Priority Distribution Method for Employee Motivation Business

Ahmad &Bujang, (2013) posits that many employees view any factors of recognition for good performance, compensation, professional growth and incentive initiatives as elements of motivation. Dash et al. (2008) also argued that development of appraisal systems is vital for the efforts of the management in attracting, retaining and motivating employees. However, few studies have focused on exploring the extent to which the limitations of performance appraisal systems can affect on employee motivations (Andersen and Pedersen 2013).

Research has indicated that the aim of ratings affects the ratings that are observed (Ahmad& Bujang, 2013). Ratings aimed for decision-making are often more lenient, with most workers receiving higher ratings on the rating scale (Boxall&Macky, 2009). However, the influence of the process of appraisal, the challenges facing appraisal systems and the influence of the appraiser can also have an impact on motivation. This area has not been widely researched. As such, this study shall purpose to establish the effect of limitations and challenges facing performance appraisals on their potential to motivate employees through a primary research on medium sized business (Anon 2014). A medium sized business is chosen for this study as they are viewed to have less established appraisals mechanisms as compared to mega companies.

Aim

To examine the impact of limitations of performance appraisal on employee motivation

Objectives

The objective of the research Topic is as follows:

To assess the role of performance appraisals in motivating employees

To determine how the influence of the appraiser can affect the effectiveness of performance appraisals as motivational tools.

To examine the impact of the limitations of appraisal methods on the motivational outcomes of performance appraisals

Research Questions

What is the role of performance appraisals for employee motivation and employee performance?

How the appraiser could influence the effectiveness of performance appraisals as motivational tools?

What are the loopholes of appraisal methods on the motivational outcomes of performance appraisals?

Significance of the study

This study aims at determining the impact of performance appraisal on motivation of employees in non-profit organisation. This shall challenge and also contribute to a growing body of literature on employee motivation and the role on organisational performance. Additionally, the study shall create awareness on the appraisal to non-profit organisations on appraisal systems, which are crucial to incorporate as a way of enhancing the performance of employees and their motivation at the workplace (Eisele et al. 2013). Studies on American non-profit organisations indicate that they have a significant contribution to the economy. Based on data compiled by the World Bank if the global non-profit sector was a country, then they would be having the 16th largest economy in the world (Boxall&Macky, 2009). The findings on this study shall help to improve performance in the non-profit sector hence contributing to the entire economy.

Structure of the dissertation

The first chapter of the topic responds to the “introduction” part of the research study. The chapter would relate to the “background information”, “research aims”,” research objectives”, “questions,” “significance” and “problem statement “of the topic. The “literature review” section would relate to various “concepts” and “models” applied in the study that would enhance a strong background support for further analysis of the study. The “methodological section” draws its implications from various ways and procedures for identifying the appropriate manner of achieving objective oriented outcomes.  The analysis and interpretation of data evaluates the research issues upon which the researcher would suggest suitable recommendations in the last section of the study.

Figure: Structure of the dissertation

(Source: As created by author)

Literature Review

Introduction

This section reviews a range of literature on the impact of performance appraisal on the motivation of employees.  The first section of the literature review focuses on the extent to which process of performance appraisal impacts on employee motivation while the second section aims at determining the challenges of appraising employees. The third section analyses the impact of appraisers on employee motivation.  The sections end with a brief summary of the entire chapter.

Impact of the process of employee appraisal on employee motivation

Performance appraisal as a process is described as a method of communication and determining how workers perform their duties and designing plans for enhancing the process of fulfilling specific responsibilities Erdogan& Enders, (2007). Loi et al., (2006) on the hand refers to performance appraisal as a procedure for examining the performance of employees. Bakker, A. B., &Demerouti, E. (2007) posits that the performance appraisal is important in any organisation as it assists in identifying the needs for training and design strategies to develop employees.  Systems of performance appraisal are usually identified as vital for enhancing the motivation of employees (Facer et al. 2014).

Performance appraisal has been co

Many organisation find the appraisal processes they employ quite unsatisfying. As not all appraisal techniques in organisations are effective in determining the levels of performance, poor employee appraisal techniques can have poor impact on employee motivation. However, Bakker &Demerouti, (2007) considers performance appraisals quite essential in creating a positive impact on the work environment and enhance the quality of service by employees. Selvarajan and Cloninger (2011) argue that there are a number of issues which limit the effectives of the employee appraisal processes. These include; unwillingness to confront performance issues, poor attention to organisational culture and lack of enough time to effectively carry out such processes (Gubler, Pierce and Nickerson 2013). This also creates the notion that different methods of employee appraisal can have different impacts on employee motivation.

Types of employee appraisal methods that have been used previously

Force choice method

The first choice method refers to a range of statements arranged in blocks of at least two, where a give rate indicates a statement, which is true or false. During the appraisal process, the rate is compelled to make a choice. According to Zhang &Bartol, (2010)the main advantage of this approach is that it has little biases due to a forced choice. However, Loi et al., (2006) observes that it can be limiting especially with incorrectly framed statements. One of the major problems faced in mega organisations is the relative tendencies of the raters. While some ratters can be quite thorough, others are too lenient (Zhang &Bartol, 2010). As such, this method overcomes the challenge as it forces each rater to do a comparative rating of every employee on a determined distribution pattern of bad and good. The real challenge with this approach is the tendency of organisation to concentrate good employees in some departments and poor ones in others. (Hejase 2014)  Relatively, good employees from key departments in the organisation get poor ratings while other employees of laggard departments get good ratings (Boxall&Macky, 2009). According to Zhang &Bartol(2010)this makes employee lose confidence in the appraisal system hence lose its motivational potential.

