Performace Appraisal

Effective Performance Appraisal – a study into the relation between employer satisfaction and optimizing business results

Author: Zachary Dechev Supervisor: DR. J.J.A. Kamphorst ERASMUS UNIVERSITY ROTTERDAM Faculty of Economics of Business Department of Economics August 2010

Table of content
Chapter 1. Problem Overview ……….………………………………………………………………………………… 1.1. Introduction………………..….................................................................................................. 1.2. Background………………………………………………...…………………………………………….………………... 1.3. Purpose and Research Question………………………………………………………………………………….. 1.4. Methodology …………………..…………………….…………………...………………………….………………….. 1.5 Structure …………………………………………………………………….………………………………..……………... Chapter 2. Theoretical Framework………………………….…………………...……………………..………… 2.1. Definition of Performance appraisal.........……………………………………………………..…………….. 2.2. Advantages and disadvantages of Performance Appraisal and the link with the Employee Engagement and feedback..…………………………………………………..………….…..…………… 2.2.1 Benefits from the Performance Appraisal…………………………..…..……………………….…….... 2.2.2. Concerns and challenges of the Performance Appraisal…...…………………………………….. 2.2.3. Performance Appraisal and Employee Engagement…………………………………..…..………. 2.2.4 Feedback……………………………………………………………………………………………………………….… 2.3 Types of Feedback …………………………………..………………………………………………………………….… 2.4 HSL practice……………………….…..………………………….…………………………………….…………………… Chapter 3. Case study overview…….………………………….…………………...……………………..………… 3.1 HSL company…………. ……………………………………………………...…………….........................………. 3.2 Appraisal system in HSL company……….……………………………….……………………………………….. 3.3 Method of research used…………………. ………………………………………………………………………….. Chapter 4. Summary of findings.….………………………….…………………...……………………..………… 4.1 Answers from the questionnaire…..………………………………...…………….........................………. 4.2 Descriptive statistics…………………..……….……………………………….……………………………………….. 4.3 Test of hypothesis……………………………. ………………………………………………………………………….. 4.3.1 Introduction……….……………………………………………………...…………….........................………. 4.3.2 Scales Development……………..……….……………………………….……………………………………….. 4.3.3 Hypothesis testing………………..……….……………………………….……………………………………….. 4.3.4 Hypothesis findings…………………………………………………………………………………………………… Chapter 5. Recommendations and Findings…….……….…………………...……………………..………… Chapter 6. Conclusion………………………………..……………………………………………………………………. Literature References ……………………………………………………………....…………………………….…………. Appendix….…………………….………………………………………………………....…………………………….…………. 3 3 4 5 6 7 8 8 9 9 11 13 14 15 20 22 23 23 28 32 32 41 46 46 46 49 52 55 63 64 68

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Chapter 1. Problem Overview
1.1 Introduction

As an organization struggle to remain sustainable and competitive, strategic planners and human resources professionals need to collaborate more intensely in designing strategies that are productive and humane. According to many researchers, the most successful organizations in the 21st century will be those to adopt a focused and integrated HR processes and systems. “The art and science of empowering people, organizations and communities to create maximum productivity, quality, opportunity and fulfillment has never encountered so many challenges and opportunities”(Marquardt 2004, p.2). The enormous transformation processes that take place in the social, political and economic areas drive the need for organizations to become more responsive to the rapid development of the global strategies and the local operational levels. Human Resource Management focuses on personnel related areas such as job design, resource planning, performance management system, recruitment, selection, compensations and employee relations. Out of these one function plays a critical role for the global success of the organization and this is performance evaluation. It is more significant than other processes because its outcomes indicate the success of the realization of the...

References: 2.1. Definition of performance appraisal
Performance appraisal has been described as “the process of identifying, observing, measuring, and developing human performance in organization” (Carrol & Scheider, 1982)
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