GCC Qatar: The Impact of Performance Appraisal on Employees’ Behavior

Subject: Case Studies
Pages: 13
Words: 3529
Reading time:
13 min
Study level: PhD

Introduction

Performance appraisal is one of the HR practices that are widely being applied to integrate HR activities and organization policies. In addition, the performance appraisal is understood to be covering several processes in which international firms evaluate their employees, develop and enhance their capabilities, performance and give out rewards (Shahzad et al., 2008). In this study, the effects of performance appraisal on employees’ behavior in the context of international organizations in the Gulf Cooperation Council are examined.

The main objective of the study is to examine the implementation of performance appraisal within the international organization influence the employees’ behavior. Through the application of empirical study, the changes in employees’ performance because of the implementation of performance appraisal will be examined. A thorough analysis of the study is expected to indicate a strong positive correlation between the performance appraisal and the employee’s behavior. The findings should authenticate this strong positive correlation between the performance appraisal and the employees’ behavior.

The study background

The impacts of performance appraisal have become one of the major issues within the organization, whether in policy formulation, human resource management, and the decision-making process. Most importantly, the processes are involved in evaluating the influence of performance appraisal on employees. The main reason why the performance appraisal concept is important to the organization’s human resource managers is that they want to find out the impact the concept has on the organization’s performance as well as the employee’s commitment, attitude, and behavior (Heathfield, 2007). In addition, the study of the effects of performance appraisal will help make out variables that have a positive or negative influence on the employees’ behavior, mindset, and commitment and come up with performance appraisal strategies that will address the impacts.

Performance appraisal is one of the tools that are being applied by organizations in planning their human resources management either at the national or internal levels. Not only has the performance appraisal been used in planning, but also in developing the resources as well as helping in shaping personal actions (Shahzad et al., 2008). In the context of international organizations within the GCC, the performance appraisal plays the role of developmental response as well as in the decision-making process. Practically performance appraisals are purposely used by international organizations to distinguish their employees, establish the strengths and weaknesses of their employees, assess and put into operation the personnel management systems as well as in decision-making processes.

This study intends to examine empirically the influence of performance appraisal on the behavior of employees in an international organization within the GCC in Qatar. Much of the earlier studies have focused on the impact of the performance appraisal on the job commitment, employees’ attitudes, and decision-making as well as the job outcomes (Shahzad et al., 2008). The study is distinct and original since the effects will be tested empirically to determine the validity of the variables. Further, the study is undertaken to add into the few studies that have been undertaken in this field concerning the international organizations particularly on the organizations within the GCC in Qatar. The study will be looking into two variables, performance appraisal as the independent variable and the employees’ behavior as the dependent variable.

Problem identification

Performance appraisal is one of the management tools that are applied widely by international organizations. Due to increased competition within the international market and expectations of the organizations’ stakeholders, the performance appraisal concept is receiving more attention particularly in human resources management and the organization’s decision-making process (Shahzad et al., 2008). The reason is that performance appraisal is critical in providing guidelines for employees’ management as well as decisions that affect the employees’ outcomes.

Various organizations within Qatar’s GCC have put in place effective performance appraisal strategies that aid in decision-making processes as well as making their workforce responsible for the performance domino effect (Shahzad et al., 2008). For these reasons, it is important to come up with a greater understanding of the effects of the performance appraisal on the employees and ways through which such appraisal can be attained. On the contrary, many employees have perceived performance appraisal negatively. Studies indicate that employees have perceived performance appraisal as threatening rather than enhancing their performance outcomes. Therefore, understanding the concept and the way it affects the employees’ outcomes is significant in coming up with appropriate tools for the performance appraisal implementations.

Studies that have been conducted concentrate majorly on western organizations and are based on their supposition and deductions. When these theories and models are applied in a different culture, difficulties arise (Heathfield, 2007). In particular, the application of the concept in the organizations within the GCC in Qatar has been acknowledged as one of the areas that require further studies specifically on the suitability and the effects on the employees’ performance.

The purpose of the study

The study has two important purposes. The first, purpose is to evaluate the impacts of performance appraisal on employees’ behavior. The second is to determine the tools that can be applied in the implementation of the performance appraisal particularly in the organizations within the Qatar GCC. The studies have indicated that there is a correlation between performance appraisal and the employees’ attitude, performance, and commitment outcomes (Shahzad et al., 2008). However, much of these studies have concentrated on western cultures and models.

The significance of the study

Performance appraisal is one of the important tools managers of organizations use in their management practices and influence their worker’s general performance and livelihoods. Performance appraisal is being applied worldwide by international organizations to motivate workers as well as influence their behaviors, attitudes, and performance (Shahzad et al., 2008). However, the aims of performance appraisal have not been attained by the implementing organizations. Studies indicate that workers have been dissatisfied with the process due to failure by the organization to put in place appropriate implantation tools to attain the goals of the performance appraisal.

