Main Article Content
Performance Appraisal System (PAS), Motivation of the employees, Employees’ Satisfaction, Rater errors in Performance appraisal system, Accuracy of performance appraisal system,
The objective of the study is to investigate whether the performance appraisal system used is in Majan Electricity Company, (Oman), measures the employees’ performance accurately and to ensure motivation and satisfaction of its employees.
The study was conducted with 106 employees from all the departments of the main office of the company located at Sohar, who were selected on stratified random sampling basis and were contacted through a well-defined questionnaire.
The study reveals that even if there is a problem with the accuracy of performance appraisal system in measuring the performance accurately, or due to rater error in the evaluation process, the employees’ performance appraisal is not affected by them and has got positive impact on employees’ motivation and satisfaction.
The study demonstrates that there is a strong association between the (i) performance appraisal system and (ii) motivation of the employees and the employees’ satisfaction. It is also found that there is no relationship between performance appraisal system, rater errors, and the accuracy of performance appraisal system.
Performance appraisal system is dependent on motivation of the employees and employees’ satisfaction. So, there exists necessity for the company to pay attention towards motivating the employees through concentrating on increasing the satisfaction of the employees.
No study have examined the impact of performance appraisal system of the Majan Electricity Company in Sohar ever before considering employee’s motivation and the welfare of the employees in one hand and the management on the other, and it is first hand study of its kind.
The study was restricted to the main office of the company located at Sohar, Oman. The study could be extended to know the insight of the personnel involved in the entire Majan Electricity Company, Oman.
2. Ali, N A, & Ahmad, R (2004), Performance appraisal decision in Malaysian public service, The International Journal of Public Sector Management, 17(1), pp. 48-64.
3. Ali, S, Mahdi, A and Malihe, J (2012), The Effect of Employees’ Performance Appraisal Procedure on their Intrinsic Motivation, International Journal of Academic Research in Business and Social Sciences, 2(12), pp.161-168.
4. Armstrong, M (2012), A Handbook of Human Resource Management Practice, 12th Ed. London, Kogan Page Limited, ISBN-0749441054.
5. Armstrong, M and Baron, A (2004), Managing performance: Performance Management in Action, Charted Institute of Personnel and Development, London, ISBN-843981017.
6. Brown, M and Benson, J (2003), Rated to exhaustion? Reactions to performance appraisal processes, Industrial Relations Journal, 34(1), pp. 67–81, available at http://dx.doi.org/10.1111/1468-2338.00259
7. Boswell, W R and Benson, J W, (2000), Employee Satisfaction with Performance Appraisals and Appraisers: The Role of Perceived Appraisal Use, Human Resource Development Quarterly, 11(3), pp. 283-299.
8. Boswell, W R and Boudreau, J W (2000), Employee satisfaction with performance appraisals and appraisers: The role of perceived appraisal use., Human Resource Development Quarterly, 11(3), 283-299.
9. Cole, G (2010), Personnel and Human Resources Management, (5th Ed.), Cengage Learning, London, ISBN-10:0826458637.
10. Cook, J and Crossman, A (2004), Satisfaction with performance appraisal systems, Journal of Managerial Psychology, 19(5), pp. 526-541.
11. Colquitt, J A (2001), On the Dimensionality of Organizational Justice: A Construct validation of a measure, Journal of applied psychology, 86(3), p. 386.
12. Fletcher, C (2001), Performance appraisal and Management: The developing research agenda, Journal of Occupational and Organizational Psychology. Vol. 74. , pp 473- 481.
13. Green, F (2004), Work intensification, discretion and the decline in wellbeing at work, Eastern Economic Journal, 30(4), pp 615-625.
14. Grubb, T (2007), Performance Appraisal Reappraised: It's Not all Positive, Journal of Human Resources Education, 1(1), pp. 1-22.
15. Gurbuz, S and Dikmenli, O (2007), Performance appraisal in public organizations: An empirical study, Magazine of Management Practice, 13(1), pp. 108–138.
16. Harter, J K, Schmidt, F L, & Hayes, T L (2002), Business-unit-level relationship between Employee satisfaction, Employee engagement and Business outcomes: a Meta-analysis. Journal of Applied Psychology, 87(2), pp. 268-279.
17. Horsoo, S K, (2010), Employee Performance Appraisal, Rewards and Recognitions - A Case Study of Barclays Bank of Ghana Limited, Kumasi, Institute of Distance Learning, KNUST.
18. Jabeen, M (2011), Impact of Performance Appraisal on Employees Motivation, European Journal of Business and Management, 3(4), pp. 197-204.
19. Johnson, D E, Erez, A, Kiker, D S, & Motowidlo, S J (2002), Liking and attributions of motives and mediators of the relationships between individuals’ reputations, helpful behaviors and raters’ reward decisions, Journal of Applied Psychology, 87(4), pp. 808–815, available at http://dx.doi.org/10.1037//0021-9010.87.4.808
20. Jose, A (2011), Does performance appraisal motivate employees at a workplace? A dissertation submitted in partial fulfilment for a M.A in Human, National College of Ireland.
21. Karimi, R, Malik, M and Hussain, S (2011), Examining the Relationship of Performance Appraisal System and Employee Satisfaction, International Journal of Business and Social Science, 2(22), pp 243-247.
22. Katavich, K (2013), The Importance of Employee Satisfaction with performance Apprisal systems, Master in Arts of Psychology, Massey University, Albany, New Zealand.
23. Mensah, F and Seidu, P (2012), Employees Perception of Performance Appraisal System: A Case Study, International Journal of Business and Management, 7(2), pp 73-88 available at http://dx.doi.org/10.5539/ijbm.v7n2p73 [Accessed 24 Jan. 2016].
24. Mullins L J (2013), Management and Organizational Behavior, 10th edition, FT Publishing International, ISBN-10: 0273792644.
25. Nurse, L (2005), Performance Appraisal, Employee Development and Organizational Jjustice: exploring the linkages, The International Journal of Human Resource Management, 16(7), pp.1176-1194.
26. Ojokuku, R (2013), Effect of Performance Appraisal System on Motivation and Performance of Academics in Nigerian Public Universities, Australian journal of business and management research, vol.3, no.3, pp. 22-38.
27. Robbins, S P and Judge T A (2012), Organizational Behavior, Prentice Hall, 15th edition, ISBN-10:0132834871.
28. Roch, S and O’Sullivan, B (2013), Frame of reference rater training issues: Recall, Time and Behavior observation training, International Journal of Training and Development, 7(2), pp.93-107.
29. Scott, J (2009), Performance appraisals that actually improvement performance, Career and Technical Education, Vol. 5, pp. 22-25.
30. Taylor, S. (2008), Employee Resourcing, Chartered Institute of Personnel Development, London, ISBN-10:0852926243.
31. Wang, J H and Guthrie, J T (2004), Modeling the effects of intrinsic motivation, extrinsic motivation, amount of reading achievement on text comprehension between US and Chinese students, Reading Research Quarterly, 39(4), pp.162-86.
32. Werner, S, Schuler R S and Jackson S E (2012), Human Resource Management, 11th edition, Canada, South-Western Cengage Learning, ISBN-1111822328.
33. Williams, R S (2001), Managing Employee Performance: Design and Implementation in Organizations: Psychology @ Work Series, 2nd Edition, Cengage Learning EMEA, ISBN-10:1861527802.