ROLE OF HUMAN RESOURCEMANAGEMENT IN PERFORMANCE

APPRAISAL IN ORGANISATIONS:

A CASE STUDY OF WORLD VISION UGANDA

BY:

AKOI LUAL RACHIEL

ID: 003-040

A RESEARCH PROPOSAL SUBMITTED TO THE FACULTY OF BUSINESS AND

MANAGEMENT IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF A DIPLOMA IN

BUSINESS ADMINISTRATION OF

CAVENDISH UNIVERSITY

JUNE, 2017

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 DECLARATION

I Akoi Lual Rachiel that this is my original work, which has never been presented by any person
to any institution for any academic award

AKOI LUAL RACHIEL Date

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 APPROVAL

I certify that Akoi Lual Rachiel carried out the study and wrote this proposal under my
supervision. The proposal has been presented for examination with my approval as a University
Supervisor

...... .

DR. ELDARD SSEBBAALE MUKASA Date

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 DEDICATION

I am dedicating this research work to my beloved family.

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 ACKNOWLEDGEMENT

I am grateful to thank almighty God for guiding me complete this work and another thank goes
to my supervisor for her big contribution towards the success of this research proposal.

Great thanks are also extended to my parents and siblings for my upbringing and financial
support towards my studies especially in carrying out this research report.

Lastly, I wish to thank all the Management Constancy for typing this research proposal report. I
extend my humble gratitude to all those who offer an extra hand during my struggles.

To all of them I say please accept the regard of my highest consideration though I did not
mention your names all, still you are all in my heart.

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 TABLE OF CONTENTS

DECLARATION ............................................................................................................................. i

APPROVAL ................................................................................................................................... ii

DEDICATION ............................................................................................................................... iii

ACKNOWLEDGEMENT ............................................................................................................. iv

TABLE OF CONTENTS ................................................................................................................ v

CHAPTER ONE ............................................................................................................................. 1

INTRODUCTION .......................................................................................................................... 1

1.0 Introduction ............................................................................................................................................. 1

1.1 Back ground ............................................................................................................................................ 2

1.2 Statement of the Problem ........................................................................................................................ 3

1.3 Objectives of the study............................................................................................................................ 4

1.3.1 General Objective ................................................................................................................................ 4

1.3.2 Specific Objectives .............................................................................................................................. 4

1.4 Research Questions ................................................................................................................................. 4

1.5 Scope ....................................................................................................................................................... 4

1.5 Content Scope ......................................................................................................................................... 4

1.5.1Geographical Scope .............................................................................................................................. 4

1.5.2 Time Scope .......................................................................................................................................... 4

1.6 Significance of the Study ........................................................................................................................ 5

1.7 Conceptual Frame Work ........................................................................................................... 5

CHAPTER TWO ............................................................................................................................ 6

2.0 LITERATURE REVIEW ........................................................................................................ 6

2.1 Introduction ............................................................................................................................... 6

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2.2 Human Resource Management practices .................................................................................. 6

2.3 Performance Appraisals ............................................................................................................ 8

2.4 relationship between HRM practices and performance appraisal ........................................... 11

CHAPTER THREE ...................................................................................................................... 16

METHODOLOGY ....................................................................................................................... 16

3.1 Introduction ............................................................................................................................. 16

3.2 Study Design. .......................................................................................................................... 16

3.3 Population ............................................................................................................................... 16

3.4 Sample Size and Selection Method......................................................................................... 16

1.4.1 Sampling techniques ............................................................................................................ 17

3.5 Source of Data......................................................................................................................... 17

3.5.1 Primary Data ........................................................................................................................ 17

3.5.2 Secondary Data .................................................................................................................... 17

3.5 Data collection methods .......................................................................................................... 18

3.5.1 Data collection instrument ................................................................................................... 18

3.5.2 Data collection Procedure ................................................................................................... 19

3.6 Measurement of variables ..................................................................................................................... 19

3.7 Validity and Reliability ........................................................................................................... 19

3.8 Data processing and Analysis ................................................................................................. 20

3.9 Ethical Considerations ............................................................................................................ 21

3.9.1 Limitations faced during the study..................................................................................................... 21

REFERENCES ............................................................................................................................. 22

APPENDICES A: QUESTIONNAIRE FOR SMALL SCALE MEDIUMS ENTERPRISES.. .. 25

APPENDIX II: WORK PLAN ..................................................................................................... 29

APPENDIX III: ESTIMATED BUDGET ................................................................................... 30

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 CHAPTER ONE

INTRODUCTION

1.0 Introduction
This study is intended to investigate the role of HRM practices on performance appraisal in
organization with special interest on this case study of the World Vision, Uganda.

People are an important aspect in all social organizations and from the perspective of the
organization, people are resources and organizations cannot exist without them. The importance
of people is immense as they support development of the organizations objectives and
achievements for which NGOs are recognized for. Organisations are becoming aware that human
resources are an important asset that can provide sustained competitive advantages. However
adoption of effective human resource management (HRM) practices in many local Non
Govermental organizations (NGOs) is often low in the list of management priority. Successful
NGOs are those that recognize the significance of the human element on organizational success
and emphasize on their development, satisfaction, commitment and motivation in order to attain
desired objectives.

