Dissertation: Employee Commitment Through Performance Appraisal at M&S

This dissertation investigates the effectiveness of performance appraisal in increasing employee commitment within Mark and Spencer's (M&S). The study explores the current performance appraisal techniques used by M&S, which include annual reviews and discussions between staff and management. The research aims to identify the impact of these appraisals on employee commitment levels, considering factors such as satisfaction, motivation, and the influence of promotions and rewards. The dissertation includes a literature review covering various appraisal methods, a detailed research methodology, data analysis, and a conclusion with recommendations. The research questions focus on how M&S's performance appraisal policies affect employee commitment and how to optimize appraisal effectiveness. The study highlights the importance of employee commitment for organizational success, particularly in the competitive retail environment, and emphasizes the need for effective performance management systems to enhance employee satisfaction and productivity. The findings suggest that performance appraisals can both increase and decrease employee commitment, underscoring the need for a well-designed and consistently applied system.

DISSERTATION
(To review the effectiveness of performance appraisal in
increasing employee commitment within the
organization: A study on mark and spencer’s)

ACKNOWLEDGEMENT
Writing this dissertation has been an extraordinary journey that ended one chapter in my
life, only to begin another. This journey could never have been completed without the love and
support of the special people that surround my life. I offer my sincere thanks to my mentor who
guided me while the course of entire study and rectified me at time of faults. Because of him I
was able to fulfil the objectives of this research work. Again, a big vote of thanks to my family
and friends for providing their kind support to me while the course of entire dissertation. Their
motivation and support instigated confidence in me to perform this study.

ABSTRACT
Employee commitment to an organization can influence the conditions that are believed
to facilitate effective performance appraisal. Performance appraisal is one of the best techniques
through which management team of any organization can effectively review and evaluate the
performance of any of their workers. In this regards, the present research is totally based on the
effectiveness of performance appraisal in increasing employee commitment within the Mark
and Spencer’s. It has been founded that it is highly essential for firms to boost up the
motivation level of all their workers so that they can effectively raise their performance and
provide quality services to all the customers. Current performance appraisal technique have also
been discussed in the study and identified that M&S carried out an appraisal system at every 12
months. At the time of this process, a meeting and discussion held between the staff members as
well as management of company. Effective and best performance appraisal system helps in
creating committed workforce.
For the same, employees of M&S have been asked about their level of commitment
towards firm due to the better performance appraisal. After appropriate findings and evaluation it
has been concluded that performance appraisal is a source due to which level of employee
commitment might leads to decrease as well as increase. Appraisals are highly interlinked with
the enhanced commitment level of workers. Employees of M&S feel satisfied and perform all
their tasks more effectively as it boost up their confidence level towards work. Moreover, it has
been identified that appraisals and promotions are two most common sources which helps in
enhancing employee commitment.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
Introduction..................................................................................................................................1
M&S background.........................................................................................................................2
Research Aim and objectives.......................................................................................................2
Aim:.........................................................................................................................................2
Objectives...............................................................................................................................3
Research question........................................................................................................................3
Rationale of the study..................................................................................................................3
Structure of the dissertation.........................................................................................................3
CHAPTER 2: LITERATURE REVIEW`.......................................................................................5
Concept of performance appraisal...............................................................................................5
Various performance appraisal techniques that helps in enhancing employee commitment......6
Current performance appraisal scheme in M&S.........................................................................9
Impact of performance appraisal on employee commitment....................................................10
Conceptual framework...............................................................................................................14
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................15
Research Approach....................................................................................................................15
Research Philosophies...............................................................................................................15
Research Design........................................................................................................................16
Data collection...........................................................................................................................16
Sampling....................................................................................................................................17
Research type.............................................................................................................................18
Data Analysis.............................................................................................................................18
Ethical considerations................................................................................................................19

Reliability and Validity of Data.................................................................................................20
CHAPTER 4: DATA ANALYSIS & RESULTS..........................................................................21
Introduction................................................................................................................................21
Analysis.....................................................................................................................................21
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................30
Conclusion.................................................................................................................................30
Recommendations......................................................................................................................32
REFERENCES..............................................................................................................................34
Online........................................................................................................................................36
APPENDIX....................................................................................................................................37
QUESTIONNAIRE FOR EMPLOYEES OF M&S..................................................................37
Summary of the Questionnaire..................................................................................................38

LIST OF FIGURES
Figure 1360 Degree Appraisal Process............................................................................................8
Figure 2Rating process of performance of workers......................................................................12
Figure 3Conceptual framework of the relationship between performance evaluation justice and
employee commitment...................................................................................................................14

