Impact of Performance Appraisal on Employee Performance

This research project investigates the impact of performance appraisal on employee performance at Sainsbury's. The study aims to identify the effects of performance evaluation on employees, assess current appraisal methods, and suggest improvements. The project includes a literature review examining existing research on performance appraisal, exploring methods such as 360-degree feedback, Management by Objectives (MBO), and Behaviorally Anchored Rating Scales (BARS). The methodology outlines the research approach, strategy, and data collection methods. The findings analyze the impacts of performance appraisal on employee productivity, satisfaction, and motivation, highlighting both strengths and weaknesses of current practices. The project concludes with recommendations for enhancing performance appraisal methods at Sainsbury's to improve employee engagement, productivity, and overall company performance. The research emphasizes the importance of effective communication, employee development, and aligning performance appraisals with organizational goals.

Research project
Table of Contents
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Chapter 1: Introduction....................................................................................................................3
Chapter 2: Literature review............................................................................................................5
To determine the impacts of performance appraisal on employee performance at Sainsbury’s.
................................................................................................................................................5
To assess the performance appraisal methods for employees used within Sainsbury’s.........6
To suggest (if any) ways of improvements to the company for ensuring best performance of
employees within Sainsbury’s................................................................................................9
Chapter 3: Research methodology.................................................................................................11
Research Philosophies..........................................................................................................11
Research Approach...............................................................................................................11
Research strategy..................................................................................................................12
Choice of method.................................................................................................................12
Data collection method.........................................................................................................12
Ethical consideration............................................................................................................13
Research limitation...............................................................................................................13
Chapter 4: Data analysis and interpretation...................................................................................13
Chapter 5: Communication of research findings...........................................................................13
Chapter 6: Conclusion and recommendation.................................................................................13
Chapter 7: Reflection.....................................................................................................................14
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Chapter 1: Introduction
Research Topic: To evaluate the impact of Performance Appraisal on Employee Performance:
A Study on Sainsbury.
Research Aim: To identify the impacts or changes in employee performance within an
organisation that result from performance appraisal or performance evaluation of employees in
context of Sainsbury.
Research Objectives
 To determine the impacts of performance appraisal on employee performance at
Sainsbury
 To assess the performance appraisal methods for employees used within Sainsbury
 To suggest ways of improvements to the company for ensuring best performance of
employees within Sainsbury
Research Questions
 What are the impacts performance appraisal having on employees’ performance in
Sainsbury
 How different methods of appraising employee performance increase productivity in the
company?
 How current performance appraisal method within Sainsbury can be upgraded?
Research Rationale
Sainsbury is required to take care of best productiveness and high-grade production from
the workers so that the profits that are targeted can be rendered and can be accomplished as per
the standards set. These need to be consummated due to company rarely apply various employee
advantageous plan of action that betters staff conditions for acting in an amended manner. One of
the most important reason for effectual operations and human resource management is
performance appraisal. In order to be efficient in human resource management, gratifying and
promoting potential action in the firm and identifying miserable performers for improving
procedures or other private activities are crucial. The quality to administrate performance
appraisals is based on the power to scale up the presentation of an employee in a sporty and
trusted manner and it is a difficult task to measure workers performance. It is significant for the
manager to identify the value of the undertakings and the data resources because the data
requires to be collected consistently which is provided as input and integrated into the
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performance administration procedure of the institution for utilizing in devising compensation,
job option, and grooming judgement and a performance assessment activity. To guarantee
development of workers, uninterrupted growth, increasing productiveness and increase in profit
margins, performance assessment techniques must be exploited in Sainsbury.
Research Background
Human resource management can be defined as the managing a human resources in an
organization basically known as people management. It includes various roles and
responsibilities to administer the human assets of the company such as recruitment, hiring,
selection, payroll, training and development, performance management, talent management and
many more which relates to the employee management and organizational management as well.
Their main focus is on the firm's goals and objectives and as per the needs and requirements of
the company, they hire and train the employees by taking care of their personal and professional
targets as well for overall career growth and development of an employee.
