Bereket Bezabhi
Bereket Bezabhi
Bereket Bezabhi
INTRODUCTION
The success of any organizations depends on the quality and characteristics of employee’s .The
employees become significant factor in any organizations since they are the heart of the
company. Organizations simply cannot achieve their goals and objectives without them.
However, it is a fact that any employee for that matter needs something to induce him/her or to
look forward to so that he/she is motivated to works at the best interest or the company. This
indeed was indicative of the more strategic approach to human resource (HRM) policy which
sought to connect the aim of the organization to the performance of the individual. The organize
an key aim, goal, and objective become an embedded part of the process in performance
management and communicated through the performance appraisal process, (marching on and
wilkon son 2oo5) .
Annual performance appraisal enable management gauge and monitor where institutional
standard responsibility and task are achieved. Staff performance also established individual
training needs and enable organization identity training and analysis and planning. Normally
performance appraisal has been restricted to feed back process between employee and
supervisor. However this increased focus on team work employee development and customer
service, the employee has shifted to employee feedback from full circle of sources deepened in
the multiple input approach to performance feedback is sometimes culled 360 degree assessment
(MC lean VA , US, 1997).
Organizations usually have annual performance review with supervisor providing comments on
employee performance. However , leading Indian company are adopting over progressive
approach to performance management by adopting 360 degree approach or management by
objective (MBO) wise (2005) also said that performance appraisal system helps an employee’s
discovery his/her strength ,and weakness and would help him in decision about cover choices .
Ideal of the performance appraisal approach is that the desired outcome effectively enables the
employee to mat their own performance targets through motivated self learning also that they
understand that this help organization meet and ended exceed their strategic targets by linking
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individual performance target to the overall strategic target of the organization surveyed used
individual annual performance appraisal and 27% twice yearly as high listed by (I P D 2005).
The process of measuring and evaluating the performance of important process cared out by
human resource management through the measurement and evaluation to enable the organization
to judge the accuracy of program and policy adopted, weather the policy to attract and selection
and appointment, or program and policies for training development and follow up their human
resource (Awael Mohamed jibril, 2009).
The impacts of the (TQM) total quality management principles to the process of evaluating the
performance of workers : TQM aims to achieve customer satisfaction and there for degree of
satisfaction can be judged is the standard by which the level of performance from this
perspective approach in multi-resident agencies , because clients are all employee officials and
oversee as customers and suppliers working together as team leads to the assessment of
individual collectively are and not individual as it was in the traditional way the system of
performance appraisal traditional who had focused on asset of attributes criteria that intangible,
including the residents a person tend to attribute more than others, the assessment will be biased
and does not give accurate results (Mohamed Ahmed, 2oo7).
The study was conducted in yirgalem general hospital; Yirgalem town is one of the fastest
growing towns which are zone of sidama, located at 47 km distance far from its capital of
SNNPR regional state of Hawassa and 32o km far away from the capital city of Addis Ababa.
It is surrounded by societies who are engaged at with different activities. From this activities
micro and small scale industries are largely distributed in the town, but the study will be focus on
yirgalem general hospital which constitute different employees. Among these doctors, nurses and
other similar professional skill are engaged. Mostly hospital is established to providing medical
and surgical treatment and nursing care for ill and injured peoples.
This hospital is founded by king OLAV of Norway, on January, 12/1966 with total worker of 24
including both 5 workers of female and 19 workers of male permanent employees. The hospital
has donation to the people of Ethiopia from the people of Norway. Generally, this hospital is the
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mission and vision as like other organization. The mission of the organization is to give fast and
efficient service to patients, to hire active and qualified employee and teat disease of patient
effectively. On the other hand, the vision of the hospital is to be a center excellence in providing
quality treatment at every one’s society.
To days sub Saharan African is coping 24% of the world disease burden while currently local
health system are un responsive, insufficient inequitable and even unsafe (WHO 2007) the
reason for this under performance are multiple nevertheless it has been suggested that assess
performances of health workers as foundation for any health care system are main determinant of
health care service quality efficiency and equity (WHO, 2007, dieleman and Etal 2006 Buchan,
2006, bennetS, 2002).
However African health care system experiencing one of the greatest staff shortage but clinical
staffs currently faced with weak institutional frame work and distortive incentive structures
ineffective management practice and adverse work environment at systematic and organizational
level resulting over burdened work force and attain low performance level (Mathauer and Imhoff
,2006) .
It is believed that this under performance has not only under mind the capacity of the health care
organization but also can threaten the achievement of the millennium development goal (MGD);
to reduce child mortality, maternal health, combat HIV AIDS, Malaria and other disease
(UN,2007). Performance appraisal requires observation and determination of employee work by
someone usually the employee managers. In traditional career development system, performance
appraisal has direct relation to promotion, yet this link is much weaker in position based system.
Implementing the instrument in daily practice results in difficulties, unrest and frustration among
many employees and superiors.
There was been extend time gaps of month between establishing goal and reviewing them, and
objective that will set up in the beginning of the year are usually only dragged out during
appraisal time. The researcher of this particular study is assessment of performance appraisal on
employee efficiency with respect to yirgalem general hospital was focus on how performance
appraisal impact on employee efficiency. The researcher attempt to explore different facts,
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theories of performance appraisal, and try to triangulate them from the wealth of existing
literature so as to reach some kind of worthy conclusion and provide professional and scientific
based contribution in a more rational and evidence based manner than common sense and
ordinary understanding about performance appraisal and its consequence.
The main objective of the study is to assess the contribution of performance appraisal to
employee efficiency in yirgalem general hospital.
1. T o indentify the important technique and criteria that contributes in assessing employee
efficiency.
2. To find out the major challenge accounted in assessing the employee efficiency.
1. What are the important criteria for assessing the contribution of performance appraisal to
employee efficiency?
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5. The performance appraisal program brought skill improvement in your organization?
The proposed study was asses’ performance appraisal and its contribution to employees’
efficiency in yirgalem general hospital and helps to propose appropriate performance appraisal.
Generally, the researcher was helping the organization to identify the main role of performance
appraisal on employee efficiency.
