Keretapi Tanah Melayu Bhd

8/12/2019 Keretapi Tanah Melayu Bhd

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EMPLOYEE PERCEPTION OF PERFORMANCE APPRAISAL : A CASE OFKERETAPI TANAHMELAYUBERHAD.

by

ROSENA BINTIMOHD.ALISupervisor

DR RADUANCHE ROSE

Project papersubmitted inpartial fulfilmentof therequirementsfor thedegreeofMasters of Business Ad ministration in the M alaysianGra duate School of M alaysia,

University Putra Malaysia.

May 2001


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ACKNOWLEDGEMENT

In the name of ALLAH, the most beneficient and the most merciful. I am utmostthankful for thestrengththat Hegivesm ethroughouttheperiodof com pletingthisprojectand MBA programme.

Mydeepestgratitudegoesto myadvisor,D r.RaduanCheRosefor hispatienceandassistance,adviceandguidance.

My profound thanksalsogoes to all lecturers who taught the MBA programme.Thank you for the knowledge and experience that you have imparted to methroughouttheprogramme.

My sincere appreciation is dedicated to my ex-employer, Keretapi Tanah MelayuBerhad for giving me the opportunity to obtain the information and for thesupport that Ireceivedfrommyex-colleagues.

My word of thanks goes to the respondents who have honoured me with theinterviews. Thankyou foryourkindco-operation,time andeffort

Last but not least, my appreciation is dedicated to my husband for his valuedguidance and my six children who has sacrificed tremendously in putting upwithmeduring thewhole period of this programme, mere wordscould notdescribe mythanks.

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ABSTRACT

Performanceappraisals andreviews have become anecessary part of most workenvironments,and-orbetterorworsearealityinmostorganizations. However,as many companiesare learning, traditional performanceappraisalsfail miserablyin positively influencingemployee behaviourintoday sorganization.

In today's dynamic workforce, enlightened companies recognize that employeeswant an environment thatencourages constant dialogue between the employer andemployee. Employees want to be recognized, rewarded for theiraccomplishmentsand need continuous performance feedback. Most employees want frequentfeedback andjust annually iftheir performance ismissing the mark so they canmakeappropriatechanges.

In KTMB'scase,the performance appraisal is not used for developmentalpurposewhere the Human Resource Department treat it as an annual or once-a-yearprocess. Once the forms are filled in, then it iskept asideand mostof thetimenoaction is takenon it Morethanhalfofemployeessurveyedagreethat performanceappraisal rarely as accurate as they claim to be , hence, they manifestdisappointmentwiththepractice.

To be truly successful, a performance appraisal system should involve theiremployees in the design and later - required revisions of their performanceappraisal. Feedbackmustbeclear,objective and constructive bytelling bothsidesoftheperformancestorythepositiveandnegativewhich willmakethefeedbackto be morecredible,palatableanduseful.

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ABSTRAK

Penilaian prestasi dan kajian semula telah menjadi perkara penting dalampersekitaran pekerjaao samada untuk kebaikan atau keburukan telah menjadisuatukenyataandidalam kebanyakanorganisasL Bagaimanapun, organisasimasihdalam process mengkaji, penilaian prestasi tradisi telah gagal dalammempengaruhisecarapositiftingkah lakupekerja.

Dalam sumber tenaga pekerja yang dinamik hari ini, organisasi sedar bahawakakitangan memerlukan persekitaran yang menggalakkan dialog yang kerapdiantara kakitangan dan majikan. Kebanyakan kakitangan mahukanmaklumbalas yang kerap dilakukan bukan hanya setahun sekali, sekiranyaprestasim ereka tidakbaiksupaya m ereka dapatmelakukanperubahan.

Di KTMB peniiain prestasi bukan di gunakan untuk tujuan pembangunansomber tenaga manusia malah ia nya di anggapsebagai kerja-kerja tahunan atauproses untuk setahun sekali. Apa yang berlaku diKTMB, bila borang telah di isimaka di simpan sahaja dan tidak ada tindak balas dibuat keatasnya. Mengikutkajian atas perkerja, lebih daripada separuh kakitangan setuju bahawa penilianperstasi ini jarang memberi keputusan yang tepat, dan tidak saperti yang diharapkan.

