Clarification of Human Resource Management Challenges - Article Example

Clarification of Human Resource Management Challenges The modern world has become increasingly more competitive and globalized, making it more challenging for organizations to maintain a competitive edge or achieve the position of a market leader in their field. Most organizations now recognize that a major source of competitive advantage in this densely-packed market is the organization’s human resource pool. In many areas, the only means by which the company can gain certain distinctive competencies is through the appropriate use of the developed and professional skills inherent in the hired employees, allowing these skills to be practiced through proper organizational structures and organized through specific managerial techniques. One of the more effective means of gaining competitive advantage is to develop a high quality, professional workforce. A quality workforce can provide companies the opportunity to strongly compete in the world economy, enable them to differentiate their production strategies, products and services in meaningful yet efficient ways, to maintain high quality standards, and to effectively implement new and innovative technologies (Chiavenato, 2001). As a result of these realizations, many organizations are undergoing a significant change in attitude regarding their personnel policies. In many cases, this means the position of personnel management director is no longer narrowed to simple enforcement of the personnel policies and regulations of the company. Instead, he or she is now expected to be more involved in planning and managing the human resource assets of the firm. In many cases, particularly in more advanced nations, this individual can have a long term effect on these major strategic elements which can affect the company’s ability to survive, grow and be responsive to modern challenges (Chiavenato, 2001). According to Brown et al (1999), a strong correlation exists between organizational performance, the attitudes of the employees, organizational culture and prevailing human resource management practices within the company. The common comparison of the organization as a human body highlights the importance of the consistent blood (information) flow throughout the arms, legs, heart and head to retain the flexibility necessary for quick adaptations to changes in the environment. The key to developing and managing this ebb and flow resides within the human resource management team. Within the organization, it is human resource manager’s challenge to work with the organization’s leaders to construct a clear business strategy that is vertically linked through the chains of command with the human resources department while, at the same time, horizontally linking the numerous dimensions of human resources. The goal of such a structure is to allow for ease of efficient communication regarding a need for organizational or job redesign, in the process of recruiting for and selecting new employees, establishing training requirements or organizational development goals and in the process of establishing meaningful rewards for the workers. While global markets reward high productivity and consistent quality, it is necessary to balance these goals with innovations that will be compatible with the proper development and retaining of quality human resources (Murphy, 2002). 2.2 THE DIFFICULTY FACED BY HUMAN RESOURCE MANAGEMENT IN DEVELOPING COUNTRIES: As the world becomes increasingly globalized, it becomes more important than ever before that one gains an understanding of the various social norms and cultural distinctions that exist in societies throughout the planet. Although there is a strong tendency to feel the corporate effects of globalization are homogenizing cultural groups in the world, the different politics of these regions must also be considered, most of which function to emphasize differences between peoples. This is arguably more often the case when working with the Middle East than it is when working with any other region (Ali et al, 2005). However, this doesn’t mean that it isn’t necessary to respect the beliefs and attitudes of others: Organizations everywhere could improve their performance, the consequences of ineffectiveness, undeniably are generally greater in the third world simply by virtue of the larger numbers of people affected and, owing to their often precarious existence, their vulnerability to organizational mismanagement. It has been widely accepted for some time that institutional weaknesses in the Third World constitute a major obstacle to development. Yet the severity of such problems of organization is undiminished. (Blunt, 1990, p. 299) As Blunt (1990) indicates, it is common for organizations in Third World countries to overlook the importance of human resource management. In most companies, this position is still widely considered to be one in which the individual occupying the position conducts a small amount of training for new employees and maintains the company’s employee records. At the same time, reward systems established to increase employee satisfaction have lost their effectiveness. This is primarily because they have not been distributed fairly among employees based upon their actual performance. According to Blunt (1990), many Third World-based organizations have failed to create a reward system that reflects a reasonable relationship between the performance expected and the rewards gained. He indicates this is because they do not actively seek to make a distinction between the individual employee’s objective output and the individual’s ability to achieve that objective within typical prevailing constraints. Another