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To Evaluate the Role and Importance of Effective Performance Appraisal

System While Operating Business at International Level: Case Study of Nike

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ABSTRACT

An effective performance appraisal system helps the organization to manage its work in the international market. It is also helpful for the organization to gain competitive advantages from the market. It is because; effective performance appraisal system motivates employees to improve their efficiency and productivity that helps organization to sustain customers in the international market. This research study helps the researcher to evaluate the role and importance of performance appraisal system in the international market.

In this research study, researcher described the main aims and objectives in order to analyze the research study in effective manner. This research study focuses on the importance of performance appraisal system in international market in the context of Nike. The main objectives of this research study are, the exploration of theoretical framework of performance appraisal in international market; identify the role and importance of performance appraisal system in operating international business, identify different methods of performance appraisal and the methods that are used by Nike for effective performance appraisal in the international market.

In order to conduct this research study in effective manner, researcher has used qualitative research design because this research design supports the inductive approach with interpretive research philosophy, which is essential for this research study for data collection. It also helped the researcher to generate valid and accurate result for the research study. For effectively conduct this research, researcher has also used both the data collection methods such as primary and secondary. These helped the researcher to collect information and data related to the research topic in effective manner.

To analyze data and information, researcher has used thematic analysis framework and divided the data in different themes such as managing business operation, improvement in performance, and increase in competitive advantages and provide training and development programs. In order to create effective performance appraisal system, researcher also provided some recommendations to the company such as timely evaluation of performance system and improvement in communication channel and focus on observable behaviour.

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TABLE OF CONTENTSCHAPTER 1: INTRODUCTION....................................................................................................6

1.1. Structure of the Study:..........................................................................................................6

1.2. Research aims and objectives:..............................................................................................7

1.3. Research Questions:..............................................................................................................8

1.4. Research Background:..........................................................................................................8

1.5. Purpose Statement:...............................................................................................................9

1.6. Scope and Limitation of the Study:....................................................................................10

1.6.1. Scope:..........................................................................................................................10

1.6.2. Limitations:..................................................................................................................12

1.7. Summary:............................................................................................................................12

CHAPTER 2: LITERATURE REVIEW.......................................................................................14

2.1. Introduction:.......................................................................................................................14

2.2. Theoretical Framework of Performance Appraisal:...........................................................14

2.3. Role and Importance of Performance Appraisal System:...................................................18

2.4. Different Methods of Performance Appraisal:...................................................................23

2.5. Methods used by Nike for Performance Appraisal:...........................................................28

2.6. Summary:............................................................................................................................31

CHAPTER 3 METHODOLOGY..................................................................................................33

3.1. Introduction:.......................................................................................................................33

3.2. Research Paradigm and Philosophy:..................................................................................33

3.3. Research Design:................................................................................................................35

3.4. Research Approach:............................................................................................................36

3.5. Research Strategy:..............................................................................................................38

3.5.1. Case Study:..................................................................................................................38

3.5.2. Strengths of Case Study Research Strategy:................................................................39

3.5.3. Weaknesses of Case Study Research Strategy:...........................................................39

3.6. Qualitative and Quantitative Design:..................................................................................39

3.7. Data Collection Methods:...................................................................................................40

3.7.1. Primary Data Sources:.................................................................................................41

3.7.2. Secondary Data Sources:.............................................................................................42

3.8. Summary:............................................................................................................................42

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CHAPTER 4: DATA ANALYSIS AND FINDIGS......................................................................44

4.1. Introduction:.......................................................................................................................44

4.2. Thematic Framework:.........................................................................................................44

4.3. Theme Consideration:.........................................................................................................45

4.4. Generalization and Categorization of Themes:..................................................................45

4.5. Posteriori Themes:..............................................................................................................50

4.5.1. Manage Business Operations:......................................................................................50

4.5.2. Improvement in Performance:.....................................................................................53

