An Evaluation on the Effectiveness of Performance Appraisal Systems within Manufacturing Firms in Malta

Master's Thesis , 2011 , 103 Pages , Grade: B+

Leadership and Human Resources - Miscellaneous

Manufacturing firms based in Malta are striving to improve productivity levels in their quest to sustain their competitiveness, thus the need to assess employees’ performance is becoming crucial. Performance Appraisals (PA) is a tool which is associated with employee performance evaluation. However, researchers tend to disagree on the effectiveness of such systems. Academics claim that PAs improve employees’ performance through commitment, motivation and output increases, whilst providing an optimal basis for a reward system and training needs. Conversely, it is argued that PAs are flawed from inception since they are subjective, biased and unfair. Additionally research strongly indicates that no conclusive evidence can be provided whether productivity increases as a direct result of PAs outcome. Thus, the objective of this dissertation is to evaluate the effectiveness of PAs within manufacturing firms in Malta.

The study critically assesses research on PAs and their effectiveness towards company goals, whilst identifying a set of criteria derived from the literature to test the extent of PAs effectiveness. The methodology chosen is of a qualitative and exploratory nature based on a non-probability, self-selection sample applied through interviews with HR Practitioners. The interview responses are then categorised in themes, each evaluated to test the effectiveness of PAs. The research reveals that medium and large-sized manufacturing firms in Malta, undertake PAs mostly as a control mechanism and reward system. The findings reject the notion that PAs are totally flawed and ineffective. However, HR Practitioners tend to agree that subjectivity in ratings, appraisers’ incompetency and reluctance by managers to undertake PAs, conduces to ineffective outcomes. The investigation discloses that HR Practitioners experience difficulties in assessing PAs fairness. Moreover, tangible productivity improvements including production output increases and higher quality could not be credibly associated with monetary savings as a direct result of PAs outcomes.

Based on the outcome of this dissertation, the author recommends a number of initiatives to improve appraisees’ productivity as a direct result of PAs outcome, thus ensuring their effectiveness. These include setting formal PAs policies, training appraisers to administer PAs and ensuring that formal performance standards are in place. [...]

Inhaltsverzeichnis

• Acknowledgements
• Executive summary
• List of tables
• List of figures
• List of abbreviations
• Chapter 1 — Introduction
  • Chapter 1 Introduction
    • Introduction
    • Study background
    • Defining Performance Appraisal effectiveness within manufacturing firms
    • Performance Appraisal within manufacturing firms operating in Malta
    • Research objectives
    • Dissertation scope
    • Dissertation structure
• Chapter 2 — Literature Review
  • Chapter Introduction
  • Studies on Performance Appraisals
  • Defining Performance Appraisals
  • The purpose to undertake Performance Appraisals
  • The extent of Performance Appraisals' effectiveness
    • Conflicting perspectives
    • A holistic definition of 'effectiveness'
    • The implications of organisational culture on the effectiveness of Performance Appraisals
    • Performance Appraisal's effectiveness in assessing employees' performance
    • Appraiser and appraisee's perception on Performance Appraisals' effectiveness
    • Fairness of Performance Appraisals
  • Claimed flaws within Performance Appraisal systems
  • Claimed benefits when conducting Performance Appraisals
  • Improvements in Performance Appraisals' effectiveness
    • The importance of improving Performance Appraisals
    • The significance of effective communication between the appraiser and the appraisee
    • The relevance of competent raters in a Performance Appraisal system
    • Segmenting the function of Performance Appraisals
      • An Innovative approach
  • Chapter summary
• Chapter 3 — Methodology
  • Chapter introduction
  • Research development
  • The contribution of primary and secondary research
  • Distinguishing between qualitative and quantitative data
  • Selecting the sampling technique
  • Self- selection sampling — data gathering
    • Identifying participating firms for the field research
  • Interviews
    • Interview methods
      • Non-standard interviews
      • Semi-structured interviews
      • One-to-one interviews
      • Face-to-face interviews
  • Designing the interview questionnaire
  • Logistical preparation for the interview
  • Interview pilot test
  • The interviews outcome reliability
  • Ethical considerations whenconducting interviews
  • Evaluation of the field research findings
  • Chapter summary
• Chapter 4 — Research Findings and Analysis
  • Chapter introduction
    • Chapter overview
    • The respondents' role and their participation in the field research Study
    • Overview of the interviews approach
  • Research findings
    • SECTION A
      • The composition of manufacturing firms in Malta and their HR set-up
    • SECTION B
      • Reasons for undertaking Performance Appraisals
        • Performance Appraisals as a control mechanism
        • The link of Performance Appraisals to a reward system
        • Performance Appraisals as a training needs identification tool
        • The link of Performance Appraisals to develop and build working relationships
        • The link of Performance Appraisals to increase productivity levels
    • SECTION C
      • Claimed benefits and flaws within Performance Appraisals
        • Unfaimess of Performance Appraisal due to subjectivity and biased opinions of managers
        • Do Performance Appraisals as a control mechanism and limit creativity?
        • Are Performance Appraisal's flawed by the managers- negative feedback?
        • Reluctance by managers to undertake Performance Appraisals
        • Political motivation
        • The claimed benefits of Performance Appraisals
        • Productivity improvements as a directresult of Performance Appraisals: interview outcome
          • Increase in production output
          • Quality and accuracy levels
          • Statistical data
          • Cost savings
    • SECTION D
      • The extent of intended purpose of Performance Appraisals
        • Are Performance Appraisals being applied as intended?
        • Perceived faimess of Performance Appraisals
    • SECTION E
      • Performance Appraisals' effectiveness — distinct perspectives by HR Practitioners
        • Definition of effectiveness
        • Recommendations for enhancing of Performance Appraisals
        • Recommendation for Performance Appraisal improvements specifically in terms of productivity
    • Chapter Summary
  • Chapter 5 — Conclusion
    • Chapter introduction
    • Conclusions from research analysis and discussion
      • The influence of HR Practitioners on Performance Appraisals effectiveness in manufacturing firms
      • The objectives of Performance Appraisals
      • Benefits and flaws of Performance Appraisals
      • Defining 'Effectiveness'
      • The extent of Performance Appraisals faimess
      • Improvements in productivity
    • Conclusive statements on the dissertation objectives
    • Recommendations
      • Initiatives that can be practically applied
      • The opportunities and challenges posed by these recommendations in their practical application
    • Reflections
      • Research strengths
      • Research limitations
      • Final comments
  • References
  • Appendices
    • Appendix 1 — List of manufacturing companies in Malta.
    • Consent Form
    • Interview covering letter
    • Interview questions
    • Overview of manufacturing firms Who took part in the Study