reason human resource management is considered ineffective in Third World organizations is because the systems devised inadequately create links between the jobs performed and the rewards offered. This causes many more employees to view themselves as having been unfairly treated and leads to bitter and dissatisfied feelings. Examples of this kind of ineffective strategy are the concepts of piece rates and bonus schemes because they don’t distinguish between objective output and personal effectiveness. Job evaluation schemes also have a tendency to give weight to elements such as skill set, foresight, initiative and intelligence which all speak highly of the individual but provide no weight for actual level of work performed, personal effectiveness on the job or as these skills are applied to the particular job being performed (Blunt, 1990). Finally, political environment must be considered regarding any possible effects of performance appraisals involving superior-subordinate relations and the concepts of motivation. Concerns that they will experience negative consequences should evaluations not meet with expectations, many managers reported that accuracy in performance appraisals was not among their top concerns (Blunt, 1990). These characteristics of the failure of Third World Human Resource Management are true in most of the Arab countries and found in most organizations currently operating in Libya. The Islamic faith dominates almost all aspects of life in Arab countries including the culture, the politics and the daily lifestyles of those who live there. Thus, religious beliefs still exert a great deal of power in the decision-making processes of the people. In this region, five key factors have emerged in shaping human resource management policies and practices in these nations. These five factors involve the structure of the labor market, the state of the economy, the political environment, the prevailing human resource development strategy in the nation, the tenets and practices of the Islamic faith and the national culture (Branine, 2002 & Mellahi et al, 2002). In most Arab nations, the culture remains strongly male dominant, traditional and socio-centric (Abdalla, 1997). The close-knit construction of the beliefs serves to encourage dependence on friends and relatives rather than borrowing from strangers or suffering in silence (Mellahi et al, 2002). It was only recently that Arab organizations began to drift away from the human resource management practices that have proven effective elsewhere. In many cases, the term human resource management meant little more than personnel (in terms of hiring, training and firing) and payroll. However, the quality, safety and other standards set by other countries as a contingent for trade agreements which are themselves necessary for survival in the global marketplace have sparked new interest among Arab organizations in human resources management and how it is handled elsewhere (Murphy, 2002). According to Ali (1989, cited in Mellahi et al, 2002, p. 145), "the authoritarian management style is a result of the process of socializing outside the family's and tribe's environment which does little to prepare individuals to work within groups outside the family and the tribe." What Ali is explaining is the fact that the historic national tendencies of Arab countries to work on bonds of clan ties are reflected within the organizational structures of companies established there. Within this structure, human resource approaches are dominated by paternalistic authoritarian managers who have impeccably polished social leadership skills. Profound loyalty to the home clan group within such a tribal society reinforces the already natural tendency for these organizations to drift toward authoritarianism both with those within the group and with those who are outside of the group as well (Mellahi et al, 2002). As a result of this cultural approach to social organization, the focus of human resource management practices as they are interpreted in Arab countries emerges as being one of tight managerial control. This kind of control is established and maintained thanks to a widespread acceptance of close direction focused almost exclusively on the performance systems within the company, performance management in general and strong control over individual activities (Mellahi et al, 2002). A common element among managers within Arab organizations is a difficulty in finding ways to accommodate the very human needs of their workers. However, it is also relatively common that the workers resist being considered as simply passive statistics within the organization’s holdings. Despite the tendency of managers to think of employees in terms of specific tools to perform a given task, employees have expressed strong interest in being considered as human workers, capable of being developed and nurtured into stronger performers toward the benefit of the organization (Mellahi et al, 2002). For organizations located in Libya and other Arab nations, performance appraisal of employees is commonly based on a process of the company setting goals for the employee to reach and then determining how well they accomplished that goal and paying them according to such appraisal. The employees are not encouraged to develop initiative outside of their prescribed roles and are rarely solicited for any kind of feedback on this process. In addition, the quality of their output makes no difference as long as the quantity is within an acceptable range. As a result, the employees are not actively engaged in their work, do not feel inclined to produce superior results and work ethic is severely lacking. By the same token, though, managers are also rarely rewarded for achieving high performance among their workers. As a result, they tend to avoid taking risks and often prove unwilling to innovate if it is possible they may end in failure. 