4.5.3. Increase in Competitive Advantages:..........................................................................57

4.5.4. Provide Training and Development Program:.............................................................60

4.6. Research Outcome:.............................................................................................................61

4.7. Summary:............................................................................................................................63

CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................65

5.1. Introduction:.......................................................................................................................65

5.2. Assessment of Findings:.....................................................................................................65

5.3. Developing Relationship between Research Findings and Objectives:.............................67

5.3.1. Role and Importance of Performance Appraisal System to Operate Business............68

5.3.2. Different Methods of Performance Appraisal and the Methods Used by Nike...........69

5.4. Recommendations:.............................................................................................................69

5.4.1. Timely Evaluation of Performance System:................................................................69

5.4.2. Improvement in Communication Channel:.................................................................69

5.4.3. Focus on Observable Behaviour:.................................................................................70

5.5. Further Research Directions:..............................................................................................70

5.6. Summary:............................................................................................................................71

REFERENCES..............................................................................................................................72

APPENDIX....................................................................................................................................78

Questionnaire:............................................................................................................................78

LIST OF TABLES AND FIGURES

1. Table 1: Priory Themes: Role and Importance of Effective Performance Appraisal

System................................................................................................................................46

2. Table 2: Posteriori Themes: Role and Importance of Effective Performance Appraisal

System................................................................................................................................47

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3. Graph 1: Performance appraisal is important for organization to manage

operations. .............................................................................................................................

...............51

4. Graph 2: Most Important Performance Appraisal System that supports the Business at

International Market...........................................................................................................53

5. Graph 3: Performance Appraisal Helps to Improve Performance of employee in

International Market...........................................................................................................55

6. Graph 4: Appraisal System helps to compare Employees’ Existing Performance with

Previous Performance........................................................................................................56

7. Graph 5: Performance Appraisal is an Effective Tool to Motivate

Employees..........................................................................................................................58

8. Graph 6: 360 Performance Appraisal System helps to Provide Proper Feedback to

Employees..........................................................................................................................59

9. Graph 7: Performance Appraisal helps Employees to develop their Skills and

Knowledge.........................................................................................................................61

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CHAPTER 1: INTRODUCTION

1.1. Structure of the Study:This research study focuses on role and importance of effective performance appraisal

system while operating the business at international level. This research study is also aiming to

describe the various performance appraisal methods adopted by Nike in order to achieve the

results efficiently and effectively. Brief introduction of different chapters of this dissertation are

as follows:

In this dissertation first chapter introduce the research issues that are related to the

performance appraisal methods used by the Nike to achieve the organizational goals efficiently.

Additionally, this chapter also discuss about the aims and objectives of research. Aims and

objectives of the research help to find out research questions, which are related to the research

issues. This chapter also explains the research background. This also helps to understand the

research issues that are related to research topic. Additionally, this chapter also discusses about

the purpose statement and also discuss about the research scope and limitations. Understanding

the research limitations helps in achieving the research aims and objectives efficiently.

Second chapter of dissertation is literature review, which is related to the research topic

that is “To evaluate the role and importance of effective performance appraisal system while

operating business at international level: Case study of Nike.” At the initial step researcher has

described the theoretical framework of performance appraisal systems. In second step researcher

has described the role and importance of performance appraisal system within the organization.

In the last step different methods adopted by the Nike has been discussed by the researcher in

order to increase the performance of employees.

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Third chapter of this dissertation is research methodology, in which researcher has

explained the various methodology and approaches used by them to make the research more

effective and sound. In this chapter, researcher has used qualitative data to gather the relevant

data properly. Further this chapter also uses various paradigms and philosophies in order to

describe the research methodology effectively. Researcher has also used primary and secondary

data collection methods to collect the information for performance appraisal. Researcher has also

presented case study analysis to complete the study.

In fourth chapter of this dissertation data analysis and findings are done. In order to make

this chapter effective, researcher has used thematic analysis framework to make the evaluation of

data efficiently. In this chapter researcher has done the evaluation of primary and secondary

collected data. This chapter of the dissertation is also helpful in maintaining the link between the

research findings and research objectives. Chapter five of this dissertation gives the overall

conclusion of research study that provides the gist and outcomes of research study in appropriate

manner.