The study were geographical, the conceptual and methodological delimitation. Geographically,
the study focuses on yirgalem general hospital. Conceptually this particular study was emphasize
only on employee and more specifically hospital employee of yirgalem was the target of this
study because lack of time and resource constraints. Methodologically, all literature was not be
reviewed because of lack of sufficient data like reference books in library and the time and
budget allowance for data collection was not been sufficient gather all the necessary information
at required depth. More over the study was intended to use cross sectional survey in an attempt to
achieve its objectives.
Like other studies this study is also not without it limitation. The research paper was some
limitations that can be hinder the researcher to do what was intending to be done. Among the
factors that highly restrict the study was time constraint and lack of research proposal to make
reviews. In addition to this, financial problem, reluctance to give full information, unwillingness
to fill question are and delay to return questionnaire limit the study. These limitations reduce the
sample size of evaluation on which the researcher depends for the study comprises the details
study for this proposal.
The paper was arranged in five different chapters. The first chapter deals with introductory part
of the study. Here, the statement of the problem, objective the study, significance of the study,
scope and limitation are included. Chapter two were discuss the related literature and theoretical
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frame work. In the third chapter research methodology is included. Chapter four is data analysis
and collection. Finally, the last chapter relevant conclusion is drawn from the finding that was
obtained and accordingly possible recommendation was being sought. The page of this paper
was end up with reference, appendix and copy of question.
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CHAPTER TWO
Performance appraisal is the process of evaluating how well employees do their job compared
with a set of standards and communicating the information to this employee. According to
Naranayanappa, 2009 performance appraisal is a method of assessing the employee performance
in their jobs. According to this idea the basic purpose of performance appraisal are classified into
two categories. Firstly, the performance appraisal system is most useful for administrative
purpose is it extends the information about earlier present achievement and record of employees
for enhancing salary promotion and lay off decision. Secondly it is more and more useful for
developmental purpose of the organization (Navanayanappa, 2009).
Casco observes in his managing human resource book a performance appraisal plays important
part n the overall process of performance management performance appraisal has many facts. It
is an exercise in observation judgment. It is feedback process and it is an organizational
intervention as him its measurement process as well as intensely emotional process. Above all it
is an exact human process (.Casco, 2006)
Naranayanappa points out two types of appraisal. One is informing employees where he/she
stoned and the other one is considering the data as basis for personal decision related to pay scale
emoluments, promotion etc the augmenting objective through a light on finding individuals and
organization subordinates and tendering pragmatic counsels to the personal in order to develop
their potential in future (Naranayappa, 2009)
Baron (2005) define the performance appraisal is more limited approach which involves
managers making top-down assessment and rating the performance of their subordinates at
annual performance appraisal meeting likewise chap man (2009) said important change related to
age discrimination in U.K employment law become effective in October 2006 with implication
for all type of appraisal and job performance understand these recent low also is you young or
old are being appraised UK (consistent with Europe employee quality(ages relation 2006)
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effective from October 2006 make it unlawful to discriminate against any one on the ground of
age. This has several implications for performance appraisal document used and the training of
people who conduct staff appraisal. Armstrong (2006) describe the role of the performance
appraisal as tools for looking for word what need to be done by people in the organization in
order to achieve the purpose of the to meet new challenge. Better use of technology, skills and
attribute (Szilagy and Wallace 1990) in addition will develop both organizational employee
generating information with influence many of the organization decision.
Although the interests in used of performance appraisal have increased over the 30 years the
practice of formally evaluating employee has stated for centuries. As early as the third century
A.D sin you early Chinese philosopher criticized abased rater employed the wick dynasty on
ground that the imperial rater of nine grades seldom rates men according their merit but always
according to liked and dies-liked (Patten 1977, p, 352). In 1648 the Dublin (Ireland) evening pest
allegedly related legislator using aerating scale base on personal qualities (Hackett 1928).
According to Heilbronn (1953) the first industrial application of merit rating was probably made
by Robert own at his cotton mills in new Lanark Scotland in early 1800s. Wooden cubes of
different colors indicating different degree of merit were hum over each employee performance
change so did the appropriate wooden cube (Petrie, 1950) and perhaps as early as 1842(Lopez
1968).
One impetus to the development of the performance appraisal in industry (Patten, 1977) can be
traced to the work of industrial; psychologist at Congies-mellon University and their early work
in sells men selection and man to man rating forms based on trait psychology (Scott. Clothes and
Spiegel,1941) the man to man rating form was latter used by in the world war I to assess the
performance of officers (Scott et al, 1941) although performance appraisal probably begin in war
department on evaluation of each his man using such term as “as” good natured man or “knave
despised by all”.
Although the man to man ranking by department is not frequently used in industry or in
appraising performance it can be an effective method for determining or lay off in fact in the last
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1960 it was used by many companies that explained last books in government contacts to make
lay off and rotating decision (pattern1977).
This technique was known as the totem approach to pernnalco back. After world I many of
industrial association with the work of man-to- appraisal secured position industry, in part
because business leaders were imposed by the contribution of industrial psychologist to army
research despite early criticism (rudd, 1921) the graphic rating scale increased in popularity and
remains predominant today just prior to and during world II the army again sought assistance
from psychologist to improve its rating system. The outcome of these research effort included
the forced choice technique and the critical incident approach of industry employees widely
practiced until after world war I and appraisal of managers was not widely practiced until after
war II(Flanagan,1949, Sisson, 1948)
Since the passage of the civil right act of 1964 case after case brought before the American
courts has led to mandating of objective personal practices. While these prices had been
exhaustively advocated by personality prior to the civil right act 1964 the court in enforcing the
civil right legislation now provided strong and compelling legal support for their employment
performance appraisal has benefited greatly from this legal intervention. The net result is a
synthesis legal and objective criterion for their employment of performance appraisal.
While the employment of objective performance appraisal technique and process should be on an
ordinary occurrence it has unfortunately all too often legal intervention with its implied threat of
negative sanction to introduce their practice. American management practice especially when
applied to the public sector one notorious in their seeking out of short cast and these easier
alternatives. The extension of the Griggs . duke power company (1971) decisions to clearly
included performance appraisal system connect cut V. teal (1982) change all this.
