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MSU6411/MCU4211
MOTIVATION AND PERFORMANCE APPRIASAL IN ORGANIZATIONS

1.

Business leaders often have big visions, goals and plans for the future. When our
workplace is motivated, achieving those goals can feel invigorating and pleasurable, rather
than . and burdensome. There are a variety of approaches to motivation in the workplace
that might appeal, depending on personal preference, our team and our industry.
Consistency is key to getting results and building momentum, so choose a theory or two
and then stick with them long enough to observe the results.

Benefits of Motivation in the Workplace

No matter which of the approaches to motivation in the workplace we choose to run with,
once motivation and morale are high, we stand to experience many benefits in our
business. Take time to observe results as we apply different theories to see which of
these benefits you notice most:

 Increased momentum
 Increased productivity
 Increased job satisfaction
 Increased loyalty
 Increased commitment
 Increased focus
 Increased customer satisfaction
 Increased ease of teamwork
 Increased profit

Maslow's Hierarchy of Needs

The Hierarchy of Needs Theory by Maslow is one of the first theories. In this theory the
hierarchy of human needs is discussed. The first need physiological includes hunger, thirst,
shelter, sex and bodily needs. The second is safety including security and protection from
physical and emotional harm. The first two are lower-order needs and can be satisfied
internally. The third is social which encompasses affection, belongingness, acceptance and
friendship. The fourth is esteem which deals with internal factors such as self respect,
autonomy, achievement and internal factors such as status, recognition and attention. The
final need is self actualization which is the drive to become what we are capable of
becoming includes, growth, achieving our potential and self fulfillment. These last three
needs are higher-order needs and must be satisfied externally (usually by employers with
bonuses, cash etc.).This theory shows that when a need is satisfied it no longer becomes a
motivator and we must move onto the next need. If someone is on one level you need to
figure out if they are satisfied with that level and either stay on that level or move to a

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different one. “Maslow argued that the first three needs on the list represent deficiency
needs that people must master before they can develop into a healthy personality, while
the last two represent growth needs that relate to the individual achievement and the
development of human potential” (Steer, 2004). It is essential to remember that an
employees needs are always changing and that what an employee needs today, may not be
what they need tomorrow.

This chart shows the Hierarchy of Needs Theory by Maslow very clearly. As this chart
displays it is easier to grasp the theory when everything is put in the proper chart. The
physiological needs are at the bottom of the chart as they state the first needs that a human
being needs fulfilled. As they move up the chart they need more intense needs fulfilled.
Physiological and Safety needs can be satisfied internally while the top three must be
satisfied externally. The top need is self actualization and is important in developing a
person and becoming the person an employee wants to be in the end. This is a visual way of
seeing how this theory is all tied together.

Herzberg's Motivation-Hygiene Theory

Two factor theory by Fredrick Hertzberg believes a persons relationship to work is basic. He
can be credited with introducing job design and bringing in the importance of job
enrichment. A survey was conducted in which people were asked to remember a time when
they were happy/unhappy with their jobs and provide reasons and descriptions. When he
conducted his research he found that such factors as achievement, advancement and
recognition were related to the good in job satisfaction. Employees who disliked their work
used such words as pay, supervision and working conditions. The theory compared two
factors: motivating factors and hygiene factors. Motivating factors were more intrinsic
(more geared towards Theory Y), such as challenging work load. Hygiene factors (more
geared towards Theory X) were more extrinsic such as, job security and compensation.
Other Hertzberg hygiene factors were quality of supervision, pay, company policies and
physical working conditions. He described how managers must motivate by associating
these factors with the work itself and bring in such motivators as promotion, recognition
and give responsibility. Today they have stated that you need motivation factors to make
sure employees continue to perform at a higher level, but that you need hygiene factors to
know an employee is never dissatisfied.

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2.

Take a look at the diagram of the Job Characteristics Model, as presented by Hackman and
Oldham.

The Job Characteristics Model Hackman and Oldham

In order to get a full picture of the Job Characteristics Model, we have to go break down its
composition: the five core job characteristics or dimensions, the five work-related outcomes, and
the three psychological states.

