Essay: Impact Of Management Performance Appraisal Tools On Employee Performance In Small Accounting Firms In NZ.

Introduction and background

The following proposal aims at investigating the impact of applying management performance appraisal tools on individual employee performance working in small accounting firms in New Zealand. The proposal will involve detailing the research topic, outlining research objectives, research questions and reviewing topic literature. 

The concept map below enables understanding of the research topic in the context suggested for research. The concept map gives a detailed scope of the topic on the performance of employees working in Small Business Accounting in New Zealand.   

Appraising employees is an important part of human resource management in an organization. Individual contributions in an organization aggregately contribute to business success. Small business face human resource challenges regarding skills and retaining talent. Using management performance appraisal can help in recognizing skills needs, and each employee contribution in the business and the information can be used to offer training, promotion or compensate accordingly. The choice of tools used to appraise employees influences the attitude of employees in different ways. This could affect their performance and the overall organizational performance. The topic of the research will discuss various tools used and their impact on the process of performance appraisal (Farndale, & Kelliher, 2013).

The paper will also give a critical review that will help in judging whether the performance appraisal tools are necessary or not during the appraisal of employees in the small business accounting. Also, the paper will also provide a discussion that will show the importance of using these tools in an appropriate manner to ensure the appraisal provide improved performance among the individual employees in small business accounting (Gupta, & Kumar, 2012).

The question on the Usage of management performance appraisal tools impact individual employee performance among small businesses accounting (SBA) in New Zealand is an applied question, and it is used in applied management.

H ₁ -The application of management performance appraisal tools increases indicial employee morale in the workplace.

H₀ –Application of management performance appraisal tools decreases individual employee’s morale in the workforce.

H₂ -The usage of appraisal tools increases the performance of individual employees due to fair reward and compensation.

H_{0 -} The usage of appraisal tool decreases performance due to a feeling of biases and discrimination in the workplace.

H₃ -Performance appraisal tools increases effectiveness and efficiency in the business leading to business success.

H_0- performance appraisal to decreases effectiveness and efficiency in the business leading to business failure.

Literature review

H_o means null hypothesis.

The preliminary study involves a review of four peer-reviewed journals that will be used to in the research project.

The effectiveness of the Performance Appraisal as a Tool to Measure Employee Productivity in Organisations. (2017). Macrothink.org. Retrieved 23 April 2017, from https://www.macrothink.org/journal/index.php/jpag/article/viewFile/6912/_69Performance appraisal for understanding employees

The effectiveness of Performance Appraisal as a Tool to Measure Employee Productivity in Organisations.

The performance appraisal process analyzes the performance of employees with the aim of identifying their weaknesses and strengths to better strategize on ways to improve on the weaknesses. The research is targeting the employees and management of the Tema port Ghana. This study uses the questioners to collect data from the targeted samples. The human resource department at Tema port is the one responsible for developing the performance appraisal. Also, when the appraisal feedback was given to the employees, it came late and was characterized by biases. The performance appraisal is done once in a year in this organization. The research employs the quantitative methodology whereby it collects primary data and tabulates it to draw its conclusion.

The structure of the paper consists of five chapters namely introduction and background, literature review, methodology, data presentation and analysis, conclusion and recommendation. The finding of the study showed that the performance appraisal tools do affect the performance of employees and that the effect arises because of which particular tool has been used. In conclusion, the article has cited that the motivation of employees toward performing in their tasks, due to appraisal, is greatly affected by the experience than the feedback. Once the employee gains a perception that the appraiser is not fair, the employee is automatically demoralized, which affects the performance. Moreover, the information shared by the employee during the appraisal is shared according to a structured set of questions, which are not inclusive and fail to address some areas that the employee feels are more pressing (Farndale, .2013).

The study relied on a qualitative method of study where it reviewed studies done before as well as analyzed data from secondary sources. The qualitative method was set to establish how the tools used during appraisal end up determine the level of performance of the individual employee in small business accounting (Farndale, E.2013). 

