A Study Of Performance Appraisal Acceptane And Employees' Performance In Multinational Companies In Malaysia

Amat Taap Manshor, (2002) A Study Of Performance Appraisal Acceptane And Employees' Performance In Multinational Companies In Malaysia. PhD thesis, Multimedia University.

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Abstract

The objectives of this study were to 1) develop valid measures of participation, goal setting, feedback, information quality, information validity, link performance with personnel decisions and fairness; 2) to develop valid and reliable measures of performance appraisal (PA) effectiveness scale, PA acceptance scale, and individual productivity scale; 3) to gauge the impact of participation , goal seeting, feedback, information quality , information validity, link performance with personnel decisions and fairness with performance appraisal acceptance and effectiveness, and employees' performance; 4) to identify the impact of demographic variables of respondents, performance appraisal characteristics and country of origin on performance appraisal acceptance and effectiveness and employees' performance. Results were obtained from a study of 675 middle level managers in multinational companies in Malaysia. Managers from various levels of organisations and their demographic factors like education, race, gender, age and department were studied. Information on perceived levels of appraisal acceptance, effectiveness and individual productivity was collected through questionnaire. Data were analysed using multiple regression and analysis of variance to determine the significance levels of correlation between variables tested. The results indicate that the performance appraisal participation scale explains the greatest amount of variance of performance appraisal acceptance. Feedback was the second most influential variable in explaining variance in performance appraisal acceptance, followed by fairness, information validity and link performance results with personnel decisions. Fairness , goal setting, link performance appraisal with personnel decisions, and information validity were the most significant variables associated with performance appraisal effectiveness. Individual productivity scale was found to be significantly associated with four independent variables, namely information validity, goal setting, participation and information quality. Turnover rate was also significantly associated with four independent variables, goal setting, feedback, fairness, and link performance appraisal and personnel decisions. Absenteeism rate was found to be significantly associated with goal setting, feedback, fairness and information quality. These analyses reveal that goal setting and information validity were the most frequent independent variables that associated with all the six dependent variables. Thus, to increase the levels of acceptence and effectiveness of performance appraisal systems and to improve employees' performance, performance appraisal systems need to incorporate a specific performance goals to be achieved by employees, goals are tailored to individual worker, performance goals are jointly developed and they are moderately difficult. The performance appraisal systems should also employ sufficient appraisal training, hold appraisers accountable for the quality of their ratings, and ensure that appraisers have sufficient opportunities to observe performance. It is also important to specifically document ratings, and that events or circumstances beyond the employee's direct control are taken into consideration in the final assessment. The result also indicate that company origin explains the greatest amount of variance of performance appraisal acceptance and effectiveness. The second and third variables were performance appraisal format and frequency of performance appraisal review for both the performance appraisal acceptance and effectiveness. These analyses reveal that thre is a major gap between one organisation to the others with regards to their human resources practices. Those companies that adopted systematic and "care" for their employees will have better performance and higher levels of acceptance on the performance appraisal systems. Performance appraisal format was also important in contributing to the higher levels of performance appraisal acceptance and effectiveness. This study found that those companies with goal-oriented performance appraisal had higher levels of acceptence and effectiveness of performance appraisal. It can be seen also that frequency of performance reviews play an important role in increasing the levels of acceptance and employees' performance. This study was also found that respondents' demographic variables were not significantly associated with performance appraisal acceptance and effectiveness.

Item Type: Thesis (PhD)
Subjects: L Education > LB Theory and practice of education > LB2300 Higher Education
Divisions: Faculty of Business and Law (FBL)
Depositing User: Mr Shaharom Nizam Mohamed
Date Deposited: 03 Dec 2009 07:40
Last Modified: 04 Dec 2009 10:21
URI: http://shdl.mmu.edu.my/id/eprint/43

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