1.2. Research aims and objectives:

In order to attain the research problem “to evaluate the role and importance of effective

performance appraisal system while operating business at international level”, researcher will

evaluate the following research objectives:

To explore the theoretical framework of performance appraisal in international market.

To identify the role and importance of performance appraisal system in operating

international business.

To identify the different methods of performance appraisal and also determine the

methods used by Nike for performance appraisal.

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Suggest the new strategies that can be implemented by Nike in order to improve

performance appraisal system in international market.

1.3. Research Questions:

To conduct the research work effectively and to collect effective data for the research

problem, researcher will explore the following research question:

1. What is the role of performance appraisal in international business?

2. What are the various methods used in performance appraisal?

3. How performance appraisals play an effective role in retention of employees in

international business?

1.4. Research Background:

In today’s competitive environment every organization has to adopt different

performance appraisal tools in order to make the employees more competitive and effective.

Different performance appraisal methods help in making the evaluation and identification of

employee’s performance more appropriately. Effective performance appraisal method helps the

organization in identifying the problem areas within the organization. Further, through

performance appraisal managers can enhance the overall performance of an organization.

Managers can also motivate the employees in terms of achieving the organizational goals and

objectives efficiently. Performance appraisal enables the manager for conducting the various

learning and development programs in order to enhance employee’s skills and knowledge related

to work.

According to Bacal (2006), in order to make the performance appraisal, effective and

proper communication should be there between the top level and lower level managers.

Performance appraisal is very effective system that evaluates the individual’s performance and

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provides them chance for future growth. Further employee’s weakness and strengths related to

job can be identified with the help of effective performance appraisal system. Performance

appraisal system helps in motivating the employees in order to increase the production. Effective

performance appraisal system also provides feedback to employees for their performance. After

getting the feedback, employees can take corrective actions in order to improve the performance.

Performance appraisal can be done by using various methods such as graphic rating scale, 360

degree feedback, critical incident method, ranking method etc. All these methods can make

performance appraisal effective. Every organization adopts different methods based on their

objectives and goals.

In the views of Armstrong (2009), in today’s competitive environment, it is necessary to

do performance appraisal of the employees. Organization can do recruitment and selection of

employees based on the employee’s performance. Managers in organization evaluate the

performance according to their job requirement. It is necessary for every organization to adopt

the effective performance appraisal method. Employees can get feedback of their performance

through the managers or from the peer groups. After getting feedback, employees will make

efforts to enhance the performance and achieve the aims and objectives of Nike. Proper training

and development to employees will make the employees capable to adopt the new technologies.

1.5. Purpose Statement:The main purpose of this dissertation is to provide theoretical framework of performance

appraisal system in the context of Nike, so that other companies can develop their understanding

and knowledge about the different performance appraisal methods in order to build competitive

advantage. The main purpose of this research study is to provide important shares in getting the

quality and large amount of research for the various firms and organization. With the help of this

research organization can do effective recruitment and selection of employees. Organization can

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also provide future growth of the employees and make development of their carrier. This

dissertation is also helpful for the company to make the sound position in international as well as

domestic market.

Moreover, this dissertation is helpful in adopting more effective performance appraisal

system by the organization. Researcher can also develop training and development programs to

make the employees sustainable in competitive and international market. Other purpose of this

research study is to provide training and development to employees in order to improve their

skills and knowledge. Effective performance appraisal system helps in making the proper

allocation of human resources according to their skills and knowledge. Placing of employees

according to their specialization will enhance the performance and results can be achieved

effectively. This dissertation will also guide the readers to develop an understanding about

different methods of performance appraisal used by the organization.

