hrm tpe
TRANSCRIPT
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Chapter One
1.0. Introduction
1.1. Back ground of the studyEmployee performance Evaluation has been practiced by numerous organizations since
centuries. It is one of the most important requirements for successful business and Human
Resource policy of the organization. As employees are one of the most valuable assets of the
organization that can make things happen, the practice of performance evaluation is an integral
and inseparable part of the organizations life. Conducting performance evaluation helps
organizations to reward and promote effective performers and identify ineffective performers
to developmental programs and training or other personnel actions that are essential to the
effectiveness of Human Resource Management.
Human resources are among the fundamental resources available to any organization.
Successful managers recognize that human resources deserve attention because they are asignificant factor in top management strategic decisions that guide the organization's future
operations. Three crucial elements are needed for firms to be effective: mission & strategy,
organization structure, and human resource management. However, people are the basic
resources who do the work and create the ideas that allow the organization to survive
(Ivancevich & Glueck, 1989).
Human resource management (HRM) is a key ingredient affecting organizational
competitiveness and its ability to fulfill its mission. The effectiveness of an organization in
providing a product or service that fits customers' needs is critical if it is to survive. That product
or service is provided in part (or entirely) by people. If the objectives of HRM are to be
accomplished, top managers will have to treat the human resources of the firm as the key toeffectiveness. To do this - to accomplish the important objectives of HRM - management must
regard the development of superior human resources as an essential competitive requirement
that needs careful planning, hard work, and evaluation (Ivancevich & Glueck, 1989)
Longenecker and Fink (1999) cited several reasons that formal performance evaluations are:
To stay in organizations, According to them, formal evaluations are required to justify a wide
range of human resource decisions such as pay raises, promotions, demotions, terminations,
etc. It is also required to determine employees training need. The authors cited a study on high
performance organizations that the practice of performance appraisal was cited as one of the
top 10 vehicles for creating competitive advantage. Moreover, performance measurement
allows the organization to tell the employee something about their rates of growth, their
competencies, and their potentials.
However, regardless of its panacea, Employees are not only among the most important
resources a firm has; they also sometimes are among the most problematic (Mathis & Jackson,
1997, pp. 4-5).
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Ineffective appraisal system can bring many problems including low morale, decreased
employee productivity, a lessening of an employees enthusiasm and support for the organization
(Rafikul Islam and Shuib bin Mohd Rasad, 2005).
Evaluating employee performance is a difficult task because the job demands the immediate
supervisors to understand the nature of the job and the sources of information, and informationneeds to be collected in a systematic way, and it is provided as a feedback, and integrated into
organizations performance management process for use in making compensation, job
placement, and training decisions and assignments.
The usefulness of performance evaluation as a managerial decision tool depends partly on
whether or not the performance appraisal system is able to provide accurate data on employee
performance and hence rating accuracy is a critical aspect of the appraisal process. A difficulty
of getting accurate appraisals of employee job behavior is most often attributed to: faults in
rating format used, deficiencies in appraisal content, rater resistance to judge others, and the
implications of the specific purpose of appraisal for the rater and the ratee (Thomas Decotiis
and Andre Petit, 1978).
Therefore, the problems of performance evaluation arise when the results of the evaluation fail
to reflect the actual performance of the employees, which in turn, leads to wrong
administrative decisions that can highly affect the life of the employees.
Thus, the researcher will attempt to assess the practices and the real problems that exist in
Dashen Bank. The report also will try to address the purposes for which performance appraisal
is conducted.
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1.2. Statement of the Problem
People are most valuable assets of the organizations. The market for talented, skilled people is
competitive and expensive. Taking on new staff can be disruptive to existing employees. As
organizations vary in size, aim, functions, complexity, and the physical nature of their product,
so also the contribution of human resource management. Ensure that all times the business is
correctly staffed by the right number of people with the skill relevant to business needs, which
is neither over staffed nor under staffed.