Local (NGOs) often do not realize the importance of effective management of human resources
to the well being of the organization and hence do not invest adequate time or resources to build
their capacity in necessary human resource competencies. The lack of attention on the
management of human resource is one of the factor standing between success and failure in
many local NGOs in developing countries. According to Ulah & Yasmin (2013:2) in the age of
competitiveness organizations cannot afford to bear the loss of potential human resource.

Sustainable development of an organization depends upon effective management of its human

resources. However little attention has been paid on the adoption of effective human resource
management practices in many local NGOs in the development sector yet it is an aspect that can
transform organization staff into a productive and motivated workforce capable of improving
organization services. Changing expectations of stakeholders, growth in internet usage and rapid

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development of e-commerce is pressurizing organizations in every sector to make improvements
in service delivery and human resource effectiveness. The contribution of people to an
organization is unpredictable, unique and has potential for further development because people
have beliefs, values and different levels of experience that can be tapped for both individual and
organizational benefit.

How effectively local NGOs operate and achieve their goals depends largely on how
professionally and productively people are managed. Employees are required to understand the
future of the organisation and their own future in the organisation this helps triggers commitment
and hence sustained productivity. Hence it is right to say that local NGOs are dependent on the
contribution of the human resource that exists within the organization and as an organization
they have no choice but to proactively identify and explore opportunities that will assist in
building their competency in managing employees.

1.1 Back ground

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. The human resource manager primarily performs it. On the other hand, HRM
practices are the organizational functions that deals with issues related to people such as
compensation, hiring, performance management, organization development, safety, wellness,
benefits, employee motivation, communication, administration and training (Heathfield, 2011).
HRM can help firms improve organizational behavior in such areas as heads of departments
commitment, competency and flexibility, which in turn leads to improved heads of departments
performance (Koch and McGrath, 2016).

In order to develop a sound HRM system, the organization should have effective Human
Resource Management practices. HRM practices are the organizational functions that deals with
issues related to people such as compensation, hiring, performance management, organization
development, safety, wellness, benefits, employee motivation, communication, administration,
and training and to ensure the fulfillment of organizational goals (Schuler & Jackson, 1987;
Wright, P & Nishii, L 2014). This is a shift from the HRM traditional roles of personnel,

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administration, and transactional duties, which are increasingly outsourced. In modern
management practices, HRM is expected to add value to the strategic utilization of employees
and that employee programs impact the business in measurable ways. Thus, the new role of
HRM involves strategic direction, HRM metrics and measurements to demonstrate value
(Boxall, 2016).

Human Resource Management practices and systems are critical in finding, training, managing,
motivating, and developing a team of heads of departments who will effectively carry out the
overall organization mission. By building strong, well-functioning human resource systems and
tools, the institution will be poised for growth, ready to manage the challenges of an evolving
environment, and responsive to the needs of clients (Cappelli, 2009).

With the current economic conditions, many organizations have felt the need to cut expenses
while at the same time increasing performance. This should be the ideal environment to execute
HRM practices as a means to optimizing the performance of each employee and the
organization. However, within many organizations including the World Vision, Uganda, the
concept of HRM practices has just begun to develop. In fact, only 5 percent of organizations say
they have a clear HRM strategy and operational programs in place today (Saxena and Tiwari,
2009).

1.2 Statement of the Problem

Like other traditional institutions, the World Vision, Uganda has weak personnel section. This
means that there is hardly any performance appraisals that take place in the organization. Also,
documentation on the trends of HRM practices implementation in this institution is lacking. This
means that motivating employees in the organization will be very difficult or even impossible if
performance appraisal is not properly carried out. This has implications on performance of
employees which might affect negatively the activities of the organization. Failure to address
critical HRM practices such as performance appraisal, hiring and reward practices among others
may result in unsustainable and undesirable events of inefficiencies in the performance of the
heads of departments of World Vision.

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1.3 Objectives of the study

1.3.1 General Objective

The study aimed at investigating the role of HRM practices on performance appraisal in
organization with special interest on this case study of the World Vision, Uganda.

1.3.2 Specific Objectives

1. To document the nature and extent of HRM practices carried out in the World Vision,
Uganda.
2. To determine the nature of performance appraisals carried out in World Vision, Uganda.
3. To analyze the relationship between HRM practices and performance appraisals in World
Vision, Uganda

1.4 Research Questions

1. What is the nature and extent of HRM practices carried out in the World Vision, Uganda?
2. What is the nature of performance appraisals carried out in World Vision, Uganda?
3. What is the relationship between HRM practices and performance appraisals in World
Vision, Uganda?

1.5 Scope

1.5 Content Scope

The study will focus on the HRM practices carried out in the World Vision, Uganda, with much
emphasis on performance appraisal, pay and hiring practices, determine the challenges facing the
implementation of HRM practices and to identify and analyze mechanisms for sustainable
implementation of HRM practices in the organisation.

1.5.1Geographical Scope
The study will be carried out from World Vision which has branches all over Uganda. The
researcher will use the World Vision, Uganda LOCATED AT Kabalagal along Gabba Road.

1.5.2 Time Scope

The study covered the period of review from 2010 2016 and collection of data from the
organization will run from April to July 2017.