1.6. Scope and Limitation of the Study:

1.6.1. Scope: This research study provides the wide discussion various performance appraisal methods

used by Nike. This research study is very much useful in analyzing the various methods used by

the companies for doing the performance appraisal. This study is also useful for the organization

in enhancing the performance of employees. Further performance appraisal also motivates the

employees for better performance. Selection of appropriate methods of performance appraisal

will help in evaluating the employees’ performance. Evaluation of employees’ performance

enables the managers to conduct the learning and development programs if required. This

dissertation is also helpful in providing information to other companies regarding the

performance appraisal criteria. It is also helpful in understanding the significance of effective

performance appraisal system in terms of operating the business into international market. This

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dissertation explains the scope of performance appraisal system for understanding the techniques

used in international market. Further managers can motivate the employees for enhancing the

performance at international level. Effective and proper performance appraisal system will attract

more employees and also boost up the morale of them. This research study also focuses on

various methods that can be used for conducting the performance appraisal.

This research study will also provide methods that are used by the Nike for conducting

the performance appraisal system according to international level. Performance appraisal system

is also helpful in analyzing the training and development needs for the employees. Further this

research study will provide various drawbacks and advantages of performance appraisal system.

This research study will also helpful for the experts in making the comparison between various

methods used by the other firms within the market and helps in building the competitive

advantage. This research study will also helpful in understanding the employee needs and wants.

Performance appraisal helps in integrating organization goals with individual goals that helps in

enhancing the performance of employees. This research study also provides information to the

readers regarding the impact of performance appraisal system in the domestic as well as

international business.

This research study is also helpful in selecting the appropriate method of performance

appraisal by Nike. Selection of effective performance appraisal method helps in giving

competition to other firms within the market. Employees can also able to cope up with changing

environment and adopts the new technology. This research study can also be used as secondary

data for conducting another research study. Researcher can take reference for making another

research projects and enhance the effectiveness. Scope of this research is very wide in

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understanding the various methods used by Nike for doing the performance appraisal. With the

help of performance appraisal Nike can make the employees sustainable in international market.

1.6.2. Limitations:For conducting the research study in an effective manner researcher has to face certain

problems or issues related to research. Some of the problems are discussed below:

Cost Constraints: To gather the relevant data for doing the research is very expensive

process. Due to this constraint, researcher is not able to conduct the research efficiently. In order

to collect the secondary data researcher needs journals, articles, and books, etc. that requires lot

of cost. Limited use of secondary data will also affect the effectiveness of research study.

Time Constraints: Researcher has to face the problem of time while doing the research

study. Researcher gets limited time for doing the research that affects the quality of data and

information that has been collected. Reduction in quality of data may also affect the

effectiveness of research and aims and objectives of research cannot be achieved. Moreover

researcher cannot gather the enough information in order to conduct the research effectively.

Access Constraints: Some articles and websites are not authentic for doing the research

that creates problem in using the data for the research study. For conducting the research in

appropriate and effective manner researcher has used secondary data only. Dependency on

secondary data may affect the performance of research study. Primary data need to be used to

make the research efficient and also able to achieve the research aims and objectives. Reliability

of collected data can be affected due to the use of outdated articles and some environmental

changes.

1.7. Summary:From the above discussion, it can be concluded that this chapter of dissertation is very

useful in developing the knowledge regarding theoretical framework about various performance

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appraisal methods used by Nike, so that performance of employees can be enhanced. This

chapter also provide the base for answering the research problems. This chapter also give

discussion about the research background, research objectives, purpose of the study, scope and

limitation of study etc. that helps the researcher in making the conclusion that methods used in

performance appraisal helps Nike in improving the performance of employees. It can also be

concluded that effective performance appraisal is helpful in motivating the employees for better

and effective performance.

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CHAPTER 2: LITERATURE REVIEW

2.1. Introduction:In this dissertation, main objective of this chapter is to critically analyze different books

and articles, which are related to the research problem, which is “Effective performance

appraisal of Nike”. This chapter helps in identifying the theoretical framework of effective

performance appraisal. This chapter also enables the researcher to identify the role and

importance of performance appraisal system in the domestic as well as in international market.