In addition, lack of training on the performance appraisal has also contributed to the gap between the results of and the implementation process (Heathfield, 2007). Moreover, there is also a lack of information regarding employees’ reactions to the appraisal processes. Practical examination of the workforce’s conduct due to the evaluation process forms the basis of the study in linking the space existing in the literature.

The scope of the study

In this study, both qualitative and quantitative approaches will be applied. The qualitative part will be based on the literature review while the quantitative will be based on data collected through a survey questionnaire. The survey questionnaire will be administered to the sampled population consisting of the employees of an organization within the Gulf Cooperation Council in Qatar. The qualitative information will be obtained through the literature review of the scholarly articles as well as the materials about the performance appraisal.

In the empirical study, survey questionnaires will be the most suitable method of data collection since it is the best method of reaching the respondents within the target group. In addition, the employees of the company are deemed viable. However, only 70 participants will be selected depending on the frequency with which they have been involved in the performance appraisal. During the empirical study, the data collection should be given the least time possible. However, to ascertain the results of the study, the survey will be conducted two times and therefore the study will take twenty-one weeks.

Objectives and aims of the study

Though the study has been designed to test the independent and dependent variables empirically, the objectives of the study include

  • To ascertain the impact of performance appraisal on the employee’s behavior
  • To determine the tools applicable in the implementation of the performance appraisal
  • To come up with information that is significant for the international organizations, policymakers, and human resources managers on the way they can implement the performance appraisals.

Research questions

Upon completion of the study, the following questions will be answered

  • What are the impacts of performance appraisal on employees’ behavior and attitude?
  • Is there any correlation between the performance appraisal undertakings and the employees’ behavior?

Research hypothesis

The study will test the following hypothesis

  • H1: There are both positive and negative impacts of performance appraisal on employees behavior
  • H0: Performance appraisal does not influence the employees’ behavior.

The theoretical framework

For this research to meet its obligations, it will be exploratory research. The reason for the choice of this methodology is due to its innovation of novel ideas that are required in the understanding of the performance appraisal. Through exploratory, the research will come up with new and clear concepts explaining the dynamics and processes involved in the performance appraisal and the way it affects the employees’ outcomes. Moreover, the exploratory research will set up main concerns, build upon operational explanations and improve on the final research design.

Literature review

Studies that have been conducted in this area indicate that many firms within the GCC are accepting performance evaluation. The arguments for the adoption are that these organizations need to influence their workforce’s conduct as well as approaches (Treadway et al., 2007). Consequently, GCC organizations’ managements are capable of monitoring their workers, noting down the areas that need adjustments and the ones that require backup. Through such initiatives, these organizations become aware of the employees who need assistance on their performance as well as the ones who need strengthening of their output (Treadway et al., 2007). The attainments of positive results directly depended on the quality of evaluation undertaken by these organizations. For instance, conducting a quality evaluation leads to the decline of disparities in the process. As a result, higher levels of uniformity are achieved. Further, the results of the investigations indicate that for the organizations within the GCC to gain higher competitive benefits, the labor force must be highly productive. As such, evaluation during the selection of employees is important for these organizations.

The advantages of the performance appraisal for these organization

According to Fugate, Kinicki, and Prussia (2008) studies, the worker examination through their valuations is very significant in the service relationship. The administration should judge the personnel based on their performance while deciding on whom to promote as well as the members of staff who should be given the most suitable jobs. In addition, the output of workers is also important in the determination of the number of employees that a firm has to maintain and the setting of pay to the workforce. Therefore, the management has a responsibility of studying personnel yield through a practice of monitoring. The process of supervision is used informally by most of these organizations.

The performance assessment entails evaluating the output based on the decisions and views of subordinates and peers. Further, the performance appraisal also considers the views of other supervisors and even the employees themselves. Realization of organizational goals involves a lot of emphasis on performance evaluation. The pursuit of accurate performance appraisal depends on the managers’ responsibilities and the level of belief that the person has in their administrators. Discussions concerning performance rankings involve ratings that are designed for expansion purposes as well as those that determine the remuneration results (Heathfield, 2007). Over the recent years, weight has been put on the employees’ response to evaluation and the societal backgrounds under which these assessments are considered fundamental such as in the establishment of the effectiveness of an evaluation system.