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1.6 Significance of the Study
The study enhanced the development of appropriate interventions for addressing the challenges
of poor implementation of HRM practices in World Vision.

Furthermore, the findings of the study were disseminated to various lead agencies that seem to be
a party in enhancing sustainable HRM practices in organisations.

The research may also be used in further research academic undertakings. Therefore the study
shall contribute to the existing body of knowledge on the subject.

1.7 Conceptual Frame Work

IV DV

HRM practices Performance appraisal

Human resource
Recruitment policies Past-oriented methods
Safety Future-oriented
Benefits Applications methods
Employee Relevance and
motivations challenges
Training

Source: Researchers own construction (2017)

The conceptual framework explains the HRM practices on performance appraisal in World
Vision Uganda organization. HRM practices attributes like recruitment, safety, benefits,
motivation, and training among others affect performance appraisal in terms of Past-oriented
methods, Future-oriented methods, among others.

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 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction
The chapter contains related literature as per the subject under investigation, where related
literature was gathered and presented in sub-sections as below;

2.2 Human Resource Management practices

There are three theories of HRM practices namely strategic theories, descriptive theories and
normative theories. The strategic perspective deals with the relationship between a range of
possible external contingencies and HRM practices (Guest, 2007). The main aim in this theory is
the impact of environmental influences on HRM practices. The descriptive theories try to
elaborate HRM practices in a broad manner. The idea is to capture the broad field and address
some of the interrelationships. The normative theory is narrower and reflects the view that there
exists sufficient knowledge to prescribe a set of best practices. This theory further states that if
incorporated HRM practices are applied to achieve goals of high commitment, quality and
flexibility, then higher work performance will be the result. This will have a positive impact on
organizational performance (Guest, 2007). The strategic and descriptive theories do not provide
much insight into how HRM practices translates into high performance. They view HRM as part
of a system comprising many systems and suggest that, when the various subsystems including
the HRM sub-system are aligned and supporting each other, superior performance is likely
(Guest, 2007).

Guest (2007) further emphasizes that the normative approach assumes that appropriate HRM
practices tap the motivation and commitment of employees. The factors that constitute

appropriate practices are derived from the specific theories of organizational commitment, job
design and goal setting. The key aspects of the normative approach are that HRM provides a
coherent integration of these behavioral theories and also explain the connections between
practices and performance. An example is the expectancy theory of motivation, which provides

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one possible basis for developing the link between HRM practices and performance. It proposes
that high performance, at the individual level, depends on high motivation plus possession of the
necessary skills and abilities and an appropriate role and understanding of that role. The
normative approach to HRM practices that encourage high skills and abilities, for example
careful selection and high investment in training; high motivation, for example employee
involvement and possibly performance-related pay; and an appropriate role structure and role
perception, for example job design and extensive communication and feedback.

Although the theories that are presented differ in how they affect organizational performance of
the High Court, the result is that there is a relationship between HRM practices and organization
performance be it directly or indirectly. Therefore, the study intended to focus more on three
major HRM practices that included performance appraisal, hiring and pay as discussed as
follows.
Numerous scholars have acknowledged HRM practices by different names that include best
practice (Kok Jan de et al., 2013); high-performance (Huselid, 2015); formal HRM practices
(Aldrich and Langton, 2007; de Kok and Uhlaner, 2011; Heneman and Berkley, 2009),
sophisticated (Golhar and Deshpande, 2007; Hornsby and Kuratko, 2011; Goss et al., 2014;
Wagner, 2008) or as professional HRM practices (Gnan and Songini, 2013; Matlay, 2009).
However, Pfeffer (2014; 2008), argued the most appropriate term is Best HRM Practices.
According to Chandler and McEvoy (2011), one of the persistent questions in HRM research is
whether or not there is a single set of policies or practices that represents a universally superior
approach to managing people.

Theories on best practices or high commitment theories suggest that universally, certain HRM
practices, either separately or in combination are associated with improved organizational
performance. Researchers have also found that those well-paid, well-motivated workers, working
in an atmosphere of mutuality and trust, generate higher productivity gains and lower unit costs
(Boxall, 2016; Lowe and Oliver, 2011; Pfeffer, 2014).
Quite a number of attempts have been made from time to time by different researchers to identify
the type of HRM practices in different sectors. Originally Pfeffer (2014) identified 16 practices,
which represent best practice. This was later refined to the following seven practices;

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employment security, selective hiring, self-managed teams/team working, high compensation
contingent on organizational performance, extensive training, reduction in status difference and
sharing information.

In one other study, Redman and Matthews (2008) identify an HRM bundle of key practices,
which support service organizations quality strategies. These include the following practices:
careful recruitment and selection, e.g. total quality recruitment and zero defects recruitment
among others; extensive remuneration systems; team working and flexible job design; training
and learning and employee involvement, i.e. keeping employees informed of key changes in the
organization. Also Saxena and Tiwari (2009) developed the 3Cs-TER Framework (Culture
building, Career Development, Compensation Training and Development, Employer-Employee
Relations, Rewards and Benefits) which are identified as important HRM Practices.