CHAPTER 1: INTRODUCTION
Introduction
In today’s highly competitive environment it is becoming quite essential for
organizations to meet out the needs and desires of their consumers. In order to do so, they must
provide appropriate training to their workers so that they can perform more effectively.
However, there are various ways to improve their performance and motivate them. According to
Bouskila-Yam and Kluger (2011) performance appraisal is one of the best techniques through
which management team of any organization can effectively review and evaluate the
performance of any of their workers. The main purpose of performance appraisal is improved
productivity. In simple terms, appraisal can be defined as an assessment of individual’s
performance in a systematic way. It is being measured on the basis of different factors such as:
knowledge, quality and quantity of output, leadership, abilities, supervision, cooperation,
dependability etc. Moreover, it can be determine that with the help of effective performance
appraisal organization can easily increase the staff self-esteem as well as better clarify and define
them job responsibilities and functions (Thurston Jr, and McNall, 2010). Enhanced employee
commitment leads to higher satisfaction of customers.
As per the view of Hameed and Waheed (2011) there are various appraisal techniques
such as ranking, management by objectives (MBO), essay evaluation, checklists, 360 degree
appraisal method, etc. By the way of acquiring one of the best technique organizations can easily
improve the satisfaction level of workers. It motivates them to give their best towards the work
and make their consumers happy. However, evaluating employee performance is quite difficult
for top management staff member (Espinilla and et.al, 2013). The most common objectives of
performance appraisal are training and development, promotion, salary increment as well as
various other ways. However, it puts a pressure in workers to perform better so that they are
being appraised in respect of certain factors and their future also depends on such factors.
According to Bernardin and Wiatrowski (2013) employee commitment to an organization can
influence the conditions that are believed to facilitate effective performance appraisal. In case of
not having expected appraisal workers do not able to perform their tasks more effectively.
Further, it is essential to maintain higher employee commitment so that productivity can be
improved.
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In this regards, the present research is totally based on the effectiveness of performance
appraisal in increasing employee commitment within the organization. For the same, study
takes place within the retail industry in which Mark and Spencer’s is taken into
consideration. It is a British multinational retailer of UK and specializes in the selling of
clothing, home products as well as luxury food products. In order to maintain their growth
rate it is highly required by them to provide quality services to their loyal consumers. It can
be attained on the basis of enhanced level of motivation of employees. For the same,
providing them better rewards for their performance is regarded as one of the best and most
effective ways of enhanced level of satisfaction.
M&S background
Mark and Spencer’s are British multinational retailers of UK which mainly serves
various retailing services. Company was founded by Michael Marks and Thomas Spencer in
the year of 1884. It specializes in the selling of clothing, home products and luxury food
products as well. They are transforming become a leading international retailers and wants to
always create their same positive identity in the mind set of customers. They are serving their
business operation over 1,330 stores worldwide and committed to deliver sustainable value
for all shareholders. M&S is highly focused with offering high quality own brand food as
well as clothing and home products in their stores and online both in the UK and
internationally. They are serving almost 33 million customers throughout their 852 stores and e-
commerce platform as well. Moreover, M&S is having their 480 wholly owned or franchised
stores in 59 territories across Europe, Asia and the Middle East.
Research Aim and objectives
Aim:
The present research is based on the technique of performance appraisal through which
organization can easily enhance their workers commitment level. Moreover, the best ways to
improve the employee commitment is regarded as a performance appraisal technique. For the
present study, effectiveness of performance appraisal for enhanced employee commitment will
be measured for the Mark and Spencer’s.
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Objectives
 To review the relevant literature on the various performance appraisal techniques that
helps in enhancing employee commitment.
 To review the current performance appraisal scheme in M&S.
 To collect and analyse primary data about impact of performance appraisal on
employee commitment in M&S.
 To recommend various ways to make the Performance appraisal effective to improve
commitment.
Research question
 How performance appraisal policies of M&S impact the commitment of workers towards
the organization?
 What are the different ways to make performance appraisal effective within an
organization?
Rationale of the study
Gaining employee commitment by providing them effective rewards for their
performance is becoming essential tasks for organizations these days. One of the major issues
faced by them is going through the proper evaluation of the performance of employees.
Company should not assess the performance on the basis past data only. There are various other
factors which also require to be taken into consideration. It is regarded as a major issue as not
keeping the satisfactory appraisal might leads to decrease the motivation level of workers.
Moreover, all those workers who are committed to their organizations can easily give crucial
competitive advantage to the business firms. In order to keep them motivate and maintaining
their performance is becoming quite difficult for firms. By lowering down the motivation
level of workers the whole productivity of company can be decreased. In order to maintain
this, organization needs to develop better performance appraisal policies. With this they can
make their workers happy and motivated. Keeping this process in regular updation is quite
difficult such as focus groups or surveys could be conducted to measure employee’s
perceptions of the appraisal process.
Structure of the dissertation
In order to complete any research with full authenticity and validity it is necessary to go
through the proper and step by step process. Researcher must go through the sequential manner
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as all the chapter are interlinked with each other. For the same, the structure followed in the
present study is as follows:
Chapter 1 Introduction: This is the first chapters of any research under which whole
overview of the study will be presented. This section presents all the objectives on the basis of