Precedent hypothetical studies propose that appraisals of staff output are very important in the determination of pay resolutions as well as reducing high efforts among employees to move them forward (Heathfield, 2007). Therefore, one can determine the tools that can be applied in the implementation of the performance appraisal. These involve the situations in which the official appraisals breed gains due to the fundamental roles. In addition, through such functions, one can justify the expenses involved in the operation of such structures. Appraisals are also vital in the determination of employees’ terms for the rationale of shaping the capability and task obligation. However, little efforts have been made to identify how the variables and their consequences on staff attitudinal results are affected by employee evaluation.

Performance assessment is a system that has gained a lot of credit concerning the improvement of the output as well as building workers’ behavior and organizational obligation. In addition, performance appraisal is very essential as an assessment and ranking exercise carried by a firm on its workforce sporadically or per annum on the gains achieved from the workforce based on the work specifications and individual conduct (Treadway et al., 2007). The descriptions are very apparent in debating the rationale for performance evaluations by firms. As a result, several researchers have offered categorization of purposes for performing assessments in firms comprising citations, response on strong points and limitations, and between-person choices. For instance, Fugate, Kinicki, and Prussia (2008) categorized the evaluation of the performance of the employees based on the creation of a learning knowledge that inspires workers to build up themselves and advance the performance. In addition, the delivery of information to the administration on the output of subordinates and provision of the systematic manner of deciding on remuneration adjustments, the elevation of workers, and relocations form a basis for classification.

Performance appraisal is very critical as a supervisory practice that connects corporate objectives to the output standards as determined by the employees’ attitudes. In this framework, performance evaluation is fundamental in command, behavioral growth as well as contacts (Heathfield, 2007). The command responsibilities include recruitment, compensation along remuneration. On the other hand, behavioral growth relates to the identification and expansion of prospective output. Further, the communication function aids in the conveyance of messages and responses to the staff concerning their output and perspective behaviors. However, other studies argue that a firm may apply evaluation accounts to protect against cases of unlawful behaviors.

Though the studies by Heathfield, Fugate, et al, and Treadway et al were limited to the employees’ output-dependent variables, the studies indirectly add more information on how attitude affects the outcome. In addition, the studies provide a framework through which the influence of performance appraisal on employees’ behavior can be explored.

Performance appraisal and the cultural dimensions

Within the international organization, national cultures play a critical role in shaping individual behavior. Therefore, cultural aspects are significant while appraising performance. Studies indicate that workers of organizations within GCC feel dissatisfied because their managers do not take into consideration their culture while evaluating their performance. The reason is that most of these organizations adopt western models of performance appraisal that do not recognize other cultures. Culture remains fundamental consideration in the international business management processes. Organizations within the GCC in Qatar have taken little cognizance of cultural dimensions in their employee’s performance appraisal particularly in the domain of behavioral aspects.

Performance appraisal and the individual behaviors

Further studies of organizations within the GCC indicate that in organizations where performance appraisal procedure is considered just, then the personnel self-esteem, as well as the efficiency, is boosted (Treadway et al., 2007). Thus, the achievement of an effective performance evaluation depends on the acceptability that it is fair. On the contrary, in organizations where the performance evaluation is deemed unjust, the result is behavioral dysfunction. In addition, workers’ optimistic analysis of performance evaluation results in improved inspiration and output in general. Performance evaluation involves grading and attributes ranking (Treadway et al., 2007). Further, performance assessment also involves the technique of behaviorally attached balances. Evaluation of these organizationss’ performances occurs through self-evaluation, peer grouping conversations, and responses from the bosses (Treadway et al., 2007). The involvement of workers in the evaluation of their organizations’ performance is also very significant in the realization of the pragmatic goals that the organization intends to achieve. The result is possible due to the improved probability of response being worked on. Moreover, putting a lot of emphasis on the continuous preparation of a company’s personnel on the processes involved in the performance appraisal is essential to the realization of the highest levels of effectiveness (Treadway et al., 2007).

Methodology

The study will be exploratorily conducted to establish the influence of performance appraisal on employees’ behavior. The empirical data will be collected within the organizations in Gulf Cooperation Council in Qatar. The time of data collection will be limited and personal interviews will be the option of administering the questionnaire. In addition, the number of participants will be limited to seventy respondents and are chosen through simple random sampling procedures.

The study design

To look into the impact of performance appraisal on the employee’s behavior, this particular research study will utterly be empirical. The obligatory explorative data will be gathered across the study population selected through a sampling strategy. A research technique dubbed as survey method will be drawn on while the integrated statistical analysis tools will be applied to help analyze the obtained data. By employing these research methods, any ensuing unanticipated research proposition will be suggested as well as formulated. The costs of the study will somehow be reduced. These research methods are considered to be amongst the best given that they rarely stand a chance of disqualifying any notable alternative explanations because they surmise to the event causations.