Many organizations are looking for help to modify, or even transform their HR function
focusing more energy on a strategic approach to HR, including managing costs, improving
business performance and outsourcing the non-core pieces. Adding to the complexity,
globalization of the workforce is a reality; organizations are struggling to meet the demand for a
worldwide work force. (FUE Report, 2007). The Report further indicates that the costs of truly
globalizing a workforce are high and the tax and human implications of international mobility
are profound, requiring a large investment of management focus in terms of time and available
budget. That globalization and the associated international mobility further complicate the
challenging task of managing compliance with state and now foreign laws and regulations
surrounding employment and taxes (FUE Report, 2007). Realized already is that the best
approach to making a better return on investment in human capital is to align the HR plans,
programs, and systems with the overall business strategy. This involves taking a comprehensive
approach to human capital (UN World Public Sector Report, 2015).

2.3 Performance Appraisals

Historically, performance appraisals have played four different roles in human resources
management. These roles include communication/information tool, behavior modification tool,
personnel decision-making tool and legal document. Research reflects that performance

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appraisals serve as a two-way communication tool between employers and employees. As part of
this communication, employers provide specific feedback on employee performance. The
feedback is viewed as a central element of the communication process in which the sender
conveys a message to the recipient. The extent to which feedback is accepted depends on a
number of factors: the credibility of the source of the feedback; the nature of the message
conveyed; and the characteristics of the employee who is receiving an appraisal (Anderson,
2013).

In addition to providing feedback, performance appraisals provide the opportunity to ensure

employers and employees have a mutual understanding of effective performance. Performance
appraisals also provide the means for employees to understand how their performance is
evaluated. "Research reflects that more than half the professional and clerical employees
working today do not understand how their work is evaluated" (Boudreau, et al 2015).

There is, says Soomro et al. (2011), "... a basic human tendency to make judgments about those
one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and
universal. In the absence of a carefully structured system of appraisal, people will tend to judge
the work performance of others, including subordinates, naturally, informally and arbitrarily.

Performance appraisals also foster communication that may be lacking otherwise. Employers can
use the appraisal to counsel and motivate employees. In addition to serving as a communication
tool, performance appraisals serve as behavior modification tools. During the performance
appraisal interview, the supervisor or the employer may determine that the employee is not
fulfilling job responsibilities or behaving in a satisfactory manner due to lack of knowledge or
skill. In such cases, "training that brings about a relatively permanent improvement in an
employee's behavior is critical for effective human resource development" (Ulrich, D. 2007).

Pay systems that organizations offer to the employees play a key role in increasing employee
motivation (Guest, 2007), performance and productivity. Hence, most of the organizations are
very much concerned about establishing and maintaining the optimal compensation systems.

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So far, there are two main theories that have been put forward to guide most resource managers
on establishing a standardized pay system and these include;

Reinforcement theory is based on the work of Skinner (1974). It expresses the belief that changes
in behaviour take place as a result of an individuals response to events or stimuli and the
ensuing consequences (rewards or punishments). Individuals can be conditioned to repeat the
behaviour by positive reinforcement in the form of feedback and knowledge of results. This
process is known as operant conditioning. Gagne (1977) later developed his stimulus-response
theory, which relates the learning process to a number of factors, including reinforcement,
namely: drive there must be a basic need or drive to learn; stimulus people must be
stimulated by the learning process; response people must be helped by the learning process to
develop appropriate responses, i.e. the knowledge, skills and attitudes that will lead to effective
performance; reinforcement these responses need to be reinforced by feedback and experience
until they are learnt.

Like reinforcement theory, expectancy theory (Vroom, 1964) focuses on the link between
rewards and behaviors (instrumentality perceptions), although it emphasizes expected (rather
than experienced) rewards (i.e., incentives). Motivation is also a function of two other factors:
expectancy, the perceived link between effort and performance, and valence, the expected value
of outcomes (e.g., rewards). Compensation systems differ according to their impact on these
motivational components. Generally speaking, pay systems differ most in their impact on
instrumentality: the perceived link between behaviors and pay, also referred to in the pay
literature as "line of sight." Valence of pay outcomes should remain the same under different pay
systems. Expectancy perceptions often have more to do with job design and training than pay
system.
Successful employee hiring decisions are the foundation of any organizations success. Most
managers and senior executives would agree that the task of hiring can be one of the
responsibilities with the most impact in their organization (Dessler, 2009). A new survey by
human resource consulting firm Development Dimensions International and web-based
recruiting resource Electronic Recruiting Exchange (ERE) reveals what keeps successful

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organizations on top they don't just glance at a resume and then hire whoever looks good in a
suit, but instead use four modern hiring practices to find top talent which include;

Job interviews in which candidates describe specific examples of their skills: The survey
reported that 94% of the organizations already use this kind of interview, which a variety of
studies have shown is the form of interviewing that most accurately predicts future performance.
In fact, according to the DDI/ERE survey, such "behavior-based interviewing" is so successful
that nearly 40% of the organizations in the study are planning to do even more in the future.

2.4 relationship between HRM practices and performance appraisal

Implementation of effective HRM practice directly or indirectly affects organizational
performance. Good HRM practices help the organizations to achieve competitive advantage.
According to the resource based view of the firm (Penrose 2015; Barney 2011), competitive
advantage can be developed and sustained by creating value in a way that is rare and difficult for
competitors to imitate and the quality the human resource within is difficult to imitate.

