ABSTRACT
The study aims at evaluating performance appraisal methods
and use of results at both public (TANESCO) and private (Symbion)
organizations. The objectives of the study is to compare performance appraisal
methods in both public and private organizations, to determine suitability and
performance of various types of performance appraisal methods, to determine
employers and employees' level of satisfaction regarding the said appraisal
methods, and to explore ways to harmonize the use of various types of
performance appraisal methods. The study used interview and survey to collect data
from a sample of 50 respondents from TANESCO and 50 respondents from Symbion
Power.
The study revealed that the performance appraisal results
have benefits in a number of ways including informing the employees'
development plans, for instance, through identification of necessary training
requirements, giving enough opportunities to employees by recognizing their
talent and giving them more responsibilities, and identifying poor performing
employees and put them under a performance improvement plan so that they can be
effectively guided and groomed to become good performers. It is also
instrumental in identifying any other reasons for nonperformance of an
employee, like non-availability of tools to perform their job or other external
factors and remove those obstacles so that employees are in a position to
perform their job well. The absence of performance management has contributed
to the high rate of business failures in the public and private sector.
The study recommends that the public and private
organizations should make sure that performance elements and standards should
be measurable, understandable, verifiable, equitable, and achievable. Effective
performance management system requires time and resources and management is
supposed to act upon the outcomes of the performance management process.
TABLE OF CONTENTS
Pages
CERTIFICATION......................................................................................................i
DECLARATION AND COPYRIGHT......................................................................ii
ACKNOWLEDGEMENTS......................................................................................iii
DEDICATION...........................................................................................................iv
LIST OF ABBREVIATIONS ............................................................................v
ABSTRACT...............................................................................................................vi
TABLE OF
CONTENTS.........................................................................................vii
LIST OF TABLES
.....................................................................................................x
LIST OF FIGURES ..................................................................................................xi
CHAPTER ONE
........................................................................................................1
INTRODUCTION......................................................................................................1
1.1 Background
...............................................................................................1
1.2 Statement of the
Problem..........................................................................2
1.3 Objectives of the
Study.............................................................................3
1.3.1 Main
Objective..........................................................................................3
1.3.2 Specific
Objectives....................................................................................3
1.4 Research Questions
...................................................................................4
1.5 Scope of the Study.....................................................................................4
1.6 Significance of the Study
..........................................................................4
1.7 Structure of the
Dissertation......................................................................5
CHAPTER TWO
.......................................................................................................7
LITERATURE
REVIEW..........................................................................................7
2.1
Introduction...............................................................................................7
2.2
Definition of Key Terms
...........................................................................7
2.2.1
Performance Appraisal..............................................................................7
2.2.2
Performance
Management.........................................................................7
2.2.3
Performance Appraisal Log
......................................................................8
2.3
Performance Appraisal in
Tanzania..........................................................9
2.4
Components of the Performance
Appraisal System................................11
2.5 Approaches
of Performance Management..............................................13
2.5.1
Traditional Approach
..............................................................................13
2.5.2
Modern Approach
...................................................................................15
2.6
The Role of the Feedback on
Performance Appraisal.............................16
2.7
Review of Relevant
Theories..................................................................17
2.7.1 Equity Theory..........................................................................................17
2.7.2 Goal-setting
Theory.................................................................................18
2.7.3
Expectancy
Theory..................................................................................18
2.7.4
Motivational
Theory................................................................................18
2.8
Performance
Appraisal............................................................................19
2.9 Conceptual
Framework ...........................................................................21
CHAPTER THREE...........................................................................................23
RESEARCH METHODOLOGY ....................................................................23
3.1 The
Study
Area........................................................................................23
3.2 Study
Design ...........................................................................................23
3.3 Study
Population
.....................................................................................24
3.4 Sample
and Sampling Techniques
..........................................................24
3.4.1 The Sample
Size......................................................................................24
3.4.2 Sampling
Techniques..............................................................................25
3.5
Data Collection
Methods.........................................................................25
3.6
Data Analysis Methods
...........................................................................27
3.7 Limitations
of the Study..........................................................................27
CHAPTER
FOUR....................................................................................................29
PRESENTATION AND DISCUSSION OF THEFINDINGS
.............................29
4.1 Introduction.............................................................................................29
