Effects of Performance Appraisal on Carrefour Operations - Research Paper Example

A Study of effects of Performance appraisal on Carrefour Operations TABLE OF CONTENTS A Study of effects of Performance appraisal on Carrefour Operations 1 TABLE OF CONTENTS 2 DECLARATION 4 CHAPTER 1: INTRODUCTION 5 Description of the Problem 5 Research Objectives 5 Specific Expected Outcomes 5 Initial Assumption made in the Project 6 Project Limitations 6 CHAPTER 2: LITERATURE REVIEW 6 Performance Appraisal of Human Resources 6 Performance Appraisal Method 8 Benefits of conducting Performance Appraisal 9 Effect of Performance Appraisal on the Organization 10 About Carrefour 10 CHAPTER 3: METHODOLOGY 11 Research Design 11 Data Collection methods 11 Sample Size 11 Data Analysis methods 12 Research Limitations 12 CHAPTER 4: FINDINGS/EVALUATION 13 CHAPTER 5: CONCLUSION 18 REFERENCES 20 APPENDIX 22 Questionnaire 22 Personal Information 22 Survey Questions 22 DECLARATION I hereby declare that the contents generated related to the research on the effects of Performance Appraisal on Carrefour’s Operation are generated by me and are to the best of my knowledge and belief. CHAPTER 1: INTRODUCTION Description of the Problem The paper aims to understand the impact of performance appraisal of human resources in an organization on the operations of the firm. The paper thus aims to provide inferences relating to the following research hypotheses: H0: The performance appraisal of the human resources tends to have negative impacts on the operational productivity of the organization. H1: The performance appraisal of the human resources tends to have positive impacts on the operational productivity of the organization. Research Objectives The research objectives of the paper can be underlined as follows. It would aim to understand the manner of conducting the performance appraisal of employees of a multinational retail company, Carrefour related to its Al Ain branch. The paper would reflect on the benefits and advantages of conducting the performance appraisal of the employees in the retail organization. The paper would tend to highlight the impacts of performance appraisal of human resources on the organizational productivity of Carrefour based in Al Ain. Specific Expected Outcomes Specific outcomes are expected relating to the research activity like the performance appraisal of the employees in Carrefour; Al Ain contributes in enhancing or in affecting the present performance level of the retail organization. Initial Assumption made in the Project The initial assumptions that are made relating to the project can be underlined as follows. Performance appraisal is conducted by the management of Carrefour Al Ain to help in reviewing the performance of the employees conducted within a quarter to an annual period. The performance appraisal activities conducted by the management of the retail organization would contribute in enhancing the level of employee satisfaction and also in developing the relationship between the management and the employees. Enhancement of employee satisfaction and loyalty contributes in driving the performance of the employees in the retail organization thereby enhancing the level of organizational productivity for Carrefour Al Ain. Project Limitations The project activity would only endeavor in gaining inferences through the conducting of telephonic surveys. It would also tend to limit the scope of the research for only analyzing the research issue based on Carrefour and not taking into account the case of other retail organizations. CHAPTER 2: LITERATURE REVIEW Performance Appraisal of Human Resources Venclova (2013) reflect that performance appraisal of personnel in an organization is also identified as the process of reviewing the performances of employees conducted over a specified period ranging from a quarter to an annual period. The process appraising the performance of human resources in an organization is also identified as the evaluation or the review of the performances generated by the employees in the organization. Performance appraisal is also identified as an integral part of the performance management system of an organization and thus is considered as an effective management tool or technique. The incorporation of performance appraisal systems in the organization contributes in effective recording of the performance rendered by an employee. It helps in comparing the productivity patterns of the employees based on set job roles. Performance appraisal systems incorporated also helps in deciding on the compensation structure for the employees in the organization. Thus performance appraisal programs are held to be an effective mode for evaluation of an ability of a person in conducting a certain task. Performance appraisal conducted effectively helps in evaluating the strengths and weakness of the employees in an organization related to the meeting of objectives of a specific task or role (Venclová, 2013). Price (2013) reflects that the performance appraisal process is