2.3 THE PERFORMANCE APPRAISAL: 2.3.1 Definition and Description: The use of the performance appraisal is a widely recognized tool of the human resource management team and a principle element of its duties. Its importance is revealed in its central importance to the adequate conduct of many other activities conducted by the human resource management department (Cardy et al, 1994). Results brought back from performance appraisals determine employee selection, training and motivation strategies for each individual employee appraised (Latham et al, 1982). The components of a performance appraisal are the official feedback from the organization regarding the employee’s performance followed by the mutual setting of specific goals for the employee based upon this feedback. Rather than a tool used to mete out punishment, the appraisal is intended to provide both the organization and the employee with a direction for future progress and the motivation to pursue this future progress. A key element of discovering what might motivate an employee is the practice of involving employees in the goal setting and feedback phases of the review. These have been identified in most motivation theories as primary components (Latham et al, 1982). The performance appraisal process occurs as a superior officer within the organization evaluates and judges a subordinate’s work performance. In many cases, the appraisal system is considered a formal system located within personnel management policy. It is a process in which performance appraisals are implemented, managed and communicated (Cardy et al, 1994). Even when formal systems are not in place, it is common for organizations to have some form of internal assessment system that reveals the performance and contributions of employees. “Performance appraisal is a mandated process in which, for a specified period of time, all or a group of an employee's work behaviors or traits are individually rated, judged, or described by a rater and the results are kept by the organization” (DeNisi et al, 1984). Performance appraisals achieve greatest effect when they include a face-to-face meeting between the manager and the employee. During this meeting, the appraisal results can be discussed and relevant areas of future job growth can be explored. This meeting also reinforces cognition and social perception within the organizational context requiring implicit as well as formal judgment (DeNisi et al, 1984). 2.3.2 Application of the Performance Appraisal: Performance appraisals play a double role within the organization (Stroul, 1987). To begin with, they function as a control mechanism that monitors goal attainment and performance. The second role fulfilled by the performance appraisal is that of a feedback mechanism in which employees feel empowered to individual growth and development. However, many employees seem to feel performance appraisals are unfair because of the tendency of managers to focus only on recent activity rather than more long-term aggregate performance (Zemke, 1991). At times, it seems clear that the supervisors had simply guessed at the employee’s performance. Even at its most open, it remains true that management decisions regarding how to rate or measure performance often require subjective judgments. Thus, how facts will be interpreted and how the final results will turn out seem to be completely outside of the employee’s control, further reducing the employee’s perception of the performance appraisal as a useful tool (Porter et al, 1968). Studies such as that conducted by Wright (1997) indicate employees who experience a detached emotion from the organization for which they work will soon lose their sense of commitment and thus be less likely to buy into the company’s goals and values. Wright characterizes this type of attitudinal commitment to the organization as a desire on the part of the employee to remain with the organization and contribute to its growth. When work environments become unstable or otherwise unpredictable, Martinko et al (1982) says employees’ work performance will be reduced, workers will begin to feel helpless and they will start to withdraw themselves emotionally from the corporation. Wright (1997) further stated that when employees begin feeling detached from the company, they lost attitudinal commitment to the company. This causes them to no longer accept the goals and values of the organization. Wright defined attitudinal commitment as the extent to which the employee wanted to remain with a particular organization. According to a study by Martinko et al (1982), employee performance is significantly reduced when they find themselves in an unpredictable work environment. This causes workers to feel helpless over their condition and encourages them to withdraw emotionally from the organization. When organizations accept this type of unpredictable environment, they essentially condition their employees into this type of passive behavior and thereby inadvertently decrease employee effectiveness and the organization’s long-term bottom line. To avoid this condition, organizations need to learn how to effectively use the feedback stage of the performance appraisal allowing feedback to flow in both directions. When the manager accepts the role of the professional counselor and offers constructive and pertinent advice to the employee, the employee is likely to view the performance appraisal as a positive exercise (Stroul, 1987). By giving the employee a chance to provide input, managers are able to gain a more