Rating scales

This method offers a well-structured approach to performance appraisal. Every features of the worker are rated against a given scale with marks that range from excellent to poor (Boxall&Macky, 2009). The ratings are based on the ability of the employee to communicate effectively, work in teams and the technical competence. The main advantage of this approach is the ability to compare the performance of all employees in the working environment (Vassiliouet al., 2005). As such, it is less discriminative compared to the force choice method. However, Bakker &Demerouti (2007) posits that it is its ease of use that makes it widely used. Zhang &Bartol, (2010)on the other hand observes that the method cannot be applied in all types of jobs. More so, Boxall&Macky, (2009) identifies that the process is not applicable when it comes to measuring traits of workers.  This implies that while using this method, the appraisal process can fail to recognise some key features in the workers hence work more to demotivate them rather than motivate them (Ings 2015).

Appraisal by results

Appraisal by results entails the use of organisation objectives to assess the effectiveness of an employee. Peter Drucker, a renowned theorist in the field of management (Loi et al., 2006), first used this approach widely in mid-20th century. The approach seeks to assess the performance of the employee by analysing the extent to which they have achieved the pre-determined objectives. Mostly, the subordinate and the supervisor establish objectives jointly and employees are supposed to do a self-audit to determine the skills required to complete a given objective. Typically, employees do not depend on others to specify or locate their weaknesses and strength but rather do it themselves as they examine how effective they are in completing a particular task (Joseph 2013).

This approach is advantageous such that it overcomes some of the issues which emerge due to assuming that employee features or traits for success in a particular task can be identified reliably and measured. In this approach, the focus is on the real outcomes. If a worker manages to achieve the set objectives, they demonstrate an acceptable rate of job performance. Employees are judged not based on their potential to be successful but rather on their results. The main principle in this approach is that direct outcomes are assessed while the attributes of the employee, which contribute to their ability to perform the task, can only be inferred (Tan and Abu Mansor 2014). The argument in this is that the performance of employees cannot be broken in different constituent parts. While this method seems effective in determining the abilities of employees, (Harris, 1994) observes that it is less motivating as it does not acknowledge the impact of employees.

Checklist method

In this method, a checklist of desired traits is developed and the rate has to identify them in the form of YES or NO, to signify whether the employee has the traits of not. The rater merely does the checking and reporting while the human resource team does the real evaluation (Zhang &Bartol, 2010). Many questions in the list may have equal ratings but some may have more weight age than others based on the level of importance may. This method has been widely used due to a number of advantages it offers. These include; standardisation, ease of administration, economic and does not need any training to be administered (Thaler et al. 2013).  However, this approach is limited by its subjective nature. The biasness of raters and use of inappropriate weight age by the human resource team do not allow the provision of relative ratings (Dash et al., 2008). This limits the effectiveness of the method, which can also limit its potential to motivate employees.

Assessment centre methods

An assessment centre method is a future oriented appraisal technique. It entails the use of a central location where a team of managers is formed to conduct evaluation exercises through trained assessors. This approach focuses more on examining behaviour across a range of work samples and exercises (Vassiliou et al., 2005).). The employees are required to participate in work groups, basket exercises, role play, computer simulations and other activities of the same nature that call for the same attributes for successfully performing in the real job. A number of scholars have supported this approach to appraisal arguing that when well conducted; it can lead to better forecast on performance in future and promote more progress as compared to other appraisal methods (Clotheir, Scott&Spriegel, 2007). Additionally, Zhang &Bartol, (2010) posit that this approach defines the criteria for promotion and future selection of employees. However, critiques argue that this approach is much focused on the prospects of the organisation rather than enhancing the ability of the employees (Al-Hussami, 2008). Additionally, given the fact that the approach focuses on the potential for performance, it ignores the past, which may have significant information to guide how employees should be managed to ensure greater success (Aaptorius 2013). The method is also quite costly, as organisations have to travel and sometimes lodge in appraisal centres for a while. The rating is also influenced by the evaluators' skills of interpretation but employees with strong performers can feel overwhelmed by simulated situations (Loi et al., 2006).

Psychological appraisal methods

This is an appraisal approach which is mainly directed to assess the potential of employees for future performance instead of their past potential. This is done by use of in-depth interviews, discussion with supervisors, psychological tests and review of other evaluations done on the employee (Farrington 2012). The method is more focused on the intellectual, emotional, motivational and other personal features of employees and how they affect their performance (Dash et al., 2008). This approach has been criticised as being costly and slow, but effective for young employees with considerable potential. Additionally, these appraisal approaches are limited by the fact that their quality depends on the expertise of psychologists undertaking the appraisal (Colquitt et al. 2007).

Based on the analysis of the appraisal methods above, it is clear that each of them has a limitation. With all of the rating methods, workers may be de-motivated when the appraisal processes do not precisely fit their job descriptions. However, ensuring that the appraisers possess the desired knowledge and experience of employees’ performance can be instrumental in motivating employees to commit and offer their best at work (Loi et al.,2006). Zhang &Bartol, (2010) argues that if not conducted in an appropriate way, appraisal process can kill instead of boosting the morale of employees. Yet failure to perform appraisals on a regular basis, probably due to lack of enough resources can affect staff’s performance. Effective performance of appraisals on regular basis on the other hand cans a significant positive impact on employee motivation (Kaufman 2010).

Impact of the appraisers on employee motivation

Bakker, A. B., &Demerouti, E. (2007) posits that there are a number of options regarding teams or individuals who should evaluate employees and this decision depends on a range of factors. Traditionally, it has been the duty of managers to evaluate performance. However, Colquitt et al., (2007) posits that members of the organisation can be very valuable in performing appraisal, as they are likely to have a better understanding of their fellow employees. Collecting information from multiple sources can be quite valuable in enhancing the accuracy of appraisals as it reduces biases and increases fairness (Kromrei 2015).

Impact of supervisor appraisals on employee motivation

Supervisors have been used quite often in evaluating the importance of employees. However, the use of supervisors in appraisals has a number of challenges. In some cases for instance, supervisors do not find enough time to conduct an appraisal. Unlike three decades ago, the use of the internet and virtual teams make supervisors not to be in constant touch with employees (Liu and Mance 2011). Additionally, other challenges like personality conflicts may also not relate well with employees. This can lead to personal bias, which can significantly invalidate the entire process of appraisal. As such, such this can significantly limit the motivational potential of the appraisal process hence make it meaningless in case an organisation intended to use it for motivational purposes (Mance 2012).