conducted by the business managers through a series of steps that can be identified as follows. The initiation of the performance appraisal process is conducted through the identification of the performances either at an individual or in an organized fashion. This feature contributes in making the individuals or groups understand the performance expected out of them in fulfilling the objectives of the different job roles. On identification of the job roles and performances needed to be delivered the criteria based on which the performance of the individuals or groups would be rated is formulated. The performances of individuals belonging to the sales department are evaluated based on formulation of targets related to a specific period. Along with the above steps the performance appraisal process also aims to identify the person needed for conducting the performance appraisal and the period for which the appraisal is ought to be conducted. Performance appraisal process gains effectiveness through involving the employees in the formulation of the objectives of the performance appraisal program (Price, 2013). Performance Appraisal Method Kline and Sulsky (2009) reflect that the performance appraisal of the human resources relating to an organizational context can be conducted in a number of ways that can be enumerated as follows. Use of the ranking method to conduct the performance appraisal gains effectiveness where the performances of individual employees are compared to other employees. In that the specific performance traits of the individual employees are evaluated. Essay method for evaluating the performance appraisal of the employees is made where the impressions of the performance and behaviors of employees are evaluated based on the actual performance conducted by the people. Graphic rating scale method contributes in rating the behavioral attributes and traits of an individual on a graph or scale. The field review method is conducted in a manner where a neutral person conducts interviews of the people and makes notes of the impressions. Impressions of performance of the different individuals are created and compared with the ratings provided by the mangers for generating appraisals. Use of the critical incident method is made to help, identify and record the critical behaviors of individuals that tend to impact the performances of tasks entrusted. It tends to note events reflecting exceptional performance of employees or events that reflect performances that need to be improved (Kline and Sulsky, 2009). Performance appraisal based on Management by Objectives (MBO) is conducted by comparing the actual performance of the employees based on the objectives and expectations laid down by management. Use of behavioral anchored rating scale (BARS) is used for rating the behavioral attributes of individuals that are needed to perform effectively. These behavioral traits are measured on numerical scales. In the modern context, the use of the 360 degree performance appraisal is conducted by the organizational managers. The performance of an individual is rated based on the feedbacks generated by superiors, colleagues and subordinate groups and also on opinions of consumers (Schraeder, Becton and Portis, 2007). Benefits of conducting Performance Appraisal Nikols (2007) states that conducting of the performance appraisal programs by managers contribute in the generation of effective benefits underlined as follows. The feedbacks of the results of the performance appraisal programs contribute in focusing on the areas that require improvement. This is taken to help in the enhancement of productivity of the personnel in generating effective performance in future. Performance appraisal initiatives at the workplace also contribute in the identification of performers that can be aptly rewarded and promoted to higher designations. Adherence of rewards and promotional activities with performance appraisal programs contribute in motivating the people to generate greater performance (Nickols, 2007). The conducting of performance appraisal also helps in evaluating in whether the targets or objectives set by the organization relating to different levels have been aptly met. It also helps in identification of areas that require the generation of needed modifications based on understanding of the employee potential. Competency sets of individual employees evaluated through the use of performance appraisal programs contributes in designing of job roles that match individual knowledge and expertise, thereby, generating greater productivity. Performance appraisal programs also contribute in designing of incentives based on the level of individual achievement thereby reducing disputes (Ivancevich, 2014). Effect of Performance Appraisal on the Organization Latham, Budworth, Yanar and Whyte (2008) observed that the conducting of performance appraisal of employees related to service organizations contributes in the enhancement of the performance level of the service organizations. Performance