Performance appraisal benefits from the application of the system designing process. Job
element, interpersonal relation and organizational purpose all need to fit together (mohr man,
resnick-wes and lower, 1989). The judiciary, through a serious of case mandated criterion that
provide clear guidelines in this respect. Case low outlines six criterions for constructing
performance appraisal system.
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According to Shelley P. Burchett and Kenneth demesne, (1985) attention to job analysis work
behavior communication training documentation and monitoring combine to guide in the
development of system capable of appraising performance derived from the systematic
management movement, job analysis is the function for a number of personal practices including
performance appraisal. It is viewed as essential that the performance on which an individual is to
be appraised is Cleary understood (Albemarle paper company moody (1975) wooden Mississippi
cooperative extension Service 1974 Patterson .American tobacco company 1978 carpenter.
Stephen Austin University 1983).
Both employee and supervision need to understand the job requirements that employee is
expected to fulfill without this mutual understanding it is impossible to either perform of
evaluate un employee is work up to date job analysis declined the duties and responsibility
require of an employee’s hence they are an appropriate basis on which to assess an individual.
Job analysis informs employees what is excerpted from them reminds do the specific evaluation
factors used in an appraisal instrument are designed to measure the performance the tasks
indicated by the job analysis.
While vaguely, subjective notion may after certain theoretical insights they are reluctant to fully
sanction their use (Zell V. United States 1979, Ramirez. Hofheinz 1980). The employment of
subjective aspect or the performance appraisal.
Communication is essential to performance appraisal emphasis from the time of the code of
Hammurabi; then ten command the low Athens the public announcement or standard by with
individual are be judged. American nation of due process are Cleary evident here. Individuals
must aware to the performance standard used to evaluate them (Rome V. general motors,
1972;Zell . united state 1979).
Due process consideration also underline the requirement for monitoring organization must not
only check to see that their appraisal system is up-to date (carpenter V. Stephan Austen state
university 1983). But that they are not being abused (Rowe. general motors’ 1972
Performance appraisal based out of date job analysis tail to related current job requirement. The
employee is often left with the unavailable catch-22 tasks of either doing the job the right or
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correctly following producer. In addition liability litigation documents numerous cases involving
the above of authority.
Supervisor training focuses on other behavior criterion one of great limitations that performance
appraisal face is the appropriate reluctance of organization to properly train employees in their
use while training in the use of complex technological equipment is readily accepted to
developing the competencies of employees and managers with vision. (Rowe. General motors’
1972 carpenter, mayor and city council of Baltimore, 1972).
Documentation address somewhat more negative issue of legal defensibility secret store chamber
trials in which the accused con both confront and cross examine the witness and evidence against
him are an integral element in the American way of life (Marquez . motor company(1971).
Clearly the most important component in the design of performance appraisal system is the
criteria on which evaluation will be made. Assessing how well an individual is doing job requires
that the job and expectation clearly define. Other wise decision are made arbitrarily a method of
objectively documenting even is not established and bias on unrelated factor derives the
assessment. The identification of appropriate criteria for evaluation sets the stage for the
evaluation by serving as an operational 1984) levy 1989).
Criteria are performance expectation usually grouped into evaluation dimensions that define
standard against which job factor will be measured. Early on the development of such
performance appraisal system it was suggested that such criteria might include item reflective of
the rate’s skill abilities knowledge behavior motive or attributes (smith 1976). More recently
Campbell theory of performance as presented in Challadurai (1999), defined several domains
important for evaluation the main categories included job specification. Task performance
including written and oral communication supervisor& leadership and management and
administration non-job specification performance evolving effort personal discipline and
facilitation such consciousness courtesy and altruism. Research conducted in conjunction with
two of my colleagues (Mac hen& Zokrajsek, 1994, 1996 and Macon & Chelladurai, 1995) define
performance n term of behavior and designed categories relative to assessment. Behavior process
factor were define as those behavior actually preformed on the job. Behavior product factor
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were define as the result produced by process factor. Mare specific information regarding
individual types of evaluation criteria will follow in the next section.
Before we deliver deeper into detail or evaluation criteria and their development, several criteria
points warrant further and immediate comment (IIgen &barres –Barnes – Farrell 1984). First the
criteria for performance appraisal must be relevant to the job and represent aspect of
performance that actually differentiate b/n and in effective work. Next these of criteria should be
free from deficiency. Representing performance dimension that consistently differentiate b/ good
and bad performance. Also criteria should be from contamination meeting that the criteria chosen
must be taken in the context of the environment of the position being evaluated. Finally
performance appraisal criteria are specific to the job under secreting so specific on that criteria
must be representative of actually job description for the position under evaluation (ducts& Tyler
1986; iigen Farrell 1984 Murphy & Cleveland 1991 sash kin 1981).
True speaking there is basically three types of appraisal. These includes confidential or secret
appraisal open appraisal and we also have semi open secret. However memorial (1995) and
Ryars and rue (1997) identified two types of appraisal confidential and open appraisal.
Confidential appraisal: - Murthy (1989) writes that the individual is not involve in the appraisal
exercise as the appraisal outcome is weakness are not to all communicate to the person being
appraised increase the person strength and weakness are not communicated to him or her Obis
(1996) adds that some manager and supervisor involved in performance appraisal periodic
counseling after an incident has taken place.
Open appraisal:- open appraisal system re vocals to the appraises his or her strength and failures
which are discussed with him or her during performance counseling interview, Makundan
(1889) write that open appraisal method would reveal and create self-awareness which is process
giving insight into one’s own performance. It helps the employee become more planning which
establish as action plan for the coming year in terms fixing target actives responsibilities etc. it
also make employee aware of his key performance areas and the contribution that he is making
to the organization.
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Semi open and semisecret appraisal: this is an appraisal process whereby performance appraisal
producer would be mode open at the beginning and later mode secret for instance if an appraisal
is asked to till an appraisal form and the superior rates subordinate and return his rating the
subordinate to sign and after signing the subordinate would not hear anything again about his
performance out come in some case subordinate would be given the form the to fill and after
tilling and returning the form the subordinate receives no further communication.
