Research Topic: How can organizations use their performance appraisal system to harness employee motivation: A Case study at The Emirates Group

Abstract

The airline industry represents one of the sectors that are characterised by a strong influence on the overall economy in both the developed and emerging countries by enhancing existence of an accumulated revenues and boosting the employment levels. In this context, the present study focuses on investigating the role of performance appraisals in the airline industry for the motivation of the employees in the context of the Emirates Group. This study is based on the observation that Emirates group has established the MyBC appraisal system that is inclusive of setting individual objectives which are in line with the overall line manager’s objectives. Nevertheless, there is limited research that has been carried out in investigating if the strategies set in place by the Emirates Group. This is a significant gap that the current study focuses on fulfilling by evaluating the already set changes in the Emirates Group. Part of the evaluation would be inclusive of evaluating the extent in which the performance appraisal approach can be adopted in enabling the employees in the Emirates Group in attaining their individual targets through motivation and exceeding their strategic targets by linking individual performance targets to the overall strategic target of the organisation. The data used to achieve the research aim was collected through the use of a questionnaire survey method and supported with the literature reviewed in the study. From the analysis, it demonstrates that the Emirates Group performance appraisal has been successful in ensuring that the employees are motivated and their performance levels being extensively high. Despite of the challenges faced in its implementation, the performance appraisal in the company has achieved its core intended objectives. Various strategies for enhancing an improved motivation through the performance appraisals have been recommended in this study.

Acknowledgement

It is my humbled desire to sincerely appreciate the University of XXXX for according me with the most cherished opportunity for completing my study in the university. Albeit the distinct challenges faced that almost frustrated my efforts and hard work, I have now completed my thesis. I cannot forget to thank my supervisor XXXX who went a notch higher in ensuring that efforts and approach of research come to fruition by guiding me on how to integrate the content to develop the final thesis. Finally, and most critically is my relatives led by my spouse XXX who supported me and also the Almighty God for his grace in me. Also, I will forever be indebted to my parents and siblings who have supported me all through since I started my education to this point where I have successfully completed my Masters degree.

Table of Contents

Chapter 1: Introduction. 5

1.1 Research Background. 5

1.2 Problem Statement. 6

1.3 Aims and Objectives. 7

1.4 Research Questions. 8

1.5 The significance of the Study. 8

1.6 Background of the Research Methodology. 9

1.7 Structure of the Dissertation. 9

Chapter 2: Literature Review.. 11

2.1 Chapter Overview.. 11

2.2 Underpinning Theories on Performance Appraisal System.. 11

2.2.1 Goal Setting Theory. 11

2.2.2 Vroom’s Expectancy Theory. 13

2.3 Performance Appraisals Process Influence on Employee Motivation. 15

2.3.1 Performance Appraisal Practices that Promote Motivation. 17

2.3.2 Self-Assessment. 18

2.3.3 Customers. 18

2.4 Strategies for Implementing Performance Appraisal Strategies in Improving Employee Motivation. 19

2.4.1 Past-Oriented Strategies. 19

2.4.2 Future-Oriented Methods. 21

2.5 Conclusion. 23

Chapter 3: Research Methodology. 24

3.1 Introduction. 24

3.2 Research Philosophy. 24

3.3. Research design. 25

Primary and secondary data. 25

Type of data – quantitative and qualitative. 25

3.4 Research strategy. 26

3.5 Data collection and sampling. 27

3.6 Data analysis method. 27

3.7 Reliability and validity of findings. 28

3.8 Research Ethics. 28

3.9 Chapter Summary. 28

Chapter 4: Findings and Analysis. 30

4.1 Chapter Introduction. 30

4.2 Analysis of Demographic and General Information. 30

4.3 The influence of Performance Appraisals Process Influencing Employee Motivation in Emirates Group 32

4.4 Strategies adopted by HR Department of the Emirates Group for ensuring a Successful Performance Appraisal for Improved Employee Motivation. 36

4.5 Mitigating Challenges Faced by Performance Appraisal Systems in harnessing the Employee Motivation 40

Chapter 5: Conclusions and Recommendations. 44

5.1 Chapter Introduction. 44

5.2 Conclusions. 44

5.3 Strategies adopted by the HR Department of the Emirates Group in ensuring a Successful Performance Appraisal for an Improved Employee Motivation. 45

5.3 Recommendations. 46

5.4 Suggestions for Future Research. 47

References. 49

Appendices. 55

Appendix 1: Research Questionnaire. 55

Chapter 1: Introduction

1.1 Research Background

The airline industry represents one of the sectors that are characterised by a strong influence on the overall economy in both the developed and emerging countries. The influence is evident in distinct ways. Research, for instance, indicates that in countries with a stable and sustainable airline industry the accumulated revenues from the air transport significantly support the expenditure of other goods and services in the economy (Fuerst et al., 2011). In addition, the consistent development of the airline industry has a significant implication on the employment rates in the countries (Spreitzer & Porath, 2012). In this regard, the majority of the countries globally are interested in ensuring that their airline industry is characterised by a highly stabilized and sustainable development. Within this perspective, the performance appraisal system constitutes one of the primary approaches through which a player in the airline industry can enhance the stability and maturity of their organization.