Performance management is referred as the administration of performances of employees
in an organization in order to measure the productivity of the company and how must each and
every employee is benefiting the firm by contributing their skills and abilities. It is done for the
benefit for both employers as well as employees such as employers can meet the targets by
improving the performance of the employees and employers can also achieve their personal
skills by enhancing themselves in performing better and that is why performance management
function is performed by the human resource management.
Performance appraisals is a part of performance management or one of the method in
managing the performance of the employees. It is described as the appraisals which generally
human resource provides to their employees in terms of their performance in an organization.
This is done via three major functions such as they provide an appropriate feedback to each and
every employee about their performances, they serve them to adapt the change behaviour of the
company and how they can modify for the improvement and they provide relevant information to
their managers so that managers can assess them for future performances.
Organization chosen here is Sainsbury, it is one of the leading international supermarket
company based in UK in 1869. It offers products and services such as food, clothing, groceries,
home appliances, financial services and many more. The following discussions are made on the
impacts of performance appraisal on employee performance at Sainsbury, assessing the
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performance appraisal methods for employees used within Sainsbury and suggesting ways of
improvements to the company for ensuring best performance of employees within Sainsbury
with proper findings and conclusions followed by the research questions, judgements,
Chapter 2: Literature review
To determine the impacts of performance appraisal on employee performance at Sainsbury’s.
According to Bola Garavagila, (2019), It is stated that performance appraisal is basically
a systematic evaluation of employee performance and to gain knowledge about the abilities for
growth and development of an organization. One of the main objective of conducting
performance appraisal is to identify strengths as well as weaknesses of staff members in order to
place right person at right place. There are also other objectives such as provide feedback to
employees, retain them for longer time period, maintain records of compensation packages,
salaries and many more. It is analyzed that it is important for an organization to conduct
performance appraisal in order to maintain positive working culture and to encourage its staff
members so that all the activities is implemented in a proper and timely manner.
There are various advantages gain by company because of performance appraisal such as
employee development, effective communication, promotion, compensation to employees as per
their performance, motivation to staff members and many more. It is analyzed that if an
employee get an effective promotion and appraisals up to their performance then it will develop
a positive mindset towards working and also help in enhancing their capabilities and efficiency
which in turn leads to increase in performance and profitability of company. Performance
appraisal plays vital role within an organization as it helps in appreciating staff members,
treating them fairly, incentives, and other benefits. All this will impact positively on the
performance of employees and on the profitability of an organization also.
There are various benefits gained by Sainsbury due to its performance appraisal programs
such as increasing productivity, development of brand image, increasing employee morale,
employee retention and so on. It is stated that performance appraisal enable staff members to
have one on one session with their higher authorities and communicate their issues which will be
further addressed rapidly and effectively by Company. Furthermore, because of performance
appraisal employees recognized the factor that formal appraisals have a tremendous influence on
productivity, satisfaction and motivation of staff members. If an organization is able to gain
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knowledge about the weaknesses of its employees then it provides training and development
session to employee which impact positively on the both personal and professional growth of
staff member. It is determined that if an employee get effective promotion and appraisal then it
put full potential in order to meet with the target and to achieve objectives which has impact on
profitability and revenue level of company in a positive manner.
Furthermore, effective communication among the employer and employee is also
significant for performance appraisal as it develop trust and confidence in staff members to
execute activities. Therefore, it is stated that performance appraisals have positive impact on the
success and of an organization. Constant communication with employees and employers is vital
in order to maintain performance and efficiency which leads to raise in profitability and market
share of a company and impact positively on staff members.
Performance appraisal can help in identifying performance related problems and therefore,
improve the overall productivity as well as motivation of the employees. The employees get an
opportunity to learn about their strengths as well as weaknesses and therefore, work on the same
in order to improve them. Also, the employees get clarity about their jobs as well as the
expectations of the management from them. Effective performance appraisal methods can help in
boosting the morale of employees and also, prevent long term problems. It promotes the overall
development of the employees to a great extent. As a result, they are more focussed as well as
committed to their jobs. Therefore, it can be said that performance appraisals are important for
an organization to work effectively and enhance its overall performance. The employees are
more committed to their jobs and help the company in achieving its goals as well as objectives.