Case study, New Zealand Post, high-performance work, HRM and line manager involvement. (2017). Nzjhrm.org.nz. Retrieved 23 April 2017, from https://www.nzjhrm.org.nz/Site/Case_Studies_/Delivering_High_Performance_in_New_Zealand_Post.aspx

 The importance of the performance appraisal in human resource management practice is very crucial as it considerers the relation between the appraisal exercise and the effect on the employee performance. The paper lays down the advantages and disadvantages of the performance appraisal tools, which are used by the management to appraise employees. The findings of this study show that indeed there is a relation between the tools of appraisal and the employee performance. It suggests that the performance appraisal tools determine how the employees behave and engage in their work.

Methodology

The research study is aimed at evaluating the effectiveness of performance appraisal tools and their impact on the productivity of the employee. According to the study, it is the management duty to appraise the employees in an organization. In most of the cases, the supervisors are the ones who perform the appraisal process to the employees they are supervising.

The optimal strategy of a performance appraisal is to set goals according to the various levels, which include individual goals group or departmental goals and organizational goals. To improve productivity, a strategic plan that sets employee goals and the organizational goals, as well as the group goals, is necessary to encourage cooperation in the organization and improve performance.

The study indicates that the findings show that the appraisal is highly characterized by non-disclosure. The study also concludes that secretes enable the management and supervisors have the advantage to understand the subordinate employees in the business. The appraisal process is sometimes riddled with biases and hence becomes unreliable ("Case study, New Zealand Post, high-performance work, HRM and line manager involvement," 2017).

The research design used in this paper involved quantitative and qualitative research method. The qualitative and quantitative research designs were used to study the relationship between performance appraisal and the perception of employees in engaging in the appraisal. The relationship was analyzed using zero-order correlations and hierarchical regression analysis ("Case study, New Zealand Post, high-performance work, HRM and line manager involvement," 2017). 

Perspectives. (2017). Google Books. Retrieved 23 April 2017, from https://books.google.co.ke/books?id=HiBHAgAAQBAJ&pg=PA156&lpg=PA156&dq=performance+appraisal+in+small+businesses+in+new+zealand&source=bl&ots=KDgOqq7-4Y&sig=Ed7eoRn4DUY_5oj9wn3BxpMGSYE&hl=en&sa=X&redir_esc=y#v=onepage&q=performance%20appraisal%20in%20small%20businesses%20in%20new%20zealand&f=false 

The research study is aimed at evaluating the effectiveness of performance appraisal tools and their impact on the productivity of the employee. According to the study, it is the management duty to appraise the employees in an organization. In most of the cases, the supervisors are the ones who perform the appraisal process to the employees they are supervising.

Also, the study indicates that the findings show that the appraisal is highly characterized by non-disclosure. Also, draws a conclusion that the secrecy gives the management and the supervisors leverage to crack down on employees who are insubordinate. The appraisal process is sometimes riddled with biases and hence becomes unreliable ("Effective Human Resources Management in Small and Medium Enterprises: Global Perspectives," 2017).

The study in this article used a quantitative research method where it selected target samples in small business accounting. 

Employee Performance Appraisals. (2017). Inc.com. Retrieved 23 April 2017, from https://www.inc.com/encyclopedia/employee-performance-appraisals.html

Data presentation and analysis

The impact of performance appraisal on employee's performance

The study aims to establish the impact of performance appraisal on employee's performance as well as analyze the effects of motivation on employee performance. The study employed quantitative methodology and used a sample size of 150 employees.

The study takes place at the banks of Dera Ghazi Khan. Data analysis was done using IBM SPSS and Amos Software. The structure that makes up the performance appraisal is an appropriate tool to assess the level of company performance. The performance assessment process is a carefully throughout the process for human capital administration as well as a tool for human control in the management process. A performance appraisal is conducted to enable manager and employees of an organization. Boehme, States that most of the tribulations realized in organizations of which most are spiked by new recruits are due to lack of the management to take a proper assessment course of action. Solving many of work related problems involve, job tasks, promotions, relocation, removal from office and remuneration of employees.