Keberkesanan dalam peniiain prestasi sepatutnya melibatkan kakitangan dalamproses designdan kemudian menkaji semula peniiain prestasitersebut Maklum-balas mestilah tepat dan di fahami olih kedua-dua pihak mengenai aspek positifand negatif. Kerjasama yang rapat diantara kedua-dua pihak yang manakakitangan memahami kehendak penilaian dan pibak majikan pula mempuny aiaman ah dalam melaksanalcantugas amatlahpentingdalampeniiainpertasiini.

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LISTSOFABBREVIATIONS

KTMB : Keretapi Tanah MelayuBerhadHRM : HumanResourceManagementPA : Performance Appraisal

LISTSOF APPENDICES

Appendix 1 Organization ChartAppendix 11 QuestionnairesAppendixHI Performance AppraisalForm


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TABLE OF CONTENTS

CONTENTS Page

ACKNOWLEDGEMENTS iiABSTRACTS iiiLISTOFAPPENDICES ivLIST OFABBREVIATIONS iv

CHAPTER ONE

INTRODUCTION

1.0 Introduction 11.1 Role of HRM and Performance 2

Appraisal TowardsAchievingOrganizational Objectives

1.2 Problemstatement 313 ResearchObjectives 41.4 Significanceof theStudy 41.5 Hypotheses 51.6 LimitationsandScopeof theresearch 51.7 Backgroundofresearch 6-8

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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction 92.1 PerformanceManagement 92.2 W hat isPerformanceA ppraisal 10-13

2.2.1 EmployeeViewpoint2.2.2 Organisational Viewpoint

Relationships ofPerformanceAppraisal 14Tootherfunctionsof HRM.2J.I TrainingandDevelopment2*3.2 CareerDevelopment

2.4 PerformanceAppraisalSystems 14-152*5 Who Should Do theAppraising 15-17

2.5.1 Manager/SupervisorAppraisal2.5.2 Superior'sSuperior2.53 PeerAppraisal2.5.4 Team Appraisal2.5.5 CustomersAppraisal

2.6 Problems in Performance Appraisal 17202.6.1 Problems of pay andperformance2.6.2 AppraiserProblems2.6*3 Appraisalsandrewards

2.6.1 BenefitsofPerformanceAppraisal 20-21

VII


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CHAPTER THREE

RESEARCHMETHODOLOGY

3.0 Introduction 223.1 Population,Sampling ConfidenceLevel 223.2 Research Methodology 223.3 AnalyticalFramework 223.4 DataCollectionMethod 233.5 QuestionnairesDesign 243.6 DataAnalysis 24

CHAPTER FOUR

FINDINGS DATAANALY SIS

4.0 Introduction 254.1 Performance Appraisal Forms 254.2 Data Analysis 264J DemographicProfile 26-284.4 FindingsonIndividualsPerception 29-36

towardsW ork diagnosis4.5 Findings on Perception towards 36-41

Organization.4.6 SuccessofPerformance Appraisal 41-46

CHAPTER FIVE

CONCLUSION

5.0 Conclusion 45-46

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CHAPTERO NE

INTRODUCTION

1.1 Introduction

In today's world, managers face complex and challenging pressures and opportunities.Companies that seek to gain competitive advantage through employees must be abletomanage the behaviour andresultsof allemployeesespecially in an increasinglycomplexenvironment and the rapid change of technology which have created some newchallenges to many organizations. M anagement and human resourcemanagersmust beequippedtoaddressthechangesin developing theemp loyee'scompetenciesand skills inresponse to customers* needsand competition. Although performance management hasbeen of concern recently in managing and integrating reward performance, mostorganizations still use the performance appraisal as a tool to measure employees'performance.

Traditionally the formal performance appraisal system has been viewed as the primarymeansofmanagingemployeeperformance. Performanceappraisalw as anadministrativeduty performed by managers and primarily the responsibility of the human resourcefunction. Managers view performance appraisal as an annual ritual - they quicklycomplete the form and use it tocatalogall thenegative information theyhavecollectedon an employeeover theprevious years. Becausetheymaydislike confrontation and notfeel thattheyknowhow togiveeffective evaluations,somemanagersspendaslittletimeas possible givingemployeesfeedback. Not surprisingly, mostmanagersandemployeesdislikeperformanceappraisals.