In the present day working environment, with the nature of information required to accomplish complex tasks, which companies should complete to be able to effectively compete, no individual can understand the nature of every job, including supervisors (Loi et al., 2006). The information has become too much complex for any individual to learn (Rasile 2012). Additionally, the complexity of jobs has led to breaking them down into smaller tasks which supervisors may find difficult to understand (Coyle-Shapiro, & Conway, 2005). As such, there is an increased possibility of challenges occurring in case of a supervisor conducting a subordinate’s evaluation process.  However, Al-Hussami, (2008) proposes a number of measures to overcome such problems and make the process of evaluation more accurate. For instance, other evaluators can be used alongside the supervisors to avoid the bias and offer information which supervisors cannot always know about.

Use of subordinates in appraisals 

The notion of subordinates evaluating their seniors has not yet been widely applied. However, Loi et al. (2006) posits that it can be quite effective and can offer strong insights into the managerial actions and practices, including the mistakes made by people who control other workers in the organisation. Consequently, appraisals by subordinates can offer more valuable information than any other form of appraisals. However, Colquitt et al., (2007) observes that the main problem with this approach is that it has the potential for unfairness particularly for subordinates who may have been harshly treated by the supervisor or manager at some point. Additionally, there is a potential for personality conflict as some subordinates may be naturally biased against the manager or supervisor. This limits the effectiveness of the evaluation process, which has a potential impact on the motivating potential of the appraisal mechanism.

On the other side of the scale, subordinates can inflate the skills of the managers, at least virtually due to a poor understanding of the duties and managerial tasks. It is quite common to find workers rate their managers highly than the managers would rate themselves (Boxall&Macky, 2009). Al-Hussami (2008) observes the potential for subordinates to lose respect for their seniors in case they come across their gross weaknesses in the process of evaluation. This can be quite impactful as it can generate a negative trend in performance in scenarios where the manager supervises the specific subordinate.  With all these issues, there is need to find techniques to address before summing the overall marks that subordinates assign to their managers. However, Shanock, &Eisenberger, (2006) observes that there has been little focus on how to cater for these limits and organisation opt, instead for methods that they perceive appropriate.

Coyle-Shapiro,& Conway (2005) observes that the use of subordinates as appraisers relies majorly on responsibility. If this is not the case, subordinates may find it difficult to offer an honest answer especially if the answer is negative. Most subordinates are likely to inflate their answers in case their anonymity in the evaluation process is not guaranteed. This is due to the fear that the manager is likely to take retribution on subordinates who gives negative answers. This also minimises the value of the entire evaluation process hence impacting negatively on motivation. Dash et al. (2008) posits that regardless of the challenges and potential for biases, it can offer important information regarding the capabilities of managers from the employees’ point of view (Warner 2012). Additionally, the way employees perceive their leaders is quite important as it shows the influencing potential of the leaders on employees. As such, the approach can be used to determine the source of challenges in the leadership or managerial role of a particular manager.

Use of customers as appraisers

Customers can play a significant role in appraisals especially in rating the nature of service offered by employees. Customers in this case include stakeholders of the firm including both suppliers and buyers of services and products in the firm. Additionally, customers can include people from within the organisation such as members of other departments who rely on a particular department to complete their duties. In the advent of digital media, organisations have continually relied on customer reviews on company websites and discussion boards to determine the capabilities of their various employees. Boxall&Macky, (2009) posit that customer appraisals are important in working environments where employees routinely interact with customers both from outside and within the company. However, evaluations from internal customers may not be effective due to potential divisions and conflicts among departments.

There are also other challenges associated with using customers in appraisals. The main challenge however, is that the clients in most cases use simple rating scales that are quite subjective (Coyle-Shapiro, & Conway, 2005). In this case, the authenticity of the ratings they assign to particular employees is compromised. In the case of reviews on company websites, subsequent comments can be influenced by earlier comments especially if the comments are from renowned people such as celebrities. Due to this, there is a common perception that customer appraisals are always skewed towards the negative (Shanock, &Eisenberger, 2006). However, research indicates that this is not always the case (Coyle-Shapiro, & Conway, 2005). As such, despite the challenges that face this approach, customer based appraisals can also offer important information for the firm regarding the manner in which their employees deal with their clients (Dash et al., 2008). Various techniques can however be used to enhance the authenticity of the results (Whiteside 2015). Adjusting the customer appraisal processes to identify the ratios of positive and positive comments and comparing employees on this can allow organisations asses the success of every employee within the company. While this measure is imperfect, Shanock, &Eisenberger, (2006) argue that it offers value for a company as the perception of customers is related directly to the relationships that the organisation has with their clients.

Based on this analysis, almost every appraisal criteria faces its own challenges. As such, organisations need to evaluate a criterion before applying it to ensure that the possible challenges and limitations are well catered for. Coyle-Shapiro, & Conway (2005) proposes that one of way doing this is ensuring that the criterion is acceptable to appraisers and relevant to a given task practice by ensuring that the criterion has up-to-date job descriptions. Elaborate links between job description and performance appraisals enhances the relevance of the appraisal process. Consequently, Al-Hussami(2008) recommends that it is important to develop an accurate job description and ensure that employees are aware of them prior to the appraisal process. This can assist to focus the appraisal process to the main behaviours, key competences and the outcomes associated with a given position or duty in an organisation. The description should be up-to standard as employees are motivated by meeting a highly standardised criterion (Shanock, &Eisenberger, 2006).

More so, it can be quite useful to consult with employees to make sure that the key aspects of a given position or roles are adequately represented in job description (Shanock, &Eisenberger, 2006). Workers are more likely to be satisfied, accepted and be motivated by an appraisal system that they took part in developing (Vassiliou et al., 2005). In formal meetings and discussions between employees and supervisors can act as important strategies to facilitate employee participation in developing the appraisal criterion. This helps to gather information on appraisal measures, representation in the committees or groups involved in developing and implementing of the appraisal and an inclusion of self-appraisals in the processes of appraisal (Boxall&Macky, 2009).

