Title of the Paper: Functions of the Performance Appraisal System: Analyses and their Impact on Level of Employees Motivation

Name of the Authors: Bahrija Umihanic, University of Tuzla, Bosnia and Herzegovina Mirela Cebic, Indirect Taxation Authority, Bosnia and Herzegovina Name of the Journal and Date of Publication: International Journal of Sustainable Economies Management 1-15,January-March 2012 Publisher: IGI Global

Introduction
The present paper is a good example of connecting and explaining the relationship between Performance Appraisal system and its impact over Employees Motivation. The authors have described the importance of performance appraisal and how it works and its impact on employees motivation. The study is based on both primary and secondary data . One of the important part of the paper is the categorization of various functions of appraisal, which are a novel part of the study. Various functions described are Developmental functions, Administrative Function, Stabilization Function, and Documentary Function. Author has done the analysis of these functions with support of hypothesis.

Objective of the study

The general aim of the paper is the identification and analyses of primary functions of the existing performance appraisal system of employees in institutions of Bosnia and Herzegovina and determining their impact on the motivation of employees within these institutions.

Research Methodology
Authors have done the analyses on the topic with the use of both primary and secondary data. By internal research the available secondary sources of data and information were analyzed (such as books of management, human resources management, articles which are dealing with performance appraisal of employees, as an important element of human resources, reports and other documentation about the performance appraisal system of employees in public administration, and Internet Sources), with all respect of the principle of referentiality and actuality. Through external research and by using survey as a research instrument, the empirical data of the characteristics of the existing performance appraisal system in the institutions of Bosnia and Herzegovina were collected, as well as data of the impact of the aforementioned systems on the motivation of employees within these institutions.

Research Sample
The Authors justifies the conducting of review of performance appraisal system of employees of Institutions of Bosnia and Herzegovina. The study has utilized a stratified random sampling technique. In total sixty three Institutions of Bosnia and Herzegovina, hundred managers and two hundred other employees in the institutions were stratified into three groups. In addition the authors have used the survey questions.

Research Instruments
The main instrument, which was used to collect data for the purposes of this research is the questionnaire. In the empirical research authors have used two types of questionnaires. Survey was conducted in the institutions of Bosnia and Herzegovina: the first type of questionnaire was designed for managers -top and middle management, in order to ask survey questions regarding determination of their views of the creditworthiness of the existing performance appraisal system; other type of questionnaire was designed for the lowest level of management or employees in public administration in order to ask survey questions regarding determination how they perceive the use of the existing performance appraisal system, and to determine the extent in which the implementation process and personal marks are resulting as increasing of their motivation at work.

Findings of the study

The major findings of the study are that the existing system in the Institutions of Bosnia and Herzegovina supports only documentary and administrative functions and as such does not raise the level of motivation. Authors have recommended the redesigning of the Performance Appraisal System.

There are few parameters on the basis of which I have reviewed the paper.

Parameter 1
Whether the paper contains new and significant information which justifies its publication.
One of the important part of the paper is the categorization of various functions of appraisal, which are a novel part of the study. Various functions described are

Developmental functions, Administrative Function, Stabilization Function, and Documentary Function. Author has done the analysis of these functions with support of Six hypothesis.

Parameter 2-Whether the paper demonstrate an adequate understanding of the relevant literature in the field and cite an appropriate range of literature sources?

A sufficient number of literatures have been reviewed to support the concept and validity of discussion. The study has categorically discussed the positive effects of performance appraisal of employees in the organization.

Parameter 3-Whether the paper's argument built on an appropriate base of theory, concepts, or other ideas? Has the research or equivalent intellectual work on which the paper is based been well designed? The paper is clearly presented and well organized as it contains descriptive part of the subject which then supports the research objective of this study. Paper's arguments are built on an appropriate base of theory, concepts of Performance Appraisal System and survey analysis. Two sets of questionnaire were used to conduct the survey. One set was for the top and middle level managers and another was for the Low Level managers.

Parameter 4-Are results presented clearly and analysed appropriately? Do the conclusions adequately tie together the other elements of the paper?

The hypothesis for every function of performance appraisal has been taken and well tried with the help of collected answers of questions. Results of the research are presented clearly and analyzed appropriately as the justification of hypothesis with the help of survey analysis has been depicted with the help of charts that makes the result of the research clear and transparent.

Parameter 5-How can the research be used in practice (economic and commercial impact), in teaching, to influence public policy, in research (contributing to the body of knowledge)? The research is an eye opener for the industry people as it has pinpointed the drawback of the current performance appraisal system adopted by the various institutions. It guides about the improvement which is required to make the effective use of appraisal process which can ultimately help them get the enhanced productivity of vital resources including human resource.

Parameter 6- Are there any limitations to the present study?

The paper is an attempt to express the real organizational scenario which is based on a sample of 63 institutions of Bosnia and Herzegovina. There is reason to believe that if study had to be done in some other countries , results may have been different.

Paper Reviewer Recommendation

Performance appraisal system must be redesigned as Performance Appraisal if properly designed and used can create happy employees and happy employees are the Productive employees.