If performance appraisal is considered an important tool in monitoring andassessingtheeffectiveness of employees' performance, it has to be properly designed andimplemented. Otherwise, its full potential is not realized and would merely serve tof u l f i l l certain narrow aspects of the organization's objective. In reality, many


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organizationsmake performance appraisal anactivity that is more likely often stated inpolicy thaninpractice.

According to Lockett, (1992,p. 36) performance appraisal is considered as the "primemechanismforreviewingperformance over thelast year;settingtargetsfor the nextyear;identifying trainingneeds; discussing career development opportunities; reviewing thejob and seeing if there is a better way of carrying it out and agreeing merit by payincreases'. Maimunah (1997,p.78), identifies performance appraisal as the systematicevaluation of an employee's job performance, from which, his or her potential andshortcomingscan be deduced and laterenhancedor overcome,whicheverisapplicable.

Whateverthedefinition,performance appraisal isdefinitely anessential function ineveryorganization,where inmanylargeandmediumsizeorganizations,is theresponsibilityofthepersonnelorhumanresourcedepartment.

1.1 Role of HR M and Performance Appraisal Towards Achieving OrganizationalObjectives

Performance appraisal should have a major role in human resource management andshould help define work roles, motivate performance, and aid in subordinate'sdevelopment. By focusing on theprocess andpurposes of appraisal, the appraiser andappraiseescan bemoreequalpartnersand payactionsandcareerconsequenceswillseema natural part of the total appraisal discussion. In other words, appraisal events areparticularly more successful when they serve purposes of subordinates as well aspurposesof themanagersand theorganization.

It is well recognized that an organized and well-administered performance appraisalsystem servestobenefitboth theindividualemployee and theorganization. On the otherhand, the employeebenefits because an appraisal can pinpoint an individual 's strengthsan d also weaknesses, which would determine room for improvement. It encourages


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employees* communication with supervisors, identifies performance expectation andhelpsbuildmotivation.Italsoidentifiestheneedforchangeinemployees'behaviourandworkhabitsandenhancesfeedback from thosebeingrewardedfor jobwelldone.

Byusingperformanceappraisaleffectively, management wouldbeabletostimulate workbehaviour to meet productivity demands and to reward desired behaviour and satisfyindividualgoals. The managem entshouldask itselfas towhetherthelevelsofemployeeperformance throughout the organization is high enough to meet the newdemands forinnovation,increased profitability andbetter qualityofproducts? It can be seen thattheeffectiveness of performance appraisalsystemaffects everyfacetof theorganization suchas the productivity, profitability, and manpower turnover. Every onein theorganization,may they be the human resource personnel , top management, appraisers or theappraisees themselves have their own roles and responsibilities to play in ensuring thesuccessof theperformanceappraisal system.

1.2 Problem Statement

In most cases, organizations focus on output, general performance, efficiency, andorganizationalprofit aboveallotherobjectives. It isalsoveryuncommonfor them not tolink most of human resource functions with performance appraisal. The Malaysianpublic has torecognizethattherail transport servicesin thecountry aretodaybeingrunby a workforce, the majority of whom began as public sector employeesand who havegonethrough the path oftransformational changes totakethemtow here theyarenow.This phenomenon is also found in KTMB a private rail operator,which serves as thefocus of this study. Here, performance appraisal does not seem to be given anyimportance or priority. It is done as an exercise, which has no relationship or bearingwith anindividual'scareerdevelopment orother functionssuchas competency training,rewardsand job transfer. Subsequently, appraisers are notgiven adequate exposure or


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guidance on how to conduct an effective appraisal exercise and they are also notinformedas how torelateperformanceappraisalwithotherfunctionsofhumanresource.

Under such circumstances, performance appraisal remains as a normal process and thefeedback is seldom used to improve the employees' performance. As a result, mostemployees perceive performance appraisal only as a routine yearly exercise to assesstheir performance against which they will be rewarded or penalized. The utilizedperformance appraisal forms would later be kept aside and forgotten until the nextexercise comes. John Lockett(1992)however said that appraisalsshouldnot be a one-off event and they should be and are part of an ongoing cycle of performancemanagement.