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Five Core Job Characteristics

Hackman and Oldham provided clear definitions on the five job dimensions or
characteristics.

1. Skill Variety

This refers to the “degree to which a job requires a variety of different activities in carrying
out the work, involving the use of a number of different skills and talents of a
person”. Therefore, it follows that the individual will be required to develop a variety of
talents and skills.

This area asks the number of skills and talents that the job requires of the person that will be
working on it. A quick giveaway would be to assess whether the job is monotonous and
repetitive or if it asks the worker to do a number of different tasks or actions.

Compare two individuals working two different jobs. Job A is pretty much elementary, with
the tasks being performed in a routine and repetitive manner. It does not demand much skill
or ability. Job B, on the other hand, is quite complex, requiring that the worker be in
possession of several skills or abilities. Who, between the two workers, will have greater
chances of experiencing meaningfulness in their jobs?

That’s correct. It’s the one working on Job B, since it requires variety in skills.

2. Task Identity

This is the “degree to which the job requires completion of a whole, identifiable piece of
work; that is, doing a job from beginning to end with visible outcome”.
This involves being able to work on an entire work process, rather than just on bits and pieces of
it. Therefore, it is important to assess whether the job or task has a clearly defined beginning, middle
and end.

Workers tend to find more meaning in their jobs when they can identify a complete and
visible outcome at the end of the day, or of a work cycle. Let us say, for example, that two
workers are involved in the same work process. Worker A is responsible for only a small part
of the work, probably in the first phase. Worker B, on the other hand, is involved throughout
the entire process.

Between the two, Worker B is more likely to find his job meaningful, because he can see a
visible outcome, and he feels more involved in the completion of the process. For him, a job
that he is able to complete, from beginning to end, seems more worthwhile, than simply
working on Phase 1, then not having a hand on the rest of the process. In fact, he may not
even be aware whether the process has been completed or not, because he is focused on his
assigned phase of the process.

3. Task significance

Refers to the degree to which the task has impact. Impact can mean a lot
of different things. It could mean that the task has impact within the

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organization. It could mean that the task has impact to the bottom line or
even to society as a whole.

Think of two employees, both part of a team building a web based software
tool. The first employee is responsible for the part of the system which
interacts with the user, and the second employee is responsible for
ensuring data is stored efficiently behind the scenes in a database. The
theory states that it is the first worker who will find the work more
meaningful as they are more likely to understand the impact on the end
user.

4. Autonomy

Autonomy is the degree of freedom an employee has to complete their

work. It is the degree to which the employee is free to choose how to go
about doing specific tasks, and the degree to which they can choose how
to schedule their tasks.

The Job Characteristics Theory states that employees with more autonomy
will have a greater sense of responsibility towards the results of their work,
and therefore do a better job.

5. Feedback

Refers to the degree to which the employee is kept informed about how
well they are doing in their role.

The theory states that more feedback leads to increased knowledge for the
employee about the results of their work. If an employee is given good
feedback about the work they are doing then their self-esteem will be
boosted and they’ll be motivated to keep doing what they are doing (see
our reward power article for further information on the power of positive
feedback).
If an employee receives negative feedback quickly then this provides them
the opportunity to make adjustments and corrections to their work before
any major consequences are experienced.

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3.

HIRDARAMANI MERCURY APPAREL (PVT) LTD.

Background of the Organization

Today the Hirdaramani Group is a global enterprise with a diversified network spanning 60
000+ associates, six countries and multiple industry sectors – Apparel, Power, Leisure,
Retail, IT and Financial Services. Hirdaramani Mercury Apparel (PVT) Ltd is a one factory
which is situated in Seethawaka Industrial Park belongs to apparel sector.

The Hirdaramani legacy began in the early 1900s when at the age of 16, Parmanand
Hirdaramani setup the first Hirdaramani retail store in fort, Colombo. The pioneering
Hirdaramani spirit took flight as Parmanand introduced the idea of same day tailoring for
passengers of cruise liners that docked at the Colombo Harbor. The group has since
emerged from these humble beginnings to rise steadily and became the one-stop
manufacturing hub and global conglomerate that it is today.

