The AFTEREFFECT OF Performance Appraisal On Employee Performance

In the study main emphasis has been made on the company's reward management (performance appraisal) and its own effect on improving the employee's performance. The research was only limited by a few selected departments in the company. We know that there is specific department in company to be able to keep the requirements of performance appraisal.

Performance appraisal may be thought as a structured formal interaction between your subordinate and supervisor or manager who identifies the strengths and weaknesses as well as skills development.

Some of the things are essential to the successful establishment of training and staff development within an organization, the commitment of senior management, positive perceptions among staff, and assurance that training and staff development support departmental and company aims. For appraisal and training interviews to be perceived as valuable their outcomes must be linked to a planned programme of training and staff development. The essential idea of the topic to highlight the performance evaluation of subordinates in the business and its own departments. Our main focus of the study is to investigate the effects of performance appraisal in the business. By help of performance appraisal we want to ensure that the contribution by employees closely suited to the needs and goals of the company and as well as gives more chance to identify good performance and address issues.

Research Questions:

What is performance appraisal and its own importance in the employee performance evaluation process?

What will be the ramifications of performance appraisal on employee performance?

How is the procedure of performance appraisal completed?

How do we evaluate the effectiveness of performance appraisal?

What actions we be studied to increase the performance appraisal process in Tesco?

Research Objectives:

To review the existing literature on performance appraisal

To review the effects of performance appraisal on employee performance

To carried out the process of performance appraisal

To review and measure the effectiveness of performance appraisal

To increase the performance appraisal process in Tesco

Contextual Background:

Tesco was founded in 1919 by jack Cohen, who invested his serviceman gratuity of 30 in grocery stall. The first private label product was Tesco tea. Tesco name is combo of two people -TE Stock well name of supplier of tea and two letters of Cohen's name. Tesco opened its first store in 1929. Basically Cohen's was influenced by the superstore culture in the us and tried to introduce the idea in UK. Main slogan of the business was "Pile It High And Sell It Cheap". In 1947 Tesco went public and year later Tesco self service stores were started. In 1956 the first Tesco self service supermarket was opened.

Tesco is one of Europe's leading food retailers, having enjoyed an interval of

tremendous growth through the 1980s. Now more developed within the UK with over 440 stores, we've acquired Catteau in France and more recently bought a stake in Global. /////////



The performance appraisal is a formal interaction between the staff and supervisor, through which the performance of subordinate is assessed and discussed on the ground of evidences with the view to identifying strengths and weaknesses as well as opportunities for improvement and skills development. Inside the the majority of organizations performance appraisal assessment is utilized either directly or indirectly to judge the reward outcomes. The results of appraisals are used to identify the performance of staff, if it is on merit then it'll go for pay increase, bonuses and promotions, if not then possibly may necessitate some form of counselling or in a few extreme cases, dismissals, demotions or reduction in pay. However the company has to follow the legal procedures that may restrict their capacity to dismiss employees and or decrease pay.

There are some benefits in the performance of employees

ensure that every employee's contribution fits into the overall aims of the company

help individual employees better understand their aims and role within the company

create standards to measure the quantity and quality of employees' work

to monitor the success of the business

identify ways to make the business run more efficiently

identify ways to expand the business

The effective appraisal system will help you determine staff against defined objectives it is something where we can determine the partnership with employees and employer the way they gives you rewards and appreciate the employee.

Followings will be the essential characteristics of a powerful performance appraisal.


Job Relatedness

Standards and Measurements



Open Communication

Trained Appraisals

Ease of Use

Employee Accessibility to results

Review Procedures

Appeal Procedures

Different authors have given their own views and opinions in explaining each one of these characteristics of Effective Performance Appraisals such as,

Essential characteristics:

Performance appraisal system should be predicated on true and fair basis and free from criticism and it should be legally acceptable. The introduction of an efficient appraisal system is the result of effort, careful thinking and serious planning particularly if we are intending to integrate of the administrative, developmental, and strategic needs of the organization.


The first step towards developing a performance appraisal is to formalize all the procedures, policies, regulations of the organization. (Allan, 1994).

By formalizing the business needs means to write clearly the overall objectives of organization what it want to attain. This helps in eliminating any issues that may arise in future. It's an increased level practice to choose the aims of the organization in terms of policies, procedures regarding employment in organization.

The information should be so perfectly formalized the results can be regularly fed back to the strategic process for decision-making, inspiration, improvement initiatives, problem-solving, and the successful alignment and/or realignment of people and processes necessary for strategy implementation and adjustment.

(Humphreys, 2007).

Job relatedness:

During the process of appraising jobs all relevant factors must be looked at and there should be no discrimination done on the basis of traits, personality characteristics, and tenuously related job factors.