Challenges in appraising employees

In most cases, performance appraisals are retrospective. Traditionally, organisations only conducted appraisals only ones or twice in a year. In between, there would be extended gaps of time between developing objectives and reviewing them. Ahmad &Bujang (2013) indicates that in this approach, objectives which are set during the set of the year are only dragged to be assessed during the period of appraisal (Vassiliou et al., 2005). However, while the appraisals offer a good chance for both employees and managers to have a face-to-face discussion, they are pre-disposed to bias as indicated in the previous analysis. For instance, employees can have different ratings when rated by two different managers given the fact that some supervisors tend to be lenient while others are strict. Additionally, managers can be influenced by the recent performance effect where they can merely recall the recent actions of employees. This can lead to unfairness and employees who have contributed highly to organisational performance can be denied their rightful ratings. For instance, if two employees who believe to have similar contributions to the organisation are given varying ratings, one is likely to feel unflavoured hence demotivated. This can turn out to be demotivating hence fail to meet one of the most important objectives of appraisals (Shanock, &Eisenberger, 2006).

Additionally, there is a tendency of appraisals to focus more on weaknesses as compared to strengths. This can create conflicts between employees and supervisors and a poor working environment. Additionally, such appraisals fail to recognise the full potential of an employee and are likely to be more demotivating than motivating (Ahmad &Bujang, 2013). As such, instead of focusing on negatives, it is important to outline both positive and negative sides of the employees capabilities to offer organisations valuable information which can be used to address the gap in capabilities as it can be quite impactful on the bottom line (Kamphorst and Swank, 2012). Common problems also emerge during appraisals. This include; stereotyping, distributional errors, the halo error, similarity, proximity error, appraisal conflicts, contrast error, regency error and the attribution error (Colquitt et al., 2007).  All this errors have a significant negative impact on the authenticity of the ratings and hence the entire appraisal process.

Stereotyping

Stereotyping refers to a mental classification of an individual into a certain affinity group and then perceiving a person as having similar features to the group (Colquitt et al., 2007).Ahmad &Bujang (2013) argue that while stereotyping is almost always viewed to be negative, there are a number of incidents when it can be positive. However, whether the stereotype is negative or positive, identifying a worker as a member of a given group rather than explicitly judging him/her based on individual features creates the potential of errors in appraisals. It is thereby important for supervisors to take time to assess and understand employees objectively based on their performance (Al-Hussami, 2008).

Distribution error

This error is mainly caused by ranking approach to forced distribution and method evaluation. The errors occur in three categories which include; strictness, leniency and central tendency (Boxall&Macky, 2009). These are based on the bale curve or the standard normal distribution. In the severity error, the rater assesses everyone or almost everyone as being below average. On the other hand, the central tendency occurs where raters tend to evaluate every individual as just being average with no one being extremely bad or extremely good. The leniency error entails situations when a rater evaluates all the employees as being above average. The leniency error is a form of inflation of rates. All this errors can be evaluated by offering a range of operations.

Halo error

This occurs when the rater has either a general negative or positive impression of a given employees. In so doing, the rater artificially extends the overall impression to the individual in different categories of rating or performance hence influencing the overall rating of an individual as either being positive or negative (Colquitt et al., 2007). If the manager as being good views the employees, for instance, the manager may end up rating their overall performance as good hence committing a halo error (Kamphorst and Swank, 2012). This limits the credibility of the entre appraisal process.

Similarity error 

This error happens when evaluators assess subordinates whom they consider as being more similar to themselves. In this, the evaluators tend to view such employers as being better than others whom they consider as being much different from themselves (Spector, 2008). As Colquitt et al., (2007) indicates, people are more comfortable when dealing with individuals who perceive things in the same way they do and this is likely to be reflected in performance appraisal processes. To avoid this error, it is important to use a panel of raters with varying attributes and make the average of their ratings. This error is an opposite to contrast error where the rater tends to have a negative impression of the employee whom he has different attributes from his own.

Appraisal conflicts 

Performance appraisals activities make one of the sources of conflicts of interests in organisation. This occurs mainly due to employees’ disagreement regarding the implementation of a performance appraisal criterion (Ahmad &Bujang, 2013). This can be categorised into various forms like, conflicting intra-individual goals, which entails a desire for an honest feedback against that of recognition. There could also be a conflict among individual workers and their colleagues, which implies that one employee’s desire for rewards conflicts with that of another (Shanock, &Eisenberger, 2006).

Attribution error

Attribution refers to the process where a person assumes motivations (Kuvaas, 2006). In performance appraisal, attribution occurs when a rater observes a given action of the employee and assumes that an individual has given attitude towards a particular task (Colquitt et al., 2007).  If this is not true, the evaluator is rendered guilty of the attribution error. More so, an appropriate performance appraisal approach should meet the needs of the organisations before it is tailored to meet those of the work force (Spector, 2008). This is because the main purpose of the system is to eliminate people or behaviours which do not enhance the performance of the company. This can also be a source of challenges as an over focusing on company objectives may overlook the special attributes of employees (Kuvaas, 2006).

Summary

This chapter has analysed literature on the impact of appraisals on employees. In the first section, the chapter focused on the extent to which appraisals affect employee motivation. In the second section, the chapter focuses on how appraisal criteria and processes affect employee motivation while the third section analysed the challenges of appraising employees.

From the literature, it is clear that every various appraisals techniques have limitations. This has a negative impact on the effectiveness of the appraisal technique. The various challenges of facing appraisals and related to appraisers also create an impediment to effective appraisals. These create the possibility that appraisal mechanisms may fail to achieve their full objectives hence lose their motivational potential. As such, this research shall aim at analysing how the various challenges affect the impact of appraisals on employee motivation.

