Employee Performance Level free essay sample

The purpose of this study are to study the employee performance level among the employee’s of Bloxwich Company in Seri Iskandar Perak between Performance Management System including rewards, evaluation raters, and career guidance and to identify how the rewards, evaluation rater and career guidance will influence the employee performance level. Employees  performance  is a  rating  system used in most  corporations  to determine the abilities and output of an employee. Performance  is divided into five components that are planning, monitoring, developing, rating and rewarding. Employee evaluations are an important part of maintaining a motivated and skilled workforce. Employers should evaluate and assess their employees on a regular basis, not only for the company but also for the employee to receive feedback on they quality of work they do. The company was establishing in UK principally to make steel forgoing and locks for the furniture trade. The company has progressed to its present as a leading supplier of closure systems, pulleys and specialist presswork. Work began on building plant in Bota, Perak on 1996. On 1997, this company begins Spun Pulley Production for Automotive Manufacturers. After six years, AJ Rose Mfg Co, Cleveland, Ohio, USA becomes a 5% shareholder in Bloxwich (M) Sdn. Bhd. On 2007, the company begins Automotive Sub Assmbly Production and Technical Partnership with PI- Shurlock, and the latest the company start LED Lighting Products. 2. 0 RESEARCH PROBLEM Mr. Salva as Human Resources Manager in Bloxwich Company said that the company had achieved the certificate of ISO/ TS 16949 2002(09) and ISO 9001: 000 from KIWA INTERNATIONAL CERTIFICATE. It shows that this certificate can be achieved if the employee’s performance level is high. This certificate will impact in terms of quality, services and features to compete with others companies to make sure they maintain their performance. In performance management systems, there have several components for different companies. But for the Bloxwich Company, there using re ward, evaluation rater and career guidance as measured for Performance Management Systems. There have two types of rewards that is intrinsic and extrinsic reward. Employee must be rewarded to improve their performance and increase motivation among them. For the performance evaluation, individual’s performance should have evaluated by the multiple raters from multiple levels such as supervisors, peers, subordinates, and customers. It would help employees do their works better, and will increase the productivity of the work unit. For the career guidance, the company also gives the better training especially for the new employees how they do their work. Employer must give a clear instruction regarding employee’s tasks to improve their performance. So, that is how the company does to maintain their performance. Therefore, it is interesting to study the employee performance level among the employee’s of Bloxwich Company in Seri Iskandar Perak between Performance Management System including rewards, evaluation raters, and career guidance and to identify how the rewards, evaluation rater and career guidance will influence the employee performance level. 2. 0 RESEARCH QUESTION 1) How Performance Management Systems will be effectively for the new employees? ) What the effect if using the Performance Management Systems for the organization? 3. 0 RESEARCH OBJECTIVES i) To examine the employee performance level among the employee’s of Bloxwich Company in Bota Perak between Performance Management System including rewards, evaluation raters and career guidance. ii) To identify how the rewards, evaluation rater and career guidance will influence the employee performance level. 4. 0 RESEARCH HYPOTHESIS Hi: There is relationsh ip between employee performance level and performance management systems. Ho: There is no relationship between employee performance level and performance management systems. 5. 0 LITERATURE REVIEW Performance management system In late 1970’s Dr Aubrey Daniels define that term of performance management, as a science imbedded in application methods for managing both behavior and results within an organization. In other word, performance management is a shared process of the day-to-day management of employees based on their agreement of objectives, knowledge, skills and competence requirements (Chandan Kumar Sahoo, Sambedna Jena, 2012). Therefore, in order to manage this process an organization need systems that can be able to make the performance information are well organize. A performance management system (PMS) enables organizations to plan, measure and control their performance, so that decisions, resources and activities can be better aligned with strategies to achieve desired results (Bento and Bento, 2006). A Performance Management System is â€Å"a system that covers all aspects of performance that are relevant for the existence of an organization as a whole†. (Kevin Baird, Herbert Schoch, Qi (James) Chen, 2012). The Performance Management System is aimed towards enhancing â€Å"the performance of individuals and units, with the ultimate purpose of improving organizational effectiveness† (Biron et al. , 2011, p. 1294). It contributes to aligning the interests of employees and management by providing a clear indication of the strategic direction of the organization (Becker et al. , 2011, p. 255). PMSs are a means of executing organizational strategy by signaling