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

Thèse de Master , 2011 , 103 Pages , Note: B+

Gestion des ressources humaines - Divers

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 (Table of Contents)

• Chapter 1 - Introduction
• 1.1 Study background
• 1.2 Defining Performance Appraisal effectiveness within manufacturing firms
• 1.3 Performance Appraisal with manufacturing firms operating in Malta
• 1.4 Research objectives
• 1.5 Dissertation scope
• 1.6 Dissertation Structure
• Chapter 2 - Literature Review
• 2.1 Chapter Introduction
• 2.2 Studies on Performance Appraisals
• 2.3 Defining Performance Appraisals
• 2.4 The purpose to undertake Performance Appraisal
• 2.5 The extent of Performance Appraisals' effectiveness
• 2.5.1 Conflicting perspectives
• 2.5.2 A holistic definition of 'effectiveness'
• 2.5.3 The implications of organisational culture on the effectiveness of Performance Appraisals
• 2.5.4 Performance Appraisal's effectiveness in assessing employees' performance
• 2.5.5 Appraiser and appraiseer's perception on Performance Appraisals' effectiveness
• 2.5.6 Fairness of Performance Appraisals
• 2.6 Claimed flaws within Performance Appraisal systems
• 2.7 Claimed benefits when conducting Performance Appraisals
• 2.8 Improvements in Performance Appraisals' effectiveness
• 2.8.1 The importance of improving Performance Appraisals
• 2.8.2 The significance of effective communication between the appraiser and the appraisee
• 2.8.3 The relevance of competent raters in a Performance Appraisal system
• 2.8.4 Segmenting the function of Performance Appraisals - An Innovative approach
• 2.9 Chapter summary
• Chapter 3 - Methodology
• 3.1 Chapter introduction
• 3.2 Research development
• 3.3 The contribution of primary and secondary research
• 3.4 Distinguishing between qualitative and quantitative data
• 3.5 Selecting the sampling technique
• 3.6.1 Self-selection sampling – data gathering method
• 3.6.2 Option 1: Self-completion questionnaire
• 3.6.3 Option 2: Participant observation
• 3.6.4 Option 3: Internet and intranet-mediated questionnaires
• 3.6.5 Option 4: Telephone questionnaires
• 3.6.6 Option 5: Interviews
• 3.7 Interview methods
• 3.7.1 Non-standard interviews
• 3.7.2 Semi-structured interviews
• 3.7.3 One-to-one interviews
• 3.7.4 Face-to-face interviews
• 3.8 Designing the interview questionnaire
• 3.9 Logistical preparation for the interview
• 3.10 Interview pilot test
• 3.11 The interviews outcome reliability
• 3.12 Ethical considerations when conducting interviews
• 3.13 Evaluation of the field research findings
• 3.14 Chapter summary

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation aims to evaluate the effectiveness of Performance Appraisal (PA) systems within manufacturing firms in Malta. It examines the extent to which these systems contribute to company goals, while identifying key criteria for assessing PA effectiveness. The study is based on qualitative and exploratory research, relying on interviews with HR Practitioners to gather data. The research aims to uncover the challenges and opportunities associated with PA systems in this specific context.

• The effectiveness of Performance Appraisals in achieving company goals.
• The perception of HR Practitioners regarding the fairness and effectiveness of PA systems.
• The impact of PA systems on employee performance and productivity.
• The challenges and opportunities associated with implementing and managing PA systems in manufacturing firms.
• The potential for improvement and best practices in PA systems to enhance their effectiveness.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: This introductory chapter sets the stage by explaining the study's background and the rationale for evaluating the effectiveness of Performance Appraisals (PAs) in manufacturing firms in Malta. It defines PA effectiveness within this context, outlining the research objectives and the scope of the dissertation. Finally, it provides a brief overview of the dissertation's structure.
• Chapter 2: This chapter delves into the existing literature on Performance Appraisals, exploring various definitions, purposes, and the extent of their effectiveness. It examines conflicting perspectives on PA effectiveness, considering the impact of organizational culture and appraiser/appraisee perceptions. The chapter further explores claimed flaws and benefits of PA systems, as well as potential improvements to enhance their effectiveness.
• Chapter 3: This chapter focuses on the methodology employed in the dissertation, outlining the research development and the contribution of primary and secondary research. It distinguishes between qualitative and quantitative data, explaining the chosen sampling technique – self-selection sampling – and the data gathering methods. The chapter describes the interview methods, including the design of the interview questionnaire and the logistical preparation for the interviews. It also discusses ethical considerations and the evaluation of the field research findings.

Schlüsselwörter (Keywords)

This dissertation explores the complex and multifaceted nature of Performance Appraisals in manufacturing firms in Malta. It focuses on examining the effectiveness of these systems in achieving company goals, identifying key criteria for assessment, and uncovering the perceptions of HR Practitioners. The research explores themes such as employee performance evaluation, productivity improvement, organizational culture, and the challenges and opportunities associated with implementing and managing PA systems. Key concepts include qualitative research, self-selection sampling, and interview-based data collection.

• Université: University of Leicester
• Cours: Masters Degree - Employee Relations and Human Resource Management
• Note: B+
• Auteur: Grace Debrincat (Auteur)
• Année de publication: 2011
• Pages: 103
• N° de catalogue: V265171
• ISBN (ebook): 9783656546733
• ISBN (Livre): 9783656547051
• Langue: anglais
• mots-clé: evaluation, effectiveness, performance, appraisal, systems, manufacturing, firms, malta