Organization would do well if they embrace open appraisal whereby the final appraisal outcome
is communicated to the appraisal. According to Rao (1984) cited on obis (1996) explain some of
the reasons why some organization do not embrace open appraisal. Some managers and
supervisor know that it is their duty to communicate back to their subordinates their performance
outcome but are resultant to do due to the following reasons.
I do not want to late may subordinates know his weak point because he may get
demoralized and discouraged and they, allow his to develop sense of dissatisfaction
dismember ship.
I cannot tell my subordinate that his failure. He or she would take personal and come
after me and female worker may read meaning in my action. It would be safer to let the
sleeping dog lie.
If tell him that he cannot growth in the organization due to performance, he or she may
quit before I could get a replacement or if tell him or her that he she not good he may
stand looking for better job elsewhere.
The subordinate may become over ambition and news of his or her success may enter his
or her head. The subordinate may start targeting my job.
Human want are stable; they owl start asking for all kinds of things which may create an
uneasy working environment.
The above arguments are not weights. Today open appraisal system has come to stay and any
organization which ignores open appraisal system should be prepared to face the negative
consequences of low performance conflict of uncertain future obis (1996).
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2.5 purpose of performance appraisal
Performance appraisal has become a term used for variety of activity through which organization
speak to assess employee and develop this competence improve performance and allocate
rewords (matcher, 2001). Grot (2002) identified the following purpose of performance appraisal
producing feedback to employee about their performance facilitating decision concerning pay
increase promotion lay off encouraging performance improvement setting and measuring goals
determining individual and organizational training & development needs confirming that good
hiring decision are being made provide legal support for decision improving overall
organizational performance.
Thomas and Bretz (1994) provide several additional purposes for performance appraisal
including motivating employees assessing employee potential, improving working relationship
assessing work more efficiently and assessing long range planning.
Generally speaking performance appraisal several two basic purpose the first is evaluative(or
administrative) as the term appraisal implies and the second is development (Brinker haft &
Konter 1980; MC Kinnon 1993 Rymes Gerhort & parks 2005). The evaluative function refers to
the extent to which there has been progress towards goals as a result of the employee’s effects. It
is back ward looking where past performance is revised in light of the result achieved. It includes
the use of performance appraisal for salary management promotion terminations lay off and
identifying poor performance (Bosu cell & Booddreal, 2000). It is used to not only enable
organization to make decision about individual but also to compare candidates on some types
objective basis (Brinker hot & kanter).
The developmental function is for word looking direct to ward increase the future. It covers such
things a job skills career planning employee motivation and effective coaching b/n in managers
and subordinates. It is end cover concerned with enhancing attitudes experience and skills that
improve the effectiveness of employees (Boswell & Bourd (Au)2002).
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2.6 Importance performance appraisal for organization and on employee efficiency
Widespread attention has been given in resent year to the function of the formal appraisal
process because of the idea that a well designed and implemented appraisal system can create
many benefit for organization. Mohr man ransack west and lawyer (1989) found that the
appraisal process can’t (a) provide a managerial instrument for goal setting and performance plan
in with employees
c. encourage interaction concerning employee growth & development (d) make available basis
for wage & salary changes and (e) generate information for a variety of human resource decision.
Murphy and Cleveland (1995) define four ways in which performance appraisal can help
organization. First performance appraisal can improve organizational decision including reward
allocation promotions lay off and transfer. Second performance appraisal can improve individual
career decision and decision about where to focus one’s time and effect. Individual employee
must make much decision concerning their present and future roles in on organization. They
must decide how if they will develop future strengths and what sort of career goals they should
purpose performance appraisal provide accurate timely and detailed feedback to assist in the
quality of these decisions.
A. Third way that Murphy and Cleveland (1995) suggest that performance appraisal can
assist organizes is by providing asset of tools for evaluating the effectiveness or current
or planned ways of operating. Finally performance appraisal can impact employee’s
views of and commitment to their organization. The quality of performance appraisal can
help encourage supervisor to observe their employee more closely and to do a better job
of managing them none of these four benefits will automatically accrue to an
organization to do more presence of performance appraisal (Murphy & Cleveland).
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However and organization that does a good job performance appraisal may incur some or
of these all of these benefits.
B. Importance of performance appraisal one employee efficiency employee satisfaction
Past study depict bidirectional relationship b/n employee satisfaction and job performance
while present studies give more insight of unidirectional relationship that employee
satisfaction leads to job performance but week relationship exists when job satisfaction was
analyzed as a result of job performance but (Fried, Sharon, 2008) choom & boucle (2007)
owed that employee satisfaction and job performance are directly related and that job
satisfaction is the result of job performance. Task and contextual performance where found to
be weekly association with employee satisfaction and factor of job descriptive index (JDJ)
were more affected by employee satisfaction level (shake WB Hat to & Mailto, 2012). Hong
and Wahid (2011) investigate the link b/n motivation employee satisfaction and job
performance and found that motivation increase employees satisfaction which lead to
increase in job performance Khan Now & Agleam & Homed, (2012) explored the impact of
employee satisfaction on job performance is considered to be the result of job satisfaction
. Employee performance
Performance is defined as attained outcome of action with the skills of employee who
perform in some situation (Presety & Kato 2011) according to (Shuharting 1995) employees
performance is actual result or effort ability and perception of task. Good performance is
mutual result of effort ability and perception of tasks. Good performance is step toward the
achievement of organization aims. Hike more strategy is required to improve the
organizational performance. Dharma (1991) said the performance is something that is done
or product performance and offered by group of people Swanston (1996) said employee
performance is the action or the completion of errands that done by individual with in
specific period of lone.
Employee commitment
It is necessary for every organization to have full level of its employee commitment in order
to have outstanding performance on long term basis moldy porter and steers (1982).
Currently employees at like entrepreneurs when work in team and every member of the team
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tries his level best to prove one the best among amongst all others ( model day et at,1982).
Increase in commitment level in the organization and improve their productivity (Abelson
1976), higher level employee commitment in or the organization.