Thus, it can be said that performance appraisal can have a positive impact on the company’s
performance as well as overall productivity.
To assess the performance appraisal methods for employees used within Sainsbury’s.
There are different performance appraisal methods that are used by the respective
company Sainsbury’s in order to enhance the overall outcomes in the workplace. Performance
appraisal is beneficial for the employees as it helps them in determining the specific areas
wherein skills can be improved. The first method that Sainsbury’s uses is 360-degree feedback
wherein the performance of each employee is evaluated using the feedback provided from peers,
managers, supervisors, subordinates as well as customers. The company ensures that each
employee within the workplace receives 360-degree feedback. This is important because it helps
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the employees in identifying their areas of strengths as well as weaknesses and work on the same
accordingly. 360-degree feedback can also help in identifying the need of coaching, career
development activities as well as counselling. Another performance appraisal method that is used
by the company is MBO or Management by Objectives, wherein the managers as well as
employees work together to identify, plan as well as communicate goals for the employee’s as
well as the company’s success. The managers at Sainsbury’s identify the different objectives that
have to be achieved and the employee is given a major area of responsibility. Regular meetings
are conducted in order to track the progress as well as performance of the employees.
Implementing MBO in the workplace has helped Sainsbury’s in improving the overall
commitment of the employees and increase the overall chances of achieving goals.
It is a process in which a manager identifies the preferred objectives to be done and offers
each character a main area of obligation in phrases of effects predicted from him/her and uses
these measures as a manual to get right of entry to the contribution of every man or woman
worker. This approach basically uses the SMART technique to ensure that the assigned desires
are Specific, Measurable, Achievable, Realistic. It is less time-consuming and value-effective
compared to the opposite performance appraisal strategies. With this approach you may easily
find out whether the said objective is done or no longer in a given term. Also, the managers can
without problems determine whether the worker may be rewarded or wishes to study further to
improve the performance.
It is important for an organization to identify the best performance appraisal methods in
order to ensure that the employees are committed to their jobs as well as have a high level of job
satisfaction. The management of Sainsbury’s has implemented BARS or Behaviourally
Anchored Rating Scale method. It is one of the most effective methods of performance appraisal
as it has both qualitative as well as quantitative benefits. In this method, the managers in the
company compare the performance of the employees with specific behaviours. The main benefit
of BARS method is that it is easy to use and is based on behaviours. The method is completely
based on the performance of each employee individually.
This approach has been advanced these days and is alleged to be one of the effective
strategies amongst all the appraisal techniques indexed. It is a combination of conventional essay
assessment and rating scale. It is more expensive than other techniques and guarantees precise
consequences. In this approach the worker’s behaviour and performance are analyzed and used
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for evaluating basic overall performance of an employee. It consists of various scales that are
volunteered by using more than one BARS statements which in addition explain the employee
tendencies. Based on the performance and behaviour of a worker, they're anchored as precise,
average, or negative. The BARS approach is the maximum preferred performance appraisal
approach as it permits managers to gauge better effects, provide constant comments and maintain
consistency in evaluation.
Assessment Centre Method is another method that is used by Sainsbury’s for the
performance appraisal of its employees. This helps the employees in getting a clear image of
how other in the workplace observe them. One of the main advantages of this method is that it
not only takes into account the performance of the employee, but also predict their future job
performance. During the assessment, the employees are asked to participate in different social-
simulation exercises (6 Practical Performance Appraisal Methods for the Modern Workforce,
2021). This is because such exercises ensure that there is an improvement in the overall
performance of the employees. It is a technique that many businesses use to perceive control
capability and decide candidate's suitability for higher purposeful positions. It is frequently used
in manager development procedure as a device to assess applicants' personality developments
and capabilities. The method is done under standardized conditions and puts applicants thru a
combination of group and character physical games which simulate the conditions of a given
activity. The assessors decide candidate’s behavior that can then function the idea for precious
predictions of a candidate’s ability. They recognition greater on measuring task-associated
behaviors and abilities. They have a capacity to degree broader variety of talents and
understanding than conventional tests and interviews.