to employees what is really important in the organization, fixing accountability for behavior and results, and helping to improve performance (Biron et al. 2011; Bae, 2006) and also can be act as a communication tool to provide feedback on employees’ contributions to achieving organizational goals (Cheng et al. , 2007). Reward System Employee compensation, remuneration or reward may be defined as ‘all forms of financial returns and tangible services and benefits employees receive’ (Milkovich and Newman, 2004: 3). Employee reward may be perceived as an ‘effort bargain’ between the parties to the employment relationship, needing to be continuously renewed on both sides (Behrend, 1957; Baldamus, 1961). A reward system is the set of mechanism for distributing both tangible abd intangible returns as part of an employment relationship (Herman Aguinis, 2009). This can be achieved through monetary rewards such as bonuses in short term incentive and share offer in long term incentive also and non monetary rewards such as development possibilities , promotion and extra vacation days (Anna Alexson amp; Sandra Bokedal, 2009). An employees’ compensation usually referred to as intangible returns includes cash compensation (i. e. base pay, cost-of-living and merit pay, short-term incentives and long-term incentives) and benefit (i. e. , income protection, work/life focus, tuition reimbursement, and allowance) (Herman Aguinis, 2009). The employees also receive intangible returns, also referred to as relations returns, which include recognition and status, employment security, challenging work, and learning opportunities (Herman Aguinis, 2009). Employees expect to be rewarded and appraise d fairly and without hidden agendas (Dipboye and de Pontbriand, 1981; Cawley et al. , 1998). This is because if the employees feel they are being discriminate and not be rewarded properly they will become less motivated and eventually going to affect their performance level. Career Guidance Career guidance is define as the need for guidance to support multiple transitions over a prolonged time-span and neither make particular distinctions about the type of activities guidance involves (Organization for Economic Co-operation and Development amp; the Council of the European Union, 2004). Changes in the economic, technological and business environment have significantly impacted people’s career attitudes and experiences. One way that organizations may meet this challenge is to support employees to develop their own careers and increase their career satisfaction (Osman M. Karatepe, 2012). This approach is consistent with the recommendation that organizations perform a new supportive, rather than directive, role in enabling their employees’ career success (Baruch, 2006). Perceived organizational support (POS) refers to the extent to which employees perceive that their contributions are valued by the organization and that the organization cares about their well-being (Eisenberger et al. 1986). Based on social exchange theory, employees tend to repay benefits and opportunities provided by the organization through continued effective performance when they find that the organization supports them by engaging in various human resource practices (cf. Armstrong-Stassen and Ursel, 2009). Employees with a mentor report more promotions, earn higher incomes, and score higher on work satisfaction than emplo yees without a mentor (Baugh and Scandura, 1999; Dreher and Ash, 1990; Ragins et al. 2000; Scandura, 1992; Scandura and Schriesheim, 1994; Turban and Dougherty, 1994; Whitely and Coetsier, 1993). Evaluation Rater Employees are satisfied with their performance appraisal systems when there is trust in the supervisor and when supervisors are supportive of their subordinates (Korsgaard and Roberson, 1995), feedback, particularly in the areas of skill development, pay for performance, and career advancement occurs during the appraisal session (Landy et al. , 1978; Mount, 1983; Nathan et al. 1991), and subordinates feel that they are given enough time to express their perspectives, have opportunity to influence the outcome, and sufficient explanation of their ratings is provided (Dipboye and de Pontbriand, 1981; Taylor et al. , 1995). If employees had a chance to change outcomes (Gabris and Ihrke, 2001; Taylor et al. , 1995) or were simply listened to without affecting the outcome of the interview assessment (Cawley et al. , 1998; Gabris and Ihrke, 2001; Korsgaard and Roberson, 1995; Taylor et al. , 1995) they perceived their performance appraisal system as more fair. Perceived fairness increased when appraisers appeared to know the subordinate’s performance levels and job roles and when the frequency of the evaluations increased (Landy et al. , 1978), especially when managers had larger spans of control (Dobbins et al. , 1990). A well managed and well integrated 360-degree feedback process provides good quality feedback from colleagues and supervisors, which can be a definite improvement over feedback from a single individual and employees feel that 360-degree feedback is more accurate, more reflective of their performance and more validating than feedback from the supervisor alone (C. K. Sahoo, Sukanta Mishra, 2012). Moreover it can help to reduce the discrimination of race, age, and gender because the feedback comes from different person various jobs. 6. 0 RESEARCH METHODOLOGY 6. 