HAWASSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
A question for the Performance appraisal for organization to the respondents.
This questionnaire is designed to get relevant information for research report on Performance
appraisal for Berhan Bank in Yirgalem branch.
The part of this research is for fulfillment of BA degree in management. Therefore, it requests
you kindly to respond the question that follows. I would like to thank you in advance for your
corporation and willingness to fill the following questionnaire.

GENERAL INSTRUCTION:

- Read the question carefully and analyze before giving the answer
- Respond questions
- Please try to use pen
- Do not write name

Research Questionnaire for Performance Appraisal

Section 1: General Information

• What is your job title and level within the organization?

• How long have you been employed in this role?

• How long have you been with the organization?

Section 2: Performance Appraisal Process

• How often do you receive performance appraisals?

• Who conducts your performance appraisals?

• What methods are used to assess your performance (e.g., self-assessment, manager assessment,
peer assessment, 360-degree feedback)?

• What criteria are used to evaluate your performance?

• How are your performance appraisal results used (e.g., salary adjustments, promotions,
development plans)?

• How satisfied are you with the overall performance appraisal process?

Section 3: Performance Appraisal Outcomes

• How accurate do you believe your performance appraisals are?

• Do you feel that your performance appraisals are fair and unbiased?

• To what extent do your performance appraisals motivate you to improve your performance?

• Do you believe that your performance appraisals have helped you develop your skills and
knowledge?

• How satisfied are you with the feedback you receive during performance appraisals?

Section 4: Performance Appraisal Development

• What suggestions do you have for improving the performance appraisal process?

• What additional information or resources would be helpful to you in preparing for and
participating in performance appraisals?

• How can performance appraisals be made more effective in supporting employee development
and organizational goals?
Section 5: Additional Comments

• Please provide any additional comments or feedback you have regarding performance
appraisals in your organization.

Demographic Information (Optional)

• Age:

• Gender:

• Education level:

• Years of experience in your field:

Thank you for your participation in this research.

Performance Appraisal Questionnaire for MBO (Management by objective) Programme

1. How many years have you been working with this organization?

1year

More Than 1 and less than 5

5-8 years

8-15 years

2. Do you believe that while evaluating a performance, all of the factors that aid or impede
performance are taken into account?

Yes
No

3. Are you satisfied with the weighting assigned by PMS to each activity that you must complete
within the designated time frame?

Yes

No

4. Do you believe that a Performance Management System can assist you in setting and
achieving relevant objectives?

Yes

No

5. Do you think your leadership and interpersonal skills are developed during the Performance
Management System?

Yes

No

6. Are you satisfied with the existing Performance Management Process?

Yes

No

#Performance Appraisal Questions for the 360-degree feedback:

1. Do you think we are using the right method to measure employee performance?

By the management

Self-appraisal, appraisal by superiors, appraisal by subordinates, and appraisal by peers.

2. Do you expect any salary increment after Appraisal?

Yes

No

3. Do you believe that 360-degree performance appraisal helps people set and achieve
meaningful missions and goals?

Yes, I do

No, I don’t feel so

4. Do 360-degree performance appraisals help to create an environment where everyone is

encouraged to share their work burdens?

Yes

No

5. Do the promotions strictly based on the Performance Appraisal Process?

Yes

No

6. Are you satisfied with the existing 360-degree Performance Appraisal system?

Yes

No

#Performance Appraisal Questionnaire- BARS Method

1. What goals and objectives do you think we add to your bucket?

2. Do you feel enough responsibilities are given to you?

3. What are the skills you want so that you can be a better candidate for a promotion?

4. Are we able to meet your expectations?

5. On a scale of 1-10, how much would you rate the company?

6. What do you think are my key skills?

7. What do you think are your biggest strengths and weaknesses?

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 Meaning and nature of performance appraisal
performance appraisal is the processes by which organizations evaluate employees performance
based on present standard(Monday;1995,p388)performance appraisal is an integral part of
human resource management that needs a need through consideration personnel managers as
improper usage of the appraisal has an adverse effect on productivity and organizational goal
achievement. Organizations must adopt performance appraisal as an important personal function
to obtain important information concerning employee’s performance and behavior and to make
different decisions based on those information obtained to achieve this, personnel department in
collaboration with in manager and operations employee's must design and undertake the
appraisal program. The possible approaches for designing the program are the informal and
formal types.

When supervisor think about how employee are doing they are evaluating them in formally. The
informal (unsystematic) appraisal can be undertaken at any time and lacks precise record of
employee's accomplishment it is often hap hard and the evaluation solely relaying on the
supervisor's opinion. Therefore, inaccurate and biased information can be obtained for
layoff ,promotion and other important decision that affect employee's productivity and
organizational goal achievement(pigors,1961),argued against the informal or unsystematic
appraisal without systematic information regularly gathers and periodically reviewed ,it is hard
for supervisors to be fair employees have no satisfactory basis on which build their expectations.
The formal appraisal is undertaken in a regular and systematic to evaluate employee's
performance. A systematic and periodic appraisal is seemed superior to a causal, intuitive and at
advance of the time when it may be needed thereby avoiding spot judgments when a decision
must be made (Filippo, 1980).