appraisal of employees contributes to the growth of the communication along different organizational levels. Communication is enhanced through the generation of training programs and also in the form of generating feedbacks to the individuals appraised. Results gained out of the performance appraisals are evaluated by the management in the mode of generating rewards and growth in the organization. Employee satisfaction generated through the above activities enhances the parameter of employee loyalty and corporate citizenship. This contributes in generating greater productivity. Use of performance appraisal systems contribute in helping the management in rightly evaluating the potentials of the employees and thereby help in deciding on allocating the right job roles. It also helps the management in taking effective decisions related to employee development and retention and thus contributes in enhancing the employer-employee relationship (Latham, Budworth, Yanar and Whyte, 2008). About Carrefour Carrefour is a multinational retailer based in France. It operates as one of biggest hypermarket chains on a global basis. Carrefour focuses on meeting the needs of its customers through generating access to a plethora of merchandises ranging from grocery items to home, baby and personal care. It also generates different kinds of consumer electronic and digital products to its customers while also meeting the need of children through the generation of gaming products. In UAE, the company both operates through the use of joint venture and online retailing operations to help the UAE based people gain better accessibility and convenience to the different types of merchandises offered by its retail stores (Carrefour UAE, 2014). CHAPTER 3: METHODOLOGY Research Design The paper focuses on the incorporation of the Primary Research methodology in that it aims in the gaining of current and contemporary inferences relating to the research issue. Use of the primary research methodology though costly and time consuming in nature compared to secondary research methodology contributes in helping the researcher gain needed data directly from the market in the form of conducting interviews or surveys. This enhances the utility of the research conducted in providing guidance for future research activity related to the issue of effect of performance appraisal on the operations of the organization (Gratton and Jones, 2010). Data Collection methods Data collection activities are conducted through the designing of structured questionnaire sets to help in conducting of surveys of the target respondents. The design of the structured questionnaire sets would be accompanied by a five point or likert scale that would encourage the respondents to generate specific inferences (Wilson, 2010). Interviews based on the use of the structured or close-ended questionnaire sets would be conducted based on a telephonic interview such that interviews would be organized with the managers and employee groups relating to Carrefour based in Al Ain. Sample Size A sample size of 100 respondents would be chosen in a combined fashion from both the managerial and employee groups for conducting the research activity. The sample generated for the study would be based on the use of stratified random sampling method such that respondents would be chosen from both the employee and the management population. Use of the stratified random sampling contributes in the reduction of sampling errors that are gained in the case of random sampling activities. Further use of stratified random sampling also contributes in helping the respondents gain a larger probability of being represented in gaining inferences related to the research (Gravetter & Forzano, 2011). Data Analysis methods The data analysis to be conducted related to the inferences gained would constitute the use of percentage analysis of the number of responses gained against each of the different parameters related to the different questions. Inferences of the analysis would be presented both in diagrammatic and narrative form through the use of charts and explanation of the inferences gained from the respondents pertaining to the different research questions (Little, 2013). Research Limitations The research methodology is observed to limit its scope to the use of only primary research activity. The use of secondary research is not undertaken related to the research thereby, limiting the checking of the reliability of the inferences gained based on the use of primary research. Further the absence of interview based research also limits the generation of an in-depth research study relating to the research issue. Use of a triangulated manner of research activity would contribute in enhancing the quality of the research. Inferences gained out of the triangulated research activity would contribute in serving as a research guide for future studies. CHAPTER 4: FINDINGS/EVALUATION The findings and evaluation would be conducted based on analyzing the inferences gained related to the