0Introduction This chapter is exploring about the methodology of this research. It involves the process of conducting the research such as research design, research framework, target population, sampling frame, sampling method, sampling size, measure and sealing, data collection, data preparation and data analysis. 6. 1Research design Research design consist the aspect of research design which are purpose of study, types of investigation, the unit of analysis and time horizon. 6. 1. 1Purpose of study The purpose of this study is descriptive research and hypothesis testing. Uma Sekaran and Roger Bougie mention that descriptive research to undertaken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation. Here, the purpose of the study is to determine performance management systems are lead to the employee performance level. The second purpose of the study is hypothesis testing which usually explain the nature of certain relationships. In this study, there are three relationships exists which as per hypotheses developed. These relationships will be tested in order to gain the answer for the research question that has been exists. 6. 1. 2Type of investigation Type of investigations of this study is correlational study. This is because this research is done to identify whether independent variable are related to the dependent variable. 6. 1. 3Unit of analysis Uma Sekaran, mention that the unit of analysis refers to the level of aggregation of the data collected during the subsequent data analysis stage. This research using group of employee as unit of analysis because employee in Broxwich Company that are received the accurate information in term of reward, evaluation rater and career guidance that influence of employee performance level. For this purpose, data will be collected from individual from manufacturing worker in the production line where they need answered the questionnaires by them. 6. 1. 4Time Horizon This study is using a cross-sectional study because this study conducted by gathering data for just one time only. Therefore, the data on employee is gathered in one period of time. 6. 2 Research Framework REWARDS EMPLOYEE PERFORMANCE LEVEL EVALUATION RATERS CAREER GUIDANCE 6. 3 Target Population Population refers to the entire group of people, events or things of interest that the researcher wishes to investigate. On the research the populations are the factory workers of Broxwich Company. Where 155 factory workers and 20 workers include executive level and non executive level. . 4 Sampling Frame In the research, the research get the list of manufacturing workers Broxwich Company in area Seri Iskandar. Stratified Random Sampling Researcher used stratified random sampling. It involved a process of stratification or segregation followed by random selection of subjects from each stratum. For this study, researcher makes stratify the population of in the Broxwich Company which are the focus group are the factory workers. Where the researchers are tracing the parameters of subgroup population of actory workers in production line which are 155 factory workers. 6. 6 Sampling Size In the study the researchers choose the manufacturing industry. The factory worker as the sample size which are 155 employees in production lines in Broxwich Company in Seri Iskandar, Perak. 6. 7 Measurement and Scaling 6. 7. 1 Questionnaire Design Questionnaire used as research instrument because it easy to be administrated personally handed to the respondent which are the factory workers in the production lines distributed to respondents since the researcher are using the stratified random sampling. It can be efficient mechanism to collect data because researcher knows exactly what is required and how to measure the variables of interest. A set of questionnaire was designed based on the theoretical framework to be more accurate and reliable. On the first page of questionnaire, researcher has attached the cover letter to inform clearly to respondents the purpose and objective why they need to complete the questionnaire. In this questionnaire, a question has been divided into 4 sections which are: Section A: Demographic Information Section B: Rewards Section C: Evaluation Rater Section D: Career Guidance Section A This section consist the demographics information of respondents at Broxwich Company such as name, gender, age, religion, services period, division of employee and employee length of services. This section also will be use as independent factor for individual factor. Section B This section is to investigate the independent variable, Reward. It consists of questionnaires about the respondents’ perception toward rewards given as their employee such as there is fairness on giving rewards such as bonus and incentives . There were 5 questions need to be answer. Section C This section covers the independent variable which is evaluation raters, where to see whether there are any error on evaluation rater to their employees such as bias, halo effect, stereotypes error and snap judgment. There were 5 questions need to be answer. Section D This section covers on the independent variable which is career guidance where to investigate whether training and development may influence employee performance level in workplace. There were 5 questions need to be answer. 6. 