This is also helpful for the researcher to develop and understand different methods of

performance appraisal system. Researcher has also analyzed the different methods that have been

used by the Nike in order to do the performance appraisal of their employees.

Therefore, different method of performance appraisal used by Nike helps in attracting

and retaining the employees. Further, effective performance appraisal also influences the morale

of employees and motivates them for the better performance. Effective performance appraisal

system creates healthy working environment and brings cooperation among employees.

2.2. Theoretical Framework of Performance Appraisal:

According to Sandler and Keefe (2003), performance appraisal is the method of

evaluating and measuring the employee performance in order to analyze the future growth of

business. Researcher states that performance appraisal helps in identifying the outcomes of the

present performance of employees as well as in taking the future decisions. Kuvaas (2011) also

supports the view of Sandler and Keefe (2003) and stated that the main objective of performance

appraisal is to give the feedback to employees for their performance and motivates them for

better performance. Feedback is given by the line managers to their employees. In contrast,

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Prowse and Prowse (2009) asserted that performance appraisal cannot be conducted efficiently,

if the line manager does not have intellectual skills to measure the performance of employees.

Further they stated that managers should have the capacity to evaluate and provide

feedback on employee performance. It can be stated that effective performance appraisal system

helps in achieving the goals of organization efficiently.

In the views of Warner (2002), performance appraisal helps in providing protection to the

company legally against any misconduct or underperformance. It also provides identification of

poor performers and also provides various methods to enhance the performance. It also creates a

healthy relationship among the employees and it can be done through proper communication and

observation. In the support of Warner (2002), Hellqvist (2011) explained that performance

appraisal helps in managing the workforce properly within the organization. Effective

performance appraisal system helps in making the employees adaptive according to the

technological changes. Managing and developing the employees for international market is the

major challenge for the managers while doing the performance appraisal.

Maley (2011) also supports the arguments of Hellqvist (2011), and stated that managers

have to give training and development to the employees according to the international market.

Due the emerging globalization, diversified workforce has been adopted by the organization.

Various multinational corporation measure the performance of their employees according to the

international market conditions. Organization analyzes the performance appraisal system in

various countries. Scroggins and Benson (2010) stated that now a day’s organization has to show

their skills worldwide in order to make the competitive advantage. Effective performance

appraisal system helps the organization in giving competition to the rivalries in international

market. Most of the multinational companies adopt the performance appraisal system according

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to the international market. Effective performance appraisal leads to the optimum utilization of

resources.

According to Cardy and Leonard (2011) performance appraisal helps the manager in

identifying the overall working of the organization. Additionally through the performance

appraisal, line managers can identify the problem areas and take corrective actions accordingly.

Appraisal of employees ensures the better performance and also motivates them to work hard in

order to achieve the organizational goals. Researcher stated that in order to motivate the

employees for better performance, line managers have to integrate the organizational goals with

the individual goals. Banfield and Kay (2011) has supported the view of Cardy and Leonard

(2011) and suggested that with the emergence of multinational companies, organization has to

recruit the diversified workforce. With the help of diversified employees, organization can cope

up with the technological changes in the external environment. Line managers have to adopt the

performance appraisal methods according to the diversified workforce.

Vergara and Gardner (2011) explained that performance of employees needs to be

evaluated at the level of international market. After doing the appraisal of employees, managers

can provide training and development facilities to the employees. Performance appraisal helps

the managers in identifying the suitability of employees according to the job. This identification

helps in identifying the need for further recruitment and selection of suitable candidate. In the

support of Vergara and Gardner (2011), Fons (2011) suggested that with the help of performance

appraisal, managers can give remuneration accordingly and also provide rewards for improved

performance. Promotion and demotion can be done on the basis of performance appraisal.

Employee performance helps in measuring the level of results that have been achieved and future

benefit of organization.