Enhancing Employee-employer relations in the organization leads to implementation of effective

HRM practices. Tzafrir et al. (2014) conducted a survey to find out the consequences of effective
human resource management practices on employees trust. The result indicated a positive and
significant influence of empowerment, organizational communication and procedural justice as
determinants of employees trust in their managers. Guzzo and Noonan (2014) considered HRM
practices as a communication channel between employer and employees. Rousseau and
Greller(2014) proposed HRM practices as contract-shaping events.

Vanhala and Ahteela (2011) in their study found that employee trust in the whole organization is
connected to perceptions of the fairness and functioning of HRM practices. Such practices can
therefore be used in order to build the impersonal dimension of organizational trust. Moreover,
HRM practices may have an influence on employee skills and motivation. HRM practices
influence employee skills through the acquisition and development of a firms human capital.

Recruiting procedures and selection regimes will have an influence over the quality and type of

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skills new employees possess.

Performance appraisal and attitudes towards HRM department were the significant predictors
of organizational commitment in both the organizations. In another study, Chew and Chan
(2008) examined the impact of HR practices on permanent employees organizational
commitment and their intention to stay and found that organizational commitment was positively
affected by person-organization fit, remuneration, recognition, and an opportunity to undertake
challenging employment assignments. Intention to stay was significantly related to person-
organization fit, remuneration recognition, training and career development. Further, he found
that training and career development was not significantly related to organizational commitment
and challenging assignments was not significantly related to intention to stay.

Performance Appraisal plays a central role in Performance Management Systems; it is normally

the vehicle behind which the organisational goals and objectives are translated into an
individuals objective. It also remains the primary way of discussing and acting on the
development of the individual (Fletcher, 2014). When a part of performance management,
appraisal is much more tightly linked with the larger business environment. De Nisi and Griffen
(2008, p.318) state that Performance management refers to a general set of activities which are
carried out by the organisation to improve employee performance. Although performance
management is typically reliant on performance appraisals, performance management is a
broader and more encompassing process and is the ultimate goal of performance appraisal
activities (De Nisi &Griffen, 2008). Performance
Management has been seen to be more successful and brings a lot of benefits to an organisation.

A study carried out by Fletcher and Williams (2016) in 9 UK organisations showed that features

of performance management lead to organisational commitment and in particular, job

satisfaction.

Performance management systems are effective when they are based on goals that are jointly set

and are driven by an organisations business strategy (Lawler, BensonMcDermott, 2012).

Performance Appraisal from a social-psychological perspective as opposed to the traditional tool

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for measurement is becoming more popular, viewing Performance Appraisal as a communication

and social process.

Performance Appraisal is intended to gather crucial information and measurements about the

actions of staff and the companys operations which are valuable to management for enhancing

the employees productivity, working conditions, their morale, and inner workings of the

organisation wholly (Rahman& Shah, 2012). Effective managers recognise performance

appraisal systems as a tool for managing, rather than a tool for measuring, subordinates. They

may use performance appraisals to motivate, direct and develop subordinates (Wiese &

Buckley, 2008, p244).

Having both the manager carrying out the appraisal and the employee setting goals mutually is

crucial for the effectiveness of the performance appraisal. This can ensure that the employee will

work harder to reach these goals as they participated in setting them initially. The degree of

involvement of subordinates in the appraisal has been seen to be of benefit to the success of the

system. Cawley et al (2008) proved that subordinate participation in the appraisal procedure is

related to employee satisfaction and their acceptance of the performance appraisal system.

Employee Participation is a key element of intrinsic motivational strategies that facilitate worker

growth and development (Roberts, 2013). Folger (1987), as cited by Roberts (2013) stated that

the participation of employees in the appraisal system gives employees a voice and empowers

them to rebut ratings or feedback that they are unhappy with. Greater employee participation is

known to create an atmosphere of cooperation, which encourages the development of a coaching

relationship, reducing tension, defensive behaviour and rater ratee conflict which could be

caused by the appraisal (Jordan, 2011).

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One of the major causes of ineffective performance appraisal is the dislike that both the appraiser

and appraisee have towards the process. Performance Appraisal is one of the most emotionally

charged procedures in management (Swan, 2011). Almost every executive has dreaded

performance appraisals at some time or other. They hate to give them and they hate to receive

them (Sims, Gioia&Longenecker, 1987). Many managers and supervisors are unwilling to make

accurate evaluations of subordinates because they do not want them to be hurt. Where the

consequence of a low evaluation is termination, no pay increase, an unpleasant work assignment,

or no promotion, managers are reluctant to be precise (Kearney, 1978). Watling (2015)

highlights the importance of giving appraisals based on facts, not just feelings and suggests the

best way to do this is by measuring performance by surveys, on the job observation, peer group

feedback and results against targets. This is important to consider in establishing what an

effective performance appraisal is. The appraisal will not be accurate if the manager carrying out

the appraisal is having difficulty in giving feedback honestly and truthfully. Because of the

emotional variability involved in such processes, accuracy is something which will seldom be

achieved. But is this a vital element for management, as it has been shown that executives giving

appraisals have ulterior motives and purposes that surpass the mundaneconcern with rating

accuracy (Sims et al, 1987). One manager surveyed by Sims et al (1987) felt that accurately

describing an employee's performance is really not as important as generating ratings that keep

things going. Some other reasons for managements manipulation of the feedback in an appraisal

setting is that they have to work with these people and do not want to create tension or hostility,

also the element of there being a physical document from the appraisal recorded permanently on

the employees record meant that the appraiser may soften the language used.