4.2 Demographic
Characteristics of Respondents.........................................29
4.2.1 Age of Respondents ................................................................................29
4.2.2 Time Worked with the
Organization.......................................................30
4.2.3 Highest Education
Level.........................................................................30
4.3 Reasons
for Conducting Performance Appraisal ....................................31
4.4 Comparison
of Performance Appraisal Systems in Public and Private Organization............................................................................................34
4.4.1 Types of Performance
Appraisal.............................................................35
4.4.2 Performance Appraisal
Criteria...............................................................36
4.4.3 Performance Appraisal Criteria Officers
Often Use ...............................39
4.4.4 The Use of Participatory Approaches
.....................................................39
4.4.5 Perceptions on the Officers who Conduct
Performance Appraisal.........40
4.4.6
Setting the
Targets...................................................................................40
4.4.7
Notice of Performance Appraisal
System...............................................41
4.4.8 What Happens after the Appraisal Exercise is
completed ......................42
4.5 The
Relationship between Performance Appraisal and Employees' Performance
............................................................................................42
4.5.1
Level of Objectivity of the Performance
Appraisal Process...................43
4.5.2
Fairness of Performance Appraisal
Report and Methods .......................44
4.6
General Uses of Performance
Appraisal Results ....................................44
4.7
Challenges of Undertaking
Performance Appraisal................................48
4.8
Factors for Improving Performance
Appraisal Systems .........................51
4.9 Perceptions on Harmonization of Performance
Appraisal Systems........52
4.10 Suitability and Performance Appraisal Methods
....................................53
CHAPTER
FIVE......................................................................................................55
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS .........................55
5.1
Summary of the
Findings........................................................................55
5.3
Conclusions.............................................................................................56
5.4 Recommendations...................................................................................58
REFERENCES.........................................................................................................61
APPENDICES..........................................................................................................66
Appendix1: Questionnaire................................................................................66
Appendix
2: Focus-group
Discussion/Interview Questions Checklist..............72
LIST OF TABLES
Pages
|
Table 3.1:
|
Sample Size
Distribution......................................................................25
|
|
Table 4.1:
|
Age of
Respondents..............................................................................30
|
|
Table 4.2:
|
Time Worked with the Organization
....................................................30
|
|
Table 4.3:
|
Highest Education
Level.......................................................................31
|
|
Table 4.4:
|
Performance Appraisal Criteria Officers Often Use.............................39
|
|
Table 4.5:
|
Perceptions on the Officers who Conduct Performance
Appraisal ......40
|
|
Table 4.6:
|
What Happens after the Appraisal Exercise is
completed....................42
|
|
Table 4.7:
|
Level of Objectivity of the Performance Appraisal
Process.................44
|
|
Table 4.8:
|
Fairness of Performance Appraisal Report and
Methods.....................44
|
|
Table 4.9:
|
Usefulness of the Performance Appraisal Records to the
Organization48
|
LIST OF FIGURES
Pages
Figure 2.1: Components of Performance Appraisal Stepwise
................................13
Figure 2.2: Conceptual Framework on Effect of
Performance Appraisal to the
Performance
of an Organization...........................................................22
CHAPTER ONE
INTRODUCTION
1.1 Background
It is a practiced norm for firms, both public and private
to appraise their employees' job performance and the resultant progressive
potential for both personal and organization’s development. Through performance
appraisal, managers are able to analyse work performance of employees in
relation to their job descriptions and organization's set goals and objectives.
As Faizal (2005:119) quoted in Hezekiah (2011) states, this process benefits
both the employees and organization:
“The
employees get recognition, career guidance and feedback for their performance
and the organizations get qualified, committed and disciplined employee".
According to Frank and Lewis (2004) and Lewis and Frank
(2002), private sector gives out more incentive than public sectors when
utilizing performance appraisal results on comparable jobs. Burgess and Ratto
(2003) argue that money is not the only motivating factor for performance of
public servants. They argue that the public servants are motivated by other
benefits and incentives such as high access to education and training and high
stability and security of their employment than private sector workers. This is
also confirmed in a study conducted on public sector workers of Italy (Borzaga
and Tortia, 2006). The study found out those monetary rewards, pay-for
performance, or bonuses are less influential on motivating public sector
workers than private sector employees.
It has been a custom of all organizations in Tanzania to
perform employees’ performance evaluation. In the past, managers and higher
echelon of the organization were the sole owners of the process. This process
was called closed annual confidential
report system which aimed at just evaluating the employees’ performance
without their participation in the process. This process was
characterized by poor feedback and inferior identification
of training needs making it impossible to promote performance and
accountability of workers (Nigera, 2004)According to Gupta (2006) and Nigera
(2004), it is important that the employees know what is expected of them in
terms of goals and objectives and how to evaluate themselves in order to
increase both ownership of responsibilities, milestones reached and, problems
and challenges they encounter in the course of executing their duties.
The public sector in Tanzania adopted the open system and
coined it Open Performance Review and
Appraisal System (OPRAS) (Masawe, 2009). This system aims at increasing
open evaluation hence reduce conflicts at work place while at the same time
increase productivity. Most of the private organizations in Tanzania have not
adopted it.
1.2 Statement of
the Problem
At the moment, in Tanzania, various organizations apply
different methods of performance appraisal. Due to use of different standards,
methods perform differently and due to that the whole exercise lacks conformity
across sectors. This complicates comparing past performance of individuals when
they are recruited by new employers. It becomes hard to predict future
performance measurement while traditional performance measurement perceived to
be inappropriate (Radnor and Gure, 2004).
