivate employees 30
b) Promotions and Transfers 10
c) Improve Relationship among Management and Employees 10
Q3) What are the different ways to used by Waitrose to motivate its
staff members for enhancing organisational productivity?
Frequency
a) Focus on intrinsic rewards 10

b) Create positive work environment 20
c) Career-pathing 10
d) Provide flexibility 10
Q4) What advantages Waitrose can get to motivate its staff members at
workplace?
Frequency
a) Enhance employees performance 20
b) Positive atmosphere 20
c) Reduce employee turnover 10
Q5) Does performance appraisal helps in enhancing the motivational
level of employees in Waitrose?
Frequency
a) Yes 45
b) No 5
Q6) What are the different types of performance appraisal systems? Frequency
a) 360-Degree Appraisal 18
b) Annual review of performance 25
c) Manager Performance Appraisal 7
Q7) What are the various issues faced by Waitrose company in
performance appraisal?
Frequency
a) Stereotyping 10
b) Bias 10
c) The Recency Effect 10
d) Attribution Error 20
Q8) What are different ways Waitrose adopt to overcome from the
performance appraisal related issues?
Frequency
a) Give Regular Employee Feedback 15

b) Make discussion 10
c) Use Employee Self-Appraisals 25
Q9) According to your opinion, does performance appraisal helps in
enhancing employees performance?
Frequency
a) Yes 40
b) No 10

THEME 1: Understanding about performance appraisal
Q1) Do you have the understanding about performance appraisal? Frequency
a) Yes 46
b) No 4
Interpretation: From the above mention graph, this has been stated that there are 46
respondents which said that they have the understanding regarding performance appraisal at
workplace. The performance appraisal is helpful in motivate the staff members so that they can
contribute towards attaining the organisational objectives. There are remaining 4 respondents
which are disagree with the given statement.
THEME 2: Benefits of performance appraisal to organisation
Q2) What are the benefits of performance appraisal to organisation? Frequency
a) Motivate employees 30
b) Promotions and Transfers 10
a) Yes b) No
0
5
10
15
20
25
30
35
40
45
50 46
4
Column B

c) Improve Relationship among Management and Employees 10
Interpretation: The main focus of performance appraisal is on improving the performance level
of employees as this examines and analyse opportunities factors such as technology and social
process. On the basis of 30 respondents that performance appraisal is helpful in motivate the staff
members as employer appraise the work of employees at large scale. 10 respondents are agree
with promotion and transfer benefits as this helps in identify the talented staff members to be
groom them as competent. In this, company admits hard work and employees accomplishments
through providing transfer, promotion and deputation. There are 10 remaining respondents which
agree with improving the relationship among employees and management by solving the
grievance or any kind of dispute.
THEME 3: Ways to used by Waitrose to motivate its staff members for enhancing
organisational productivity
Q3) What are the different ways to used by Waitrose to motivate its
staff members for enhancing organisational productivity?
Frequency
a) Focus on intrinsic rewards 10
b) Create positive work environment 20
c) Career-pathing 10
0
10
20
30
30
10 10
Column B

d) Provide flexibility 10
Interpretation: Waitrose Company uses the various ways to motivating staff members at
workplace for better productivity of business. There are 10 respondents which said that
management should focus on give the intrinsic reward to employees for their work. 20
respondents are agreeing with create the positive working environment for staff members so that
they can focus on their work without arising any kind of conflict at workplace. There are 10
respondents which said that staff members have idea about the incentives and it will lead to
enhance their commitment towards the manager. 10 respondents are agreeing with giving
flexibility.
THEME 4: Advantages Waitrose can get to motivate its staff members at workplace
Q4) What advantages Waitrose can get to motivate its staff members at
workplace?
Frequency
a) Enhance employees performance 20
b) Positive atmosphere 20
c) Reduce employee turnover 10
a) Focus on intrinsic rewards
b) Create positive work environment
c) Career-pathing
d) Provide flexibility
0
2
4
6
8
10
12
14
16
18
20
10
20
10 10
Column B