The research methodology applied to this article is a qualitative study that relied on secondary sources to base its arguments ("Employee Performance Appraisals," 2017).

The research methods used to collect data on the impact of performance appraisal on the performance of the employee in the four articles differs from each other. While the first two article has used the qualitative method, the other two have used quantitative methods to try to describe the impact of the performance appraisal. 

This section will focus on the analysis of the research methods applied as well as the research methodologies on the journals that have been chosen in writing this paper.

The research methods used in the four article sources have employed qualitative and quantitative methods of research to provide comprehensive and reliable information. This is to mean that, some of the peers reviewed journals used non-numerical data. Instead of the numerical data, the articles used secondary data that is cited in other articles that have been researched concerning the same area of study.  For instance, the macro thinks journal article has used more of the secondary data done by other researchers to base its research and argument. The Journal has recognized the efforts of the previous researchers through citing their work.

However, the other two articles have engaged it qualitative method, and as such provided the research methodology, they have used to collect the data. The studies have tabulated the collected data y assigning values. Through this, they have managed to provide a conclusion on the way forward concerning the issue of appraisal influencing the employee performance.

Conclusion and recommendation

For instance, the Arabian journal of business management has provided a table that shows the data collected and tabulated to provide a conclusion.

All of the four journals have applied for a literature review in explaining the concept of performance appraisal about employee performance.  The literature review is sourced from various articles to provide reasonable information. The research method has been including I chapter three and resonate with the literature review. The kind of research methodology applied in this is termed as descriptive as it only describes the nature of the performance appraisal through other researchers without collecting data from the primary sources. The reliability of these sources has been ensured in that all the four articles are peer reviewed hence they have been academically reviewed to ensure they fit for academic purposes.

Should the management use the performance appraisal tools to assess the level of performance of the individual employee?

The answer to this question will help understand the relevance of performance appraisal tools as well as which type of tool apply to their organization

Does the use of performance appraisal tools increase the productivity of individual employee?

This question strives to analyze the outcomes of the appraisal to understand whether the appraisal process has any significant contribution to the performance of the employees.

How are the employees impacted by the application of performance appraisal tools to assess their performance?

Answering the question helps the management grasp the view of an employee in a way that they try to fit themselves into the employee's situation regarding appraisal.    

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Case study, New Zealand Post, high-performance work, HRM and line-manager involvement. (2017). Nzjhrm.org.nz. Retrieved 23 April 2017, from https://www.nzjhrm.org.nz/Site/Case_Studies_/Delivering_High_Performance_in_New_Zealand_Post.aspx

Effective Human Resources Management in Small and Medium Enterprises: Global Perspectives. (2017). Google Books. Retrieved 23 April 2017, from https://books.google.co.ke/books?id=HiBHAgAAQBAJ&pg=PA156&lpg=PA156&dq=performance+appraisal+in+small+businesses+in+new+zealand&source=bl&ots=KDgOqq7-4Y&sig=Ed7eoRn4DUY_5oj9wn3BxpMGSYE&hl=en&sa=X&redir_esc=y#v=onepage&q=performance%20appraisal%20in%20small%20businesses%20in%20new%20zealand&f=false

Effectiveness of Performance Appraisal as a Tool to Measure Employee Productivity in Organisations. (2017). Macrothink.org. Retrieved 23 April 2017, from https://www.macrothink.org/journal/index.php/jpag/article/viewFile/6912/_69

Employee Performance Appraisals. (2017). Inc.com. Retrieved 23 April 2017, from https://www.inc.com/encyclopedia/employee-performance-appraisals.html Franceschini, F., Galetto, M. and Maisano, D. (2010). Management by Measurement. 1st ed. Berlin: Springer Berlin.

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