1.3 ResearchObjectives

The author finds that very little research has been done on the topic of employeeperception of performance appraisal in the organization inthis country,as compared tothe developedcountries,whichhas prompted her tocarryoutthis study. Theobjectivesof thestudycanthereforebelisteddown asfollows :-


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According to Everden and Anderson (1992), performance appraisal will assist theorganization in succession planning, identifying gaps in human resources planning,ensuring organization's and individual's objectives are in harmony, improvingcommunicationandperformance. liis one of themanytoolsofmanagingpeople. Inthisregard, Armstrong (1991), recommended that the principles in managing peopleembodiesin the following :Peopleare the most importantresourcesin anorganizationandmust be managed effectively, as they are the key to theorganization'ssuccess. Thehuman resourcepolicies and proceduresneedto be closely linkedso as to contribute tothe achievement objectives andstrategicplans.

At the end of this study, it is hoped that recommendations made to the KTMB'sManagement for it to take certain corrective measures will be useful to improve thesituation involving staff performance appraisal and employees' performance so as toachievetheorganization'seffectiveness.

1.5 Hypotheses

1. The Performance Appraisal meets only some of the objectives of theorganization (mostlyunrelated ).

2. The full potential of thePerformanceA ppraisal is not beingtapped.3. The Performance Appraisal system is not in line with the HRD/career

development programme.

1.6 LimitationandScopeof theresearch

The secondary data obtainable from the Freight Service Section is limited due toconfidentiality. The study is restricted to the FreightD ivisionof KTM Band m ay not be


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applicableto anyotherdivision, industryororganization. Itdoesnot in any w ayreflectthehappeningsin anyotherorganizationor similar industry.

1.7 Backgroundofresearch

Keretapi Tanah Melayu was founded in 1885 as a wholly owned Government entityunder the Ministry of Transport and is the sole provider of rail sen-ices inMalaysia.KTM was corporatised in August 1992, Marak Unggul Sdn. Bhd assumed themanagement control of KTMB. This is another turning point forKTMB and it is thenew management's intention to transform KTMB from a government entity into areliable, efficient and profitable transporter to cater for the freight, passenger andcommuter needsof Malaysia and itsneighbouringcountries.

The network is single track with a route length of 1658 km of meter gauge track. Thecompany has 135 stations, of which route from Singapore in the south linksnorthwardwith the State of Railway of Thailand through Padang Besar in the west and SungeiGolok via Gemas in theeastof thePeninsula.

KTM's mission is to be the preferred land transportation system by providing safe,efficient andreliable integratedrail servicesfor people and goods. Therefore, KTMwillbecompetitiveandresponsiveto themarketneedsand achieve thegoals throughahighlytrainedand motivated workforceusingmodern technology andprocessinnovation. KTMshallstrivetoprovidereasonableprofit andlong-term growthto its shareholders.


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FREIGHT SERVICES DIVISION

The freight sectorhasbeenfor along timebeenthemajor contributortoKTMB 'smajoroverall revenue. And now it is set to further enhance its role with the rapidlygrowingdemandfor transportation ofgoods. Due to theaffluent society,thesocietyisdemandingmany kinds of goods and services to meet their needs. KTM B carries many types ofcommoditiessuchascontainers40%, cement36%, followedbyfuel at 7% andothersat17%. Cementandpetroluemare usuallycarried between two predetermined stations incompletetrain load formations andusuallydedicated to onespecific client. Othertypesofcargousuallygo byGeneral PurposeGoodsTrain.

A widevarietyofwagonsareavailableto move the cargooverthewholerailway system.Cargois generally, movedeither in open or"covered"wagons. As a matter ofpolicy,all covered wagons in future will be replaced by containers , which allow addedflexibility in that they can also be dismounted and brought to the customers premisesthereby b ringing theconceptofdoor-to-doordelivery to its mostlogicalend.The BenefitsofRailService1. Speed and promptness all consignments will reach their destinations as

scheduled.2. Customers service points- KTMB isservedby 150customers service points

throughoutthecountry.3. Cost effective - advantageofcarryingbulkandlong haul cargoat acompetitive

rate.4. Coverage- theservicescoversallmajor citiesofPeninsular M alaysia.5. Ease to Access - the round the clock operation are adjusted according to

customers'need.6. Reliabilityandsafety- theconsignmentwillbe in therightplaceonagreedtime

and and in theproperconditions.


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7. High risk material transport- advantageofcarryinghigh risk material transportcompared to other modes of transport example Ammonia and petroluemproducts.