The different advantages of this method is that it enhances the overall knowledge as well
as improve their overall efficiency at the workplace. Therefore, it can be said that performance
appraisal methods help in improving the overall efficiency as well as performance of the
employees. And Sainsbury’s has implemented different methods of performance appraisal that
have helped it in improving overall performance as well as profitability. Psychological
Appraisals Is in particular beneficial while determining the hidden potential of personnel because
it makes a speciality of comparing an worker’s destiny performance rather than the consequences
in their beyond paintings. In this overall performance appraisal method, certified psychologists
conduct a ramification of assessments on employees, along with in-depth interviews,
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psychological checks, and private discussions. These assessments purpose to perceive an
worker’s emotion, intellect, and different associated developments that would have an effect on
their destiny performance in an business enterprise. Although this approach is thorough and
insightful, it is able to evidently be a sluggish, complex, and highly-priced method. Further, the
exceptional of the effects hinges upon the psychologist who administers the system and a
selection of external influencers that could have an effect on the employee during checking out
(e.g.; non-public pressure related activities), so effects can every so often be inconsistent.
To suggest (if any) ways of improvements to the company for ensuring best performance of
employees within Sainsbury’s.
In order to ensure best performance of its employees, Sainsbury’s can adopt different
measures such as the managers should promote effective time management at the workplace.
This will help the employees to break down their day-to-day tasks into manageable milestones
and also, prioritize them effectively. Teamwork is another way that the respective company is
suggested to promote in its workplace. This is because by promoting teamwork at the workplace,
the employees will get comfortable in working with each other within teams as well as
employees across other departments. Teamwork also helps in increasing the overall confidence
and productivity level of the employees. The company is also suggested to promote a positive as
well as healthy workplace environment. This will help in improving the concentration levels of
the employees and thus, they will work productively. Besides this, the management of
Sainsbury’s is recommended to provide regular training and development opportunities to the
employees. Training and development is important within the company because it provides the
employees to acquire new skills as well as enhance their existing knowledge. Training should not
only be provided to the new employees, but existing employees as well. This will further lead to
an improvement in the overall performance of the firm and help it in achieving organizational
goals as well as objectives.
Stressed out personnel are much more likely to make mistakes. They’re also more likely
to get unwell due to the fact strain suppresses the immune system. The more disturbing your
work surroundings, the more frequently your human beings take unwell days. Even worse than
taking common ill days is whilst employees come to paintings ill. This is known as presenteeism
– personnel are present at work however no longer effective. Sick team members perform poorly
and are probably to skip their germs around, making the hassle worse.
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The employees of the company are suggested to utilize the different resources available
at the workplace in an effective manner. This will improve the efficiency of the company and
there will not be any kind of wastage of the resources. The goals as well as objectives of the
company should be clearly defined to the employees so that they are able to work in a productive
manner. Advancements in technology have changed the way in which organizations conduct
their business operations. Therefore, it can be said that the company should implement latest
technology at the workplace so that the different tasks are completed in an effective manner and
also, there is an improvement in the company’s overall performance. Sainsbury’s is among
leading retail organizations in the market and therefore, it is recommended to analyse the
performance as well as strategies of the competitors. This will further help the company in
developing effective strategies as well as making informed decisions so as to gain a competitive
advantage in the market. People within the company should be encouraged to come up with new
ideas as well as share their thoughts during the decision-making process. Therefore, it can be
said that by encouraging the employees to share their thoughts as well as views, the company
will be able to create a sense of belonging among the employees.