  Zielsetzung und Themenschwerpunkte

  Diese Dissertation befasst sich mit der Evaluierung der Effektivität von Leistungsbeurteilungssystemen in Fertigungsunternehmen auf Malta. Das Hauptziel ist es, die Effektivität dieser Systeme in Bezug auf die Steigerung der Produktivität der Mitarbeiter zu untersuchen. Die Studie analysiert die aktuelle Forschung zu Leistungsbeurteilungen und identifiziert die wichtigsten Faktoren, die ihre Effektivität beeinflussen. Die Ergebnisse der Feldforschung in maltesischen Fertigungsunternehmen werden dann anhand einer Reihe von Kriterien aus der Literatur bewertet, um festzustellen, ob die Leistungsbeurteilungen tatsächlich zu Produktivitätsverbesserungen führen.

  • Die Rolle von HR-Praktikern bei der Gestaltung und Implementierung von Leistungsbeurteilungen
  • Die unterschiedlichen Perspektiven auf die Effektivität von Leistungsbeurteilungen
  • Die Auswirkungen von Subjektivität und Voreingenommenheit auf die Fairness und Effektivität der Beurteilungen
  • Die Bedeutung von klaren Leistungsstandards und der Schulung von Beurteilern
  • Die Herausforderungen und Chancen bei der Verbesserung der Effektivität von Leistungsbeurteilungssystemen

  Zusammenfassung der Kapitel

  Kapitel 1 führt in das Thema der Leistungsbeurteilung ein und erläutert den Hintergrund der Studie. Es werden die Forschungsziele definiert und der Umfang der Dissertation festgelegt. Kapitel 2 bietet einen umfassenden Überblick über die einschlägige Literatur zu Leistungsbeurteilungen. Es werden verschiedene Definitionen, Anwendungen und Methoden sowie die vermeintlichen Vor- und Nachteile von Leistungsbeurteilungssystemen diskutiert. Kapitel 3 beschreibt die Methodik der Studie, einschließlich der Auswahl der Stichprobe, der Datenerhebung und der Datenanalyse. Es werden die ethischen Überlegungen erläutert, die bei der Durchführung der Studie beachtet wurden. Kapitel 4 präsentiert die Ergebnisse der Feldforschung in maltesischen Fertigungsunternehmen. Die Ergebnisse werden anhand der in Kapitel 2 identifizierten Kriterien analysiert und diskutiert. Kapitel 5 fasst die wichtigsten Ergebnisse der Studie zusammen und zieht Schlussfolgerungen. Es werden Empfehlungen für die Verbesserung der Effektivität von Leistungsbeurteilungssystemen in Fertigungsunternehmen gegeben. Die Dissertation endet mit einer Reflexion über die Stärken und Schwächen der Studie sowie mit Vorschlägen für weitere Forschungsarbeiten.

  Schlüsselwörter

  Die Schlüsselwörter und Schwerpunktthemen des Textes umfassen Leistungsbeurteilung, Effektivität, Produktivität, Fertigungsunternehmen, Malta, HR-Praktiker, Subjektivität, Fairness, Training, Kommunikation, Organisationskultur.

• College: University of Leicester
• Course: Masters Degree - Employee Relations and Human Resource Management
• Grade: B+
• Author: Grace Debrincat (Author)
• Publication Year: 2011
• Pages: 103
• Catalog Number: V265171
• ISBN (eBook): 9783656546733
• ISBN (Book): 9783656547051
• Language: English
• Tags: evaluation, effectiveness, performance, appraisal, systems, manufacturing, firms, malta