Examining Employees’ Attitudes towards Performance Appraisal and Its Impact on Performance and Motivation in a UK Information Technology (IT) Firm

Abstract

Employee performance has traditionally been accorded prime focus by human resource managers. As a result, a number of performance appraisal techniques have over time been devised to help establish employee’s performance. In the contemporary times, the use of performance appraisals has been extended beyond rating of the employee’s performance to aspects such as motivation. The study’s main objectives pertained to establishing the moderating role of employees’ attitude towards performance appraisal as a motivation and performance tool. The study was based on Shine Communications London, as the case study organization. Primary data was collected from the organisation’s employees and HR manager. Notably, a survey questionnaire was used to collect quantitative data from the employees while an interview was conducted with the HR manager. Data from the sample of 45 randomly selected employees was statistically analysed using the help of SPSS 2.0. Content analysis was used to analyse the qualitative responses from the HR manager. The study finds that a Performance Appraisal System can fail to achieve its motivational effect when it is used to threaten job security, is marked by inaccuracy and conducted by improperly trained reviewers. Among the study’s main recommendations include designing of a Performance Appraisal System that enhances perceptions of fairness and use of a personal approach in linking Performance Appraisal results to rewards.