Due to the different natures of jobs, different facets will need to be looked at as requirements for the analysis of a particular job within organization. (Martin and Bartol, 1998).

Some devastating problems that come therefore of weak strategies related to jobs defined by the organization are lower employee morale, obstacle in strategic ability to execute properly in dynamic organizations.

(Sales Agency Management, 1999; Marsden, 1999).

Standards and measurement:

In order to create the standards of organization expectations of both employees performing job and the business itself should be carefully measured. This can help in getting meaningful evaluation of employees.

(Brown, 1987).

The next thing to implement after establishing the standards is to implement different methods of measuring actual results. This become hard sometimes due to complicated natures of jobs to implement single measurement method on a regular basis. But still there must be some measures performed against such complicated jobs.

(Marsden, 1999).

The job-related measures are more important when we intend to integrate the info in to the overall strategic processes of the organization and if there is to be consistent functional alignment with the broader organizational objectives.

The following three characteristics are suggested (Marsden, 1999)


The method used is valid if it measures what it is suppose to measure in performance appraisal. This implies that all the methods used in appraisal system should measure the actual job performance against set standards. Through the job analysis the actual job the validity of performance appraisal starts with the occurrence of all performance factors identified. These factors include total work load, deadlines met, quality of work yet others. (Marsden, 1999)

There is often a higher relationship between your evaluation an employee has received on a specific performance factor and the actual results attained by that each by that factor.


An effective performance appraisal is one that always measure work performance of employee accurately. Something that regularly measures performance accurately is known as a reliable system.

(Marsden, 1999).

Definitive standards and measures must be used in order to lessen the reliability problems. Mostly reliability problems arise due to the lack of objective requirements for evaluating performance.

It may be wreaking for a firm to make use of unreliable control measures in to the strategic management of the firm.

All employees have a need to find out how well they are really performing. The performance appraisal system producing such results which are not reliable due to lack of consistency. Powerful must consistently

Receive a high rating, in the same way low performance must regularly receive a low rating for the

Measurement system to be looked at reliable (Longenecker and Fink, 1999).

Open communication:

Assurance of an efficient performance appraisal is that where feedback is provided on regular basis, not in the form of written annual evaluation report, but in the proper execution of daily, weekly, and monthly comments from staff's supervisor or manager(Lee, 2005).

For an efficient performance appraisal this ongoing aspect of its nature must be emphasized to appraiser and providing regular feedback home elevators job performance must be underscored. ( Longenecker and Goff, 1992).

The total annual performance evaluation and its own consequences on performance discussion and interview must be without surprises. While annual performance discussion gives a great chance of both parties to switch views and observations in depth, annual performance appraisal review is not really a alternative for day-to-day or week-by-week performance communications(Longenecker and Fink, 1999).

Trained appraisers:

Training as well as periodic updating and retraining, of all individuals in the company who conduct evaluations can be an essential to the effectiveness of a performance appraisal system (Allan, 1994).

House training or classroom training is very important whenever a new or revised system is being installed in company;this type of training is absolutely necessary for all new staff and managers. A company should never assume that, because all the information about performance appraisal is within a supervisors and managerial handbook or is included in the business personnel policy manual, supervisors and managers will automatically understand how to conduct effective appraisals.

In a company such personal formal training sessions often permit the discussion and resolution of appraisal in their incipiency. Moreover by involving each level of management in training performance appraisal, the machine becomes more strongly imbedded in the business as a vital function of human resource management, and to improve the broader strategic management processes (Humphreys, 2005)

Ease useful:

A performance appraisal system doesn't have to be complex to work (Longenecker

and Fink, 1999). If the machine is firmly based on standards and measurements, it'll oftimes be easier but also more valid and reliable, than lots of the performance appraisal approaches used(Allan, 1994)

Basically the theory to develop performance appraisal system more better to forces senior management to invest considerable considered to what they plan to receive from the appraisal function. Also an analysis system that is efficient and well-designed simplifies use by all stakeholders with a greater knowledge of the role the appraisal system plays in human resource management and long- term organizational success.

Employee usage of results:

As due to the Federal Privacy Act of 1973, employees of the federal government as well

as federal contractors must get usage of their personnel records, including all files or

other data regarding their performance appraisals. First confidentiality may breed suspicion about the fairness of the system in your brain of employees. (Lee et al, 2004).

The fairness of system may lead to discrimination charges and raise motivational issues related to perceived inequity. The idea of fairness in working with employees to be sure there is absolutely no doubt using information that directly affects them on their jobs, and it allow employees to review and asses their performance appraisal records builds a safeguard into the system for the reason that employee have the fantastic possibility to review and identify errors that might have been made in performance evaluations.