Research Methodology

Research Outline            

The researcher applied suitable strategy and method outlined in an appropriate methodology in order to achieve the purpose oriented outcomes in a successful manner. For investigating the research topic in a better manner, the researcher chooses the philosophy of “positivism, deductive approach and descriptive research design”.  Primary and secondary data collection sources would allow the researcher to penetrate the research topic in an efficient way (Green 2011). The chosen research strategy would focus on “surveys of the respondents and telephonic interviews with managers of various organizations in UK”. Quantitative analysis would draw its implications from “Probability sampling technique and in case of qualitative analysis; the researcher would implement the non-probability sampling technique”. The primary objective of the researcher is to align the methodological section with the research topic “impact of performance appraisal on employee performance and motivation”.

Research Philosophy

“Research philosophy” refers to an essential role for relevant and genuine collection of data. According to the nature of the research topic, the research would select the research philosophy. There are usually three types of research philosophy- “Positivism”, “Interpretivism” and “Realism research philosophy”. The philosophy of “positivism” would take active participation in minimizing the error and evaluate the information in a successful manner (Chan et al.  2011). The philosophy of “Interpretivism” relates to complex business activities and the structure of the management. Similarly, the philosophy of “Realism” would relate to mixed approach of positivism and interpretive philosophy. The researcher would select the philosophy of positivism, as it would provide factual knowledge and data in accordance to the research topic.

Research Approach

Research approach usually comprise of “inductive” and “deductive approach”, which would provide a suitable outline to the researcher in alignment with the chosen research philosophy.  The “deductive” research approach seeks a deep insight of accumulating specific data through application of relevant theories and models in the literature review section. However, the “inductive” research approach would focus more on the production of new theories and models from the rising data. The researcher would select the “deductive” research approach, as it would set the premise in agreement to the chosen research topic. The application of general information into detailed information would help the researcher in a better way.

It would be difficult for the researcher to develop new models and theories from the emerging data due to restricted “time and low budget”. The “deductive” approach would allow the researcher for authentic and relevant interpretation of data (Cao 2011). While the inductive research approach provides generalized information and narrows down the scope of the study, the deductive research approach would analyze the promising models and theories from various angles and perspectives in accordance to the research topic.

Research Design

Research Design would allow the researcher to describe the research topic in a detailed manner. There are three types of research topic implemented by the researcher- “explanatory, exploratory” and “descriptive research design”. The “Explanatory research design” helps the researcher helps the researcher to understand the relationship between the research variables in a successful manner. The “exploratory research design” would assist the researcher to get an overview about the background of the research topic (Al 2013). The researcher would choose the “descriptive research design” as it provides an authentic explanation in accordance to the research topic from distinctive angles and perspectives. “Explanatory research” questions only answers the research questions rather than solving the issues in an effective manner (Knox 2010). “Exploratory research design” usually seeks a deep insight in the areas where the research issues are not clarified in a proper way. Therefore, the researcher would choose the descriptive research design as it would allow the researcher to gain information from “primary and secondary data sources”, thus assisting the researcher to gather pertinent data in accordance to the research study (Hammersley 2014).

Research Strategy

The research strategy provided an outline to the researcher, through which he intended to carry out the entire research process. “Case studies”, “focus groups”, “surveys” and “interviews” are the most commonly used research strategy, which assisted the researcher to conduct the research in a successful manner. Collection of proper and authentic data probes for successful intervention of the research study (Johnson, Onwuegbuzie, and Turner 2010). The researcher would not choose “case study” as the research topic is based on “primary analysis”. “Focus groups” seek a deep insight towards particular units, but it lacks rigidity if stretched on a larger scale. The researcher opted for telephonic interviews, as it would enhance the quality of the research topic by gathering valuable information from the managers of the respective organizations in UK. The survey interviews would allow the researcher to gain specific information, which are factual in nature. Therefore, the researcher would choose survey and telephonic interviews as the research topic for conducting the overall study in a successful manner.

Variable Definitions and Measurements

“While conducting the research study in an efficient manner, there is an essentiality for the researcher to get an idea of the variables in order to acquire suitable outcomes of the research topic. . Insertion of inappropriate variable may influence the overall outcome of the research in a diversified manner, whereas authentic selection of dependent and independent variable would allow the researcher to achieve the objective oriented outcomes in a victorious manner. The “independent variable” signifies input, which allows the researcher to recognize the overall outcome of the research topic. The “dependent variable” refers to the output of the research topic, depending majorly on the underlying constraints of quantitative research. The researcher would make effective utilization of variable measurement scales such as ordinal, nominal, ratio and intervals for identifying the “independent” and “dependent variable” in a proactive way”.

Sources of Data

For conducting the research topic in a successful manner, the researcher gathers authentic and relevant data from the “primary and secondary data sources”. According to the nature of the research topic, the researcher opted for “primary collection of data”. The “primary data sources” consist of factual and real data, which are usually not manipulative in nature (Harrison and Reilly 2011).

Primary Data Source

“Primary data source” is an essential element of the research topic, as it imparts a competitive picture of the research topic. The primary collection of data probes for collection of authentic data for further penetration of the research topic. “Primary data sources” consist of “quantitative” and “qualitative analysis”, which assisted the researcher in further propagation of the research topic.

Secondary data source

“Secondary data sources” are very much essential for understanding the background of the research topic in an efficient manner. The “secondary data sources” gathered from the journals, magazines, work of several researchers and books (Freshwater 2012). The “secondary source” allows the researcher to enhance the quality of the research topic. While “secondary data sources” risks the possibility of manipulative data, yet it adds rigidity to the research topic. In accordance to the methodological section, the researcher did not gather any information from the “secondary sources”. However, the researcher gathered valuable information from the secondary sources for conducting the literature review section in a successful manner.

Quantitative Data Collection Method 

“Quantitative data collection” allowed the researcher to gather the numerical data for conducting the research study in an efficient way. Survey questionnaires were given to 60 respondents, out of which 50 employees were cordial in the approach. “Quantitative data collection” method is helpful in nature as it gathers valuable data and information in the form of table, charts, mean median and mode (Ellis and Levy 2010).

