Relationship between Performance Appraisals and Employee Motivation. A Case Study of A Leading Saudi Telecoms Company (2013)

Performance Appraisals and Employee Performance Dissertation – This dissertation investigates the link between PAs and employee motivation within a non-western culture, specifically Saudi Arabia. The project examines the effectiveness of PAs in motivating employees in the Saudi workplace, using the Saudi Telecoms Company (STC) as an example. The project extends this investigation into further research perspective within the context of position by comparing the viewpoints of employees and managers.

For the purpose of this study, an online questionnaire was designed according to Maslow’s Hierarchy of Needs and the Work Motivation Inventory (WMI). The survey questionnaire was distributed via an email sent to the participants at the STC, Saudi Arabia. The data was imported into the SPSS statistical package and Microsoft Excel application for further analysis. Descriptive Statistical analysis, t-Test and ANOVA test were used to examine the statistical significance of the associations between the performance appraisals and employee motivation variables. Graphical illustrations, such as bar charts, were used to illustrate the results.

The findings of this project demonstrated that there was a positive and significant association between PAs and employee motivation. It was found that PAs can contribute to and influence the five motivational variables of Maslow’s Hierarchy of Needs. The findings also revealed that both managers and employees at the STC agree on these outcomes. However, managers believe that PAs can fulfil employees’ physiological and basic needs as well as their self-actualisation needs more than the other three variables, while from the perspective of the employees, esteem and respect needs were the easiest to achieve.

Based on this research and its findings, Saudi organisations similar to the STC were recommended to continue the development and application of more trained PA practice, and to consider PA as a means of communication and exchange of reports rather than a process for applying penalties. It was also recommended that PAs be conducted on a regular basis with a focus on improving employees, developing managerial skills, creating growth opportunities, and facilitating organisational and interpersonal relationships.

Moreover, it was recommended that organisations and managers consider the organisational internal and external factors when designing and implementing the PA procedure and focus on the physiological needs of an employee. Despite this study providing results that significantly improve understanding of the link between PAs and employee motivation, further investigation of this association remains important, particularly research aimed at further understanding of the link between PAs and organisational performance and returns.

Research Objectives

This dissertation examines the effectiveness and role of PA in developing motivated and committed employees at the Saudi Telecoms Company (hereafter referred to as STC). The project considers the point of view of both managers and employees as marketplace stakeholders in relation to PA and employee motivation. In particular, the project seeks to:

• Assess the effectiveness of PAs in motivating employees in the STC workplace.
• Examine whether appraisals are effective from the employees’ point of view in motivating them in the STC workplace.
• Examine whether appraisals are effective from the managers’ point of view in motivating their employees in the STC workplace.

• 16,000 words – 58 pages in length
• Excellent use of literature
• Excellent analysis of subject area
• Well written throughout
• Includes interview questions
• Ideal for international HRM students

1. Introduction
Background
Statement of the Problem
Research Objectives
Research Questions
Research Hypothesis
Research Rationale

2. Literature Review
The Performance Appraisal
Conceptual Understanding
Performance Appraisals and Employee Performance
Commonly used appraisal methods
Rating scales
Results method or management by objectives
360 degree feedback
Concluding remarks on Performance Appraisals purposes
Success Factors of Performance Appraisals
Training
Frequency
Employee Motivation and Engagement
Definition
Motivation Theories
Motivation Indicators and Measures
The Saudi Marketplace
Background
Saudi Business Culture
Management problems in Saudi Arabia
Saudi Performance Appraisal
Concluding Remarks

3. Research Methodology
Research Design
Philosophy
Approach
Variables and Measures
Research Context
Case Organisation
Study Population
Data Collection
Pilot Test
Procedure
Instrument and Questionnaire Survey
Data Analysis
Aggregated Descriptive Statistics
Statistical Tests (One-Sample t-Test)
ANOVA Test
Statistical Charts
Ethical Considerations

4. Results
Study Population and Demographic Data Analysis
Physiological and Basic Needs
Safety and Security Needs
Belonging and Social Needs
Esteem and Respect Needs
Self-Actualization needs
Analysis of the Five Variables within Position Context

5. Discussion
Anticipated Outcomes
Procedure
Performance Appraisals and Motivation
Performance Appraisals and Motivation: Position Context
Performance Appraisal and Managers and Employees
Performance Appraisals and Motivation and Organisational Returns
Research Limitations

6. Conclusions
Summary of the Dissertation
Summary of the Research Results
Recommendations
Future Trends
Concluding remarks

7. References

8. Appendices
Arabic and English Questionnaires