A Study on Effectiveness of Performance Appraisal System among Nurses at a

Multi Speciality Hospital Chennai

G.Jabarethina
Assistant Professor, Sri Ramachandra College of Management,
Sri Ramachandra University, Porur, Chennai 600116

ABSTRACT

Performance appraisal enables an employee to know how his/her performance and to identify areas
which need improvement and proper training. Effective appraisal system serves determines how well
an employee is working at his or her job and also decides the ways to improve his/ her performance.
The objective of the study was to understand the effectiveness of the performance appraisal system at a
Multi specialty hospital, Chennai. The study revealed that employees want to have simplicity,
objectivity and efficiency in the performance appraisal system. High emphasis require on supervisor’s
fair dealing with all employees with a clear and unbiased appraisal. For the betterment of the
employees, job rotation is highly recommended. No work should depend on any individual. Every
individual who are working in this organization must know how the system works.

Key Words: Assessing performance, Monitoring performance, Performance planning, Performance

Appraisal System, Reward and recognition.

INTRODUCTION

Performance appraisal enables an employee to know how his/her performance and to identify areas
which need improvement and proper training. Manasa,K.Reddy (2009) said that “a performance
appraisal is a systematic and periodic process that assesses an individual employee’s job performance
and productivity in relation to certain pre-established criteria and organizational objectives”. Effective
appraisal system provides step-by-step guidance and standardized evaluation procedure and forms,
which leads to consistency. Health care organizations are service oriented organizations. Healthy
environment is highly essential to provide quality service. For improving healthy environment,
employees need to develop their performance. Effective appraisal system serves determines how well
an employee is working at his or her job and also decides the ways to improve his/ her performance.
Performance Appraisal system consists of Performance planning, monitoring performance, developing
the capacity to perform, assessing the employees performance, Reward and Recognition.

STATEMENT OF THE PROBLEM

One of the toughest challenges of the organization is managing the performance of the employees, as
this completely depends upon the commitment and competence of the employee and clarity of
performance. Now a days employee’s morale and motivation toward work are very badly affected due
to the absence of an transparent feedback mechanism, poor clarity on performance standards and lack
of employee and superiors involvement in the process of appraisal. It is essential to retain the talented
employee in the organization.

THE OBJECTIVES OF THE STUDY

 To study the process of performance appraisal system
 To study and analyze the effectiveness of the performance appraisal system
 To give suggestions for making the study more outcomes oriented

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HYPOTHESIS

There is no significant difference between experience group nurses opinion on process of performance
appraisal system.

RESEARCH METHODOLOGY

The Research Problem of this was a study on Effectiveness of Performance Appraisal System at a
Multi specialty hospital, Chennai. Analytical Research Design was adopted. The period of the study
was one year among nurses. The stratified random sampling were used nurses were belonging to
various level. The total population of staff nurses was 842 out of which 191 samples at 95%
Confidence Level suppose to use but in this study eight more samples were included due to high
response. So the present sample size of nurses was 198. Primary Data was collected through a
structured designed Questionnaire and through observations. Questionnaires consist of Likert’s 5-point
scale, dichotomous type and open ended questions both, optional, and statement type. Secondary Data
from various Books, Journals and Online resources etc were used for review of literature. In this study
Cronbach's Alpha reliability test was used to test the reliability of the questionnaire. 46 likert’s five-
point scale questions were asked to nurses and the scores was 0.924 which was very high reliability
scores. The collected data were carefully coded and analyzed using the SPSS package (16.0).

REVIEW OF LITERATURE

Graeme Redshaw.G (2008) concluded that “the organization had an open, participative environment of
which personal development was viewed as an integral part. The appraisal process was an outdated
paper exercise with negative connotations for most staff involved”. Richard Bitange (2010), stated in
his project that “performance appraisal systems used in private universities were not effective and that
they exist just as a matter of formalities, the private universities could not measure employees’
performance hence making it difficult to achieve the intended Human Resource Management
objectives”. Subashini R and Samuel S (2011), stated that “the organizational climate plays a vital role
for the excellent performance of any business. For the better positioning and improvement of any
organization, it is necessary to evaluate the environment of the organization. It can be concluded that
effective climate will lead to Employee satisfaction and in turn it will enhance the performance of
employees thereby paving way for Organizational effectiveness”. Dr. Sanjeevni Gangwani (2012)
concluded that “Performance Appraisal reports must be based on SWOT techniques and provide scope
for further career development in the organization. The performance appraisal report must be done
genuinely and should not be based on biased”.