which literature review takes place. This chapter cover a brief synopsis of rationale of the study
and its structure as well.
Chapter 2 Literature Review: This is one of the most important chapters of any study in
which in which researcher primarily speak about the employee commitment as well as
performance appraisal. In order to gather appropriate information different academic journals,
books and online reference materials have been reviewed. Further, it can be determine that this
chapter holds a significant importance in fulfilling the past research gaps and framing new
findings.
Chapter 3: Research Methodology – In order to develop most appropriate findings, it is
highly essential to select the suitable research techniques. In this regards, the present section
entails various methodologies for collecting information and analysing it. It includes various
research methodologies such as entails the data collection technique, data analysis method,
research approach, limitation of research and ethical considerations.
Chapter 4: Data Analysis & Findings – This is another most important chapters of
research in which researcher can develop appropriate findings on the basis of gathered
information. It clearly determines the assessment of results so that appropriate inferences can be
generated from it.
Chapter 5: Conclusions & Recommendations – This is last concluding chapters in which
researcher can draw a conclusion on the basis developed findings. In addition to this,
recommendations are suggested which the company can make the Performance appraisal
effective and improve commitment.
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CHAPTER 2: LITERATURE REVIEW`
This chapter is regarded as most important chapters of any thesis as it helps in getting
appropriate information as per the given subject matter. In this chapter, various past literatures of
different authors have been studied. It is the most effective way through which researcher can
easily fill the previous gaps of the study. Here, in this present study author found it very effective
to gather prevailing information about the performance appraisal techniques as well as its impact
on enhancing employee commitment. With the help of this chapter researcher can easily frame a
suitable findings and go through the proper formation of next chapters. In this regards, the
present chapter entails most suitable information about the given subject matter and easily
generalize the concept of performance appraisal.
Concept of performance appraisal
In today’s highly globalized world, keeping employees motivated is highly essential.
Making them satisfied and keeping loyal towards the services of company is totally required to
maintain positive brand identity. According to Dechev (2010) monitoring employee performance
is regarded as a most effective process on the basis of which company can easily decide their
workers growth. Cameron and Green (2015) defined performance appraisal as a formal process
through which organization’s top management team can easily evaluate the quality of an
employee performance. However, it may be understood as the assessment of an individual’s
performance in a systematic way. Their whole performance can be easily measure against
different factors such as job knowledge, quality, leadership abilities as well as, versatility,
cooperation etc. On the basis of all such factors company can easily evaluate and monitor the
potential of workers and offer them better appraisal. Further, it is highly essential for firms to
boost up the motivation level of all their workers so that they can effectively raise their
performance and provide quality services to all the customers. Jandaghi, Mokhles and Bahrami
(2011) argue that performance appraisal is a systematic evaluation of the individual with respect
to his/her performance on the job. It is totally based on their potential for development so that
company can easily judge the criteria of success. However, evaluation of job related behaviour of
any individual is most common requirement of any organization. By this, they can measure the
potential and talent among workers and boost up their confidence level on the basis of same.
The history of performance appraisal is quite brief and it roots in early 20th century. At
the time period of First World War, appraisal concept was adopted by US army (Azeem, 2010).
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They have presented this concept in the form of merit rating and provided huge level of
satisfaction to all military personnel. After this concept presented for army members it has totally
entered into the field of business and restricted to hourly paid workers. Here, the ration wage
structures for this type of workers were adopted and each of them were comparing to other for
determining wage rates. Gupta and Kumar (2012) argue that a pay rise was in order if an
employee performance was found to than the supervisor expected.
With the changing time the entire business era and processing have been changed and
management team are considering huge level of positive aspects from their workers. According
to Brown, Hyatt and Benson (2010) modern performance appraisal is a structured formal
interaction between subordinates and supervisors as well. It usually takes a form of periodic
interview under which one on one discussion entails between the subordinate and management
team as well. However, various organizations these days are using results of appraisals either
directly or indirectly (Brown, Hyatt and Benson, 2010). It is the most common way associated
with the reward outcome. With the help of this firms are able to identify the results of appraisal
just to go through the better performing workers who should get the majority of available merit
pay increases. In these highly competitive advantage organizations requires being aware about
the laws and legislations within their country `that might restrict their capacity to decrease their
workers’ pay. Maki (2012) stated some of the most common objectives of following this
performance appraisal technique within various organizations i.e. salary increase, promotion,
training and development, enhanced satisfaction and motivation level etc. By this, company can
effectively possess the performance of workers and provide them better appraisals.
Various performance appraisal techniques that helps in enhancing employee commitment
According to Shrivastava and Purang (2011) keeping performance appraisal as a top
priority and making it timely raise the confidence level of workers. However, not making
appropriate justifications about the performance appraisal raises various questions in the mind-
set of workers. It might leads to create a negative brand identity in the mind-set of workers. For
the same, it is highly essential for organizations to keep their workers on their top priority. In this
concern, they require adopting several appraisal techniques which is best suitable for them.
Bouskila-Yam and Kluger (2011) presented that there are various types of performance appraisal
techniques which are as follows:
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