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The paper analyzes the functions of performance appraisal systems and their impact on employee motivation in institutions in Bosnia and Herzegovina. It categorizes performance appraisal functions into developmental, administrative, stabilization, and documentary. Surveys of managers and employees found the existing system only supports documentary and administrative functions, not raising motivation. The paper recommends redesigning performance appraisal systems to support all functions to increase employee motivation.

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Vidhi Agrawal
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86 views15 pages

Paper Review

The paper analyzes the functions of performance appraisal systems and their impact on employee motivation in institutions in Bosnia and Herzegovina. It categorizes performance appraisal functions into developmental, administrative, stabilization, and documentary. Surveys of managers and employees found the existing system only supports documentary and administrative functions, not raising motivation. The paper recommends redesigning performance appraisal systems to support all functions to increase employee motivation.

Uploaded by

Vidhi Agrawal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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.”

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