Over the years, both the academicians and practitioners have argued on the case of a performance appraisal system and its role in enhancing employee motivation (Boachie-Mensah & Seidu, 2012; Daoanis, 2012). The studies have argued that the management of human resources in the contemporary competitive business world is instrumental to guide the organisations in being innovative and compete effectively. Additionally, the human resource system can become highly successful by leveraging on a valid and accurate appraisal system for rating their employees’ performances. Nevertheless, Jiang et al. (2012) pointed out that very few entities have managed to effectively adopt a performance appraisal system in their operations. This is since for the performance appraisal system to be successful, there must be sufficient explanation and consultation to avoid being counterproductive. Also, there must be staff motivation, attitude and behavior development, communicating and aligning individuals and organisation aims and fostering positive relationships between the management and staff which are all instrumental for successful appraisal. The performance appraisal is identified as a systematic evaluation of the performance of employees and understanding the abilities of an individual for further growth and development (Boachie-Mensah & Seidu, 2012). This is achieved through maintaining records for the sake of determining the compensation packages, wage structure, salaries raise among others. This is also inclusive of identifying the strengths and weaknesses of the employees to place the appropriate person on the right job.

In the Emirates Group which is the case study company, the source of motivation for the majority of employees includes performance recognition, promotion, professional growth, and compensation and incentive schemes. As a result, the company has established the MyBC appraisal system that is inclusive of setting individual objectives which are in line with the overall line managers objectives. In light of this, Gruman and Saks (2011) observed that the establishment of the appraisal system is equally instrumental in HR efforts in successful attraction, retention and workers motivation. Nevertheless, there lack sufficient research on the influence of the performance appraisal system as a tool for harnessing employee motivation. Additionally, in the private sector, the performance appraisal system is equally not effective as projected since all procedures influencing the final results are always ignored in past research. In this case, the lack of all the critical elements of performance appraisal system has a negative implication on affecting the overall consistency of raters in their rating process and as such affecting the overall validity of the performance appraisal data. It is essential to evaluate the extent to which the performance appraisal process tend to influence successful employee motivation. This is through increasing the already existing literature on the role of HR in performance appraisal and improving the overall motivation of employees. Also, the existing link with an organisation performance in terms of profitability and market dominance is evaluated. The results of this study would guide The Emirates Group in setting an elaborate performance appraisal system that is oriented toward employee motivation.

1.2 Problem Statement

It is evident that Emirates Group has adopted the employee appraisal system as the approach for employee development and hence business performance improvement. A direct outcome of the increased integration of their performance appraisal system has been critical as it guides the organisation to recognize and understand the relationship of accuracy, effectiveness, quality of the performance appraisal process and organizational human resource development. The limitation of the appraisal system is nevertheless evident from the organisation failure of evaluating their staff in accordance to their tasks for the purpose of ensuring they are conducting their job as required standard effecting on their compensation (Albrecht et al., 2015). Also, it is instrumental to identify skills, performance and understanding their weaknesses and improving them within the department targets. It is equally not evident on how Emirates Group human resource management ensures that their appraisal system is up-to-date with the overall improvement of the company and satisfaction of the company goals. Nevertheless, it is evident that the company has successfully managed in ensuring that their management is carrying out their employee evaluation in accordance to their roles and later forwarding it to the HR department for collecting the performance rating and deciding on the compensation package. Similarly, the annual evaluation in their performance appraisal is being carried out in evaluating their employer performance with an aim of ensuring success in continuous improvements which are implemented for the sake of meeting overall demands of their changing environment.

Undoubtedly, the existence of the identified measures is evidence of increased efforts of ensuring successful integration of performance appraisal system in the organisation Human resource management. Nevertheless, there is limited research that has been carried out in investigating if the strategies set in place by the Emirates Group. This is a significant gap that the current study focuses on fulfilling by evaluating the already set changes in the Emirates Group. Part of the evaluation would be inclusive of evaluating the extent in which the performance appraisal approach can be adopted in enabling the employees in the Emirates Group in attaining their individual targets through motivation and exceeding their strategic targets by linking individual performance targets to the overall strategic target of the organisation.

1.3 Aims and Objectives

This study seeks to understand the relationship between the performance appraisal system and increased employee motivation. This is done with a focus on the Emirates Group case study. In consistence with the aim of the study, the following objectives would be pursued;

To analyse the extent to which the performance appraisals process influence on the overall employee motivation in The Emirates Group
To establish the strategies adopted by the HR department of The Emirates Group in ensuring a successful performance appraisal for improved employee motivation
To recommend strategies that can be used by Emirate Group to make their performance appraisal strategies successful in harnessing employee motivation

1.4 Research Questions

Answers to the following research questions are sought through this research;

How do the performance appraisals process influence on the overall employee motivation in The Emirates Group?
Which strategies can be adopted by the HR department of The Emirates Group in ensuring a successful performance appraisal for improved employee motivation?
Which strategies can be used by Emirate Group to mitigate challenges faced by their performance appraisal in harnessing employee motivation?