Finally, employee development is the espoused purposes of performance appraisal. Employees must have usage of performance appraisal records if they are, in fact, to use corrective actions to enhance the way in which they are simply fulfilling their job duties and responsibilities (Mount, 1984).

Review procedures

The reason for review can be used to eliminate all the hurdles made by bias, favouritism, or discrimination(Allan 1994).

The higher-level of management, usually the evaluator's immediate supervisor, should automatically review all performance evaluations of employees created by the subordinate managers. The purpose of this review to ensure the analysis for consistency, fairness, accuracy, reliability, and assuring that the evaluator has carried out his / her function honestly.

The segregation of different managerial levels increases the importance that the info generated by the review will be incorporated in to the various levels of company hierarchy. This process of review can become more efficiently interjected into the broader strategic management of the business. The higher level management must recognize that valuable strategic input emerges from all levels of the business (Humphreys, 2005).

Appeal procedures :

Unfortunately, in some organizations there is absolutely no legal procedure whereby an

employee can appeal what she or he considers an unfair or inaccurate performance

appraisal. In such circumstances, the employee has few options apart from living with the unfair performance review or

possibly leaving the business for employment elsewhere. There have even been where employees whose performance was acceptable for a long time were summarily

discharged based on one bad performance appraisal. Now that an employer's right to

fire at will is being challenged in the courts, sometimes successfully, the need for a clearly

delineated appeal procedure in the performance appraisal system is imperative

(Beck-Dudley and McEvoy, 1991).

In these situations organizations suffering trade unions have long had well-established appeal system in the form of grievance procedures(Grievance Guide, 2003).

Main purpose of an appeal process would appear to serve three purposes

Protection of employees from unfair appraisals;

Protection of organization from potential charges of unfairness;

It helps to ensure that appraiser do a more fair and accurate evaluation because they know their appraisal assessment are subject to examination by others in the organization.

appeal procedure typically depends upon how big is the business. As the very least, there must be two steps: an appeal to the higher degree of management and an appeal to supervisors or managers. In larger organizations, the human resource department would be included sooner or later along the way The procedures where a worker can appeal an unfavourable review must be evidently spelled out in the formalized policies and procedures of the performance appraisal system as well as specified in the employee handbook.

3. Research Methodology:

According to Klein and Myers the study is interpretive if it is assumed that our knowledge of the truth is gained only through social constructions such as language, consciousness, shared meanings, documents, tools, and other artefacts. It attempts to understand phenomena through the meanings that individuals assign to them.

Klein and Myers' (1999, 69) You will find two basic types of research methodologies found in data collection process. They are,

Qualitative Research Methodology

Quantitative Research Methodology

3. 1 Qualitative Research:

/////The qualitative research can be carried out either in the form of one to one interview or in form of group discussion.

The primary research data will be from the employees of Tesco within the same branch where i am working because it is a lot convenient for me to set up group discussions and or interviews to own their views and feedback on current appraisal system of Tesco. Whereas, some face to face interviews will be conducted with managers (HR manager, Shift manager, store manager), to get the true feeling and their views. These interviews will be recorded for evidence and future use within data analysis.

3. 2 Quantitative Research:

In quantitative research i am going to choose randomly some branches of Tesco where i can use questionnaires which are designed designed for the performance appraisal to get the accurate views of employees and managers.

Quantitative research is utilized to measure how many people feel, think or act in a specific way. These surveys have a tendency to include large samples - anything from 50 to a variety of interviews. Structured questionnaires are usually used incorporating mainly closed questions - questions with set responses. There are many vehicles used for collecting quantitative information but the most typical are on-street or telephone interviews

3. 3 Research Philosophy:

For my research proposal, overall research philosophy is choice between two primary alternatives which is positivist or a phenomenological philosophy. But i am using positivist approach because all the characteristics of the philosophy is true such as concentrate on facts of the

3. 4 Research Strategy:

3. 5 Sample Method And Size:

3. 6 Research Ethics:

The Research should be reviewed and conducted in a manner to maintain integrity and quality and the study staff and subjects must be informed fully about the purpose, methods and intended possible uses of the relevant subject material with clear indication of risks involved with the given allowed variation based on the policy guidelines.

Harm to research participants should be avoided all the time and the confidentiality of information provided by research topic must be maintained.

The participants involved in research should be participating in a voluntary way.

The conduct of the study responsibility in accordance with the relevant principles should be decided by the principle investigator.

The institution which holds or seek an award is responsible that research is subject to appropriate ethical review which is also in charge of the approval and monitoring from it.

3. 7 Action Plan:

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