Several problems may arise during performance appraisal. Some problem arises from the
manager some from employee and some from other factor (welpsetwl 1994) most employee
dislike performance appraisal interview for fear uncertainty in handing question and fear that
their salaries promotion and their destinies with organization hinge up on outcome of these
interviews as justification for decision that are already made concerning salaries promotion
and job tenures (Nelda et al ND).
Recent research on compare into base limited (2007) has shows the identification of the
evaluation criteria is one of the biggest problem faced by top management. The performance data
to be considered for evaluation should be carefully selected. For the purpose of evaluation the
criteria selected should be in measurable term.
The purpose of appraisal process is to judge the performance of the employee rather than the
employees. The focus of the system should be on the development of the employee in the
organization compare into base limited (2007).
C. Lack of competence
Top management should choose the raters or evaluators carefully. The should have the
experience and the necessary training to carry out appraisal process objectively. Compare into
base limited (2007).
The quality of information and communication b/n the rate and the rate during the appraisal will
influence the processes. According to Fletcher and Williams (1996), there should be frequent
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meeting rate and rate during which time action plan should be developed and areas where they
may not agree looked into quarterly. Communication b/n the rater and rate will result in variety
of positive job outcome like job satisfaction & organization commitment.
During/ such formal meeting individual performance should be discussed. The performance
review may include the actual performance, the task that were completed and area need
improvement walsh and fisher (2005) call such meeting Action Inquiry a method where
organization member use dialogue to faster their working relationship. This kind of dialogue can
be used to enhance individual and group decision making in organization thereby improving
productivity (Fisher and Tolbert 1991).
Many errors based in personal bias like stereotyping halo effect may creep in the appraisal
process. Therefore the rater should exercise objectively and fairness in evaluation and rating the
performance of the employee’s compare into base limited (2007)
F. Resistance
The appraisal process may face resistance from the employees and trade union for the tears of
negative rating. There for employees should be committed and clearly explained the purpose as
well as the process of appraisal. The standard should be clearly communicated and every
employee should be made aware that exactly is expected from them compare into base limited
(2007)
One study shows that on UK most of their university and college faced problem performance
appraisal. Simmons (2001) states that a closely related issue was the age old appraise dilemma of
achieving appropriate balance between the aims of control and commitments the study shows
that traditional appraisal scheme emphasize on control by stipulating assessing the individual
employee contribution to the organization.
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CHAPTER THREE
RESEARCH METHODOLOGY
The research was conducted around in yirgalem town. Specifically the research were conducted
in yirgalem health science general hospital. The location of yirgalem town is latitude of
(645’0.ooo’N), longitude of (3825’ o.12o E ), altitude of (1777 m) and GTM time is +3 hours.
(yirgalem town statics office 2007). The distance from the yirgalem to other biggest city of
country of Ethiopia : distance (km) yirgalem – Bahir dar 551 km, yirgalem – Addis Ababa 320
km, yirgalem – dire dawa 494 km, yirgalem – Hawassa 47 km . yirgalem town is one of the
populated city in where it include the total population of 39,555.the weather condition is woyina
degas and population engaged mostly agrarian, so now a days the town is contains a numerous
building and grow fast.
The type of Research was descriptive types because the study in this particular research under
takes describes states of affairs as it was exist without altering existing reality. This research
types also used to answer the question what is the effect of effective appraisal on employee
efficiency.
The research was conducted by using both primary and secondary data. The author researcher of
this particular study tries to use mainly from primary data source like, interview of patient and
employees direction the service line so as to get fresh and non contaminated data, by using
structured and semi structured questionnaire, his personal self judgment another technique that
the researcher was use to explore facts, in spite of the limitation of the Hawthorn effect that
participants may show due to physical identification of the researcher attempt to uses brusher,
the company yearly published bulletin archive, journal, articles the author of this study definitely
explores internet to collect data review related literature studies on the area as secondary source.
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The researcher also uses as a sources of data for this research paper, interview of
employee(Doctors and other health care providers) of Yirgalem general hospital as primary
source.
The population of the study includes employees of the hospital who were work under supervision
of college that were 121 of academic staff and 61 of administrative staff, total population of the
study were 182. The researcher were use 36 units among total population of hospital out of this
sample unit 20% of 121 of academic staff and 20% of 61 of administrative staff of the hospital,
total sample use was 36. In order to draw sample respondent from total population the study
were intend to utilize both probability and non probability sampling technique.
The researcher was uses stratified random sampling method together primary and secondary
data. This was because researchers try to gather data from the college by dividing the population
in to two strata, data from the hospital academic staff and administrative staff. Stratified
sampling was modification in which one and divide the population in to two or more relevant
and significant strata based on one or number attitude.
In parallel to this non probability sampling technique was applied toward selection of employees
for questionnaire. In this selection the study was purposive sampling method of non probability
sampling technique.
The major data collecting tools that the researcher was use to collect primary data in this
particular study is questioners and interview method of data collection. Both open and close
ended questionnaire are used, because of the fact that one can supplement the weakness of the
other. The other tools are used semi-structured interview (both questioners and interview) guide
will annex to the appendix.
Secondary data were collected from different source of published band non published document
such as brushers, the company yearly published bulletins archive, journals, internets, yearly
report and so on.
20
3.6 Method of data analysis
The qualitative and quantitative method of data analysis was used to analyze the primary and
secondary data. Quantitative data were presented by using table analyze with the help of
percentage. The qualitative data were analyzed by using narrative approach.
21
CHAPTER FOUR
4. Introduction
This study was deal with assessing the important of performance appraisal to employee’s
efficiency in the case of Yirgalem health science general hospital. The main objective of the
study is to collect necessary data for the purpose of employee performance appraisal in the
college. Therefore the collected data was analyzed in to meaning full data for the problem
employee faced towards performance appraisal and the collect data was analyzed and interpret as
follows:
The researcher distributed the questionnaire for employees of Yirgalem health Science College
for the sample size 36 out of the total worker 182. Finally the researcher collected 36
questionnaires with the answer from respondents. The demographic data of respondents are
presented and analyzed blow.