Interpretation: There are many benefits get by the employees to motivate them at workplace.
From the opinion of 20 respondents that motivation is helpful in increase the performance level
of staff members at workplace. If the employees will be motivated then they will work in a better
manner and focus on attaining the specific organisational objectives. 20 respondents are agree
with develop the positive atmosphere because if the motivation level of employees will be high
then then chances of conflict arise will be reduce and the positive working environment will be
developed. There are remaining 10 respondents which agree with minimize the employee
turnover because it the employees will work effectively and will not leave the organisation then
this helps in sustain them for long period of time.
THEME 5: Performance appraisal helps in enhancing the motivational level of employees
Q5) Does performance appraisal helps in enhancing the motivational
level of employees in Waitrose?
Frequency
a) Yes 45
b) No 5
a) Enhance employees performance
b) Positive atmosphere
c) Reduce employee turnover
0
2
4
6
8
10
12
14
16
18
20
20 20
10
Column B

Interpretation: As per the opinion of 45 respondents that performance appraisal helps in
motivating the staff members as this helps give the reasons to sustain at workplace for long time
period. It can act as motivation of staff members to make improvement in productivity and
performance. When a staff member sees about objectives that defined in clear manner then its
performance related challenges are determined and motivate the staff members to attain the
objectives in a clear manner. There are remaining 5 respondents which disagree with the given
statement and according to them performance appraisal helps in enhancing employee as well as
organisational productivity in significant manner.
THEME 6: Different types of performance appraisal systems
Q6) What are the different types of performance appraisal systems? Frequency
a) 360-Degree Appraisal 18
b) Annual review of performance 25
c) Manager Performance Appraisal 7
a) Yes b) No
0
5
10
15
20
25
30
35
40
45
45
5
Column B

Interpretation: There are different kinds of performance appraisal system which organisation
use to appraise the employees so that they can be motivation. According to 18 respondents that
company need to apply the 360-Degree Appraisal because it is a kind of employee performance
review under which the managers and subordinated rate the work of staff members on the basis
of their work. 25 respondents are agreeing with the Annual review of performance and rate the
performance of employees on annual basis by examining their work annually. There are 7
remaining respondents which are agreeing with the manager performance appraisal system.
THEME 7: Issues faced by Waitrose Company in performance appraisal
Q7) What are the various issues faced by Waitrose company in
performance appraisal?
Frequency
a) Stereotyping 10
b) Bias 10
c) The Recency Effect 10
d) Attribution Error 20
a) 360-Degree Appraisal
b) Annual review of performance
c) Manager Performance Appraisal
0
5
10
15
20
25
18
25
7
Column B

Interpretation: There are different issues which management of Waitrose faced related to
performance appraisal. According to 10 respondents that stereotyping is a main issue because in
this disliking an individual on the basis of certain characteristics such as region, beliefs, race and
gender reduce employee performance. 10 respondents are agree with bias as they come out as
negative or positive feelings regarding something. Managers can make the appraisal efforts
inconsistently across various staff members. There are 10 respondents that the Recency Effect is
main impact on the performance appraisal as appraisers focus on short time period. There are
remaining 20 respondents which agree with the Attribution Error issue in performance appraisal.
THEME 8: Ways Waitrose adopt to overcome from the performance appraisal related
issues
Q8) What are different ways Waitrose adopt to overcome from the
performance appraisal related issues?
Frequency
a) Give Regular Employee Feedback 15
b) Make discussion 10
c) Use Employee Self-Appraisals 25
a) Stereotyping
b) Bias
c) The Recency Effect
d) Attribution Error
0
2
4
6
8
10
12
14
16
18
20
10 10 10
20
Column B

Interpretation: There are certain ways which company adopt to overcome from the arisen
problems. According to 15 respondents that Waitrose needs to give the employee feedbacks on
regular basis. 10 respondents are agreeing with make the proper discussion among the
management and employees. 25 respondents said that Waitrose should use the Employee Self-
Appraisals.
THEME 9: Performance appraisal helps in enhancing employee’s performance
Q9) According to your opinion, does performance appraisal helps in
enhancing employees performance?
Frequency
a) Yes 40
b) No 10
a) Give Regular Employee Feedback
b) Make discussion
c) Use Employee Self-Appraisals
0
5
10
15
20
25
15
10
25
Column C