complete understanding of how the organization’s practices are viewed and identify areas that need improvement. Just as there are two expected roles fulfilled by the performance appraisal within the organization, there are two expected outcomes of this practice (Zemke, 1991). Firstly, managers gain a short term tool to help improve employee performance. This same tool translates to the long term by contributing to overall employee development over time. The second outcome expected of the performance appraisal is that it provides an effective bookkeeping system on which the organization is able to base compensation and industrial relations. Some researchers such as Stroul (1987) feel that the organizational purposes of the performance appraisal in which employees are developed through counseling, coaching and career planning directly conflicts with the goal of finding objective information on which to base reasonable personnel decisions and appropriate compensation/reward systems. In spite of this, there have been an increasing number of organizations adopting formal performance appraisal programs, indicating their effectiveness. Recent studies indicate that 74-89 percent of organizations now conduct formal performance appraisals (Murphy et al, 1991). 2.3.3 Fairness and Accuracy in the Performance Appraisal: An effective performance appraisal system will give the company a number of advantages including an aid to determining pay, providing employees with explanations and understanding of the pay system, gives the employees the opportunity for development and support, encourages a sense of teamwork among employees, provides for the planning of future goals on the individual and organizational levels, recognizes and documents the employee’s actual performance and provides the employee a chance to express their feelings regarding the job, co-workers, supervisors or personal goals (Latham et al, 1982; Murphy et al, 1995). There are numerous different criteria that should be met to achieve a successful performance appraisal in which employees consider the appraisal fair and accurate (Murphy et al, 1991). These include: A formal system of appraisal is in place Appraisals are conducted on a frequent and regular basis Supervisors are strongly knowledgeable regarding the job positions being evaluated Employees are given the chance to appeal performance ratings Rated dimensions of performance are perceived as highly relevant to the job Action plans are created to help deal with current weaknesses A cooperative rather than competitive climate is created within the organization The performance appraisal cycle has essentially four activities involved (Mohrman et al, 1989. The first of these is to define what the required performance behavior is or should be. The next step is to measure and evaluate that performance behavior according to the definition reached. Third is meeting with the individual employee to discuss this evaluation and assessment, giving the employee a chance to respond. Finally, the appraisals are made available in the form of data which can be used in inform other organizational systems. Although Latham et al (1982) acknowledges the effectiveness of these stages, he adds the importance of reviewing any legal requirements needed for the system, the appropriate development of an adequate appraisal instrument, the careful selection and training of appraisal observers and the development of appropriate praise or reward for quality performance. In addition, it is extremely important that the performance appraisal system used for this process is consistently monitored and adjusted when necessary to meet the specific organizational needs (Martin et al, 1998). One way this can be achieved is by concentrating on three major actions – control the system, monitor the system and provide feedback regarding the system to those who are running it. To control the system, one must have control over the technological aspects of the system as a whole which might include the length of time between ratings, techniques used for ratings, training of the evaluators and development of specific performance standards so everyone knows what to expect. The system can be monitored by reviewing performance standard quality, evaluating the actual performance of the appraisal process and analyzing comparisons drawn between the intentions of the system, the perceived effectiveness of the system and the actual employment of the system. Performance appraisal monitoring might also include reviewing the ratings as a means of checking for evaluator biases, inconsistencies in responses and for any other negative impact emerging from appraisal use. Finally, as in working directly with the employees, it is important to maintain steady feedback to the appraisers as an important element of the appraisal process. The essential nature of these precautions is made clear by Cardy et al (1994, p. 54): “With dissatisfaction and feelings of unfairness in process and inequity in evaluations, any performance appraisal system will be doomed to failure.” This concept is supported by Murphy et al (1995, p. 314): “reaction criteria are almost always relevant, and an unfavorable reaction may doom the carefully constructed appraisal system.” Tziner et al (1999) measured political consideration effects on performance appraisal development. These were intended to learn the extent to which ratings might be distorted by personal influence. The purpose of the study was to discover evidence that inaccuracies in ratings could be due to deliberate volitional distortion rather than a result of poor training or appraiser ability to comprehend. By deliberate distortion of ratings, Tziner et al (1999) meant to refer