Objectives of the organization

 VISION

“Due to the strong dedication and enthusiasm of the strong staff, the organization is
heading towards extraordinary success. It illuminates our employees’ theme that
‘your future is our responsibility’.”
Hirdaramani is a company that is creative, flexible and has an accurate vision of
them. This vision has enabled them to stay on the forefront of the challenges faced
by the latest trends and business needs.

 MISSION

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“Our mission is to provide the highest quality customer service while being sensitive
to global competition and driving creativity, leadership and excellence. And also
establish a respectful environment within our group through improving positive
attitudes, developing our contribution to the world market and go forward more and
more strengthening.”

PRODUCTS

Hirdaramani Mercury Apparel (pvt) Ltd products garments according to these items.

Women

 Denim
 Casual/ Lounge wear
 Active wear
 Intimates/ Sleepwear

Men

 Denim
 Casual/ Lounge wear
 Active wear
 Intimates/ sleepwear

Kids

 Denim
 Casual/ Lounge wear
 Uniforms

Performance appraisal is the process of evaluating and documenting an

employee’s performance with a view to enhancing work quality, output and
efficiency. Performance appraisals perform three important functions within
companies.

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1. They provide feedback to a person on their overall contribution for a

period.
2. They identify development needs and opportunities for improvement.
3. They help inform salary and bonus reviews.
process of performance appraisal

 Job Analysis

The first step in the is job analysis.

Defining the job and analyze for making sure that employer and subordinates agree on his or
her duties and job standards.

2. Establishing performance standards

The second step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees.

This step requires setting the criteria to judge the performance of the employees as successful
or unsuccessful and the degrees of their contribution to the organizational goals and
objectives.

The standards set should be clear, easily comprehensible and in measurable terms. In case the
performance of the employee cannot be measured, great care should be taken to describe the
standards.

3. Communicating the standards

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.

The employees should be informed and the standards should be clearly explained to them.
This will help them to understand their roles and to know what exactly is expected from
them.

The standards should also be communicated to the appraisers or the evaluators and if
required, the standards can also be modified at this stage itself rendering to the relevant
feedback from the employee or the evaluators.

4. Determining the actual performance

The most difficult part of the Performance appraisal process is determining the actual
performance of the employees that is the work done by the employees during the specified
period of time.

It is a continuous process which involves monitoring the performance throughout the year.

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This stage requires the careful selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process and providing assistance
rather than interfering in employees work.

5. Matching the actual with the desired performance

The actual performance is matched with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.

The result can show the actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting a negative deviation in
the organizational performance.

It includes recalling, evaluating and analysis of data related to the employees’ performance.

6. Discussing results

The result of the appraisal is communicated and discussed with the employees on a one-to-
one basis. The focus of this discussion is on communication and listening. The results, the
problems, and the possible solutions are discussed with the aim of problem-solving and
reaching consensus.

The feedback should be given with a positive attitude as this can have an effect on the
employees’ future performance. The purpose of the meeting should be to solve the problems
faced and motivate the employees to perform better.

7. Decision making

The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers, etc.

Uses of Performance Evaluation / Appraisal

Performance evaluation serves two types of the objectives one is to make the
evaluation decisions and other is to provide the need assessment source for the
training and development if there is a gap between actual and expected
performance.

For many organizations, the primary goal of an appraisal system is to improve

performance.

A system that is properly designed and communicated can help achieve

organizational objectives and enhance employee performance.

In fact, Performance evaluation data are potentially valuable for use in numerous
human resource functional areas.

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Performance improvement

Performance feedback allows the employee, the manager and personnel specialists
to intervene with appropriate actions to improve performance.

Compensation adjustments

Performance evaluations help decision makers determine who should receive pay
raises. Many firms grant part or all of their pay increases and bonuses on the basis
of merit, which is determined mostly through Performance evaluations.

Placement decisions

Promotions, transfers, and demotions are usually based on past or anticipated

performance. Often promotions are a reward of past performance.

Training and development needs

Poor performance may indicate a need for retraining. Likewise, good performance
may indicate the untapped potential that should be developed.

Career planning and development

Performance feedback guides career decisions about specific career paths one
should investigate.

Staffing process deficiencies

Good or bad performance implies strengths or weaknesses in the personnel

department’s staffing procedures.