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In against of Fons (2011), Forslund (2011) argued that performance appraisal cannot be

effective unless, it is used in proper way. Sometimes performance appraisal system will lead to

underestimation of the employee’s performance. Managers with less intellectual skills cannot

measure the performance and take corrective actions. Proper training and development should be

given to the managers if necessary for doing the appraisal. In case of the multinational

companies, managers should have knowledge about the various cultures and values. They also

have the capability to integrate different cultures within the organization. Proper management of

diversified workforce helps in enhancing the performance of organization. Hunter and Renwick

(2011) has given the example of Tesco and explained various policies and procedures used by

them. Tesco has defined the formal policies and procedures in order to give guidance to the line

managers for doing the human resource management properly. Tesco has to manage the

employee’s properly in order to maintain the competitiveness in US market.

According to Lambert (2010), for the performance appraisal of international companies,

managers have to ensure that international employees and subsidiaries have to be concentrated

towards the goals of home company. In contrast of Lambert (2010), Alexander and Doherty

(2010) stated that performance appraisal in international market is a difficult process to perform.

Goals of the parent company do not match with subsidiaries and also creates communication

barrier. Sometimes, any information related to job does not pass to the subsidiaries at appropriate

time; this affects the performance of employees. It can be stated that performance appraisal

system adopted the by the various international companies depends on their goals, objectives and

policies.

Tsai (2011) explained that performance appraisal can be done by comparing the actual

performance with the planned goals. Any deviation in the in the stated objectives will need

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corrective actions to be taken. Some principles of the performance appraisal states that

employees should get merit according to their performance. This fact is supported by Morden

(2007) and he stated that employee should be promoted as per their capability and skills not on

the basis of position. While doing the performance appraisal, performance of the employees

should be measured individually in the collaborative efforts.

2.3. Role and Importance of Performance Appraisal System:

According to Morse (2010) performance appraisal system plays a very important role in

human resource management. Performance appraisal of individuals enhances the overall

efficiency of any business entity. Managers in the organization can gather various benefits from

the effective performance appraisal system. Performance appraisal helps in making the career of

the individual employee in the organization. Tatum and Eberlin (2006) explained three

functional areas of performance appraisal in an organization. Firstly performance appraisal plays

administrative role for the line managers. Managers can identify the salary and rewards for

employees based on their performance. Managers can also take decisions regarding salary

increase after evaluating the performance. Through the performance appraisal delegation of

authority and responsibility can also be given to capable employees. With the help of authority,

employees can take decisions by their own related to their work (Tatum and Eberlin 2006).

Secondly, performance appraisal also plays a role in providing adequate information

related to the task. Appraisal system can be effective if managers have the information about

individual’s specialization and weakness. Specialization of employee in particular field helps the

managers in allocating the resources to the employees accordingly that improve the efficiency.

After analyzing the weakness proper training and development programs could be conducted in

order to overcome the weakness. Mosley and Pietri (2010) also supported this by saying that

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while operating any international business; managers have to recruit the diversified workforce in

order to meet the domestic as well as international demands efficiently. Training and

development of diversified employees are provided to integrate the different views of employees

towards common goals. For the operation of international business, managers have to integrate

different cultures and values within the organization.

According to Erasmus and Schenk (2009), performance appraisal plays a fundamental

role in motivating employees for better performance. Managers should create the learning

experience, which boosts up the morale of employees. Managers also have the capability to

influence the employees in order to improve productivity. In the view of Chan, Wu and Leung

(2011) performance appraisal gives benefits to the organization in many ways such as it is

helpful to reap out the expected outcome and after analyzing the strengths and weakness

managers can set the organization behaviour accordingly. Moreover, managers can give

feedback to the employees about their performance and allows them to increase the outcome. In

the support of Chan, Wu and Leung (2011), Cook and Crossman (2004) stated that performance

appraisal also plays an important role in identifying the different needs and expectations of

employees within the organization. It is very much important for the managers to do the

performance appraisal, while operating the international business. Managers should give training

and development to the employees for adopting new technologies.