3. Marital status
Single 11 31
Married 25 69
22
Divorced - -
Widowed - -
Total 36 100%
Educational level
Degree 21 58
Masters 8 22
Certificate - -
Diploma 7 20
PHD - -
Total 36 100%
Source own survey 2015
Table 4.1 revealed about sex, marital status, educational level and age of the respondents. This
data shows that 69% of the respondents were male where as 31% were female respondents. So
from this one can understand majority of the respondents was dominated by male and the
number of female is minimum. The marital status of the respondents shows that 69% of the
respondents were married and 31% of the respondents were single. So from this majority of
respondents in the hospital was married. Their educational level show what 20% of the
respondents were diploma holders 58% degree holders and 22% master holders. So the majority
of educational level of respondents was degree holders. Majority of the age of the respondents
(41.67%) ranges between the age of 28-37, 38.89 % of respondents range between 18-27 and
13.89% of the respondents range between 38-47. Therefore the majorities of the respondents
were male married degree holders and have middle age level in the hospital.
Question Respondents
Is there performance appraisal in the Number Percentage
Yes 35 97
organization?
No 1 3
Total 36 100
Source own survey 2015
23
The above table 4.1 shows 97% were accepted as there is employee performance appraisal in the
organization and also 3% of the employee were not agree with the existence of employee
performance appraisal. So from this result one can understand the majority of the respondents
were respond as there is employee performance appraisal in the organization. Now a day’s wide
speed attention has been given in recent year to the function of the formal appraisal proceed
because of the idea that a well designed and implemented appraisal system can create many
benefit for organization. Mohammad Resink- lowers (1989) founded that the appraisal process
can (a) provide a managerial instrument for goal setting performance planning with employees
(b) improve employees motivation and productivity (c) encourage instruction concerning
employee growth and development (d) make available basis for wage and salary change and (e)
generally information for a variety of human resource decision.
Table4. 3 Techniques and criteria Yirgalem health science general hospital for appraisal
employee efficiency
Question Respondents
Number Percentage
What is the technique and criteria used Work behavior 9 25
Communication 12 33
in the organization for performance
documentation 13 36
appraisal employee? Monitoring 2 6
Total 36 100%
Source own survey 2015
The above table 4.3 shows that 36%of the respondents respond that the technique and criteria
that used in the organization are documentation and also 33%are responds the technique and
criteria used are communication. 25% of respondents respond that the technique and criteria
used in organization are working behavior and 6% of the respondents responded that the
techniques and criteria that used in the organization are documentation communication working
behavior and monitoring. So from this result one can understanding the organization
documentation method for appraising employees performance.
Question Respondents
Number Percentage
24
Show the rate of your satisfaction Strongly agree 16 45
Agree 12 33
with the technique and criteria used
Neutral 13 8
in the organization? Disagree 5 14
Strongly disagree - -
Total 36 100%
Source own survey 2015
The above table4.4 shows that 45% employees strongly agreed that they are satisfied with the
technique of employee performance appraisal. 33% agreed that they are satisfied with the
techniques of performance appraisal. Also finally 8% of the respondents were neural with the
performance appraisal technique and 14% of the respondents were dissatisfied with the
techniques of performance appraisal. Therefore the researcher conclude that majority of the
respondents were strongly sissified with techniques of performance appraisal in the organization.
Documentation is the way of assessing how well an individual doing a job require that the job
and expectation be clearly define. Otherwise decision was made arbitrarily. A method of
objectively documentation even is not stable and bias on a related factor derives the assessment.
The identification appropriate criteria for evaluation set the stage for the evaluation by serving as
an operational definition of successful performance (IIgen and bareness, 1984, 1989).
Question Respondents
Number Percentage
Organization performance appraisal Strongly agree 17 47
Agree 10 28
effective
Neutral 45 14
Disagree 4 11
Strongly disagree - -
Total 36 100%
How do you rate the total Highly 19 53
Medium 17 47
performance appraisal in your
Low - -
organization on to improve No change - -
employees efficiency Total 36 100%
Source own survey 2015
25
Table4. 5 shows that 47% strongly agreed or they believe the effectiveness of organization
performance appraisal 28% or respondents agreed with the effectiveness of performance
appraisal 14% of respondents were natural, and 11% of respondents were disagree. The
researcher analyzed that majority of the employee of Yirgalem health Science hospital were
strongly agree for the performance effectiveness of organizational performance appraisal. The
above table shows that 53% of respondents respond the organization performance highly
improve employees efficiency and 47% of respondents respond the organization performance
appraisal is medium in improving employee efficiency. Therefore the researcher conclude that
the organization performance appraisal highly improve employee efficiency. Therefore the
developmental function affections performance appraisal is forward looking directed toward
increase the future. It covers such things job skill career planning and employee’s motivation and
effective coaching between managers and subordinates. It is endorse of concerned with
enhancing attitude experience and skill that improve the effectiveness of employee (Boswell and
Bourdcav, 2002). The quality of performance appraisal can help to encourage supervisor to
observe their employees more closely and to a better job of managing them.
Question Respondents
Number Percentage
Do you think that the performance Yes 32 88.88%
appraisal increase the overall
No 4 11.11%
productivity of employees?
total 36 100%
As early expressed in the above table 4.6 shows that 88.88% of respondents replied that
performance appraisal are improve employee productivity in the organization, 11.11%of the
respondents responds that performance appraisal of the organization is not improve employee
productivity. Therefore this indicated that majority of the respondents that the performance
appraisal has contribution for productivity of employee. G00d performance is step towards the
achievement of organization aim. Hence more strategy is required to improve organizational
performance, also it improve employees motivation and productivity. Good performance is
26
mutual result of effort, ability and perception of taxes (Dharma 1991).
Table 4. 7 Objective of performance appraisal
Question Respondents
Number Percentage
To what extent performance appraisal Highly 22 61
Medium 9 25
has been improved employees
Low 4 11
efficiency Very low - -
No change 1 3
Total 36 100%
Source own survey 2015
As shown on the above table 4.7 61% of respondents responded that the aim of the organization
is highly developing employees efficiency 25% replied that the organization going to improve
employees efficiency to medium level and also 3% respondents responded that there is no
change on employee efficiency by performing employee performance appraisal. So from this
result one can understanding the aim of the organization is to develop highly the employee’s
efficiency. Performance appraisal has become a term used variety of activity through which
organization seek to assess a employee and develop their competency improve performance and
allocate reward (matcher, 2001).
