The Effects Of Performance Appraisal System
THE EFFECTS OF PERFORMANCE APPRAISAL SYSTEM ONEMPLOYEES’ PERFOMANCE IN THE TANZANIAN COMMUNITYRADIOS: A CASE OF SELECTED RADIOS IN DAR ES SALAAMAGATHA FILEMON SHAYOA DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THEREQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESSADMINISTRATION IN HUMAN RESOURCE MANAGEMENT OF THEOPEN UNIVERSITY OF TANZANIA2013
iiCERTIFICATIONThe undersigned certifies that he has read and hereby recommends for acceptance bythe Open University of Tanzania a dissertation entitled: “The Effects ofPerformance Appraisal System on Employees’ Performance in TanzanianCommunity Radios: A Case of Selected Radios in Dar es Salaam, in partialfulfillment of the requirements for the Degree of Master of Business Administration(MBA) of the Open University of Tanzania.Dr. O. K. Mbura(Supervisor)Date .
iiiCOPYRIGHTThis dissertation is copyright material protected under the Berne Convention, theCopyright Act of 1996 and other international and national enactments, in thatbehalf, on intellectual property. It may not be reproduced by any means, in full or inpart, except for short extracts in fair dealings, for research or private study, criticallyscholarly review or discourse with an acknowledgement, without the writtenpermission of the Directorate of Postgraduate Studies, on behalf of both the authorand the Open University of Tanzania.
ivDECLARATIONI, Agatha Filemon Shayo, declare that this dissertation is my own original work andthat it has not been presented and will not be presented to any other University for asimilar or any other degree award.Signature Date .
vDEDICATIONTo my lovely husband Rev. Manase Abimael Lema, our precious son; IanAikandumi, our lovely daughter; Bridget Irene, and my lovely mother; Mrs. EuniceShayo.
viACKNOWLEDGEMENTI sincerely extend my thanks to Upendo FM Radio, WAPO Radio and TumainiRadio for their contribution and cooperation they gave me during my stay in theiroffices as well as making this study successful. In particular, I would like toacknowledge Dr. Mbura, my supervisor for his patience, intellectual guidance, wideresearch experience and moral support. To him I say Thank you.I also express my sincere thanks to my course lecturers and my MBA classmates fortheir advice, guidance and encouragement during the whole period of my study.Really I appreciate them.I take this opportunity to thank my family as a whole for their confidence and beliefin my prospects in academics. To them all I say thank you.Thus, I would like to state that, the success of this research would have not beenpossible without other peoples’ ideas, views, opinions and support. Many peoplewere involved and contributed much to reach its completion. If it was possible Iwould like to convey my heartfelt gratitude to each and everyone in person for thesupport and cooperation they extended to me. Unfortunately, this was not possible,because of time and space I thus, like to thank them all. However, all deficiencies orerrors that may be contained in this document are absolutely my sole responsibility.
viiABSTRACTThis study examines the effects of performance appraisal systems on employees’performance in the community radios. It specifically explores the employees’awareness on appraisal system, knowledge of the appraisal system and performanceappraisal management that leads to effective employees’ performance in communityradios. This study was descriptive in nature with multiple units of enquiry.Questionnaires, interviews and documentation were the main methods of datacollection and 100 respondents from Upendo, WAPO and Tumaini radio stationswere studied. Moreover, the data collected were analysed and processed by usingcomputer program (excel) and indicated clearly on tables and figures. The studyresults revealed that employees performance appraisal at WAPO, Tumaini andUpendo radio stations is not effective and not very well utilised. The majority ofemployees were not aware and they lack knowledge of the performance appraisalpracticed in their organizations. They were not involved in discussion withsupervisors and not given enough time to prepare for the meeting as a result, there isno feedback provided to employees after appraisal. The available appraisal system isnot used by these radio stations for making important employees’ decisions. It wasrecommended thatemployees’ performance appraisal should be implementedeffectively to fit a particular organisation’s environment, communication betweenemployees and management decisions like disciplinary actions, promotion andtraining.