Qualitative Data Collection Method

Collection of inclusive data is calculated upon implementation of “qualitative data collection” method. The researcher would get an idea of in-depth analysis upon execution of “qualitative data collection methods”. The valuable information gathered from managers of various organizations in UK, adds further weight and value to the research topic.

Sample size and Sampling Techniques

Sample size refers to the number of respondents needed for conducting the research study in a successful manner. The researcher had selected “50 employees and 3 managers of various organizations in UK for further penetration of the research study”. The researcher was very much calculative while selecting the sample size as it determined the success of the overall outcome of the research topic (Cameron 2010). The researcher implemented the “probability sampling technique for the “quantitative analysis” and “non- probability sampling technique” for “qualitative analysis” of the research topic”. Since the respondents directly give their views during the survey process, therefore, the researcher implemented the “probability sampling technique”. Some of the information imparted by the managers was biased and manipulative by nature and therefore, non-“probability sampling technique” signifies the “qualitative analysis” of the research topic.

Analytical procedure

For initializing successful interpretation of the study, it is identified that “Analytical procedure” is considered as one of the most significant aspects of “Quantitative and Qualitative research, through which the researcher may significantly improvise, summarize and estimate the key perspective of the research topic in relation to the subject matter”. The implementation of the analytical procedure allows the researcher to gather authentic outcome of the research study. While proceeding ahead with the “analytical procedure”, the researcher would draw valuable information about the “impact of performance appraisal on motivation and performance of the employees in the respective organizations of UK”.

The researcher utilized analytical tools in the form of statistical analysis of Tables, Pie charts, Mean, Median and Mode. Statistical analysis of data would allow the researcher to present the data in a calculative manner (Bryman and Bell 2011). For generalizing the secondary data, the researcher implemented the content analysis approach, which would allow the researcher to recognize the several factors influencing performance appraisal on motivation and employee performance. The content analysis approach would assist the researcher to increase the quality of the research study, through collection of relevant and authentic data.

Accessibility Issues

The researcher needed a gate pass to enter the organization for taking the interview of managers in respective organizations. However, due to the stretched agenda of the managers, they were unable to allocate time for face-to-face interview (Brannen 2010). Therefore, the researcher conducted telephonic interviews for gaining substantial knowledge in accordance to the research topic. Some of the data given by the managers were biased in nature, which raised few queries in the mind of the researcher while conducting the research work. In case of Quantitative analysis, it was very much difficult for the researcher for managing the respondents to participate in the research. However, out of 60 respondents, the researcher was able to manage 50 respondents who gave their contributions for successful intervention of the research study.

Ethical Considerations

It is one of the earnest responsibilities of the researcher to consider the ethical issues for successful intervention of the research topic. The information and data collected by the researcher could have its application for personal use only. The researcher should avoid any commercial interpretation of data (Bernard 2011). The respondents would enjoy voluntary participation of data and under no circumstances; the researcher should exert any pressure on the respondents. The researcher would comply with the rules and regulations of the Data Protection Act, so that the researcher and the respondents could conduct the entire research in a legalized and successful manner.

Time Horizon

The “Time Horizon” refers to the quantity of time needed for flourishing intervention of the research topic. Please refer to “appendix 1” for the timetable.

Summary

The particular section of the research topic, discussed and implemented the research methodological tools, which is intended for conducting the current research topic in an efficient way. Upon application of the research methodological tools, the researchers understand the research methods effectively and formulate the process for evaluating it in a successful way

Analysis and Interpretation of Data

Introduction

In this segment of the dissertation, the researcher would gather essential observed data from the primary sources. Upon recognition of primary data collection, the researcher would examine and understand the statistical data in the form of “tables, charts, mean median and mode”. The feedback received from the managers would act as an integral information source regarding the rising concerns faced by the organization. The researcher took aid of “quantitative” and “qualitative” data analysis for further penetration of the research topic.

Quantitative Data Analysis

Q1. What is your gender?

Table 1: Gender group of employees

Figure: Gender group of employees

Finding and analysis

After collecting information from the UK retail industry, it can be said that 60% of the workforce is male and 40% of employees are female. This scenario suggests that UK working culture is densely populated with more male employees in contrast to the female workforce. The working pressure of retail industry is huge in contrast with other industries. Therefore, this industry required adequate physical fitness and therefore, female population on workforce in lower than the male population. 

Q2. Which age group you belong?

Table: Age group of employees

Figure: Age group of employees

Finding and analysis

The above statistical calculation shows that 20% of UK workforce is under the age group of 18 to 25, 24% of workforce belongs to 26 to 30 age group, 22% of the workforce are 31 to 35 aged and 34% of employees are falling under 36 to 40 age group. This statistical data is showing that most of the employees in UK are working for long time. However, the younger employees are discontinuing their job in retail industry.  

Q3. How long have you been working in your respective organization?

Table: Working tenure of employees

Figure: Working tenure of employees

Finding and analysis

After conducting the above data from employees of retail industry, it is clear that 38% of employees are working for 6 to 10 years. It means employee retention policies of retail industry are effective for retaining employees. On the other hand, 14% of workforce is working for 1 year, which means that retail industry is successfully attracting new employees for increasing employee base.    

 Q4. How far do you agree that performance-appraisal increase employee motivation?

Table: Importance of performance appraisal

Figure: Importance of performance appraisal

Finding and analysis

After conducting the statistical calculation, the researcher found the mode value on 1^st position. It means most of the employees are agreeing that performance-appraisal increases employee motivation. Apart from that, the median value in 2, which means the retail industry is having opportunity to increase their performance appraisal strategy for motivating employees in effective manner. The mean value calculated by the researcher is 1.94. After rounding off the value, the exact position for mean value found by the researcher is 2^nd position. It means viewpoint of 34% employee is conflicting with the others’ viewpoint. The standard deviation value is greater than 1, which indicates that the company is having high risk and should adopt effective strategies for implementing performance-appraisal methods.

 Q5. How far are you satisfied with the performance appraisal strategy of your company?