8 . No levy for Singapore bound freight - no levy is charged for the Singaporedestinedfreight thus reducingthetransportcost for Singaporebound traffic.

9. Insurance coverage - for all the cargoes KTMB has provided for a FreightLiability InsurancePolicyoffering insurancecoveragefor carriageofwagonsandcontainers by rail within Peninsular Malaysia and Singapore. To put it simply,thepolicy covers"liabilityofK TMBerhad"towardsits customers or custosrriers'agents forloss of or damage tocargo, including physical loss orcargoes beingdestroyed duringtransitand handling.


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CHAPTER TWO

LITERATUREREVIEW

2.0 Introduction

The purpose of thischapter is toundertakealiteraturesurvey ofperformance appraisaltheories and studies. This chapter will discuss the definitions, objectives, benefits, themethods and techniques of conducting performance appraisal and lastly is aboutproblemsand howtheycan be solved.

2.1 PerformanceManagement

Performancemanagementis theprocessthroughwhichmanagersensurethat employees'activities and outputs are congruent with the organization's goals. Performancemanagement is central togainingcompetitiveadvantage. FletcherandWilliams(1992)concept of performance management is associated with organizations and employeescreatingashared vision,objectives andaimsthathelpstheemployeestounderstand andrecognize the contribution will lead to the enhancement of performance of both theemployee and the organizations. When people (individuals and teams) know andunderstand what isexpectedof them, and have taken part informing these expectationsthey will us their best endeavour to meet them. The capacity to meet expectationsdepends on the levels of capability that can be achieved by individuals and teams, theprocesses,systemsandresourcesmade available to them and thelevelofsupport givenbymanagement.

There are many untappedpotentials inKTMBas such the organizationhavethecapacityto pursue itssuccess if the management focus on developingitsmostvaluableassets itsemployees. KTMB should review its trainingprogrammes towards development of itsemployee'sskillsand competencies.


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2.2 Whatis P erformanceAppraisal

Historically performance appraisal has always taken place in organization. This mayhavebeen a final processor may haveoccurred as partof thesocial interaction (Clark1988:232). The word performance denotes a qualified results or a set of obtainedresults,accomplishments, execution, orcarryingout anything ordered or undertaken, tosomething performedor done, to adeed,achievement,orexploitand to theexecution oraccomplishmentofwork. Nickols(1977,p. 14)definesperformance as"theoutcomeofbehaviour, Behaviour is individual activity whereas theoutcomesofbehaviourare theways in which the behaving individual's environment issomehowdifferent as aresulto fhis or herbehaviour."

Gilbert (1974) equates performance with"accom plishments"thatw evalue. Appraisalis one of the most intimidating words in the English Language. The definition in theWebster'sdictionaryis"to evaluatetheworth,significanceorstatusof....

Performance appraisal system is one of the most important and difficult issues inpersonnelorhuman resourcemanagement. Variousresearchersandauthorshave writtenextensively on the issues of performance appraisal, but no one has come upwith oneuniversal system which can satisfy the requirement of every organization's need foreffective performance appraisal system tailored to their organizational needs,philosophies, culture and politics. The effectiveness of performance appraisal systemaffects every facet of the organization such as the productivity , profitability andmanpower turnover.Performance appraisal usually takes the form of periodic interview (annual or semi-annual),inwhichtheworkperformanceof theemployeeis examined anddiscussed,witha view to identifyweaknessesandstrengthsaswellasopportunitiesforimprovementandskills development, Hunt (1986). In many organizations not all appraisal results areused, either directly or indirectly to determine the reward outcome. Performanceappraisalconsists of aformal annualreviewof anemployee'sperformanceonth ejob,as

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measured against specificcriteria, delivered by the supervisor in a face-to-face meetingwiththeemployee,Scholes(1993).

Perhapsthemost importantpurposeofperformanceappraisal is at leasttomaintain thelevel of effectiveness of peopleat work andhopefully to add to their performance andsatisfaction, Randelf (1989). But obviously, it isacceptedthatthe performanceappraisalsystem has itsrelationshipwithotherfunctionsofhuman resourcemanagement.