to any appraisal resulting from the rater’s conscious choice to focus on achieving specific individual goals, purposely creating ratings that will allow the appraiser the ability to avoid negative consequences or confrontations with the employees being appraised. Another personal goal is often to permit the appraiser to create an image among their employees as a caring boss. Tziner et al’s study (1999) discovered raters were more likely to rate their employees unnaturally high on appraisals when they had a low level of confidence in the ability of the performance system to adequately reward or measure true performance. Raters who reported high levels of emotional commitment to the organization or had an awareness of the risks of inaccuracy typically awarded lower ratings to their employees. Those who tended to rate unusually high and tended to even distort the ratings up demonstrated very little discrimination in quality of work among the employees they rated. This was significantly different from the results of those who understood the value of the appraisal system because they showed a high level of discrimination among employees’ performance abilities. Through this study, Tziner et al (2001) proved that the appraiser’s attitudes and beliefs regarding the company, the policies its set and the effectiveness of its appraisal system can have a significant effect on the implementation of the system as well as its overall effectiveness. Appraiser attitudes, left unchecked, can create a cyclical mechanism within the company – the system can only be as good as it is perceived to be, but the perception determines how well the system will function. This revelation regarding the human element of the appraisal system highlights the importance of keeping the system flexible and adaptable. "A flexible production system is characterized by the ability of machine to process the jobs in any sequence along with frequent convenient change of setups" (Talavage and Hannam, 1988 cited in Sharma, 2007, p. 627). This is one area in which rules that apply to the operation of machines can actually be translated into the management of people. "Whatever kind of production system is adopted, nowadays, some kind of flexibility in terms of management, human resources skills etc., is always preferred. The impact of either a change in the practices or a policy decision on the system performance is referred to the performance evaluation" (Altiok, 2001 cited in Sharma, 2007, p. 627). Currently, the performance appraisal is one of the most heavily researched management tool concepts used within the industrial/organizational psychology venue (Murphy et al, 1991). Various changes in evaluation criteria, appraisal procedures and rating instruments have been developed by researchers and implemented by practitioners in attempts to improve the perceived fairness and accuracy of the process while retaining the highly subjective objectives for the individual employees desired (Banks et al, 1985). Despite these efforts, employees continue to view the practice as unfair and inaccurate while managers continue to express dissatisfaction with the outcomes (Church, 1985). It is true that using the performance appraisal can be a very onerous process within the company. Annual reviews are often looked forward to in the same way most people view surgery no matter which side of the desk they’re on. In its best modes, the review can provide the employee with incentive to perform well and take initiative toward their goals. At worst, it causes employees to feel like nothing but cogs in the wheel, unappreciated and exploited (Longenecker et al, 1999). "The aim of reviewing the subordinate's performance is to increase his effectiveness, not to punish him. But apart from those few employees, who receive the highest possible ratings, performance review interviews, as a rule, are seriously deflating to the employee's sense of worth. Not only is the conventional performance review failing to make a positive contribution, but in many executives' opinions it can do irreparable harm" (Davis et al, 1999, p. 18). 2.4 CHAPTER SUMMARY: Performance evaluations continue to be a very controversial human resource management process within the complex organizations in operation today (Roberts, 1998). It is essential as a means of discovering employee performance and attempting to ensure they are satisfied in their jobs. The most important element in this process is to continuously work to improve the system or replace it when necessary. The present study’s purpose is to evaluate the worker performance evaluation system within the Alnaher Company and to discover the impact motivation efforts have on employees within the company. The goal of the study is to discover why employees may have decreased performance and to evaluate the effectiveness of the current system. The main research questions include: 1. What is the reason for the current performance evaluation? 2. How does the company’s current performance evaluation system function? 3. What elements of the working environment have an effect on the employee's performance? 4. What are the primary causes for low performance of employees? 