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Unfair procedures used in performance appraisals create job dissatisfaction. A Performance

appraisal system should be fair and must provide accurate and reliable data (Karimi et al, 2011).

Therefore it is important that performance management systems are fair to staff so that the

organisation can reap the benefits.

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 CHAPTER THREE

METHODOLOGY

3.1 Introduction
This chapter entails the description of how the research will be conducted. It includes the area of
study, the research design, the type of correspondents, and the research tools used, procedures for
data collection, and methods of data analysis applied in the study.

3.2 Study Design.

The researcher will use an exploratory research design to generate basic knowledge, clarify
relevant issues and to break grounds about the characteristics and nature of the problem and also
to uncover the variables associated with the problem and the researcher used a cross sectional
design in addition so as to establish the relationship between electronic organisationing and
performance

3.3 Population

The population in the study involved World Vision organisation heads of departments who
attend to most staff and finally a number of accessible World Vision staff which all totaled to 70.

3.4 Sample Size and Selection Method.

The sample population will be selected from the study population of 70 using Slovenes Formula
to come up with appropriate sample size to be used in the study. (Greener, 2008).

Slovenes Formula states that, given a population, the minimum Sample size is given by: The
sample size will be calculated mathematically using the formula below;
nN
Where; n = the sample size
N = total population of respondents that is 70.
e = the level of significance, that is 0.05

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 N
n
1 Ne 2
n= 70
1 + 70 (0.05)2
n= 70
1+70 * 0.0025
n= 70
1.175
n= 59.57
n= 60
A sample size of 60 respondents will be selected to participate in the study

1.4.1 Sampling techniques

The researcher will use simple random sampling and purposive in selecting al the respondents in
all the hardware shops that will be included in this study.

3.5 Source of Data

3.5.1 Primary Data

According to Roston (2011), primary data is that kind of data that has been gathered for the first
time, it has never been reported anywhere. Primary data will be obtained through the use of self-
administered questionnaire to respondents following systematic and established academic
procedures, as suggested by Nunnally and Bernstein (2014). The questionnaires will be used for
the collection of data from small Scale business.

3.5.2 Secondary Data

Roston (2011) defines secondary data as that kind of data that is available, already reported by
some other scholars. Secondary data will be used to support the empirical findings of the study.
These other sources of data (Literature review) will be majorly used to back up the arguments
and findings in chapter four and five. Secondary data will be obtained from existing literature in
audited and registered annual reports of the World vision to determine the various ratios. and

17
journal articles, previous research paper findings, journal articles, Text books, News papers,
reports and conference proceedings and individual small World vision publications and websites.
The reason for this will be to make comparison of secondary data with primary data.

3.6 Data collection methods

The data collection methods used for this study will be both the questionnaire method and
Interview method.

Questionnaire method

The questionnaire method will be used to get information from literate informants who shall fill
them and return them to the researcher for data analysis.

Interview method

The interview method will be used to those respondents who will too busy to have time to fill the
questionnaires. This will be done to ensure that all information is got from the targeted people
who will participate in this study. Also, the interview method will be used to get qualitative
information which cannot be quantified form say experts in the field of study.

3.6.1 Data collection instrument

The researcher will obtain data primarily through the primary data from the field using the
following important instruments:
Questionnaires
These are inter-related questions designed by the researcher and given to the respondents in order
to fill in data/information. Here, self-administered questionnaires will be employed containing
both open and close-ended questions. This will reduce costs of movement and also because the
researcher will be dealing with literate people, with the capacity to fill the forms.

Interviews
The researcher will conduct face-to-face interactions with the interviewee and herself with the
sole aim of soliciting data. The researcher will use both formal and informal interviews with the
respondents. This will enable the researcher to get more information in greater depth, reduce

18
resistance and also obtain personnel information and views risk management and financial
performance of insurance companies.

3.6.2 Data collection Procedure

Data collection will involve a self-administered questionnaire. The researcher will drop the
questionnaires physically at the respondents places of work. The researcher will leaves the
questionnaires with the respondents and will pick them up later. Each questionnaire will be
coded and only the researcher will know which person will be responded. The coding technique
will only be used for the purpose of matching returned, completed questionnaires with those
delivered to the respondents.

3.7 Measurement of variables

The frequency and percentage distribution will be used to determine the demographic
characteristics of the respondents.
The means will used to measure the HRM practices and performance appraisals. The following
mean range will be used to arrive at the mean of the individual indicators and interpretation.
1.0 - 1.49 Very Low
1.50 - 2.49 Low
2.50 - 3.49 High
3.50 - 4.00 Very high
Pearson correlation coefficient will be utilized to test the relationship between HRM practices
and performance appraisals at 0.05 level of significance.
3.8 Validity and Reliability
Validity is defined as the accuracy and meaningfulness of inferences, which are based on the
research results (Greener, 2008). The assessment of validity in this research is based on
subjective opinions and the judgment of the researcher. Greener (2008) adds that reliability is
required to make the research auditable.