In addition it provides information in a form that permits the comparison of one employee
performance with other and characterized by documentation of current and past performance for
making objective judgments.

2.2 Purpose of performance appraisal

Organization use performance appraisal indifferent ways for different purpose. But its overall
purpose is to lay a base for making personal related decisions. The plan and method is to be used
are highly depending up on its purpose. The performance appraisal making is used for
administrative and employee development purpose.

2.2.1 for Administrative Purpose

Appraisal is used for administrative purpose, when a manager wants to determine the
performance of employees for salary administration, promotion, transfer, layoff, termination,
demotion and making other administrative human resource planning. The result help to estimate
the quality and number of personnel required to replace poor performances that are expected to
be fired or demoted. It also helps to full fill those positions that are left empty when employees
are promoted or transferred, (Monday, 1990; 199).

2.2.2 for development purpose

Performance appraisal helps to assess performance strength and weakness and its can be used as
basis of determining training needs. Identifying area where training is needed can be facilitated
by acquiring information from the appraisal. It is advantageous to train employees of poor
performance rather than firing or demoting them because acquiring new components employee
to fill the position may be cost and time consuming. It may also take more effort to familiarizing
those new employees to the organization environment. Training required not only improving
poor performance of an employee but also placing to asses employee's potential for higher and
key position. When appraisals are used for developing purpose, the employee's performance is
evaluated against performance standard rather than result works (Monday, 1990).

2.3 Performance Appraisal Methods

This section looks at how management can actually establish performance standards and devise
instruments that can be used to measure and appraise an employee’s performance. A number of
methods are now available to assess the performance of the employees (Rue and Bayer, 2004).
1) Critical Incident Method

Critical incident appraisal focuses the rater’s attention on those critical or key behaviors that
make the difference between doing a job effectively and doing it ineffectively. What the
appraiser does is write down little stories that describe what the employee did that was especially
effective or ineffective. In this approach to appraisal, specific behaviors are cited, not vaguely
defined personality traits. A behaviorally based appraisal such as this should be more valid than
trait-based appraisals because it is clearly more job related. It is one thing to say that an
employee is “aggressive” or “imaginative or “relaxed,” but that does not tell anything
about how well the job is being done. Critical incidents, with their focus on behaviors, judge
performance rather than personalities. Additionally, a list of critical incidents on a given
employees provides a rich set of examples from which the employee can be shown which of his
or her behaviors are desirable and which ones call for improvement.

2) Checklist

In the checklist, the evaluator uses a bit of behavioral descriptions and checks of those behaviors
that apply to the employee. The evaluator merely goes down the list and gives “yes” or
“no” responses. Once the checklist is complete, it is usually evaluated by the staff of
personnel department, not the rater his self. Therefore the rater does not actually evaluate the
employee’s performance; he/she merely records it. An analyst in the personnel department then
scores the checklist, often weighting the factors in relationship to their importance. The final
evaluation can then be returned to the rating manager for discussion with the subordinate, or
someone from the personnel department can provide the feedback to the subordinate.

3) Graphic Rating Scale

One of the oldest and most popular methods of appraisal is the graphic rating scale. They are
used to assess factors such as quantity and quality of work, job knowledge, cooperation, loyalty,
dependability, attendance, honesty, integrity, attitudes, and initiative etc. However, this method
is most valid when abstract traits like loyalty or integrity are avoided unless they can be defined
in more specific behavioral terms. In the design of the graphic scale, the challenge is to ensure
that both the factors evaluated and the scale points are clearly understood and unambiguous to
the rater.
4) Paired Comparison

The paired comparison method is calculated by taking the total of [n (n-1)]/2 comparisons. A
score is obtained for each employee by simply counting the number of pairs in which the
individual is the preferred member. It ranks each individual in relationship to all others on a one-
on-one basis. If ten people are being evaluated, the first person is compared, with each of the
other nine, and the number of items this person is preferred in any of the nine pairs is tabulated.
Each of the remaining nine persons, in turn, is compared in the same way, and a ranking is
evolved by the greatest number of preferred “victories”. This method ensures that each
employee is compared against every other, but the method can become unwieldy when large
numbers of employees are being compared.