different survey questions. Evaluation of the inferences would be made by reflecting the same in the form of graphs and diagrams. Relating to the first question indicating on the performance appraisal approach used in the organization, it is observed that, the majority of the responses of around 36 and 32 percent indicate on the use of the 360 degree and BARS approach as the most frequent and effective approach used for appraising the performance of the employees in the organization. Use of the above approaches would reflect on effective behavior of the personnel that would help in generating required performance and the feedback generated by the different stakeholders related to the performance of the staffs. Other performance appraisal approaches like Critical Incident, Graphic Rating Scale and evaluation of performance based on Management by Objectives (MBO) are given lesser importance by the respondents. The same is reflected as follows. Relating to the issue in whether the performance appraisal activities contribute in management decision making, it is observed that, a majority of the respondents of around 37 and 38 percent respond positively to the issue. It signifies that the conducting of performance appraisal by the management in Carrefour Al Ain contribute in taking of apt decisions relating to human resources. A minor population of around 5 and 8 percent of the respondents however is observed to negate on the issue while 12 percent of the respondents reflect indifference to the issue. These respondents tend to reflect that use of the performance appraisal activities do not generate any potential impact on the management decision making activities. The same is reflected in the following diagram. Relating to the third question as to the use of performance appraisal in decision making activities by the managers, the areas mainly highlighted by the respondents are training, employee development and generation of rewards. Decision making activities relating to promoting or transferring the employees are generated lower significance by the respondents. The same reflects that the management of Carrefour Al Ain focus on using the results of performance appraisal in enhancing the productivity of the personnel by addressing weak areas and also in motivating the people based on the use of rewards. It is graphically illustrated as below. Relating to the issue of whether performance appraisal activities contribute in generating employee satisfaction, it is observed that, a majority of respondents of around 43 and 39 percent reflect positively to the issue. These respondents reflect that feedback generated by the managers to the employees in terms of the results of the performance appraisal contributes in generation of effective communication between the different levels. Enhancement of communication between the managers and employees through generation of training and feedbacks contribute in satisfying the employees. A minor population of respondents relating to 3 and 6 percent negate on the issue that performance appraisal helps in enhancing employee satisfaction, while 9 percent of the people remain indifferent to the issue. The same is reflected in the following diagram. Relating to the issue of whether the performance appraisal activities contribute in motivating the employees to perform effectively a larger population of the respondents of around 37 and 44 percent is observed to reflect positively. They reflect that based on the results of the performance appraisal the managers take decisions relating to the generation of rewards, incentives and also promotion of employees. Decisions taken on the above issues thereby contribute in motivating the people to operate in a more productive fashion generating greater performances. A minor population of around 4 and 6 percent however negated to the issue that performance appraisal helps in employee motivation while 9 percent of the respondents remain indifferent to the cause. The above discussion is reflected in the following illustration. Relating to sixth question in whether the performance appraisal initiatives taken by the business managers bear link to the parameter of customer satisfaction and profitability parameters of the organization, it is observed that around 38 and 35 percent of the respondents reflect positively. These respondents tend to reflect that based on the results of the performance appraisal activities effective training is generated to enhance the performance and productivity of the employees which in turn help in generating greater customer satisfaction and thereby helping in growth of revenues and profitability of the organization. A minor population of around 9 and 10 percent tend to negate on the link between performance appraisal and customer satisfaction and profitability while 8 percent remain indifferent to the same. The same is reflected as follows. The above analysis reflects that incorporation of performance appraisal activities in the organization helps the managers in rightly identifying