RESULT AND DISCUSSION

Table 1 Gender and Age Classification

Gender Frequency Percentage Age Frequency Percent
Male 28 14.1 Below20 6 3.0
Female 170 85.9 21-30 159 80.3
31-40 32 16.2
41-50 1 0.5
Above 50 0 0
Total 198 100.0 198 100.0

Table 1 shows that 85.9 percent nurses were female, only 14.1 percent nurse were male. Majority of
80.3 percent of nurses were belonging to 21-30 years of age group. 16.2 belong to 31-40 years no one
was above 50 years.

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 Table 2 Classification of Qualification and Experience

Qualification Frequency Percent Experience Frequency Percent

Diploma 151 76.3 Upto 2 years 27 13.6

UG 42 21.2 2-6 years 100 50.5
PG 5 2.5 6-10 years 55 27.8
Others 0 0 11-15 years 15 7.6
Above 16 years 1 .5
198 100.0
Total Total 198 100.0

Table 2 describes that 76.3 percent of nurses were diploma holders, 21.2 percent were under graduate,
only 2.5 percent were post graduate.

Table 3 Frequency, percentage and ANOVA scores on performance planning and awareness
NURSES Nurses
OPINION (n=198) Experience
F
Mean SD p value<0.05
Awareness of the organization’s mission statement. 2.634
4.56 0.89
.035
Awareness of the organization’s strategic objectives. .232
4.56 0.54
.920 NS
Awareness of overall organizational goals and objectives. .384
4.50 0.51
.820 NS
The objectives were set by mutual agreement, after discussion of 1.043
4.24 0.90
each of the objectives. .386NS
The performance goals and objectives are reasonable. .248
4.39 0.63
.910 NS
Understand the level of performance that is expected. .302
4.51 0.56
.876 NS
Have adequate competencies to achieve the goals and objectives. 1.128
4.60 0.51
.345 NS
NS-Non significant
Table 3 indicates the performance planning awareness among ward secretaries and nurses.
The results of Mean and standard deviation revealed that the nurses had given high score for all the
questions and not much difference in their opinion. There were significant differences among the
experience group nurses (at p <0.05) and their opinion toward awareness of the organization’s mission
statement.

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 Table 4 Mean scores on respondent opinion about monitoring performance
NURSES (n=198) Experience
OPINION F
Mean S.D P value <0.05
The performance appraisal instrument accurately measures the .516
4.14 0.86
performance .724 NS
Understand the measures used to evaluate the performance. 1.494
4.30 0.84
.205 NS
Superior communicates frequently about performance. 2.261
4.21 0.79
.064 NS
Superior encourages frank discussion with respect to .842
4.05 0.84
performance related matters. .500 NS
Supervisor provides counseling after the appraisal feedback. .685
4.06 0.84
.603 NS
Encouraged to prepare for performance review meeting. 5.415
4.07 0.83
.000
During the review meeting, superior sets mutually agreeable 3.787
4.02 0.87
action plans for future developments. .005
NS-Non significant
Table 4 highlights that 4.30 were the highest mean score to understand the measures used to
evaluate the performance and comparatively least score of 4.02 to during the review meeting,
superior sets mutually agreeable action plans for future developments. There were significant
differences among the experience group nurses (at p <0.05) and their opinion encouraged to prepare
for performance review meeting, during the review meeting superior sets mutually agreeable action
plans for future developments. No significant existed for other questions related to monitoring
performance among the experience group of nurses.
Table 5 Analysis of Variance (ANOVA) one way method based on difference experience group
nurses opinion about performance management system
NURSES
OPTIONS (n=198)
F P value <0.05
Simplicity 0.569 0.685 NS
Objectivity 3.05 0.018
Efficiency 4.036 0.004
NS-Non significant
Table 5 shows that there were significant differences between experience group nurses opinion toward
and objectivity and efficiency of performance management system. No significant towards simplicity
of performance management system.