Question Respondents
Number Percentage
Which types of appraisal used in your Confidential appraisal 5 13
Open appraisal 12 33
organization for improving employees
Semi open and semi 19 54
efficiency
secret appraisal
Total 36 100
The above table4.8 shows that 13% of respondents responded that the organization use
confidential appraisal and 33% respondents responded that the organization uses open appraisal
also 54% of respondents give their respond the organization use semi open and secret appraisal.
27
Therefore the researcher conclude that the organization a semi open and semi secret appraisal
mechanisms semi open the appraisal process were by performance appraisal procedure would be
open at the beginning and later made secret in this types of performance appraisal they
subordinate would not here any thing again about his performance outcome (Rao 1984).
Question Respondents
Number Percentage
How the contribution of performance Employee 3 8.33
appraisal in employee efficiency can satisfaction
Employees 30 83
be exhibited?
performance
Employee 3 8.33
commitment
Total 36 100
Source own survey 2015
The above table 4.9 shows that 83% 8.33% and 8.33s% of respondents responded that the
performance appraisal contribute to employee performance employee satisfaction and employees
commitment respectively. Therefore the researcher concludes that the performance appraisal is
contributed for employee’s performance efficiency. Performance is defined as attend outcome of
action with the skill of employee who perform in some situation (priestly and Kato 2011)
according to (Shurhartng 1995) employee performance is actual result of effort. As the dean of
the college said during conducted interview performance appraisal have positive contribution for
employees skill commitment. Increase employee’s confidence as well as their productivity
Question Respondents
Number Percentage
Are you satisfied with the training Yes 35 97
program give to worker in the No 1 3
28
organization for performance appraisal
Total 36 100
implementation ?
Source own survey 2015
As early expressed in the above table 4.10 shows that 97% of respondents replied that they are
satisfied with training program given workers in the organization for performance appraisal
implementation where as 3% of the workers replied that they were not satisfied with training
program given to be workers in the organization for performance appraisal implementation.
Therefore this indicated that majority of the respondents were satisfied with training program
given to the worker in the organization for performance appraisal implementation.
Question Respondents
Number Percentage
The performance appraisal program Strongly agree 11 31
Agree 17 47
brought skill improvement in your
Neutral 8 22
organization? Disagree - -
Strongly disagree - -
Total 36 100
Source own survey 2015
As early expressed in the above table4.11 for above question 47% of respondents responded that
they are agree with improvement of employee skill as a result of performance appraisal
implementation in the organization were as 31% of worker replied that they were strongly agree
with the performance appraisal given in the organization were brought skill improvement on the
organization and 22% of respondents were neutral. The researcher analyzed that majority of
respondent were agree that the performance appraisal program brought skill improvement in
organizations. Murphy and Cleveland (1995) defined for ways n performance appraisal can help
organization. First it can improve organizational decision including reward allocation promotion
layoff and transfer. Second performance appraisal can improve individual career decision and
decision about where to focus ones time and effort. Third Murphy and clever land suggest that
performance appraisal can assist organization by providing set of tools evaluate the effective of
current or planning ways of operating. Finally it enhances employee commitment for their
organization.
29
Table4. 12 Result of performance appraisal on employee efficiency
Question Respondents
Number Percentage
The performance appraisal program Strongly agree 13 36
Agree 16 44
brought skill improvement in your
Neutral 7 20
organization? Disagree - -
Strongly disagree - -
Total 36 100
Source own survey 2015
Table4. 12 shows that 36% of respondents strongly agree the efficiency of employee has increase
as result of performance appraisal 44% of respondents were agree 20% of the responded were
neutral. The researcher analyzed that majority of employee agree the efficiency of employee has
increased as a result of performance. Main purpose of performance appraisal is providing
feedback to employees about their performance this is helps the employees learn more their
strength and weakness this help them to improve their weakness for the future. ( Grote 2002)
Question Respondents
Number Percentage
The performance appraisal program Determination the 18 50
brought skill improvement in your evaluation criteria
Lack of 3 8
organization?
competency
Creating rating 5 14
instrument
Error in rating & 8 22
evaluation
Employee 2 6
resistance
Total 36 100
Source own survey 2015
As the result the table4.13 above shows 50% of respondent responded that the problem or
performance was determination of the evaluation criteria 8% of respondents that the of problem
of performance assessment was lack of competency and also 14% of respondents responded that
30
there was the problem of rating instrument 22% were replied that the problem or performance
assessment in the organization were error in rating evaluation and 6% or respondent responded
there were the employee resistance in the organization. Therefore it is concluded that there is the
problem of determination that there is the problem of determination of the evaluation criteria.
Question Respondents
Number Percentage
Is it possible to reduce shortage of Yes 35 97
No 1 3
skill manpower by performance?
Total 36 100
Shortage of budget 10 28
If question number 15 is not possible Workers not 26 72
what do you think the reason? interested in the
organization
Other factor - 100
Total 36
Source own survey 2015
Table4.14 above express that (for question 14) 72% of respondents said that it that it is possible
to reduce shortage of skill man power. Whereas 28% of respondent on others hand said it is not
possible to reduce shortage skill man power. Therefore researcher can conclude that majority of
the respondents believed a shortage skilled man power can be reduce by the process performance
appraisal on other hand fall respondents have not believed it.
For question no 15 above 72% of respondents responded the workers of the organization were
not have interest for performance appraisal and 28% of respondents there was the shortages or
budget in the organization for implementing per performance appraisal. Therefore the research
concludes the workers or the organization were not interested for performance appraisal. The
appraisal process may face resistance from the employee and trade union for the fears of
negative rating many error based on personal bias like stereotyping halo effect may creep in the
appraisal process because of this of this some time employee resist the performance appraisal.