viiiTABLE OF CONTENTSCERTIFICATION .iiCOPYRIGHT .iiiDEDICATION. vACKNOWLEDGEMENT . viABSTRACT .viiTABLE OF CONTENTS .viiiLIST OF TABLES .xiiiLIST OF FIGURES . xivLIST OF ACRONYMS . xvCHAPTER ONE . 11.0 INTRODUCTION AND BACKGROUND TO THE STUDY . 11.1Introduction . 11.2Background to the Study . 11.2Statement of the Problem . 21.4Objective of the Study . 41.4.1 General Objective . 41.4.2 Specific Objectives . 51.5Research Questions . 51.6Significance of the Study . 51.7Limitations of the Study. 61.8The Scope of the Study . 71.9Thesis Outline . 7
ixCHAPTER TWO . 82.0 LITERATURE REVIEW . 82.1Introduction . 82.2Definition of Key Concepts . 82.2.1Performance Appraisal . 82.2.2Community . 92.2.3Community Radio . 102.3Profiles of the Selected Radios . 122.3.1Upendo Radio . 122.3.2Tumaini Radio . 122.3.3WAPO Radio FM . 122.4Theoretical Literature Review . 132.4.1Performance Appraisal Methods. 132.4.1.1 Based Anchored Rating Scales (BARS) . 142.4.1.2 Trait Scales . 142.4.1.3 Management by Objectives (MBO) . 152.4.1.4 Essay Method . 162.4.1.5 Ranking . 162.4.1.6 Paired Comparisons . 162.4.1.7 Forced Distribution . 162.4.1.8 360-Degree Appraisal Method . 172.4.1.9 The Open Performance Review and Appraisal System (OPRAS) . 172.4.2Ineffective Performance Appraisal . 182.4.3Hierarchy of Needs Theory . 18
x2.4.4Expectancy Theory . 202.4.5Implicit Theory . 202.4.6Theory X and Y . 212.4.7Contingency Theory. 232.5Empirical Studies . 242.5.1World Related Studies . 242.5.2Tanzania Related Studies . 292.6Conceptual Framework . 31CHAPTER THREE . 333.0 RESEARCH METHODOLOGY . 333.1Introduction . 333.2Research Design . 333.3Research Approach . 333.4Area of the Study . 343.5Target Population . 343.6Sampling Techniques . 353.6.1Simple Random Sampling . 353.6.2Stratified Random Sampling . 353.7Sample Size . 363.8Data Collection Methods . 363.8.1Questionnaire . 373.8.2Interview . 373.8.3Observation . 373.8.4Documentary Sources . 38
xi3.9Data Presentation and Analysis . 383.10Data Reliability and Validity . 38CHAPTER FOUR . 404.0 RESULTS AND DISCUSSION . 404.1Introduction . 404.2Descriptive Findings . 404.2.1. Age . 404.2.2Gender . 414.2.3Level of Education . 424.2.4The Working Experience . 434.3Findings According to Specific Objectives . 434.3.1Employees’ Awareness on Appraisal System Lead to Effective Employees’Performance Appraisal in Community Radios . 444.3.1.1 Awareness of Performance Appraisal System Implementation . 444.3.1. 2 Sufficient Notice to Prepare for Performance Appraisal Meeting . 454.3.1.3 Employees Involvement in Conducting Performance Appraisal . 464.3.1.4 Participating in Setting Objectives and Criteria for PerformanceAppraisal . 484.3.1.5 Involvement in Discussion of Performance Appraisal Results . 494.3.2 Employees Knowledge of the Appraisal System Leads to Effective EmployeesPerformance Appraisal in Community Radios . 504.3.2.1 Employees Understanding the Importance Performance AppraisalPractices . 504.3.2.2 Employees’ Training on Performance Appraisal Systems . 52
xii4.3.2.3 Accurate and Fair Performance Appraisal. . 544.3.2.4 Performance Feedback after Evaluation . 554.3.3Performance Appraisal Management Leads to Effective Employee’sPerformance in Community Radios . 564.3.3.1 Improving Communication . 574.3.3.2 Increases Productivity . 584.3.3.3 Builds Work Interrelations . 604.3.3.4 Enhance Job Satisfaction . 61CHAPTER FIVE . 635.0 CONCLUSION AND RECOMMENDATIONS . 635.1Introduction . 635.2Conclusion . 635.3Recommendations . 645.3.1Performance Appraisal Management . 645.3.2Training and Guidance . 655.3.3Confidentiality and Accountability . 655.4Areas for Further Research . 66REFERENCES . 67APPENDICES . 74
xiiiLIST OF TABLESTable 3.1: The Number of Respondents . 36Table 4.1: Frequency Distribution by Gender . 41Table 4.2: respondents Working Experience . 43Table 4.3: Awareness of Performance Appraisal System Implementation . 44Table 4.4: Sufficient Notice to Prepare for Performance Appraisal Meeting . 45Table 4.5: Employees Involvement in Conducting Performance Appraisal . 47Table 4.6: Participating in Setting Objectives and Criteria for PerformanceAppraisal . 48Table 4.7 Involvement in Discussion of Performance Appraisal Results. 49Table 4.8: Employees Understanding Performance Appraisal Practices . 51Table 4.9: Employees Training Regarding Performance Appraisal Systems . 53Table 4.10: Accurate and Fair performance Appraisal .54Table 4.11: Performance Feedback After Evaluation . 55Table 4.12: Performance Appraisal Management Improves Employees’Communication . 57Table 4.13: Perfomance Appraisal Management Increases Employees’Productivity . 58Table 4.14: Performance Appraisal Builds Work Interrelations. 60Table 4.15: Performance Appraisal Management Enhance Job Satisfaction . 61
xivLIST OF FIGURESFigure 2.1: Maslow’s Hierarchy of Needs . 19Figure 2.2: Theory X And Y on Employees Loyalty and Motivation . 23Figure 2.3: Conceptual Frame Work for the Study. 32Figure 4.1: Frequency Distribution of Respondents by Age . 40Figure 4.2: Respondents Education Level 42
xvLIST OF ACRONYMSELCT:Evangelical Lutheran Church in TanzaniaFM:Frequency ModulationEPM:Electronic Performance MonitoringMBO:Management by ObjectiveBARS:Behaviourally Anchored Rating ScalesBOS:Behavioural Observation ScalesIPT:Implicit Person TheoryUSA:United States of AmericaQFRA:Queensland Fire and Rescue AuthorityWAPO:World and Peace OrganizationsMCT:Media Council of Tanzania