The validity of the tool

The tool validity will be checked and confirmed using retest method, three weeks later between
the first and second application and using Cronbachalpha () for the internal coordination; the
value for retest will be a content validity index (CVI.) The researcher will use judges to establish
validity for each item. Where by five judges will be selected to judge each item. If three of

19
them agreed that the item is valid then the inter judge coefficient validity will be CVI= (number
of judges declared item valid) (total no of judges 3/5=0.6= (number of item declared valid) total
number of items for the instrument to be accepted as valid this average index will be 0.7 or
above.

Reliability of the instrument

Reliability of the tool will be checked and confirmed by subscribing the tool to a committee of
judges, assessments evaluation, educators and special consultation on the insurance sector
consultants after giving their opinions sand suggestions, the researcher excluded some items and
adjusted some items according to their suggestions until the tool emerged in its final version.

And the test-retest reliability will be applied in the tool where by scorers on the same test by the
same individuals will be constant overtime. They provided evidence that scores obtained on
attest at one time (test) will be same or close to the same when the test is re-administered some
other time (retest).

VARIABLE Level of CAC CVI

significance

HRM practices At 0.05 0.7 0.87

Performance appraisals At 0.05 0.69 0.85

3.9 Data processing and Analysis

Data analysis is the science of examining raw data with the purpose of drawing conclusions
about that information. The collected data will be analyzed using quantitative analysis which
majorly involved six major activities namely, data preparation, counting, grouping, relating,
predicting and statistical testing. Data will be processed manually and scientifically. Tallies will
be made for each question and also computer packages such as Microsoft excel and word will be
used. Raw data will be examined to detect errors such as ticking what will not be collected or
omissions. Collected data will be presented in form tables such as use of frequency tables. Both
qualitative and quantitative analyses will be used for analyzing data. Descriptive analysis will be
used to analyze data in form of tables.

20
3.10 Ethical Considerations
The researcher will be protected by the statutory rights of the participants investigated and will
be avoided undue intrusion, obtain informed consent and protect their privacy rights. The
researcher will frame research questions objectively so as to widen the scope of the study and
maintain confidence in the research process. The researcher will be sensitive of social and
cultural differences and considers conflicting interests. Lastly the researcher will endeavored to
report all findings completely, and objectively with full information on methodologies to allow
research work to be assessed by colleagues and to increase public confidence and reliability.

3.10.1 Limitations faced during the study.

There was lack of comprehension of some questions especially where the respondents selected
had little knowledge about a particular question.

Financial problems in gathering data about the institution and it was common with staff who do
not want to share their experiences without a fee. In addition, expenses related to transport to and
from the organisation premises and all other related expenses such as stationary, photocopying
and printing.

Time period provided was very short, so the researcher had to minimize whatever had to be done
in order to be on time and do the needful. Therefore, the researcher had to do everything as quick
as possible

21
 REFERENCES

Aldrich, H. and N. Langton, (2007), Human Resource Management Practices and

Organizational Life Cycles, in P. D. Reynolds, W. D.By grave, N. M.

Anderson, M. E. (2013). Principals: How to train, recruit, select, induct and evaluate leaders for

Americas schools. Washington, DC: ERIC Clearinghouse on Educational Management.

Retrieved August 15, 2012, from http://eric.uoregon.edu/pdf/ books/principal.pdf

Armstrong, M. (2016), A Handbook of Human Resource Management Practice, 10th edition,

London

Arthur, Jeffery B. (2014), Effects of Human Resource Systems on Manufacturing Performance

and Turnover, Academy of Management Journal, (37) 670-687.

Barney, Jay, (2011) Firm Resources and Sustained Competitive Advantage, Journal of
Management, (17) 99-120.

Boselie, P. and Wiele, V T.(2012), Employees perception of HRM and TQM, and the effects on
satisfaction and intention to leave, Managing service Quality, 12 (3)165-172.

Boudreau, J. W. and Ramstad, P. M. (2015). Talent ship, Talent Segmentation, and

Sustainability: A new HR Decision Science Paradigm for a new Strategy Definition, Human
Resource Management, 44(2), 129-137

Boxall, P., (2016) The Strategic HRM Debate and the Resource- Based View of the Firm,
HRM Journal, 6 (3) 59-75.

Cappelli, (2009). Do High-Performance Work Practices Improve Establishment-

Level Outcomes. Industrial and Labor Relations Review 54, 737 775.

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Chandler, G. N., and G. M. McEvoy, (2011) Human Resource Management, TQM, and Firm
Performance in Small and Medium-Size Enterprises, Entrepreneurship: Theory and Practice 25

(1): 43-58.
Delery, J.E. and Doty, D.H. (2016) Modes of Theorizing in Strategic Human Resource
management: Tests of Universalistic. Contingency on Figurational Performance
Predictions.Academy of Management Journal. 39: 802-35.

Dessler, G. (2009), How to Earn Your Employees Commitment, Academy

of Management Executive, (13) 2: 232-236.

Managed Enterprises, Scales PaperN201319,EIM and Erasmus University Rotterdam

(CASBEC), Zoetermeer, December 2013

Kuye J. O. and Mafunisa M.J (2013) Responsibility, Accountability and Ethics: The Case For
Public Service Leadership. Journal of Public Administration 38, (4) 421 - 437.