The performance appraisal system is developed for various reasons. Most privatecompaniestypicallyhavea formal appraisal system to measure or evaluateperformancefor compensationpurposes. Accordingly,thebestpredictoroffuture performance ispastperformance. It isalso usedforhumanresourcesdevelopment. Manypeoplequestionedthe mainpurposeof performance appraisal and are unclearof itsmain purpose. If thepurpose of the appraisal is unclear, therefore Deming's (1986) quotation stating thatappraisal seemsto be moredestructivethanconstructivemay bevalid.

Despite these failings, most experts agree that there are many valid reasons to use aperformance appraisal system. An objective appraisalprocess focuseson employee jobperformance toward agreed-on goals - not personality trails. It recognizes employeescontribution towards achieving organizational goals, addressesshortcomings, identifieseducationneedsand is ameaningfulpart of aperson'scareer-planningprocess. For mostorganization, this process is also the basis for determining employee compensationbenefits.

Effective performance reviews and appraisals help strengthen the communicationbetweena manager and an employee, andfoster a relationshipof trust andrespectto benurturedovertime. A ppraisals nolongerneedto be viewedas a necessaryevilb utratheras a tool that can be used toenhance thecareerof potentialemployees. Performanceappraisal is a method of ensuring thatemployeesare aware management ismonitoringtheir professional progress. If employees are aware, the objective of a performanceappraisal is specifically to identify their strengths and weaknesses and to organize


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trainingprogrammes to further develop these strengths or overcome theseweaknesses.They may be more willing to co-operate and allow their weaknesses to be disclosed.Employeeshavetendedto demonstrate amore favourable attitudewhenthe purpose of aperformanceappraisalhasbeenperceived to beemployeedevelopment(Daley1983).Appraisalhasbeenoften regardedas atoolformanagerial control: asTow nleyputsit,'contribu ting to an overall approachto thehandlingof labour relations ' (1991:9 2). Fromthe employee and theunions' pointof view,it isfrequently seen asmeansofmax imizingthe financial rewards for the individual workers' effort. When properly organized andadministered the performance appraisal serves to benefit both the supervisor and theiremployees. The purpose is to measure progress, differentiate between levels ofperformance, pinpoint training neeeds, validate rewards and identify promotableemployees. Performance appraisal is alearningprocessbywhichthesubordinatelearnsof the organizationalneedsand the managerlearnsabout individualneeds.

Appraisalscangenerate accurate recordsofpastperformancewhichcan aid incounselingand setting objectives for individual workers; management hopes to clarify theorganization'sobjectiveduringappraisalsessions,and aims toensurethatthe individual'sgoals are consistent with theseobjectives and that there ismutual awareness of whereboth organization and the individuals are heading.(Durey 1991,Cullen and Austen1987,Sav illeandH iggins:1990;Stoner1985;Schuleretal1988;Palner1988).

2.2.1 Employee ViewpointTorrington and Weightman(1989)suggest that from the individual'spointofview,appraisalmay beseenas atimewhen theycangain feedbackontheirperformance, reassurance, praise, encouragement, help inperforming betterand some guidance on future career possibilities. The main objective ofperformance appraisal is to evaluate the subordinate. Inaddition, evaluating

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(i.e, to judge) is also an ongoing source of tension, since evaluative anddevelopmentalprioritiesappeartoo frequently indisagreement.

Although organizations have a distinct right or duty to conduct suchevaluations of performance, majority of Trade Unionist still rejects the idea.Theexplicitprocessof judgement can bedehumanizinganddemoralizinganda source ofanxietyand distress toemployees.

2.2.2 OrganisationalV iewpoint

One of the most important reasons for having a system of performanceappraisal is to establish and uphold the principle of accountability. Fordecades, researchers have known that one of the leading causes oforganizationalfailureis "non-alignment ofresponsibilityandaccountability" ."Non-alignment" occurs where employees are given responsibilities andduties,but are not heldaccountablefor the way in whichthoseresponsib ilitiesanddutiesare performed. Ultimately,in the severelynon-aligned system,noone isaccountableforanything. Incaseswherenon-alignmentis notsevere,the organization may continue to function, albeit at reduced levels. For theorganization, performance appraisal provides a primary vehicle to monitorcontrol, and influence individual performance. One of the aims ofperformance appraisal is to make people accountable for their actions. Theobjective is to align, and realign, responsibility and accountability at everyorganizational level.(Cash1993).