For doing the international business employees should be adaptive according to the

change in technologies. There are various factors such as change in government policies,

exchange rate fluctuations, change in taste and preferences of outside customers, etc. which arise

the need of performance appraisal at regular interval. Performance appraisal helps in giving

guidance to the employees by the managers regarding the international business management. In

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contrast of Cook and Crossman (2004), Crosby, Devaney and Law (2011) stated through the

performance appraisal employees get motivated only for short term. Employees do hard work

only for getting appraisals, they always do not perform effectively. They are not always prepared

to perform creative and new things in the organization. Sometimes deviation in the performance

could not be found by the managers. Organization can acquire the third party in order to do

performance appraisal. With the help of performance appraisal, managers can highlight the

changes that have been adopted by the employees after getting feedback of their previous

performance.

According to Bernardin (2008), appraisals of the employee should be given both on

qualitative and quantitative measures. This will help in doing the overall performance analysis of

employees. Some organization gives feedback either on quantitative basis or on qualitative basis,

which creates problems. In support of Bernardin (2008), Smither and London (2009) stated that

performance appraisal plays a fundamental role in enhancing the performance of employees as

well as the organization. Adaptability and innovations in the organization helps in accepting the

internal and external environmental changes. With the appropriate performance appraisal

managers can develop various learning programs for doing the international business.

For doing the international business, performance appraisal has some importance in

managing the business. According to Farndale, Hailey and Kelliher (2011) performance

appraisal is considered as indispensible tool for maintaining the performance of organization.

With the help of appraisal information, managers can take the decisions regarding recruitment

and selection of employees. It is also helpful in taking decisions for some personal aspects such

as promotion, demotions, and increase in merits. Managers can also frame various policies and

strategies for the employees in order to achieve the results efficiently. This fact is also supported

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by Delisle and Grissom (2011), they described that with the help of performance appraisal

system employees can judge their performance by their own. Self assessment helps in motivating

the employees for taking more responsibility for their own performance. They try to focus on

improvement in their own performance. Further, it is helpful in reducing confusion for the

performance and employees will change their job behaviour.

Grote (2002) also argued that self appraisal of performance helps the employees in

analyzing their job duties. Further, they are able to handle the issues related to their jobs and also

able to give rating by their own. With the help of self rating, employees can discuss the problems

and issues related to job with the managers. After analyzing the issues managers can make job

improvement plan. The view of Grote (2002) also supports the view of Hellqvist (2011), who

stated that managers can identify the worth of employees in relation to the job. On the basis of

that managers can take decisions regarding recruitment, selection, training, development and

promotions. Additionally, they can also decide about the transfer and punishment of employees.

Employees can be transferred to their suitable jobs.

According to Sims (2002), performance appraisal is also important in analyzing the

effectiveness of recruitment and selection. Managers can adopt better recruitment and selection

programs after doing the performance appraisal, if required. He also stated that managers can

also identify the problems that have been faced by the employees, while performing the job. In

the support of Sims (2002), Azzone and Palermo (2011) stated that managers can place the

employees in the organization according to their capability and skills. Further, managers can also

divide the efficient and inefficient employees and fixes them accordingly. Superiors can also

know their subordinates more closely and analyze their working behaviour. In every

organization, performance appraisal system is adopted according to their working environment.

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In some organization appraisal is done with salary increment. Main motive of every organization

is to achieve the stated goals and objectives. After doing the performance appraisal, managers

can disperse these goals in whole organization based on capabilities and suitability of employees.

According to Lawton and Jankowski (2009), without the performance appraisal managers

cannot correctly identify the results and performance of employees. Managers can only guess

whether employees are performing towards right way and according to desired standard. One of

the main motives of organization is to maintain and enhance the workforce. In today’s business,

employees play a very important role in achieving the desired results of the organization

efficiently. In support of Lawton and Jankowski (2009), Appelbaum, Roy and Gilliland (2011)

states that employees’ performance need to assessed properly in order to achieve the desired

results. With the global expansion of business, managers have to face the problem of employing

people in more than one country. Performance appraisal is important in analyzing the capability

of employees. Individuals with the higher adaptability and creativity can be employed in more

than one country and able to compete globally.