Interpretation: On the basis of 40 respondents that performance appraisal is helpful for
company to increasing the performance of staff members. 10 respondents are disagreeing with
the given statement.
On Secondary basis
In literature review part has been discussed about the performance appraisal system
which organisation uses for appraise the performance level of staff members at workplace. In the
literature review part, there has been studied about the different kinds of performance appraisal
system such as 360 Appraisal, Manager Performance appraisal, Annual review of performance,
Management by Objectives (MBO). It has been examined that Waitrose Company uses the
Annual review of performance to examine performance level of staff members.
In the literature review part has been discussion about the effectiveness of the
performance appraisal system for motivating the employees at workplace. It is necessary for
company to motivating the employees so that their performance can be improved and they can
sustain at workplace for long period of time. Employee satisfaction is beneficial in increasing
employee performance levels and retaining them at the workplace for a long period of time.
Waitrose's performance evaluation method is effective in encouraging workers as they enhance
their level of performance. The company uses Annual review of performance to analyse
performance level of staff members and manager appraise the performance of employees
annually.
a) Yes b) No
0
5
10
15
20
25
30
35
40
40
10
Column B

There has been examined about importance of the motivated staff on the overall
performance level of Waitrose Company. The importance of motivated staff on motivation is
enhancing productivity, efficiency and reduces the employee turnover. The motivation is helpful
in attaining the personal as well as organisational objectives. It assists in the self development of
person. On the other hand, it has been analysed that motivated staff members can lead to
enhanced productivity level of company and also permit business firm to attain high output level.

CONCLUSION AND RECOMMENDATIONS
Conclusion
It has been concluded from the above mention report that performance appraisal helps in
tracking the performance level of employees at workplace. It also influence on the employees
motivation. There has been different performance appraisal system used by the company for
analyse the work performance of staff members. Manager is tied closely with staff members that
observed as well as assess employee work throughout year and also gives feedback on it. In this,
company provides the training to employees in order to motivate the staff members along with
appraise their performance level so that they can focus on their work and also sustain at
workplace for long period of time. The main purpose of the performance management system is
to determine the work of employees and appraise them for motivation. In present report, aim and
objectives has been developed on the basis of research topic. In literature review part, secondary
sources has been used to give the answer of research questions and getting the positive outcomes.
To collect the data and information in literature review, there has been secondary sources used
for an instance internet sources, books, articles and others. In conducting the methodology part,
different layers of research onion has been considered. There has been qualitative method used
this assists in give the in-depth investigation related to the specific research area in an effective
manner. Interpretivism research philosophy has been used because this gives the better
understanding on core subject area and also based on the qualitative methodology. In collect the
information and data, there has been primary method used by developed questionnaire and
choosing 50 respondents which are the managers of company and have the deep understanding
about the performance appraisal system of an organisation.
Recommendations
 Management of Waitrose Company should conduct the training for supervisors to
enhance their awareness’s and also reduce the rating bias. This is necessary for an
organisation to upgrade the communication among appraisee and appraiser on one- to-
one basis for the purpose of performance appraisal system that is main tool to motivate
staff members.
 Management of company should be redevelop its performance appraisal system in order
to assure fair and also standardised performance appraisal system to contribute towards

employee’s motivation. With the help of this, managers can able to make improvement in
attitude of staff members to performance appraisal system by developing transparent
performance appraisal system.
 It is necessary for the managers of Waitrose company to take feedback from employees
and also communicate with them for their development purpose, make improvement in
their accuracy and also validity of rating system so that this can reflect the employees job
performance.
 Under this, it is necessary that appraisal system should be flexible in nature, once
appraisal is done through management; this should be shared with staff members and
requires to carried out the discussion. Only the mutual concern appraisal outcomes should
be properly frozen.
 Performance appraisal requires to be done at the regular intervals so that staff members
can get the moderate period for performance improvement. In context to this, care should
be taken that process of appraisal become more formality.
 Communication is necessary at every stage and it is one of the effective way to
motivating employees. There is a requirement to management of Waitrose to
communicate with the staff members on continuous basis, determine their problems and
find the effective ways to overcome from them in an effective manner.
REFLECTION
My overall experience in conducting the present investigation is better as this helped me
the developing my core competencies as well as knowledge. This helped me in understanding
about the concept of performance appraisal system and their influence on the motivation level of
employees. It is helpful in success of company as sustaining the employees at workplace for long
period of time. After conducting the present investigation, I feel confident because I gained the
knowledge in specific area and get the better understanding about doing the research in a
systemic manner. At the time of conducting an investigation, I get better knowledge and also
face some complexities. In conducting the present investigation, I used the qualitative method
because this helps me in give the detailed and in-depth information regarding the specific
research area in significant manner. For collection of data, I developed the questionnaire in
primary data collection and my sample size is 50 and these are the managers of company. I found
that managers of Waitrose are more cooperative and they provided their valuable time to fill out