7. Scale of measurement For section A, the questions were consists of item on demographic characteristics and background information of respondents. Only this section use nominal scale to measure demographic variables. For section B, C, D and E the questions use Likert Scale to measure all the variables. All questions using likert scale due to time constraints. It simple and avoid respondents confusing then losing interest from answering question naire. Scale is designed to examine how the respondents strongly agree and disagree with the statement. Likert Scale on a five point scale which are range from 5= Strongly Agree, 4=Agree, 3=Neutral, 2=Disagree and 1=Strongly Disagree. The respondents need to choose only one answer as to show their response. Strongly Disagree| Disagree| Neutral| Agree| Strongly Agree| 1| 2| 3| 4| 5| 6. 8Data collection method During the study, the data is collected in the form of primary and secondary data. The data encompasses all the various type of information, which needed for the research purpose. Data collection method is an important process in this research. There are two types of data sources being collected in the data gathering process, which are : 6. 8. 1 Primary Data For this research, the primary data will be collected by the researcher for specific purpose of deals with the research problem. The primary data will be from distribution of questionnaire to respondents. Where the researcher give 30 questionnaires to the respondent of Broxwich Company and before the respondent answer the questionnaire, the research had explained to them how and why to answer the questionnaire and the objective of the research. 6. 8. 2 Secondary data Secondary data defined as information gathered from some sources already existing and recorded by someone else. Usually, secondary data obtained from literature review process. The secondary data and information be obtained from the external sources. The external sources are mostly gathered from the internal and journal. Where its provides the supportive information include discussion, comment and opinion. 6. 9 Data preparation and processing 6. 9. 1 Coding Where the researcher is using the coding where involves assigning numbers to the participant’s respondent that can be entered into database. The researcher will transcribe data from the questionnaires and key in the data into Statistical Package for the Social Science (SPSS). 7. 0 Data Analysis This research will use one of the statistical analysis packages that are Statistical Package for the Social Science (SPSS) to analyze the data will be collected from respondents. By using this system, it will help the researcher in determining the best statistical techniques. 7. 0. 1 Frequency Distribution Frequency distributions were obtained for all the personal data or classification variables. The frequencies can show as bar chart, histograms or pie charts. For this study, the frequency distribution will be used for demographic questions in Section A. 8. 0Scope of the Study In this study, the population are working people from private sector in area of Seri Iskandar, Perak. The researcher selects 30 working people to be respondents. The researcher will stratified randomly choose the 30 respondents among employee in production lines in the Bloxwich company to fill in the questionnaire to make our research succeed and meet the expectation. 9. 0Significance of the Study i)To the organization It can use the outcome of this study to generate strategies and taking action for the future employees to maintain or increase the level of employee’s performance in the future. ii)To the body of knowledge It can be used as additional knowledge for them and remind them of other projects they have heard about on the same or similar topics. iii)To the practitioners This research will give the practitioners some knowledge on the performance of the employees. The practitioners will get experience due to exposure to the real situation as it require researcher to communicate directly to the respondents. The working scenario can be useful in the future for the researcher in dealing with the real working environment. In addition, the practitioners will able to use all the information and knowledge that has been gained throughout the study. By undergoing the study, the practitioners can better understand the factors that influence the employees performance level. iv)To other researchers The proposed study will benefits and help the other researcher as their guide. The study can also open in development of this study. 10. 0Limitations of the Study There are some constraints faced by the researcher in completing this study. ) Area of Study This study will be focusing on working people at private sector in area of Seri Iskandar, Perak only. Therefore in analyzing the data, the researches get information and feedback from respondents in the area of Seri Iskandar, Perak only. ii) Respondent Cooperation Respondent may not will to show commitment and support where some of them might not give their full cooperation in answering the questionnaire. Definitions of Terms i)Employees Performance Level: a rating system used in most corporations to determine the abilities and output of an employee. i)Performance Management System: a process which is design to improve organizational, team and individual performance and which is owned. iii) Reward: rewards that result from employment with the organization includes all types of rewards, both intrinsic and extrinsic. iv) Evaluation Rater: the expertise who have more knowledge that evaluate of an individual’s performance v) Career Guidance: refers to services and activities intended to assist individuals of any age and at any point throughout their lives, to make educational, training and occupational choices and to manage their careers.