31
CHAPTER FIVE
The overall finding of the study reveal the finding of the assessment of performance appraisal
and its contribution on employee appraisal and its contribution on employees efficiently in the
hospital. Accordingly data were gathered, coded and analyzed by the researcher to know the
contribution of performance appraisal on employee’s efficiency.
32
1. The investigation shows that the majority college of hospital workers or majority of
employees was male and married and the majority of them were young and middle
age and better in educational level.
2. The investigation reviews the fact the implementation of performance appraisal in the
hospital have brought change and improvement in the various activity under taken by
the college of hospital.
3. On the side of implementation of performance appraisal success observable
improvement has been shown in increasing employee productivity. It creates
commitment among the employment improve skilled man power brought skill
improvement in the organization and reduce shortage of skill man power of the
organization.
4. The other area in which improvement introduced is in human resource of the hospital
through training and development resulted. An account performance appraisal in the
organization. This also highly improved the organizational culture or the hospital to
team based approach which is help full to perform the hospital mission interactively
in efficient and effective way.
5. The hospital faces the problem individual background educational problem lack of
commitment that hinders it to be fruit full especially in area of determining the
evaluation criteria and error in rating and evaluation. Additionally the hospital face
professional ethics problem. There is also some problems in awareness of rules and
regulation of the hospital on the other hand the performance appraisal of the
organization face resistance from the employees because fear of negative rating.
5.2 Conclusions
The interception performance appraisal more or less contribute to employees efficiency it was
intended in the hospital so the delivery system problem with in the hospital with the
implementation of performance appraisal and work towards the attainment to reduce shortage
skilled man power even if implementation of the appraisal.
The performance appraisal has its own contribution to employee efficiency. The study shows that
performance appraisals improve shortage of skilled man power in the organization and it
increases employee’s productivity and also it create sense of owns among the employees of the
33
organization to accomplish mission of the organization. The majority of the employees were
satisfied with technique and criteria used but few of them do the not satisfied with the technique
and criteria because of some problem. Determination of the evaluation criteria and error in rating
evaluation are the major problem identified.
Besides the organization faces some challenges during performance appraisal especially
individual background like academic problem ethical and professional ethics were the major
challenge that the organization face.
5.3 Recommendation
The researcher would like to make the following recommendation to the above finding which is
helped to other researcher or organizational administrative body in view of what has been
concluded by the data gathered and analysis made and from the judgment of investigator or
researcher recommendation that.
Regarding performance appraisal the hospital has advantage if it work hard further on
the following areas: communication workers awareness toward performance appraisal
efficiency and participate atmosphere in performance appraisal
In connection with organization issue further improvement is demanding regarding:
training and development program to increase the skill and performance of staff
improving the size of human resource and creating team sprit among personnel also the
organization should improve level of employee performance appraisal in the other hand
it is better if the organization use open appraisal type rather than use semi open
appraisal types. Also the organization should work hard on organizational appraisal to
be more productive
In case of challenges in service delivery and initiative to be undertaken
The office had better development mechanism to overcome immediately the complains
of costumer through conducting research holding regular meeting staff as well as with
different department
To overcome the problem of professional ethics providing training and continuous
desiccation is preferable to bring continuous development as well as creating stable
environments within the organization
34
In order to improve/ overcome/ cope up the problem of commitment it is better to
provide training and giving in sensitive to create sense of owners/or among each and
every workers of the organizations. Generally the organization should identify and
analyze the problem in order to satisfy these employees and to make performance
appraisal effective enough
In case of challenges in performance appraisal and initiative to be undertaken.
The office had better development mechanism to overcome immediately the problem
that they face through communication research holding regular meeting staff as well as
with different department.
To overcome the problem the employee resistance during performance appraisal the
employees should be commitment and really explained the purpose as well as the
process of appraisal. The standard should be clearly communicated and every employee
should be made aware that exactly is exactly is expected from them.
References
35
5. Moony, J A, 2009, University of Chester, performance appraisal in small public sector
and experience organization the gap between expectations.
6. Patterson, V.(1978), HRM America tobacco company .
7. Walters, M 2005. The performance hand book institute of performance development.
8. V.moody (1974), Mississippi cooperative extension service, performance appraisal
system.
9. VSP RAO (2010) HUMAN RESUORCE NOTE study (http://www.studymode
.com/essays/HR note-62406.httml
APPENDIX
HAWASSA UNIVERSITY
Department of management
This questionnaire is prepared to collect data on issue related to assessing the contribution of
performance appraisal to employees’ efficiency in Yirgalem health Science College (hospital).
36
So, the researcher politely requesting you to respond genuinely and honestly because your
respond to questions is the base for my study. Whatever information you provide to me is strictly
confidential it will only be for academic purpose.
Instructions
-Write your responds on the blank space provide and also mark by using (x) sign
your response on the table box where it is appropriate.
A. personal information
I. Question related with technique and criteria of their organizations for measuring their
employees.
Yes £ NO £
2 .What is the technique and criteria used in the organization for performance appraisal of
employees? Work behavior £ communication £ documentation £
3. Are you satisfied with the technique and criteria are used in the organization?
37
4. The organization performance appraisal is effective.
5. How do you rate the total performance appraisal in your organization to improve employee’s
efficiency?
I. Question related with the extent of performance appraisal in Yirgalem health Science
College.
6. Do you think that the performance appraisal increase the overall productivity of employee?
Yes £ NO £
8. Which types of appraisal use in your organization for improving employee’s efficiency?
Employeescommitment£
other……………………………………………………………………………………………
……………………………………………………………………………………………
10. Are you satisfied by training program given to workers in the organization for
performance appraisal implementation? Yes £ No £
11. The performance appraisal program brought skill improvement in your organization?
38
Strongly agree £ Agree £ neutral £ Disagree £
strongly disagree £
III. Question related with the challenge for assessing employees’ performance
13. What do you observe the problem of assessing employee’s performance appraisal?
Lack of competency £
14. Is it possible to reduce shortage of skill man power by performance appraisal process?
Yes £ No £
If yes how....................................
15. If your answer for question number 14 above is not possible, what do you think the
reason? Shortage of budget £ Workers not interested in the organization £
other factor…………………………………………………………
39