5. To what extent does the company’s culture influence employees' individual performance? CHAPTER 3 RESEARCH DESIGN 3.1 INTRODUCTION: There are various different strategies, methods and techniques that have been created to help scientists explore, explain, describe and eventually produce solutions to problems in a scientific way. These means of studying problems are collectively known in scientific terms as research methodology. Each strategy that has been developed has its own set of unique strengths and weaknesses (Cooper et al, 1995; Sekaran, 1992). Selecting the correct methodology to use for a specific study must strike a balance between the specific strengths and weaknesses expected in relation to the overall purpose of the study. Cooper et al (1995) indicated that the system selected for the research is very important. This is because it determines the process used to collect and interpret the data from which conclusions will be drawn. The strongest research projects combine several different methodologies in order to attain greater understanding of the subject under study and to encourage objectivity regarding the results (Cooper et al, 1995). The five primary issues that methodology addresses include the study’s purpose and objective (such as why this data was collected), the sample group size and population, where the data was found, how it was collected and how it was analyzed (Collis et al, 2003). As was described previously, the present research’s purpose is to understand ANC employee and discover any causes behind low employee performance. This chapter will present the methodology used to determine sample size, outline the data collection techniques used, collect the appropriate data needed for adequate evaluation, and analyze the data for definitive results in keeping with the research objectives. 3.2 RESEARCH DESIGN: “Research design provides the framework for the collection and analysis of the data” (Burnham et al, 2004). A survey method was selected for this study as an appropriate means of collecting the type of information needed to answer the study queries. The present study focuses on the employees’ performance evaluations. The primary data collected included the actual performance evaluation reports and transcribed interviews conducted during the performance review. This information was collected and added to by input from the Human Resources Management office. “This approach provides more real bases that can help in analysis as it reflects problem subjectivity” (Collis et al, 2003). 3.3 SAMPLE: Sampling refers to the process of choosing a representative group. This group is then used as a basis from which scientist can draw conclusions that relate to the overall population. There are three steps involved in selecting a sample. The first step is defining the target population, followed by constructing a sampling frame and then deciding how to select appropriate sample members (Zikmund, 2003). 3.3.1 Target Population and Sampling Frame: "Target population is the complete group of specific population elements relevant to the research project" (Zikmund, 2003, p. 373). In conducting the present research, it was determined that all ANC employees could be considered members of the target population. "Sampling frame is the list of elements from which the sample may be drawn" (Zikmund, 2003, p. 373). The sampling frame used for this research consisted of all present ANC employees. 3.3.2 Sampling Members: For proper research, sampling should be determined based upon a specific, objective procedure. This is important as a means of avoiding unsuspected researcher bias (Collis et al, 2003 & Zikmund, 2003). The main purpose behind selecting a sample is to ensure generalizability. This term is used to indicate that a sample size is sufficiently large to accurately reflect a generalization of the total population. Research can be generalized by ensuring that the entire study population is represented within the sample size selected. To satisfy this requirement, the sample group was selected among the various levels of the employee pool, pulled from all the different departments. This makes the sample highly representative of the organizational population (Saunders et al, 2003). To ensure the sample was random, the sampling process was conducted in several stages. This was done by conducting a random selection of printed names drawn from a sampling frame. This sampling frame listed company units rather than individual employees (Collis et al, 2003 & Zikmund, 2003). As a result, the sample used for the study reflected various levels of workers and departments within the ANC organization. This included the seniors, juniors, administrators, technicians and labor whose job was based within the ANC headquarters site, external construction sites and at the corporate plant. 3.3.3 Response Rate: To conduct the study, a questionnaire was sent to more than 120 employees identified within the ANC group. These questionnaires were handed out and employees were given some time to fill them out before the forms were taken back up. Of the 170 questionnaires handed out, only 84 were returned. Of these 84, only 72 of the completed forms were determined to be applicable to the study’s needs. The response rate for these surveys was thus determined to be 70%. 3.3.4 Participants: The current research project’s target population is limited to those individuals identified as current employees of ANC stationed in Libya. Cooper et al (1995) defines a population as “the total collection of people about whom the researcher plans to make inferences” (Cooper et al, 1995). The best research will have census data to inform them more specifically about this total population, but this is often precluded by researchers because of prohibitive expense and time requirements (Cooper et al, 1995). The greater accuracy of the statistics regarding the target population, the greater confidence the researcher can have in making generalized conclusions regarding the group based on the responses of a smaller group (Patton, 1990). When the population under consideration is small in numbers or the majority is readily accessible to the researcher, though, as in the case of this study, a census is feasible and possible (Cooper et al, 1995). 