Lowe, J. and N. Oliver, (2011) The High Commitment Workplace, Work Employment and
Society, (5) 3: 437-450.

Management Structure Review Report: The Judiciary, (2014) Strengthening of the Judiciary
project, DANIDA Project Secretariat, Kampala

Matlay, H. 2009, Employee Relations in Small Firms: A Micro-Business Perspective,

Employee Relations, (21)3: 285-295.

Onzubo, P. (2007) Turnover of Health Professionals in the general Hospitals in the West Nile

Region. Health Policy and Development

Wagner, J.A. (2008), Participations Effect on Performance and Satisfaction: A Reconsideration

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of Research Evidence, Academy of Management Review, (19) 312330.

Wallace, Jean E. (2015), Corporatist Control and Organizational Commitment Among

Professional, Social Forces, 73: 811- 840

Wright, P. & Nishii, L. (2014), Strategic HRM and organizational behaviour: integrating
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24
 APPENDICES A:

QUESTIONNAIRE FOR SMALL SCALE MEDIUMS ENTERPRISES

Dear respondent;

I Akoi Lual Rachiel a student of Cavendish University am conducting a study on the role of
HRM practices on performance appraisal in organization. You have been selected to participate
in this study. The study is entirely academic and the response will be treated with a lot of
confidentiality. Please feel free to tick in the most appropriate box and where possible give your
view by writing in the blank spaces provided.

PART A- Demographic characteristics

1. Gender

Male

Female

2. Age

20 29 years
30 39 years
40 49 years
Above 50 years

3. Religion

Catholic
Protestant
Moslem
SDA
Orthodox
Others

25
4. Qualification academically

PhD

Masters Degree

Bachelors Degree

Diploma

Certificate

Others

5. Marital status

Married

Single

Separated/divorced

Direction: Please tick the column corresponding rating that best describes your response using

the guide below.

Please rate /indicate/ tick appropriately your response with respect to the importance of the

statements below:
5. 4. 3. 2. 1.

Strongly Agree Agree Disagree Not Sure Strongly

Disagree

This objective of thestudy seeks to ascertain the aspects of staff motivation presented in table on

the likert scale of 5 to 1 rating. Therefore, the following items/statements/questions are intended

to ascertain your degree of agreement and so, carefully read and tick the appropriate number that
26
indicates how much you agree or disagree with each statement. Scale: (5 = Strongly Agree, 4=

Agree, 3 =Disagree, 2 = Not Sure, 1= Strongly disagree).

NB: There is no right or wrong answers.

PART B: Human resource practices

6. The following are the Human resource practices.

(5= Strongly Agree, 4= Agree, 3= Not sure, 2= Disagree, 1= Strongly disagree).

Please tick the appropriate box.

Response on the Human resource practices 5 4 3 2 1

Company undertake regular performance appraisal 5 4 3 2 1

Performance evaluation does identified skilled employee 5 4 3 2 1

There is increment in pay resulting from excellent appraisal 5 4 3 2 1

results
Staff is promoted to higher positions according excellent 5 4 3 2 1
performance and needs analysis
5 4 3 2 1
Performance evaluation serve on the basis promotion
We are oriented on performance appraisal procedures 5 4 3 2 1

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SECTION C: Effect of Performance Appraisal Process

7. The following are the Effect of Performance Appraisal Process.

(5= Strongly Agree, 4= Agree, 3= Not sure, 2= Disagree, 1= Strongly disagree).

Please tick the appropriate box.

Effect of Performance Appraisal Process 5 4 3 2 1

My performance rating is based on how well am doing 5 4 3 2 1

I am satisfied and motivated with the way appraisal 5 4 3 2 1

system is used to evaluate my performance
There are set standards for my job 5 4 3 2 1

Employee performance is easy to measure. 5 4 3 2 1

The most recent ratings I received are based on many 5 4 3 2 1

activities I am responsible for at work.
My performance is above average ratings. 5 4 3 2 1

I clearly understand the purpose of performance 5 4 3 2 1

appraisal process
Performance appraisal identifies performance problems to 5 4 3 2 1
improve employee productivity and motivation.
I am satisfied with the way the performance appraisal 5 4 3 2 1
system is used to set my performance goals for each
rating period

Thank You For Your Cooperation

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 APPENDIX II: WORK PLAN
WEEKS
Activity
1 2 3 4 5 6 7 8 9

1 Topic selection

Chapters one of the

2 research proposal

Chapter two & three of

research proposal
3
Chapter two & three of
research proposal
correction

5 Final report

7 Final proposal report

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 APPENDIX III: ESTIMATED BUDGET

This is the total cost and expenses that the research expects to meet during the course of
Research study.

Items QTY UNIT COST AMOUNT

Stationery

Ream of rule paper 2 15,000 30,000=

Pens 5 1,000 5,000=

Pencils 5 200 1,000=

Box files 2 4000 8,000=

Note books 4 1,000 4,000=

Transport 50,000=

Preparing questionnaires interview guide 20,000=

Editing data, printing and binding 150,000 150,000=

Airtime 20,000 20,000=

Motivation and refreshment 50,000=

Miscellaneous 50,000 50,000=

TOTAL 388000/=

30