Table 6 Mean and ANOVA scores on opinion of nurses towards developing the capacity to
perform
OPINION NURSES Experience
(n=198)
F P
Mean SD Value <0.05
During the performance review process, training
and development needs are acknowledged and 4.14 0.80
documented. 2.358 0.055 NS
Proper Training is given in the area where I am
4.22 0.75
lacking. 1.209 0.308 NS
During the review process, personal development 3.98 0.94 2.362 0.055 NS

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and growth are emphasized through Discussions
Provided with required training 4.20 0.85 1.91 0.11 NS
Have a structured personal development plan. 4.04 1.02 1.407 0.233 NS
Motivated to get ready for greater responsibility in
4.10 0.89
the future. 1.271 0.283 NS
Encouraged to attend courses, conferences,
workshops, etc, to keep abreast with the 4.26 0.78
developments in the field of work. 1.563 0.186 NS
NS-Non significant
Table 6 signifies that there were no significant differences among the experience group nurses (at p
<0.05) opinion towards questions related to developing the capacity to perform. Nurses had given low
mean score of 3.98 to performance discussions during the review process emphasis personal
development and growth and highest score of 4.26 to encourage attending courses, conferences,
workshops, etc, to maintain abreast with the developments in the field of work.

Table 7 Mean and ANOVA scores on opinions of nurses towards assessing the employees’
performance
.
OPINION Experience
NURSES (n=198)
Mean SD F P value<0.05
The performance appraisal is well designed which leads
4.17 0.71
to better performance. 1.962 0.102 NS
The performance appraisal process results in a clear and
3.96 0.85
unbiased (impartial) appraisal. 1.511 0.201 NS
Supervisor deals with all employees fairly. 3.98 0.98 0.315 0.868 NS
Supervisor has adequate knowledge and training to do
4.28 0.66
performance evaluation. 0.808 0.521 NS
The performance appraisal system of this organization is
4.11 0.82
transparent. 1.963 0.102 NS
The organization does continuous recording and
4.21 0.60
documenting the performance for evaluation. 0.481 0.75 NS
Appraising own performance would enhance the
4.19 0.64
awareness of self performance. 2.041 0.09 NS
Being appraised by several sources (supervisor, peer,
customers, etc) would provide valuable information 4.16 0.67
about different important aspects of my performance. 1.028 0.394 NS
Satisfied with the existing performance appraisal system. 4.02 0.83 1.065 0.375 NS
NS-Non significant

Table 7 shows that there were no significant differences among the experience group nurses (at p
<0.05) opinion toward the entire question relating to assessing the employees performance. Nurses had
given low mean score of 3.96 to the performance appraisal process results in a clear and unbiased
(impartial) appraisal and 3.98 to Supervisor deals with all employees fairly. High mean score of 4.28
to Supervisor have adequate knowledge and training for implementing the performance evaluation.

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 Table 8 Mean and ANOVA scores on opinion of nurses towards recognition / rewarding good
performance

OPINION NURSES (n= Experience

198)
F P
Mean SD Value < 0.05
Satisfaction with the growth opportunities in this
4.09 0.74
organization. 1.558 0.187 NS
The promotional policy of this organization is linked
4.04 0.81
with the performance appraisal system. 1.201 0.312 NS
Performance appraisal was the base for transfer,
4.06 0.78
demotion, suspension and dismissal. 1.052 0.382 NS
The existing performance appraisal system links to
3.99 0.88
salary. 0.851 0.495 NS
Performance appraisal may be utilized as a decision
4.10 0.78
making tool for promotion. 1.688 0.154 NS
NS-Non significant