5) Management by Objectives

Management by objectives (MBO) is a process that converts organizational objectives into

individual objectives. It can be thought of as consisting of four steps: goal setting, action
planning, self-control, and periodic reviews:-

a) In goal setting, the organization’s overall objectives are used as guidelines from which
departmental and individual objectives are set. At the individual level, the manager and
subordinate jointly identify those goals that are critical for the subordinate to achieve in order to
fulfill the requirements of the job as determined in job analysis. These goals are agreed upon and
then become the standards by which the employee’s results will be evaluated.

b) In action planning, the means are determined for achieving the ends established in goals
setting. That is, realistic plans are developed to attain the objectives.

This step includes identifying the activities necessary to accomplish the objective, establishing
the critical relationships between these activities, estimating the time requirement for each
activity, and determining the resources required to complete each activity.

c) Self-control refers to the systematic monitoring and measuring of performance. The MBO
philosophy is built on the assumptions that individuals can be responsible, can exercise self-
direction, and do not require external controls and threats of punishment.
d) Finally, with periodic progress reviews, corrective action is initiated when behavior deviates
from the standards established in the goal-setting phase. Again, consistent with MBO
philosophy, these manager-subordinate reviews are conducted in a constructive rather than
punitive manner. Reviews are not meant to degrade the individual but to aid in future
performance. These reviews should take place at least two or three times a year.

6) 360 degree appraisal

The 360 degree feedback process involves collecting perceptions about a person’s behavior and
the impact of that behavior from the person’s boss or bosses, direct reports, colleagues, fellow
members of project teams, internal and external customers, and suppliers. Other names for 360
degree feedback are multi-rater feedback, multi- source feedback, full-circle appraisal, and group
performance review. 360 degree feedback is a method and a tool that provides each employee the
opportunity to receive performance feedback from his or her supervisor and four to eight peers,
subordinates and customers. 360 degree feedback allows each individual to understand how his
effectiveness as an employee, co-worker, or staff member is viewed by others. (Rue and Byer,
2004).

2.4 Performance appraisal processes

Establishing performance appraisal; identification of specific goals is the starting point of

performance appraisal processes. For any appraisal system to serve all its purpose the
management should select performance appraisal goal that believed to be most important and can
be realistically achieved (Monday, 1999)

Communicating the standard to employees; after specific appraisal goal has been
established, workers must understand what are expected from them in their job. One possibility
to foster his understanding is for supervisor’s to review with employees the major duties
determined through job analysis and described in a job distribution (Monday; 1996).
Discussing the appraisal with the employees: this is a very challenging step in appraisal
processes as it involves presenting accurate appraisal to the employees and has the person accept
the appraisal is in the constructive manner(Robbins;1996).

Measuring actual employee performance; as per evaluation method used in organization and
instruction given for appraisal employee’s actual performance is evaluated through
observation, interview and records then compares actual performance with standard set and find
out if there is any deviation. Deviation may be positive and negative. If employee performance is
more than standard there is positive, and vice versa.

Taking the corrective action; this includes guiding counseling and coaching the employee or
making arrangement for training and developing for the employee in order to ensure improved
performance. If the actual performance is very poor and beyond the scope of improvement, it
may be necessary to take steps for demotion or retrenchment or any other suitable measurer. It
also involves making suggestions for some changes to be made on the standard job analysis or
other factors to facilitate effective performance of employee (Monday; 1990)

2.5 Uses of performance appraisal

According to Monday (1999; 337), for many organizations the primary goal of an appraisal
system is improved performance. However other goals may be sought as well. Potential problem
and possibly primary cause of much dissatisfaction with appraisal may result from expecting too
much from one appraisal plan.

Human resource planning:-A well designed appraisal system provides profile of the
organizations human resource strength and weakness to support this effort (Monday,
1999; 338).

Recruitment and selection:-performance evaluation rating maybe help full in predicting

the performance of job applications. The determination of selection tests validity would
depend on accuracy of appraisal results.
 Training and development:-A performance appraisal should pin out an employee's
specific needs for training and development(Monday;1999)

Career planning and development:-Career planning and development may be viewed

from either individual or organizations view point. In either cases performance appraisal
data are essential in assessing an employee’s strength and weakness and in determining
the person’s potential(Monday;1999,338)

Compensation programs:-performance appraisal results provide basis for rational

decisions regarding pay judgments to encourage good performance, firm should design
and implement a fair performance appraisal system and then reward the most productive
workers and team accordingly.

Internal employee relations: -Performance appraisal data are also frequently used for
decision in several areas of internal employee relations including motivation, promotion,
demotion, termination, layoff and transfer.

2.6 Problem of performance appraisal

Any system can fail or mal functions, performance appraisal are no exception. The system of
performance appraisal may fail for much reason including the problem related to the designed
and the operation of the system, skill and competence of appraisers and perception of employees,
about appraisal. The following are discussions on major appraisal problems.

