Research Proposal: Performance Appraisal Effectiveness in MHUD

This research proposal investigates the effectiveness of the performance appraisal system on employee performance within the Ministry of Housing and Urban Development (MHUD) in the Maldives. The study employs a mixed-methods approach, utilizing both qualitative (interviews) and quantitative (questionnaires) data collection strategies. A sample of 166 employees will be selected through random sampling. The research aims to determine the impact of the performance appraisal system on increasing employee performance and to identify the relationship between performance appraisals and employee motivation. The study draws upon equity theory and goal-setting theory to frame its analysis and examines the current performance appraisal system used in the Maldives Civil Service since 2009. The research includes a literature review, research questions, and hypotheses related to the correlation between performance appraisals and employee motivation.

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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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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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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WRITTEN ASSIGNMENT: RESEARCH PROPOSAL
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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WRITTEN ASSIGNMENT: RESEARCH PROPOSAL
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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Therefore, the researcher’s overall aim is to analyse the impacts of performance
appraisal system on civil servants performance from the latest reviewed and restructured
of performance appraisal system used by Maldives civil service.
Rationale for the Study
The citizens of developing nations are today highly dependent on the services
provided by the public sector. This study is significant to Maldives because the performance
appraisal system adapted by the civil service of Maldives has been reviewed and
restructured several times. Therefore, the researcher aims to analyse the effectiveness of
performance appraisal system on civil servants performance works in Ministry of Housing
and Urban Development from the latest reviewed and restructured of performance appraisal
system used by Maldives civil service.
Purpose Statement
The main aim of this study is to analyze the effectiveness of performance appraisal
system of Maldives civil service.
Research Objectives
• To identify the effect of performance appraisal system on increasing employees
performance
• To identify the relationship between performance appraisals on employee
motivation.
Research Questions
Following are the research questions for this study;
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RQ.1- Qualitative: How effective is the adoption of performance appraisal system by an organization
for enhancement of employees’ performance?
RQ.2- Quantitative: Is there any relationship between performance appraisals on employee
motivation?
Research Hypothesis
The performance appraisal system in the Maldivian Civil Service is influenced by
various factors which leads the CSC to review and restructure it numerous times. Therefore,
the research hypothesis of this study is as follows:
H0: There is no relationship between performance appraisals on employee
motivation.
H1: There is a relationship between performance appraisals on employee motivation.
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Chapter 2
Literature Review
Performance Appraisal
Performance appraisal system is used by organizations to evaluate employee’s
performance; normally employees will be appraised once a year. As mentioned by Cascio
(2015), a fully functional and well-formed performance appraisal system helps to improve
the performance of the employees by identifying the areas where performance is consistently
low.
In accordance to (Armstrong, 2006) PA is defined as the formal evaluations and
rating of subordinates by supervisors at an annual meeting. According to (CIPD, 2013) PA
is achance for individual employees and those who are concerned with their performance, to
involve in a conversation about employee’s performance and growth.
Moreover, Dusterhoff, Cunningham&MacGregor (2014), states that the main
objectives of performance appraisal includes, Motivating employees, successful planning
and identifying potential, enhancing manager subordinate dialogue and formal assessment of
unsatisfactory performance.
Performance appraisal model
The concept of Performance appraisal system plays a crucial role in human resource
management of any organization. There are many who practiced models in performance
appraisal system. Numerous experts have clarified the concept in their own ways. According
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to the researcher the most relevant model for the purpose of study is “Performance Appraisal
Cycle” which was formulated by Mabey (Agarwal, 2011). The elements prescribed in
performance appraisal system cycle are shown in the diagram 1.
Diagram 1: Performance management cycle (Agarwal, 2011).
Theory related to performance appraisal
Numerous theories has explained the performance appraisal of employee and
motivating employees. Hence, for the purpose of this study the researcher chose Goal-
setting theory and equity theory to evaluate the objectives and questions of this study.
Goal-setting theory
Goal-setting theory had been formulated and prescribed by Edwin Locke in the year 1968.
This theory suggests that the individual goals setting done by an employee play an
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Performance
appraisal
cycle
Performance
measurement
Feeedback of
outcome
Reward
(based on
result)
Objectives &
activities
Amendments
Objectives
setting