Table: Effectiveness of performance appraisal

Figure: Effectiveness of performance appraisal

Finding and analysis

After accomplishing the statistical calculation, the researcher has determined the mode value on 5^th position. It emphasize that most of the employees are highly dissatisfied with the performance appraisal strategy of retail industry. The median value of this statistical calculation is 4, which indicates that retail industry can improve the performance appraisal technique for satisfying the employees. The mean value calculated by the researcher in 3.92. The actual position of mean value is 4. Therefore, it can be said that 26% of employees are conflicting with the viewpoints of other employees. The standard deviation value of this statistical calculation is 1.2911. It means that the company is pursuing huge risk factor while managing the workforce. Therefore, the company should implement checklist method for empowering employee performance.

Q6. Amongst these what is your most preferred performance appraisal method?

Table: Preferred method of performance appraisal

Figure: Preferred method of performance appraisal

Finding and analysis

The above statistical calculation is showing that 46% of retail employees are preferring checklist method of performance appraisal. The median value is 2, which means the company is having huge opportunity of implementing this particular method of performance appraisal for increasing performance quality of the employee. The mean value calculated by the researcher is 2.4. After rounding off the mean value, the actual mean position determined by the researcher in 2. It indicates that some employee believes that “Paired comparison” is also an effective method of performance appraisal. Therefore, the retail industry should also consider this method for satisfying the needs of retail employees. The standard deviation is 1.51186, which means the company is having huge risk factor of losing employee. Implementing “checklist method” and “Paired comparison method” will reduce the impact of this particular risk factor.  

Q7. To what extent do you agree that organizations provide equal opportunity to the employees?

Table: Practice of equal opportunity

Figure: Practice of equal opportunity

Finding and analysis

The above statistical calculation conducted by the researcher for investigating practice of equal opportunity among UK retail industry. The mode value of this calculation is on 5^th   position. Therefore, it can be said that most of the retail employees are disagreeing that UK retail industry is considering equal opportunity while providing appraisal. On the other hand, the median value is on 5^th position. That means, UK retail industry can implement equal opportunity as their strategy to retain more employees. The mean value is on 4^th position, which indicates that there is no contradiction among the employees’ viewpoints regarding this topic. As the standard deviation value is 1.09339, the company is having risk factor, which can be reduced by engaging equal opportunity practice among the retail industry.

Qualitative Data Analysis

“What is the role of performance appraisals for employee motivation and employee performance?”

According to the manager of the organization in Tesco, performance appraisals play a valuable role in motivating the employees and its performance in an efficient way. According to the manager of Tesco, they use the checklist method to evaluate the performance of the employees in the organization. The checklist method identifies whether the employees of the organization have the employee traits or not. According to the second manager of Sainsbury’s, performance appraisals are the salient features of success for employee motivation and continual success in the competitive market. The organization implements the ranking method mostly to check whether the employees have achieved their targets or not. Upon achievement of the targets, employees become eligible for performance appraisals.  The third manager of Morrison has stated that the organization motivates their employees to the utmost level, thus making them eligible for performance appraisals. The management usually gives appraisal to employees based on results and central assessments methods. The employees of the organization are very much motivated as there is less biasness and partiality in the appraisal process.

“How the appraiser could influence the effectiveness of performance appraisals as motivational tools?”

According to the first manager of Tesco, the management of the organization pays incentives to the employees on monthly and annual basis upon fulfillment of the targets. The incentives are usually lucrative in nature and accounts for a huge amount, sometimes even exceeding the monthly salary of an employee. The incentives received by the employees motivate the employees to an extent and they tend to be loyal to the organization and give their best shot for gaining supremacy in the competitive market. According to the second manager of Sainsbury’s UK, the employers of the organization take active participation in motivating the employees by enhancing the salaries three times in a year. The employers identify the achievement of employees through accolades and recognition, which motivates them largely. The employees of the organization give their best performance and receive high term increments in their structure three times a year in accordance to the performance appraisals. The third manager of Morrison stated that promotions and incentives motivate the employees hugely, sometimes even more than they usually perceive. This is one of the reasons, why the employees of Morrison’s enjoy higher wages in contrast to that of their competitor brands. The fringe benefits provided to the employees enhance their performance and develops a better communication between the consumers and employees of the organization.

What are the loopholes of appraisal methods on the motivational outcomes of performance appraisals?

According to the first manager of Tesco, the appraisal system of Tesco is retrospective in nature. This is because the appraisal systems take effect once or twice in a year. This turns out to be a bit penalizing for the employees and act as a major barrier for employee motivation. The extended gaps happen to be a major constraint in the competitive market. The second manager of Sainsbury has stated that there is biasness and partiality in the appraisal process of the organization. Some of the deserving employees of the organization were denied in contrast to less deserving employees, as they got appraisals due to partial decisions of the upper management .This created a political scenario for the employees, as they were lot of complexities in the working culture of the organization. According to the third manager of Morrison’s, some of the managers are lenient towards the employees, though there is no biasness in the working culture of the organization. The leniency motivated the employees in a negative manner and hindered the employee performance subsequently. Sometimes too much leniency and ease may result in lessened profitability in the organization

Summary

The findings of the study stated that the workers of the respective organizations in the UK market are not satisfied with the management to an extent. Some of the managers lacked responsiveness towards the employees and some of the employees lacked training for answering the complaints and queries of the consumers in a successful manner. Problems identified in the top management led to poor economic performance in a fiscal year. The management requires a better communication with the employees for enhancing their performance. Effective training and organizational transparency would improve the overall performance of the organizations. Performance appraisal would further focus on the firmness of the managers to remove the organization out of trouble, upon implementation of appropriate strategies and techniques in a suitable manner.

Conclusions and Recommendations

Conclusions

In accordance to the nature of the dissertation, the researcher gave his level best to identify the necessary gaps from the managerial perspective for influencing the motivation and employee performance in an efficient way. Upon identification of the relative research issues, the researcher probed for suitable recommendations. Performance appraisal would ensure effective employee motivation and employee performance, thus reflecting on the organizational profitability. The recommendations suggested by the researcher would allow the organizations to ensure lasting sustenance and take advantage in the respective field.