1CHAPTER ONE1.0 INTRODUCTION AND BACKGROUND TO THE STUDY1.1 IntroductionThis chapter presents the background information of the study on effectiveperformance appraisal management, statement of the problem, research questions,research objectives, relevance of the research and summary.1.2 Background to the StudyPerformance appraisal systems began as simple methods of income justification.That is, appraisal was used to decide whether or not the salary or wage of anindividual employee was justified (Armstrong, 1988). The process was linked tooutcomes. If an employee's performance was found to be less than ideal, a cut in paywould follow. If their performance was better than the supervisor expected, a payrise was in order. Performance appraisal results are used either directly or indirectlyto help determine reward outcomes. That is, the appraisal results are used to identifythe best performing employees who should get the majority of available merit, payincreases, bonuses, and promotions. Also, appraisal results are used to identify thepoorer performers who need training demoted or dismissed.Performance appraisal is good because it makes employees to work hard and fulfilltheir responsibilities hence, contribute to the overall performance of the organisation.But, unless performance appraisal is performed effectively, it may not help theorganization to achieve the objectives of conducting it in the first place that is, toimprove organisational performance.
2There is an increasing body of critical literatures addressing the role and theory ofappraisal. According to Torrington (2005) performance appraisal is designed andimposed by the HR function hence it sometimes leads to have little ownership of thesystem by line managers. It seems like a process of form filling exercise for someoneelse’s benefit and with no practical value to performance within the job. Hence thisthrows some lights on the use and effectiveness of performance appraisal inorganisations. Scholars stipulate that although many appraisal systems are stillinexistence and continue to be updated, performance management systems areincreasingly seen as the way to manage employee performance and haveincorporated than appraisal/review process (Ibid.)Moreover, for long time, media houses in Tanzania were operating in the traditionalpublic administration system using more objective forms of evaluation. This systemwas inherited by many institutions due to the influx of many media houses in thecountry in the late 1990’s, which resulted into big competitions among them. Thisled to the need for a mechanism that will make workers work hard to meet theorganisation objectives and to serve the growing public expectations (MCT, 2010).Mihayo (2010) in his study indicates that over 68 percent of journalists innewsrooms are not full time employees. Most of them don’t have contracts withemployers and work under very harsh conditions.1.2 Statement of the ProblemThe success of every institution depends on the quality and commitment of itshuman resources. In order to ensure continued efficiency and effectiveness of
3members of staff, each organization has to carry out employee performance appraisalfrom time to time so as to keep them in check and replace, motivate, retrain or takeany other appropriate action.There has been little research in this field of performance appraisal. Most studiesdiscuss performance appraisal that allows employees to develop their skills and tomeet business goal. Rich (1996) introduced a skill-based method of performancemanagement that creates a work environment that allows employees to develop theskills they need to meet business goals. The skill based management measures skillsand tracks and combines them into job descriptions, identifies employee specificskill gaps and then provides resources to upgrade abilities. Murray (1980) proposedusing customer satisfaction measure as a basis of performance reviews andmanagement rewards which results into more objective performance reviews, moreeffective employees, more satisfied customers and better business performance.The majority of empirical studies on performance appraisal (PA) systems focus onthe search for the perfect form in which subjective traits are replaced by objectiveand job-relevant measurable behaviors. Organizations using a performance appraisalsystem to evaluate their employees, struggle with issues of implementation, adoptionand linkage with other human resource systems. To make a performance appraisal aviable management tool from a broader perspective, organizations and researchersmust invest time in training managers in performance appraisal skills, in developingsystem evaluations which take into account reliability, validity and managerial goalsas well as designing systems to meet specific organizational conditions and
4expectations. In addition, research in these three areas will help to develop moreacceptable and successful performance appraisal System (Devries, 1983).Besides, there is a lot of competition amongst themselves as well as with wellestablished Public and Private Media organizations. To ensure them become morecompetitive, these organizations need to retain high caliber staff both journalists andnon-journalist staff through effective performance appraisals.The selected radio stations have a comprehensive performance appraisal systemwhich utilizes the ranking method. The assessor is furnished with a checklist of prescaled descriptions or behaviour, which are then used to evaluate the employee.However, no empirical study has been conducted to determine the effects ofperformance appraisal system on employees’ performance at the selected radiostations despite a general dissatisfaction by staff members with the way in whichthey are evaluated or appraised. This study seeks to evaluate the effects of theperformance appraisal system to employees’ performance. It is therefore, set todetermine and assess the effects of performance appraisal system in these mediaorganizations.1.4 Objective of the Study1.4.1 General ObjectiveThe general objective of the study was to assess the effects of performance appraisalsystems on employees’ performance in the selected radio stations.