Sample and sampling procedure

In this particular study, all the employees within the corporation are deemed viable. However, only a small number of participants will be selected depending on the frequency with which they have been involved in the performance appraisal as well as other personal attributes including gender, age, experience, and academic qualifications. From the total number of the corporation employees that may be sampled, just seventy employees will be selected via a technique dubbed as convenience simple random sampling strategy and the research questionnaire will be administered to help in addressing the formulated research questions.

Instrumentation

Data perceived to be containing the relevant research information for this study will be acquired from the primary as well as the secondary sources. In fact, as a field survey, that involves self-administration and personal interviews of research questionnaires, the pertinent primary data that include the perceived quality information will be gathered. In essence, a comprehensive exploration instrument will be developed besides being satisfactorily tested before embarking on the actual performance appraisal and employees’ behavior research study.

Data collection

As one of the most important studies in the organization personnel management, the information will be collected through administering properly designed research questionnaires, observations alongside conducting well-structured in-depth interviews with the unbiased selected participants. The soundly designed research questionnaire will be administered to seventy participants. Conversely, secondary research data will be acquired from the relevant organization records and other documents, which contain information on performance appraisal and the employee’s behaviors. For this particular case, the study intends to trace the performance appraisal and employees’ behavior history and various models that have been applied in the implementation of the performance appraisal.

Data analysis techniques

To obtain the best correlation approximation values, the study quantitative data analysis will be carried out by utilizing the integrated Statistical Analysis Tool (WISAT). Further quantitative data analysis techniques including spearman’s correlation, percentages, frequency distribution, and deviations will be used to determine the research respondents’ proportions that chose various responses. The method will be applied for each group of items available in the questionnaire that ideally corresponds to the formulated research question and objectives. Line graphs, tables as well as statistical bar charts will be used to make sure that quantitative data analysis is simply comprehensible.

Ethical considerations

Like any research study, ethical issues are likely to emerge. Thus, ethical consideration is critical. The ethical issues that are likely to arise include the informed consent of the participants, the power differences between the researcher and the participants, the confidentiality of the information as well as the consent of the authorities. Looking into ways through which these ethical issues can be dealt with is critical for the success of the study.

Before undertaking the study, all the requirements will be completed as a requisite by the research committee as well as the department. In addition, all the participants will be provided with information concerning their freedom of participation using the stated standards. A letter of introduction specifying and explaining the aims of the study and the standard methods will also be provided. The letter will also assure the confidentiality of their information. Moreover, an information sheet guiding and describing the study will also be provided. The participants will also be made aware that they can remove their participation without any consequence. Lastly, the participants will be provided with a letter of consent.

Approval will be sought from the responsible authority particularly the company top management and safeguards will be put in place during and after the research study to help protect the respondents and any other human subjects. Both physical and emotional harm that may accrue will be given due consideration in this section by stating the basic ethical approach along with the power differentials between the researcher and the respondents as well as how the participants will be protected from any eminent abuses. Informed consent will similarly be sought. Finally, the information acquired from the study participants will be securely stored and protected whereas study-finding reports will not divulge the participants’ identification.

References

Fugate, M., Kinicki, A. & Prussia, G. (2008). Employee coping with organizational change: an examination of alternative theoretical perspectives and models. Personnel Psychology, 61(16), 1-36.

Heathfield, S. (2007). Performance appraisals don’t work – what does? The Journal for Quality and Participation, 6(2), 6-9.

Shahzad, K., Bashir, S. & Ramay, M. (2008). Impact of HR practices on perceived performance of University Teachers in Pakistan. International Review of Business Research Papers, 4(2), 302-315.

Treadway, D., Ferris, G., Duke, A., Adams, G. & Thatcher, J. (2007). The moderating role of subordinate political skill on supervisors’ impressions of subordinate ingratiation and ratings of subordinate interpersonal facilitation. Journal of Applied Psychology, 92(3), 848-55.

Appendices

Appendix 1: Proposed Time Schedule

Activity Number Set up date Ending date Status
Selecting a research topic 0.5 Done
Writing the introduction 0.5 Done
Designing the study questionnaire 1.5 Not yet
Acquiring the study literature 1.5 Done
Research literature review 3.5 Completed
Writing the research proposal 1.5 Completed
Designing the research 1 Completed
Presenting the research proposal 1.5
Conducting interviews 2
Research data collection 1.5
The prelude of data analysis 1
Concluding data analysis 2.5
Writing the research paper 1.5
Final presentation and submission of the research paper 1
Total proposed research time in weeks 21 weeks

Appendix 2: The model of the study

The model of the study