the areas that need to be addressed to enhance the productivity and performance of the employees. Similarly, the programs like generation of rewards and promotions of the employees enhance the motivation of the people to generate greater productivity. Trained and motivated staffs in the organization contribute in generating greater productivity and performance of the organization thereby helping in enhancing the level of customer satisfaction and profitability of the enterprise. The above discussion thus contributes in accepting the alternative hypotheses and thereby, rejecting the null hypotheses. CHAPTER 5: CONCLUSION The analysis conducted rightly reflects the performance appraisal programs related to BARS and 360 Degree Approach is conducted in Carrefour Al Ani to help in reviewing the performance of the people based on set standards. Review of the performances contributes in identifying the areas where the performance generated by the employees reflects lack of effectiveness. This contributes in the generation of training and employee development programs. Similarly, better performances of the employees are further motivated through incentives, rewards and also through promoting employees. The above activities thus, is taken to rightly contribute in encouraging the people to perform more productively thereby generating larger goodwill, profits and revenues for the company. REFERENCES Carrefour UAE. (2014). About Us. Retrieved September 19, 2014, from https://www.carrefouruae.com/webstore/AboutUs.aspx Gratton, C., & Jones, I. (2010). Research Methods for Sports Studies. New York: Taylor & Francis. Gravetter, F., & Forzano, L.-A. (2011). Research Methods for the Behavioral Sciences. United States : Cengage Learning. Ivancevich. J. M (2014). Human Resources Management. New York: McGraw-Hill. Kline, T. J., & Sulsky, L. M. (2009). Measurement and Assessment Issues in Performance Appraisal. Canadian Psychology , 50 (3), 161-171. http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=10a6113d-91fd-4ef9-9839-299a8b7c1716%40sessionmgr4002&vid=1&hid=4106 Latham, G. P., Budworth, M.-H., Yanar, B., & Whyte, G. (2008). The Influence of a Managers Own Performance Appraisal on the Evaluation of Others. International Journal of Selection & Assessment , 16 (3), 220-228. http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=73d1d516-888f-4adf-982f-f2ae4fd60d9c%40sessionmgr4005&vid=1&hid=4106 Little, T. D. (2013). The Oxford Handbook of Quantitative Methods, Vol. 2: Statistical Analysis. United Kingdom : Oxford University Press. Nickols, F. (2007). Performance Appraisal. Journal for Quality & Participation , 30 (1), 13-16. http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=08d8797c-3296-4e3f-be51-a72aae0f455f%40sessionmgr4004&vid=1&hid=4106 Price, B. (2013). Preparing for your annual staff appraisal: part 1. Nursing Standard , 27 (20), 49-55. http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=c00b9b52-011a-4ec0-bffb-fb44e3552221%40sessionmgr4001&vid=1&hid=4106 Schraeder, M., Becton, J. B., & Portis, R. (2007). A Critical Examination of Performance Appraisals. Journal for Quality & Participation , 30 (1), 20-25. http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=12b37437-d8eb-46f5-ba6d-aed8e1653409%40sessionmgr4001&vid=1&hid=4106 Venclová, K. (2013). Approaches to the term Appraisal in the Area of Human Resource Management. Scientific Papers of the University of Pardubice , 20 (27), 160-170. http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=cc73b953-3c81-4545-b1ee-642b42426ec9%40sessionmgr4003&vid=1&hid=4106 Wilson, J. (2010). Essentials of Business Research: A Guide to Doing Your Research Project. United Kingdom : SAGE. APPENDIX Questionnaire Personal Information Name: Age: Gender: Department: Designation: Survey Questions Q.1. Performance appraisal activity is conducted through the use of the stated approach. A.1. (a) BARS Approach (b) 360 degree Approach (c) Critical Incident Approach (d) Graphic Rating Scale Approach (e) MBO Approach Q.2. Conducting of performance appraisal of the staffs helps in management decision making. A.2. (a) Highly Disagree (b) Disagree (c) Indifferent (d) Agree (e) Highly Agree Q.3. Performance Appraisal activities contribute in decision making related to…….. A.3. (a) Training (b) Employee Development (c) Generation of rewards (d) Promoting employees (e) Punishment and transfer. Q.4. Performance appraisal activities conducted in the organization contribute in employee satisfaction. A.4. (a) Highly Disagree (b) Disagree (c) Indifferent (d) Agree (e) Highly Agree Q.5. Performance appraisal of the employees in the organization contributes in motivating the people to perform in an enhanced fashion. A.5. (a) Totally Disagree (b) Disagree (c) Indifferent (d) Agree (e) Totally Agree Q.6. Performance appraisal of the human resources contributes in enhancing the level of customer satisfaction and profitability of the retail organization. A.6. (a) Highly Disagree (b) Disagree (c) Indifferent (d) Agree (e) Highly Agree Read More