Table 8 projects that there were no significant differences among the experience group nurses (at p
<0.05) opinion toward satisfied with the growth opportunities in this organization, the promotional
policy of this organization is linked with the performance appraisal system, Performance appraisal was
the base for transfer, demotion, suspension and dismissal., the existing performance appraisal system
links to salary and Performance appraisal may be utilized as a decision making tool for the distribution
of performance related salary and promotion. Low mean score of 3.99 to the existing performance
appraisal system links to salary.
Frequency and Percentage score on factors that nurses consider as most important for their
career development
The frequency and percent score on factors that nurses consider as most important for their career
development. Majority of them 115 (58.1%) had given first place to Promotion, second place 59
(29.8%) to additional responsibility, third place 72 (36.4%) to additional role, fourth place 52 (26.3%)
to designation change and fifth place 62 (31.3%) to job rotation. Many respondents refused to rank the
factors. Maximum of 62 (31.3%) refused to fill the fifth rank.
Frequency and Percentage score on opinion of nurses towards the purpose of performance
appraisal system
The frequency and percentage score on opinion of nurses towards the purpose of performance
appraisal system. Majority of them had given first place 87 (43.9%) to Making payroll and
compensation decision, second place 65 (32.8%) to Training and development needs, Third place 50
(25.3%) to Identifying the gaps in desired and actual performance and its cause, fourth place 36
(18.2%) to Decide future goals and course of action and fifth place 35 (17.7%) to Promotion,
demotions and transfers. Maximum of 176 (88.9%) had given response to this question, remaining did
not answer. 27 (13.6%) had given first rank to everything.

SUGGESTIONS
Following suggestions are based on analysis and findings
 Need more understanding about self contribution to overall organizational goals and objectives.
 The consultation method for goal setting will increase the employees’ organizational
commitment.
 Superior need to encourage frank dialogue with respect to performance related matters.
 During the performance review meeting, superior has to set mutually agreeable
accomplishment plans for future developments.

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  Employees want to have simplicity, objectivity and efficiency in the performance appraisal
system.
 For the betterment of the employees, job rotation is highly recommended. No work should
depend on any individual.
 Need to improve continuous recording and documenting employee performance for evaluation
in all kind of works.
 High emphasis require on supervisor’s fair dealing with all employees with a clear and
unbiased (impartial) appraisal
 Creating awareness in the rating system among employees to understand how or on what basis
they are being rated.
 Need to clarify the employees on the promotional policy of this organization is linked with the
performance appraisal system or not.

CONCLUSION

Effective Performance appraisal system needs to be system driven for which it is highly essential to
prepare human resource manual for explaining the system. Every individual who are working in this
organization must know how the system works. To achieve the excellence in health care delivery,
Performance planning, monitoring, assessing, recognition and motivation have to be done in a
systematic manner. An effective performance appraisal system will induce the employees to give their
best for the success of the organization.

REFERENCES

1. Abu Doleh, J, & Weir, D, (2007), Dimensions of performance appraisal systems in Jordanian
private and public organization, International Journal of Human Resource Management, 18(1),
75-84.
2. Graeme Redshaw.G (2008), Improving the performance appraisal system for nurses, Nursing
Times; 104: 18, 30–31, 1 May, 2008.
3. Dr. Kulwamt Singh Pathania & et.al (2011), ‘Effectiveness of Performance Appraisal System
of Insurance Sector-a study of Himachal Pradesh’, Gurukul Business Review, Volume 7
(spring 2011),pp.19-23.
4. Manasa, K, & Reddy, N, (2009) Role of Training in Improving Performance. The IUP Journal
of Soft Skills, 3, 72-80.
5. Performance Appraisal Handbook, (2004) , A Guide for Managers/Supervisors and
Employees, U.S. Department of the Interior, 10/4/04 #370DM430HB-1
http://www.nps.gov/training/tel/Guides/Performance_Appraisal_Handbook.pdf.
6. Richard Bitange, (2010), ‘The effectiveness of performance appraisal systems in private
universities in Kenya, an assessment of kabarak university performance appraisal system’
African journal of Business and Management, http://www.aibuma.org/journal/index.htm, Vol.1
(2010), P.No.123-134.
7. Subashini R and Samuel S, Importance-performance analysis (ipa) to explore organizational
climate – empirical Evidence, International Journal Of Research In Commerce & Management,
Volume No. 2, Issue No. 7 (July, 2011).
8. Dr. Sanjeevni Gangwani,(2012) Employee Survey on Performance Appraisal System,
International Journal of Social Science & Interdisciplinary Research, Vol.1.No.6, June 2012,
ISSN 22773630.
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