Notwithstanding the habitual practice of annual appraising
employees’ performance, in most cases, results are not systematically utilized
to address both employees’ career development and organization growth. This
frustrates employees by limiting their professional growth and increase in
their income (growth in one’s career normally translates in increase in one’s
income). Frustrating workforce always results into stunted productivity which
consequently curbs organization’s growth. In a country as poor as Tanzania,
sectors performance and growth are of paramount economic importance. For
employees to potentially contribute to the growth of the sectors and
themselves, they must be objectively monitored and evaluated.Do they think
their top-down performance evaluation method works better than the public
sector’s open system? What does the public sector think? Objectively, which
system is better? Which sector utilizes better the performance evaluation
results?
Is there any way to improve on the current practices to
bring about a more effective and efficient performance evaluation method that
may be streamlined across sectors to reduce the cost of reference and
monitoring performance of workers, especially when they change employers?
Moreover, both sectors public and private should use different methods of
performance appraisal which are suitable to the organizations management and
the use of results which they get from the appraisal. This study is aiming at
evaluating existing practices of performance appraisal in both public and
private organizations and informing both the employers and employees of the
ways to best reap from the performance appraisal exercises.
1.3 Objectives of
the Study
1.3.1 Main Objective
The main objective of this study is to evaluate employees’
performance appraisal method and use of the appraisal results in both public
and private organizations.
1.3.2 Specific
Objectives
In order to address
the main objective, this study will strive to achieve the following specific
objectives:
|
(i.)
|
To compare performance
appraisal methods in both public and private organizations.
|
|
(ii.)
|
To determine suitability and performance of various types
of performance appraisal methods.
|
|
(iii.)
|
To determine employers and employees' level of satisfaction
regarding the said appraisal methods.
|
|
(iv.)
|
To explore ways to harmonize the use of various types of
performance
|
appraisal methods
1.4 Research
Questions
The following
questions will direct this research in addressing the set objectives:
|
(i.)
|
What are significant features in performance appraisal
methods applied by public and private organizations?
|
|
(ii.)
|
How are the appraisal methods relate to job descriptions of
the employees and organizations’ policies and goals?
|
|
(iii.)
|
How are appraisal methods
executed? Are they participatory or top-down?
|
|
(iv.)
|
How
are the results of appraisals used? Is there any feedback to employees after
the appraisal exercise? Do current appraisals make reference to preceding
year appraisal results?
|
|
(v.)
|
How do appraisals’ results
used to gauge and improve employees’ satisfaction and performance?
|
|
(vi.)
|
What are challenges and lessons of operating the public and
private sectors’ performance appraisal systems?
|
|
(vii.)
|
Are
there any ways to improve both systems? Any possibility of merging the
systems? What should be done to merge the systems and provide a more
effective and robust performance appraisal system
|
|
1.5
|
Scope of the Study
|
The area of study is focused on TANESCO (public
organization) and Symbion Power (private organization) located in Dar es
Salaam. The study aims on evaluating employee’s performance appraisal methods
and the use of results on both sectors. TANESCO and Symbion Power are dealing
with supplying of electricity’s operating more than ten years in Tanzania now
is covered all over the Tanzania.
1.6 Significance of
the Study
Performance appraisal is important for gauging the progress
of both employees and employers.
(i.) Milestones
reached are examined
(ii.) Challenges encountered are evaluated
(iii.) Problems faced are analysed
(iv.) High performances are rewarded
(v.) To
indentify training and development needs that should be implemented, and (vi.) Opportunities for improvements are
recognized and acknowledged.
Future plans of the organization are then revisited to take
into account the performance evaluation results and plan accordingly for the
future. Each component of organization’s goals and objectives is supposed to be
addressed in the performance appraisal in order to achieve an objective
examination of the position of the firm (Chen et al., 2009).
Furthermore, improvement of tangible employees’ and
employers’ feedback and inclusion of the performance appraisal results to
motivate employers and improve productivity is one of the main objectives of
appraisal exercise (Halachmi, 2011).
This study will provide the current state of play regarding
the appraisal exercise in both public and private sectors. It will provide an
objective examination of the performance of both types of appraisal sectors
while trying to gauge the cost borne by both employees and employers as a
result of the appraisal exercises. It will unearth ways to design an appraisal
exercise that can be streamlined in both sectors aiming at consistent
examination of employees’ performance to improve productivity and employees
satisfaction across both sectors.
1.7 Structure of
the Dissertation
For ease understanding of the dissertation is organized in
chapters, titles and sub titles. it has five chapters each focusing on a
specific context. Chapter one comprises of overview research problems,
objectives of the study, research question, significance of the study and scope
of the study.
Chapter two is literature review which implies theoretical
and empiric reviews of the subject matter while tapering off onto a conceptual
framework that drives the study. The third chapter is research methodology
which provides in depth info on how this study is organized and how was the
data collected, analysed and reported.
The fourth chapter is the
presentation and discussion of the finding; this reveals the study by
discussion what was found in the field. The last chapter which is chapter five
gives the summary of the finding, conclusion on relation with the conceptual
framework and recommendation on the study.
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