Linking with the Objectives

The researcher had linked the objectives with the quantitative, qualitative and literature review section of the study for gathering suitable outcomes of the research study. The objectives of the study are analyzed and reviewed in the Quantitative and Qualitative sections, though which the researcher broadened his analysis and identified the research issues. The identified research issues are supported by suitable justifications and recommendations for conducting the study in an effective way. The linking of the research objectives with the literature review, quantitative and qualitative section aligns all the sections of the research study in a chronological manner. The objectives 1 and 2 relate with the quantitative questions 1 to 5 and qualitative questions 1 and 2 in accordance to the research topic. The last objective of the study aligns itself with the last qualitative questions and question number 6 and 7 of the research study. Upon linking, it was identified that performance appraisals had been a spot of bother for some organizations, despite the fact it serves strongly in terms of profitability and employee retention.

Recommendation

Equal opportunity

The organizations must give equal opportunities to the employees of the organizations for restricting any discrimination and confliction amongst the employees.  Discrimination between employees may create a political environment, due to which the employees may lose motivation and their performance could degrade in a negative way. The organizations must enlist equal employment rules for all the employees of the organization. Partiality and organizational politics should be minimized, thus resulting in overall profitability. Equal opportunities extract the best performance from the employees and allow them to apply creative thoughts and innovative applications in their work without much stress. Equal opportunities would rather highlight the skill sets of the individuals under a certain parameter, which would indeed allow the management to select the best ones for performance appraisals.

Integrated Training Process

The integrated training program is the best way of motivating and enhancing employee performance, thus making them eligible for performance appraisals. The integrated training program would educate the employees of the organization to the utmost level with an unique blend of skill sets, competency level, experience of work, communication skills, situation handling, smart work, hard work and other development activities. The integrated training process would develop a common link between the particular skills, behavior and knowledge for gaining an upper hand in the competitive market. Learning is perceived as the best way of acquiring valuable information and relating it in actual practice in the professional career. The primary objective of integrated training process is to accustom the employees with the nature of work in accordance to particular organizations. A trained employee would ensure quality performance from the employees’ perspective and make them more eligible for performance appraisals.

Diverse workforce

The researcher would suggest diverse workforce for the employees of the organization, which would restrict the differentiation based on gender, cast, creed, sexuality, racism, ethnicity, educational background and tenure in the organizational context. A diverse workforce culture would not only signify how the employees perceive themselves, but would also give an idea about how they perceive others. The perceptions would engage themselves n better interaction and develop a collaborative approach amongst the team members.  Communication, change and adaptability are the salient features for organizational success. Upon successful intervention of diverse workforce, organizations, employees would enhance their ability to propose better solutions of the rising issues faced by the organization. The consumers would always receive better service from the employees of a diverse workforce.  The margin of ideas and experience refers to a wider analysis in accordance to a diverse workforce. Since the employees of the organizations can perform in relation to their highest ability, they indeed become more eligible for performance appraisals, thus enhancing motivation and the overall performance of the employees in the respective organizations.

Research Limitations

The researcher faced certain problems and issues while conducting the research in a way. The finance estimated for the research was relatively lower and therefore, the researcher had to conduct the study under certain boundaries and speculations. The researcher faced certain issues while implementing theories and models in alignment with the course study. The outcome of the research lacked authenticity to an extent, as the information gathered from the managers of the organization was restrictive and biased to an extent. The time allocated for conducting the study on a large scale was relatively low and therefore, the topic lacked penetration in its content analysis.

Future Scope of the study

The particular research topic contains valuable data and information, which could act as a useful platform for researchers conducting similar studies. The researcher conducted the research on a relatively lower scale, which indeed allows others to implement the study on a larger scale. The data shared in the research study would serve as its utility as other researchers could utilize it as a secondary data source. The future scope of the research study allows the other researcher to further investigate similar topics in alignment with the research topic.

Personal Reflection

In accordance to the particular research paper, I faced few challenges while addressing to the study in a synchronized way. On a primary basis, I faced certain issues while recognizing the exact managerial issues related to the respective organizations of UK. While recognizing the issues underlying the research, I identified that some of the information gathered by me were manipulative in nature. Therefore, I need to investigate various journals and book for gathering authentic news.

In the literature review section, I faced certain issues while penetrating the topic in an effective way. The managerial context was neglected in the literature reviews section and it was a tuff tussle for me to apply more relevant models and theories in accordance to the respective study. The linking of the managerial culture along with the environment of the organization would have been done in a further critical manner. It was difficult for me to gather information from the internet and therefore, the content lacked rigidity to an extent. Within the course of time, I mastered the art of conducting the study, but further financial investment and time would have enhanced the overall quality of the study.

It was a challenging task for me in order to select the strategies and techniques implemented in the methodological section. In the beginning, I was very much reluctant to conduct the research study as I lacked experience. However, in the end, it was a satisfying venture for me as I selected the appropriate techniques and strategies for carrying out the study successfully. Earlier, the respondents were reluctant to participate in the study, yet I managed their opinions in a successful way. Some of the information shared by the manager were manipulative in nature and it gave rise to a biased output. However, I was successful in conducting the telephonic interviews with the managers of organizations in UK.

The fourth section of the study focused on the analysis and interpretation of data. There was lack of consistency in the information imparted by the respondents.  Some of the respondents gave their views for or against the statement, while others were neutral in their approach. I tried my level best to collect as much information as I could from the managers and the respondents. The opinions shared by the managers and the respondents allowed me to identify the research issues according to the nature of the research topic.

I faced many issues while proposing recommendations regarding the raising issues of the UK retail market. Since, it was difficult for me to identify all the issues, therefore, the suggested recommendations may not neutralise the issues totally. Since the research was executed on a smaller scale, it opened up the eyes of other researchers who could conduct it on a larger scale in the mere future. Overall, it was a breath taking experience for me and I would have a lot of confidence the next time when I conduct a study. Furthermore, I would definitely try to give my level best in my future works by converting my weakness into relative strengths for better understanding of the study.

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