the questionnaire and share past knowledge that is a significant part of my research. I will not be
able to collect sufficient information about the company in relation to the respective project
without the assistance of managers. Besides it, I can be said that I will carry out research in the
future even because I have acquired adequate knowledge to carry out research and perform
activities or tasks significantly. In addition to this, I can now establish effective strategies which
work as more supporting for me in order to managing the team as well as leading them in proper
way.
Other than this, I faced some issues while conducting an investigation related to time and
cost and selection of data collection methods. In context to this, there were several disrupted
taken place when conducting an investigation. But I handled the complex situations by
communicate with mu superiors. I developed the proper time and money management plan and
manage the activities accordingly. My superior supported me in finishing overall project with
within specific period of time.

REFERENCES
Books and Journals
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.
Budworth, M. H., Latham, G. P. and Manroop, L., 2015. Looking forward to performance
improvement: A field test of the feedforward interview for performance
management. Human Resource Management. 54(1). pp.45-54.
Cerasoli, C. P., Nicklin, J. M. and Ford, M. T., 2014. Intrinsic motivation and extrinsic
incentives jointly predict performance: A 40-year meta-analysis. Psychological bulletin.
140(4). p.980.
Cheng, S. Y., 2014. The mediating role of organizational justice on the relationship between
administrative performance appraisal practices and organizational commitment. The
International Journal of Human Resource Management. 25(8). pp.1131-1148.
Collings, D. G., 2014. Toward mature talent management: Beyond shareholder value. Human
Resource Development Quarterly. 25(3). pp.301-319.
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.
Gupta, N. and Shaw, J. D., 2014. Employee compensation: The neglected area of HRM
research. Human resource management review. 24(1). pp.1-4.
Hameed, A., Ramzan, M. and Zubair, H. M. K., 2014. Impact of compensation on employee
performance (empirical evidence from banking sector of Pakistan). International
Journal of Business and Social Science. 5(2).
Hu, J. and Liden, R. C., 2015. Making a difference in the teamwork: Linking team prosocial
motivation to team processes and effectiveness. Academy of Management Journal.
58(4). pp.1102-1127.
Jiang, J. Y. and Liu, C. W., 2015. High performance work systems and organizational
effectiveness: The mediating role of social capital. Human Resource Management
Review, 25(1), pp.126-137.
Kuranchie-Mensah, E. B. and Amponsah-Tawiah, K., 2016. Employee motivation and work
performance: A comparative study of mining companies in Ghana. Journal of Industrial
Engineering and Management (JIEM). 9(2), pp.255-309.
Lăzăroiu, G., 2015. Employee motivation and job performance. Linguistic and Philosophical
Investigations. (14). pp.97-102.
Lee, J. S., Back, K. J. and Chan, E. S., 2015. Quality of work life and job satisfaction among
frontline hotel employees. International Journal of Contemporary Hospitality
Management.
Milliman, J. and Clair, J., 2017. Best environmental HRM practices in the US. In Greening
People (pp. 49-73). Routledge.
Mone, E. M., London, M. and Mone, E. M., 2018. Employee engagement through effective
performance management: A practical guide for managers. Routledge.

Shaw, J. D. and Gupta, N., 2015. Let the evidence speak again! Financial incentives are more
effective than we thought. Human Resource Management Journal. 25(3). pp.281-293.
Upadhaya, B., Munir, R. and Blount, Y., 2014. Association between performance measurement
systems and organisational effectiveness. International Journal of Operations &
Production Management.
Wang, S., Noe, R. A. and Wang, Z. M., 2014. Motivating knowledge sharing in knowledge
management systems: A quasi–field experiment. Journal of Management. 40(4).
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Online
Heryati, 2020. Why Employee Motivation Is Important (& How to Improve It). [Online].
Available through: <https://inside.6q.io/employee-motivation-important/>.
Seidel,M., 2020. What Are the Benefits of Performance Appraisals to the Organization?.
[Online]. Available through: <https://smallbusiness.chron.com/benefits-performance-
appraisals-organization-15409.html>.
Tucker, F., 2020. 6 types of appraisal system – and which one is best for your business?.
[Online]. Available through: <https://citrushr.com/blog/performance/appraisal-types/>.

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