3.4 DATA COLLECTION METHOD: This research was conducted within the organization of ANC, a company which is located exclusively in the nation of Libya. The primary focus of this study is found in the quantitative analysis conducted on the results of the survey questionnaire previously described. Ghauri et al (2002) says that there are many different acceptable means of acquiring primary data for a study. These include the use of surveys and available comments added. Fowler (1995) warns that the selection of the method of data collection must relate directly to the sampling frame, the specific characteristics that define the sample, the particular research topic, and the inclusion of any available resources. The selected method for this study may also have implications on the total response rate observed, the associated costs of the research and the production of any necessary materials such as the questionnaire forms. The majority of the data collected for this study was received in the form of completed email survey questionnaires. 3.5 QUESTIONNAIRE DESIGN: As has been described above and found in Appendix A, the primary research instrument used for this study was a structured questionnaire. Each question was developed with concentration on using concise, simple language which was presented in both native Arabic and English. Questions that might have been interpreted as sensitive or invasive were avoided, such as the income level for the individual. Respondents were given flexibility in responses including specific discriminating responses or to opt not to express an opinion through the use of Likert scales. Likert scales permit the respondent to indicate responses by checking the strength of their agreement or disagreement with carefully constructed statements. With this method, individuals commonly choose one of five alternatives ranging from strongly agree, agree, uncertain, disagree to strongly disagree. Weights of 1,2,3,4 and 5 are assigned to the answers respectively. This is done to facilitate appropriate analysis (Collis et al, 2003 & Zikmund, 2003). The response categories returned through the questionnaires occurred as follows: Strongly agree (1.00 or less), agree (1.01-2.00), not sure (2.01-3.00), disagree (3.01-4.00), and strongly disagree (4.01-5.00). 1-4 years (1.0 or less), 5-9 years (1.01-2.0), and 10 years and more (2.01-3.0). This data was obtained using the four-part questionnaire described in Appendix A. Questionnaire participants were instructed to respond to questions as if they were acting in the role of the ratee working within the company’s current performance appraisal system. The first segment of the questionnaire collected necessary personal information about the participants. Part II requested responses to 14 items. These items were allocated to three scales which represented employee’s evaluations of the company’s present appraisal system. The purpose of these items was to determine the level of employee satisfaction regarding the performance appraisal system to which they were subject. This was done by measuring their reactions toward the rater and to evaluate their individual perception of the system’s accuracy. Reactions were measured on a five point scale. In this scale, 1 = strongly agree; 2 = agree; 3 = not sure; 4 = disagree; and 5 = strongly disagree. Three scales were used to determine the company’s present performance system, all of which focused on the degree to which employees felt that their normal appraisals were fair, accurate, satisfying and accurately reflected their overall job performance. An example of an item in Part II is: “The current performance evaluation items are specific, so that rating biases may be avoided during the evaluation.” Some others include: “You can appeal if you feel you have been unfairly treated” and “The current performance evaluation system is based on job description.” The third part of the questionnaire consisted of eight items. These items were designed to determine the effect of the organization’s current working environment on their employees’ performance appraisal. Again, the five point scale was used for measurement with 1 = strongly agree; 2 = agree; 3 = not sure; 4 = disagree; and 5 = strongly disagree. Examples of questions used for this segment include "Stressful responsibilities cause low performance", "Conflicts diminish your performance" and "Limited resources cause stress and affect your performance". The fourth part of the questionnaire delivered nine questions intended to discover the degree to which company culture was able to influence employees’ performance appraisal. These influences were measured on a five point scale: 1 = strongly agree; 2 = agree; 3 = not sure; 4 = disagree; and 5 = strongly disagree. Some of the questions used in this segment include "Using position power and authority negatively affects your performance", "Intervention of higher authority negatively affects your performance" and "Control over resources and rewards negatively affect your performance". The above described survey and topic for dissertation were initially presented to the managing director of ANC. This was done both as a means of gaining direct input from the company as to the applicability of the research and as a means of gaining his endorsement of the study to get access to the employees. The written questionnaire consists of 35 questions total. To improve the validity of the information collected, it was important to construct the questionnaire appropriately. The questions included in the questionnaire are specifically related to the research questions. Familiar terms were used as often as possible in order to avoid misunderstanding among respondents. Read More