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2.3 RelationshipofPerformance Appraisal tootherfunctionsof HRM

2.3.1 Trainingand Development

AccordingtoNadler(1984)trainingis the organizational activity, which aimsto improve anemployee'scurrent performance. Performanceappraisal offersan excellent opportunity for a supervisor and subordinate to recognize andagreeupon individual trainingan d developmentneeds. Performance appraisalcan make the need for training more pressing and relevant by linking itclearly to performance outcomesandfuture careeraspirations.

2.3.2 Careerdevelopment

Basically performance appraisal can assist incareerdevelopment in two ways; appraisees are asked to f i l l in the form what are the next appointment theywant to f i l l orwhere theywant toserve. Thismay be the simplestwaywherethe organization helps to match between career development and careerplanning. If the immediate superior is not very concern about the importantinformation withregards to career development,thenits objectivewill not bemet. Consequently, appraisee may feel disillusion with the system.According to Muller(1970) people are the most important asset, theirdevelopment and career planning for the future responsibilities are ofparticular importance.

2.4 PerformanceAppraisalSystems

There are various types of appraisal system and the most common is the behaviouroriented rating scales and behaviourally anchored rating scales (BARS). In the ratingscale,employees are ratedon established for a numb er of defined factors. It is commo nbecause it is the simplest and the fastest. Basically this type focus on characteristic ofemployeesand their contributionto theorganization.


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BA RS arecombinationof the critical incidentmethod andratingscales. Job behaviuoursderived from critical incidents are described more objectively for both positive andnegativeb ehaviours. Thismethod iscommonbecauseit is morereliablethanmanyothermethods. G raphic RatingScaleis a common performance appraisal form which liststhevarious factors that may affect job performance an d usually includes a 5-point scale,ranging from outstanding to unsatisfactory. Supervisors check the print on the scaleswhere they believe an employee ranks. Such a form usually includes items on jobknowledge, attendance, punctuality and interaction with others. The form usually alsohas a few lines for commen ts on each point.

Anadvantage of this form is that it is easy touse;a disadvantage is that each rating issubjective. Anotherproblem issupervisors' tendency to avoid rating peopleas eitheroutstanding or unsatisfactory. Finally , the criteria like those of other forms, may bedifficult to relatedirectlyto what theemployeedoeseveryday or to customersatisfactionandoverallorganizationob jectives.

2.5 W hoshouldd o theAppraising

Individuals are appraised by a variety of people, including their immediate supervisor,theirsuperior'ssuperior, a member of the personnel department, themselves,their peersortheir subordinates. Sometimes,assessmentcenters areusedtocarryout theappraisal.Briefsummariesofindividualsw hobecomeappraisersare asfollows:-2.5.1 Manager/SupervisorA ppraisal

Theemployee's immediatemanagercarriesout most appraisals. Theadvantageof this is that immediate supervisor usuallyhas the most intimate knowledge ofth e tasks that an individual has been carrying out and how well they havebeendone.

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Research done by Bernardin (1979) on ratee's preference has indicated thatimmediate supervisors are the most trusted providers with accurate appraisalfeedback. Even when appraisal information is collected from a range of othersources, it is the immediatemanager whocollatesand uses this information withthe individual. However, a problem mayarise whena subordinate isattached toanother department for a period of time and his immediate supervisor has noknow ledge of hisperformanceat theotherend.

2.5.2 Superior'sSuperior

The level of authority above the immediate manager can be involved in theappraisalprocessin one or twodifferent ways. First they may be called upon toconutersign the manager's appraisal of theemployee inorder togive th e seal ofapproval to indicate that the process hasbeen fairly and properly carried out.Secondly, the manager'smaydirectly carry out the appraisal. This is known asthe 'grandfather' approach appraisal. This is more likely to happen when theappraisal process is particularly concerned with making comparison betweenindividuals and the identifying of potential for promotion. Ithelps to overcomethe problems of double standard and that managers will appraise by differentstandardsand minimizes the possibility that svery high standards and is a 'hardmarker'. Grandfather appraisal isoften used todemonstrateafairplay.

2.5.3 PeerA ppraisal

Individuals of equal rank who work together are increasingly asked to evaluateeach other. A peer appraisal provides information that differs to some degreefrom ratings by a superior, since peers often see different dimensions ofperformance. Peers can readily identify leadership and interpersonal skills alongwith other strengths andweaknesses of their co-workers. Oneadvantage of peer

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