Informational inaccuracies

Poor performance may indicate errors in job analysis information, human resource
plans or other parts of the personnel management information system.

Reliance on inaccurate information may have led to inappropriate hiring, training or

counseling decisions.

Job-design errors

Poor performance may be a symptom of ill-conceived job designs. Appraisals help

diagnose these errors.

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Equal employment opportunity

Accurate Performance evaluations that actually measure job-related performance

ensure that internal placement decisions are not discriminatory.

External challenges

Sometimes performance is influenced by factors outside the work environment such

as family, financial, health or other personal matters. If these factors are uncovered
through appraisals, the human resource department may be able to provide
assistance.

Feedback to human resources

Good or bad performance throughout the organization indicates how well the human
resource function is performing.

Compensation Programs

Performance evaluation results provide the basis for decisions regarding pay
increases.

Internal Employee Relations

Performance evaluation data are also frequently used for decisions in areas of
internal employee relations including motivation, promotion, demotion, termination,
layoff, and transfer.

Assessment of Employee Potential

Some organizations attempt to assess employee potential as they appraise job

performance.

Benefits of Performance Evaluation

The benefits of appraisals may be listed under three headings as follows:

Advantages to Appraiser

1. It sharpens appraiser’s control over his own activities. A systematic appraisal

will provide the executive with a better idea of his strengths and weaknesses in his
department and so enable him to make more effective work assignments. Moreover, the
appraisal activity will give him a new insight into his operations which may well lead to
improvements in department and organization.

2. Clear-cut responsibility for results: Sometimes there are differences in

understanding on the part of the manager and his subordinate executives as to just what
their authority and responsibilities are. Drawing up a checklist of the responsibilities of the

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subordinate as well as the scope of his position will reduce any possible misunderstanding
as to performance goals.

3. Perspective in sizing up subordinates: A systematic appraisal program means

that there will be relaxed discussions with subordinate personnel regarding their strengths
and weaknesses. This type of interview results in a more judicious evaluation and is far
superior to the crisis discussion which takes place when something has gone wrong.

4. An objective basis for discussing salary and promotion: When an employee

comes to his office with a request for a wage raise or for promotion, the appraisal record and
the last appraisal interview provide an objective basis for discussion. This will serve to avoid
embarrassment.

5. Aid to effective recruitment: An executive who follows systematic appraisal

procedures will be able to discuss past hiring with the personnel department on the basis of
tangible results. And he can be much more specific in setting up job specification when he
has to go outside the company for staff recruitment.

Benefits to the organization:

1. To plan and adjust compensation package for employees.

2. To identify training and development needs for the potential employee.

3. To provide a career plan for the employee.

4. To motivate the employees through an objective appraisal.

Disadvantages or Limitations of Performance Evaluation

In spite of the merits of Performance evaluation, it may create a negative experience if it is
not done properly. The major limitations are as follows:
1. Performance evaluations are very time consuming and can be overwhelming to managers
with many employees.

2. Sometimes, a strict appraisal may affect the goodwill between senior and junior. When
different departments in the same company use different methods of appraisal, it becomes
very difficult to compare among the employees.

3. They are based on human assessment and are subject to rater’s errors and biases.

4. PA can be a waste of time if not done appropriately.

5. Many bosses do not wish to spoil their relations with subordinates by giving a poor appraisal.
They provide higher grades which are not justified; this is an injustice to a really deserving
employee.

6. They can create a very stressful environment for everyone involved.

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7. The objective of the PA is to evaluate and develop employees. One PA system cannot
achieve both objectives. The particular system of appraisal should clarify .before it is
designed and should be discussed with all managers and employees to gain their
commitment.

8. Feedback is an important element of PA. Performance feedback lets employees know how
well they have performed in comparison with the standards of the organization. While
positive feedback is easily accepted, negative feedback often meets with resistance unless it
is objective based on a credible source and given in a skillful manner. Managers are often
uncomfortable discussing performance weaknesses directly with employees. Managers fear
confrontation when presenting negative feedback. Many employees tend to become
defensive when their weaknesses are pointed out. Employees tend to have an inflated
assessment of their own performance.