Performance management can be defined as a systematic process for improving organizational
performance by developing the performance of individuals and teams. It is a means of getting
better results by understanding and managing performance within an agreed framework of
planned goals, standards and competency requirements. Processes exist for establishing shared
understanding about what is to be achieved, and for managing and developing people in a way
that increases the probability that it willbe achieved in the short and longer term. It focuses
people on doing the right things by clarifying their goals. It is owned and driven by line
management (Michael Armstrong, 2006).The overall aim of performance management is to establish a high performance culture in
which individuals and teams take responsibility for the continuous improvement of business
processes and for their own skills and contributions within a framework provided by effective
leadership.
Specifically, performance management is about aligning individual objectives to organizational
objectives and ensuring that individuals uphold corporate core values. (Michael Armstrong, 2006).
Performance appraisal is a formal system of periodic review and evaluation of an individuals
job performance. It occurs constantly in both public and private organizations. When it is
properly done, performance appraisal provides feedback to employees that will improve their
performance and thus organizations also benefit by ensuring that employees' effort and ability
make contribution to organizational success (Mathis and Jackson, 1997).
Failure to have a carefully crafted performance appraisal, can probably lead to failure in the
business process itself. Problems associated with performance appraisal are:-
There is less awareness of employees about the appraisal performance.
The irrelevance of the criteria used to evaluate the performance of the workers.
Lack of skills and knowledge, the subjectivity, favoritism and bias of the raters.
There are no documented criteria used to allocate organization rewards.
So, based on the above problems the researchers draw the following questions.
1. Does the employee have awareness about the purpose of performance appraisal?
2. Is the performance appraisal criterion creating positive attitude to employees?
3. What are the real problems facing Dashen Bank with regard to the performance
evaluation practices?
4. Does the Bank have documented standards for evaluating employees performance and
reward?
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1.3. Objective of the study
1.3.1. General objective
The major aim of this study is to assess employees performance appraisal practice a
case study of Dashen bank, in selected area banks in Addis Ababa, and
recommending solutions for problems related to the subject matter.
1.3.2. Specific objectives
1. To find out the purpose of performance appraisal
2. To identify the criterion the bank use to evaluate employees performance.3. To identify raters in the performance appraisal process (supervisor, peers,
subordinate, etc.)4. To identify major hindrances of the banks in evaluating employees performance.
1.4. Significance of the study
The result of this study will important in various respects.
To serve as a reference material for both academicians and practitioners.
identify the problems of performance evaluation and give signal to the Human Resource
Management of the bank to take corrective action about performance appraisal
It gives the researcher the opportunity to gain deep knowledge in the practice of
performance evaluation.
1.5. Scope of the study
This research is conducted on selected areas of Dashen bank in Addis Ababa, which is one of
the private financial institutions in Ethiopia, with specific area of performance appraisal.
Distinction has been made between managerial appraisal and employee appraisal. But all staff
will been sometimes treated under the general heading of employees.
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Chapter four
Data analysis and discussion
Table 4.1. Respondents profile
items Respondents
sex Number percentage
Male 10 66.67
female 5 33.33
Total 15 100Ager group
Less than 25
25-35
Greater than 45
Total 15 100
Source: questionnaire 2012
Table 4.2. Academic background of the respondents
NO.
12th complete
certificate
diploma
1st degree
2nd degree and above
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Table 4.3. years of experience of employees
Years of experience respondents
NO. %
Less than 2
2-45-7
Greater than 7
Total 15 100
Table 4.4. about evaluators
Who should evaluate
employees
respondents
NO. %
Immediate supervisor
Colleague
Subordinates
Self evaluation
others
Total 15 100
Table 4.5. Purpose of performance appraisal
Purpose of performance
appraisal
respondents
NO. %
Salary increment
Bonus
Training and development
Promotion
Do not known
Total 15 100
Table 4.6. about appeal to higher official
Do you appeal to higher officials when
you feel the PA result is unfair
yes No I dont know total
Number of respondents 15
percentage 100
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Table 4.7. about fair examination of grievance
Do you believe that your
grievance will be fairly examined?
yes No I dont know total
Number of respondents 15
percentage 100Table 4.8. about the criteria used to evaluate
Do you think that the criteria used to evaluate your
performance appraisal are appropriate?