Employees are one of the most important components within an organization and
therefore, the respective company, Sainsbury’s is suggested to ensure that there is effective
communication within the company. This is important because effective communication can help
the employees in communicating with each other as well as across teams in a proper manner as
well as share useful information. It is also recommended that the company promotes giving
feedback to the employees. This will help them in developing an understanding about their areas
of strengths as well as weaknesses and thus, perform in an effective manner. Sainsbury’s should
promote diversity in its workplace because employees with different backgrounds can offer
useful insights as well as help the company in making important decisions. There can be some
employees in the workplace who might work effectively and productively. Therefore, the
company should offer benefits as well as rewards to such employees. This will not only boost
their confidence levels, but also other employees at the workplace as well. These are some ways
in which Sainsbury’s can improve the overall performance of its employees as well as gain a
competitive advantage in the market. By doing so, there will be an improvement in the overall
performance of the company and its profitability will also increase. Therefore, the company is
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recommended to implement these suggestions if it wants to increase overall performance of the
employees.
Chapter 3: Research methodology
This forms out to be one of the most vital part of a research project which facilitates and
provide information about the proposed form of research methodology that would be applied and
used by a researcher for conducting an investigation in effective manner. The main forms and
type of research philosophies, approaches and method that are used for current investigation are
provided and discussed as below along with proper justification for their selection.
Research Philosophies
There are four main types of research philosophy which consists of positivisms,
interpretivisim, realism and pragmatism approach out of which one is opted and used by a
researcher on the basis of nature of an investigation. With respect to current investigation use of
interpretivisim philosophy is seemed most suitable as it provides a more in-depth and improved
insight about the selected topic and its objective. Use of interpretivisim philosophy is useful for
current investigation as it integrates human interest into a study and it is also important for the
researcher as a social actor to appreciate differences between people to reach more effective
research outcomes.
Research Approach
The research approach is mainly taken as a plan which involves a process consisting of
large assumption and the effective measures for systematic data collection, analysis, and
interpretation methods. Thus, selection and choice of approach is dependent on the essence of the
topic of study being dealt. With respect to current investigation use and implication of inductive
approach has been made by researcher as it is presumed that use of qualitative and theoretical
form of data would be made for current investigation is made. Therefore, selection of inductive
approach is suitable and justifiable as it helps in analysing data which facilitates help for the
researcher to effectively describe the detailed impacts narratively which is required for
conducting this research in an improved manner. Moreover, the researcher will be able to explore
the phenomenon and identifying themes of this topic selected.
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Research strategy
This section of research methodology provides information about the detailed framework
and plan of conducting investigation which comprises of in preparation, implementation, and
tracking the analysis, thus, a research strategy is effective in directing a researcher towards
improved plan and process. A research strategy therefore provides and lead out a high-level
instruction, whilst a method of analysis may be viewed as a methodology or instrument for
conducting a particular task.
Choice of method
The researcher has to select from either the qualitative or quantitative strategy of data
collection. As the current research topic is based on and requires epistemology philosophy to
conduct this research, therefore, the researcher has used the qualitative method for collecting
data from research participants as epistemology is used while conducting study with qualitative
data. This research has been conducted based upon an individual organisation for identifying the
impacts of performance appraisal on employees’ performance, therefore, quantitative strategy
will be inappropriate here as no accurate reason can be discussed with numerical data or
mathematical direction. In addition to this, the researcher of this research needs to avoid pre-
assumption while conducting the analysis, and qualitative data helps to avoid pre-assumption as
decisions and findings are presented after proper analysis and discussion.
Data collection method
Data collection method is either primary or secondary where the primary data are collected
from the first-hand sources by the researcher whereas the secondary data are collected from
written journals, published sources that is already known. With respect to current investigation
use of both primary and secondary source of data has been made. The researcher has selected the
primary source of data collection as fresh and unpolished data can be gathered using primary
sources as the research participants directly involved in the process providing authentic data. As
this research topic requires fresh data regarding performance appraisal and how it is having
impacts on Sainsbury’s employees; the respondents that are the employees of the company can
provide primary data. Moreover, the existing methods used in the company of performance
appraisal can be found on published articles, journals and company website, therefore, the
secondary sources will be used also.
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