2.6.1 System design and operating problem

The performance appraisal system breakdown because if they are poorly designed. The can be
blamed if the creation for evaluation one poor, the technique used is cumber so I or the system is
more from than substance. If the criteria used focused solely on activity rather than output results
or on personality traits rather than performance the evaluation may not be well received and if its
process fail to operate efficiently (Ivancceuich,1989).
2.6.2 Problem with appraises
For the appraisal system to work well the employee must understand it, tell it is fair, and be work
oriented enough to care about the result. One way foster understanding is for the employee to
participate in system design and be trained to some extent in the process performance evaluation.
If performance evaluator is in competent or unfair the employee may resist, sabotage or ignore
them. Performance evaluation may also be less effective than desired it the employee is not work
oriented and sees work only as a means to an end sough of the job. Generally employees do not
understand the system or its purpose employees are not work oriented and appraisal may be
below the expectation.

2.6.3 Problem with appraisers

An evaluation system can hampered or destroyed often because raters are not been adequately
trained. It should be clear therefore that even if the system is well designed little knowledge and
skill on the side of raters can lead to a serious of problem and error in competing appraisal
(Ivancevich;1998).

2.7 Goal Achievement

2.7.1 Meaning and nature of organizational goal
A goal is a future expectation, some designer future state. It is something the organization is
starting to accomplish. The goal of an organization is the reason for attainment of job goals. The
goal of an organization will determine the nature of its inputs and out puts, the serious of activity
through which the output are achieved and interaction with its external environment. The extent
to which an organization is successfully in attaining its goal is a base for the evaluation of
organizational performance and effectiveness organization are tools for the achievement of
common objective through co-operative effort. One of the basic functions of the management is
therefore to identify the objective of the business. It provides the bases for performance of all
other management function. Goals are not only specific statement of the desired result but also
have relatively short time dimension. To summarize, organizational goal achievement is reaching
at the end for the pre-determined plan or destination through the variety vehicles such as
technological development performing responsible employee evaluation, training and
development and selection.

2.7.2 Uses of goals

Goals provide basic for performance of all management functions; provides unique identify for
the enterprise: provide direction for organizational effort: help in un lifting the employee morale
and motivation serve as critical for evaluating decision and provide basic for control.

According to (Monday, 1990) goals are important; first goals give meaning to scores on the
measures you are tracking. Goals serve as bench marks or reference point which performance is
measure can be compared. Secondly; the existence of goals has a significant relationship to the
improvement of individual and goals.

2.7.3 Requirements for meaningful goal

There are several requirements that must be met it resulting goals are to be meaningful and
motivational.

Goal should be perceived as attainable.

Although participating in and of it will not guarantee that performance will improve or goal will
be attained.

The level of difficulty of particular goal should correspond to its relative importance in meeting
compelling business need.

Multiple goal should be set for each measure to establish arrange with in which performance on a
given measurement can be expected to vary.

2.8 The relation between performance appraisal and organizational goal

achievement
Performance appraisal is a formal system of periodic review and evaluation of an individual job
performance for the hope of improving employee, and thus organizations. So it is a system its
design should not blamed if the criteria for evaluation are poor so the effective use of
performance evaluation system and it criteria the technique of appraising selected well the
organizations symbols will be achieved. Effective shame of employee performance appraisals are
carefully and systematically worked out with meaningful participation and commitment of
appraisers, this leads to the organization goal achievement.

Generally employees performance evaluation and organizational goal achievement has a direct
relationship means that if the evaluation system is well designed and operated correctly all
employees are strive for the achievement of the goal of the organization (koontz; 1988).

2.9 Requirements of effective appraisal system

The key requirements of any appraisal system are relevancy, sensitivity, reliability, acceptability
and practicality. Here under we will look all the above listed in deep.

Relevancy:-This implies that there are clean links between the performance standards for a
particular job and organizational goal and between the critical job element identity through a job
analysis and the dimension for rated on appraisal form.

Sensitivity:-This also implies that a performance appraisal system is capable of distinguishing

effective from ineffective performance. It is not and the best employee are rated differently from
the worse employees that the appraisal system cannot be used for an administrative purpose, it
certainly will not help employees to develop and it will undermine the motivation of both
supervisors and subordinates.

Reliability:-A third requirement of sound appraisal system is reliability in this context it refers to
consistency of judgments for any given employee appraisal made by a rates working
independently of one on other should agree closely. In practice risings made by supervisors tend
to be more reliable than those made by peers.

Acceptability:-In practice acceptability is the most important of all HR programs must have the
support of those who will use them or else human will be used to the worth them. Unfortunately
many organizations have not put much effort in to garnering the truant end support and
participation of those who will use the appraisal system.
Practicality:-Implies that the appraisal instruments are easy for man power and employee to
understand and use. Those that are not or that impose in coordinate time demands on all parties
simply are not practical and managers will resist using them.