Yes No total
Number of respondents 15
Percentage of respondents 100
Table 4.9. about the weight assigned to the evaluation criteria
Do you think that the weight assigned to the
evaluation criteria are fair?
Yes No total
NO. 15
% 100
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Chapter Three
1.6. Research methodology1.6.1.Research design
The researchers employ both a qualitative and quantitative design. According to Creswell
(1994), one of the chief reasons for conducting a qualitative study is that the study is
exploratory and the researcher seeks to listen to informants and build a picture based on their
ideas. A qualitative study will allow for the in-depth analysis of comments and perceptions that
individuals hold regarding the appraisal system. It will create a discussion among the researcherand the respondents which will allow gaining insight and direct understanding from the
respondents
According to (Will G Hopkins, 2000) in quantitative research the major aim is to determine the
relationship between one thing (an independent variable) and another (a dependent or outcome
variable) in a population. Quantitative research designs are either descriptive (subjects usually
measured once) or experimental (subjects measured before and after a treatment). A descriptive
study establishes only associations between variables. An experiment establishes causality.
Quantitative research is the systematic scientific investigation of quantitative properties and
phenomena and their relationships. The objective of quantitative research is to develop and usemathematical models, theories and/or hypotheses pertaining to natural phenomena, as Terry
OHanlon-Rose said.
3.2. Source of DataThe researchers collect the data from both primary and secondary sources.
The primary data are gathered through questionnaires filled by employees of the Bank.
The secondary data are collected from relevant documents, organization reports, newspapers,
magazines, books, and necessary materials are downloaded from most referred web sites.
3.3. Sampling MethodThe researchers used simple random sampling, because It gives all employees have known and equal
chance of being selected as respondent.
To collect the desired data the researcher took 15 (42%) samples out of the total employees of 36
(which are professional employees) in the selected area banks.
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3.4. Data AnalysisA descriptive method was used to present and interpret the data collected on various
dimensions of the appraisal system. Frequency Tables along with percentages are also
employed to analyze the responses of employees on those dimensions.
3.5. Limitation of the study
The major impediments that the researcher encountered while conducting this term paper
were as follows;
Shortage of time Finance Transportation
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Dear respondents
This questionnaire is prepared to employees of Dashen Bank. The objective of the
questionnaire is to collect information about to effectiveness of the Bank of Dashen
performance appraisal system. The information you provide will be valuable for the successes
of the research project. Please be honest and objective while filling the questionnaire. The
information you give is used only for academic purpose and will be kept confidential.
Part I Personal Details
1. Sex Male Female
2. Age Below 25 25-35 35-45 45-55 Above 55
3. Academic qualification
Certificate Diploma first degree second degree and above
4. Title of your job _______________
5. Years of experience ______________
Part II Regarding Performance Appraisal
1. In your opinion who should evaluate employees performance (you may thick more than
one)
a) Immediate supervisor b) Colleague c) Subordinate
d) Employee themselves e) Others (specify) __________________
2. For what purpose is performance evaluation result used in your company (you may thick
more than one.
a) Salary increment b) bonus c) promotion
d) Training and development e) others (specify) ___________ f) dont known
3. Are you allowed to see your performance appraisal result
Yes No I dont know
4. Do you discuss performance appraisal results with the appraiser
Yes No
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5. Can you appeal to a higher officer of your organization when you perceive your
performance appraisal result is unfair
Yes No I dont know
6. If your answer to question no 5 is yes do you think the grievance will be fairly examined
Yes No I dont know
7. Do you time the criteria used to evaluate your performance appraisal are appropriate
Yes No I dont know
8. If your answer is No answer the following questions.
a) Mention any criteria that should be included
_____________________________________________________________________________
_____________________________________________________________________________
b) Mention any criteria that must be removed
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
9. Do you think that the weights assigned to the evaluation criteria are fair?Yes No I dont know
10.Which of the following problems apply to the appraisal system of your organization (Tick)
a) No link between same evaluation criteria and employee job
b) Lack of ability to evaluate performance
c) Bias in evaluating performance
d) Non participation is setting performance evaluation criteria
e) Others (mention)_______________________________________
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