Effectiveness of Performance Appraisal System on Employee Motivation

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.