51.4.2 Specific ObjectivesThe study had the following specific objectives:i) To examine the extent to which employees’ awareness on appraisal systemleads to effective employees’ performance in community radiosii) To explore the extent to which employees’ knowledge of the appraisalsystem leads to effective employees’ performance in community radios.iii)To assess the extent to which performance appraisal management leads toeffective employees’ performance in community radios.1.5 Research QuestionsThe study was guided by the following research questions.i) To what extent does employees’ awareness on appraisal system lead toeffective employees’ performance in community radios?ii) To what extent does employees’ knowledge of the appraisal system leadto effective employees’ performance in community radios?iii) To what extent does performance appraisal management lead to effectiveemployees’ performance in community radios?1.6 Significance of the StudyIt is expected that findings from this study will be of importance to the managementand members of staff at Upendo, WAPO and Tumaini Radio stations and othermedia houses to understand how performance appraisal should be conducted. Thefindings of this study will also assist the management of Upendo, WAPO andTumaini radio stations in decision-making regarding how to use performance
6appraisal system to improve the overall performance of the radio stations. However,the study will be submitted to the Open University of Tanzania (OUT) in partialfulfillment of the requirements for the award of master’s degree in BusinessAdministration. Also, the findings of the study will serve as a stepping stone forfuture researchers who will be interested in this study or other related studies.1.7 Limitations of the StudyThere were certain limitations while conducting the research work. The study wascarried out only on WAPO, Tumaini and Upendo employees posted in Dar esSalaam with a limited sample size of 100 employees. It was a time consumingexercise due to difficulty in extracting information from them. Again, some seniorexecutive had no time to fill the questionnaires on time. Moreover, some employeeswere reluctant to reveal the complete information.To curb these challenges, the researcher sampled the 100 respondents carefully inorder to get the information required for the study. The use of respondents withexperience from other organizations aimed at getting the information which will cutacross different organizations operating within and outside Dar es Salaam.Therefore, WAPO, Tumaini, and Upendo radio stations represent other stationswithin and outside Dar es Salaam. Also the problem of time was solved by properinvolvement of the researcher in collecting data and ensuring confidentiality torespondents. Being an employee of Upendo radio station it was possible to getenough information from Upendo radio station as well as other stations because ofgood relations among employees in these community radios.
71.8 The Scope of the StudyGeographically, the scope of this study was delimited to WAPO Radio, UpendoRadio and Tumaini radio in Dar es Salaam, the commercial city of Tanzania. Theresearch was limited to the identification of the effects of performance appraisal onemployees’ performance in community radios. The existing performance appraisalwas analysed to ascertain its effects.1.9 Thesis OutlineThe thesis was divided into five chapters. Chapter one is an introduction of thestudy. It presents the background, purpose, research questions, significance of thestudy, scope of the study and thesis outline. Chapter two focuses on LiteratureReview and the conceptual meaning of performance appraisals, theoretical analysisand empirical studies. Chapter three focuses on the research methodology anddiscusses the appropriateness of the method of data collection. Chapter four presentsthe findings, analysis and discussion whereby the results pertaining to each objectiveare discussed and lastly, Chapter five which presentsthe conclusion,recommendation from the
performance appraisal management, statement of the problem, research questions, research objectives, relevance of the research and summary. 1.2 Background to the Study Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an
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