Effectiveness of Performance Appraisal System on Employee Performance in Ministry of Housing and Urban Development

WRITTEN ASSIGNMENT: RESEARCH PROPOSAL
Effectiveness of performance appraisal system on employee performance in Ministry of
Housing and Urban Development
By
HussainShareef
S18011063
Research Proposal Submitted in Partial Fulfillment of the Requirements of the Degree of
Master of Business Administration
Zikura International College
April | 2019
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Abstract
This study investigate the impacts of performance appraisal system on employee’s
performance of civil servants who works under MHUD of Maldives. The aim of the study
is to analyse the effectiveness of performance appraisal system on civil servants
performance from the latest reviewed and restructured of performance appraisal system
used by Maldives civil service.The chosen research design for this study is a mixed
method which means data will be collected by qualitative and quantitative method. The
study adopts questionnaire and interview as data collection strategies. From the MHUD
166 employees will be selected through random sampling method as respondent. It is
include 160 participants for questionnaire and 6 participants for the interview. The
research based on the equity theory, goal-setting theory, model of performance appraisal
system. Summarized that clearly captured the research problem, research objective,
research question, theoretical framework, literature review, research methodology. The
study based on a conceptual framework which had performance appraisal, employee
motivation, increasing employee performance. The study identify that there is a relation
between performance appraisals on employee motivation.
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WRITTEN ASSIGNMENT: RESEARCH PROPOSAL
Table of Contents
Abstract........................................................................................................................................2
List of Diagrams..........................................................................................................................5
List of abbreviations....................................................................................................................5
Chapter 1..................................................................................................................................6
Introduction..............................................................................................................................6
Problem Statement...................................................................................................................8
Rationale for the Study............................................................................................................9
Purpose Statement....................................................................................................................9
Research Objectives.................................................................................................................9
Research Questions..................................................................................................................9
Research Hypothesis..............................................................................................................10
Chapter 2................................................................................................................................11
Literature Review...................................................................................................................11
Performance Appraisal...........................................................................................................11
Performance appraisal model.................................................................................................11
Conceptual framework...........................................................................................................16
Chapter 3................................................................................................................................17
Research design and approach...............................................................................................17
Population, study sample and target group............................................................................18
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Selection of Samples..............................................................................................................19
Data collection strategies & instrument.................................................................................20
Data analysis..........................................................................................................................21
Ethical considerations............................................................................................................21
Limitations of the Study.........................................................................................................22
References..............................................................................................................................23
APPENDIX A........................................................................................................................23
Appendix B............................................................................................................................38
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WRITTEN ASSIGNMENT: RESEARCH PROPOSAL
List of Diagrams
Diagram1: Performance management cycle
Diagram 2: Conceptual framework of the study
List of abbreviations
PA: Performance Appraisal
CSC: Civil Service Commission
HRM: Human Resource Management
MHUD: Ministry of Housing and Urban Development
NGO: Non-Government Organization
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WRITTEN ASSIGNMENT: RESEARCH PROPOSAL
Chapter 1
Introduction
High quality services from the institutes are critical to the lives of citizens, and
ensuring their provision is an essential function for the governments. Today, the citizens
of developing nations are very much dependent on the services provided by the public
sector/civil servants for various purposes. In order to improve the services, today
developing countries are going through profound restructuring. One of the most
widespread tools used to reform the service is adapting the performance appraisal
system.
PA is a crucial component of HRM in most organizations and one of the most
significant duties for human resource and supervisors. Therefore, the Performance review
information is used for numerous aims including decisions about promotions, payment,
staff feedback and development, career progress, motivation and other organizational
interventions.
Therefore the researcher will be studying about the current performance appraisal
system used in Maldives Civil Service since 1st February 2009 which is also being used
by the employees of the chosen Ministry. This study will focus to analyse the effectiveness
of PA system for the employees of MHUD
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Ministry of Housing and Urban Development
Ministry of Housing and Urban Development (MHUD) is a ministry of the
government of Maldives mandated with developing national plans and working towards
policies and targets which are cohesive. It is also mandated to provide technical assistance in
formulating projects with cooperation from other government institutions. In addition
finding finances for implementation of development projects is also a work which is to be
done by the ministries. It also has to promote the involvement of NGOs in national
development. Moreover, it acts as the focal point for works related to achieving sustainable
development goals of United Nations.
The ministry is structured so that the top layer of the officials is appointed by the
president. Below them are the civil servants who are chosen on the basis of merit and are
expected to be professional, non-biased and with integrity.
History of performance appraisal system in Maldives
In 1980’s the related authorities understood that there is a necessity for establishing a
Performance Appraisal System for the Maldivian Public Service, but the first Performance
Appraisal System was established for the whole of Public Service during 1996 and was
halted in 1999. The reason for suspending the system was that the objectives of introducing
the system were not being achieved.
After reviewing the system, a new Appraisal System was introduced and conducted
as a preliminary project during 2002 and 2003, for some of the selected government
organizations. In April 2004 all government organizations was directed to implement the
system across the board. Even so, from the experience of the previous two years and from
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the experience of the first appraisal system, it is beyond doubt that the current system will
face fundamental obstacles to be institutionalized across the public service.
Problem Statement
As mentioned by Yang, Huang and Hsu (2017), the effectiveness of an organization's
performance appraisal system plays an essential role in the effectiveness of its training,
selection, and employee motivation practices. Performance appraisal is also known as an
organizational tool which supports the organization to ensure that employees are
contributing enough to achieve organizations goals and objectives.
In accordance to Kampkötter (2017), performance appraisal has both positive and
negative impacts to the organizations. Therefore, the employees who obtain a high score in
their appraisal are generally stimulated to perform well and prolong their good performance.
Numerous studies have proved that performance appraisal system is a fundamental
tool to maintain and expand the service quality of any organization and employees
performance.
Thus, the facts have revealed that Maldives civil service have reviewed and
restructured their performance appraisal system several times. (Civil Service Commission,
2019). Vice president of CSC Mr. Shaheed Mohamed said “frequent reviews and
restructures indicate that there are issues in the system. And also PA play a very important
role to motivate and bring better performance to employees. To identify the realist issues
in PA need to do a research. (Shaheed 2019)
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