According to Rudge (2011), due to the globalization, every organization has to adopt the

diversified workforce and adopt efficient diversity management programs. In the diversity

management programs, managers have to integrate the performance appraisal system to make the

program successful. With the performance appraisal system, managers can identify, whether

employees have integrated different cultures and values towards the organization’s common

goals (Kuvaas 2011). Various multinational companies have to do the import and export of

product and services in various countries. Employees should be capable of operating the

international business activities. In future, organization can be successful, if they are able to

increase their productivity by improving the performance of employees.

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According to Forslund (2011), performance appraisal has a very considerable role and

importance in operating international business. Without the proper assessment of employee’s

performance, organization cannot achieve their goals efficiently. In contrast of Forslund (2011),

Hunter and Renwick (2011), performance cannot be improved until organization will adopt the

suitable system. Managers should have the skills to place the employees according to their

capabilities. Allocation of employees according to their specialization will produce the results

more effectively and efficiently.

2.4. Different Methods of Performance Appraisal:

According to Bogardus (2009) organization has to use various methods to do the

performance appraisal of employees. Every organization adopts suitable methods in order to do

the performance appraisal. There are various types of performance appraisal methods such as

graphic rating scale, ranking method, 360 degree appraisal, critical incident method, field review,

forced distribution, assessment centres, etc. are used by the organization. All these methods are

discussed below in detail:

Graphic Rating Scale: Pemberton, Hoskins and Boninti (2011) have explained that in this

method one evaluator is required to indicate the level of performance on the rating scale. It is one

the most important methods of doing performance appraisal. Rating levels are formed by using

number of scales. Each scale predict the different dimension of performance or the job such as

knowledge, responsibility, quality of work, accountability, time taken etc. (Bohalander and

Snell). In each scale, series of numbers are indicating the level of performance such as high to

low, good to poor, most to least effective, etc. according to this performance is measured. In the

support of Pemberton, Hoskins and Boninti (2011), Sukirno and Siengthai (2011) stated that

performance dimensions of the organization should be clearly defined before adopting this

24

method. Scales that have set should be based on the organization behaviour, so that ratter can

able to give ratings accordingly. This method of performance appraisal helps in analyzing the

employee knowledge and skills carefully. Comparison between the performances of various

employees can be done easily with the help of this method.

In contrast of Sukirno and Siengthai (2011), Vidgen, Sims and Powell (2011) stated that

sometimes one dimension of the appraisal may affect the rating of other dimensions of same

person. Evaluator need to be competent to measure the results accurately and give appropriate

rating to every employee. Employees sometimes have to face with the rating errors, which affect

the morale of employees.

Ranking Method: After analyzing the graphic rating method Besseris (2008) has

explained ranking method for doing the performance appraisal. In ranking method, comparison

between the employees can be done. Merits are given to the employees on the basis of their

overall performance. This type of method helps in assessing the overall traits of employees. This

fact is also supported by Mehdizadeh (2010) and he stated that employee performance is not

measured on the basis of specific job components. On the basis of ranks, employees are placed in

the organization to make efficient use of manpower. Further this method help in assessing the

employee’s skills in every field. Analysis on the basis of specific components makes the

employees specialized in that particular field (Mathis and Jackson 2009). Overall analysis of the

employees makes them adaptive according to the changing organization conditions. This type of

performance appraisal helps the managers in arranging the employees from good to bad and

more effective to least effective.

In contrast of Mehdizadeh (2010), Besseris (2008) argued that evaluators are sometimes

reluctant to make discrimination in the employee performance. Without analyzing the efforts of

25

individual performance, employees are given the rank the randomly. This type of method is not

very much popular in the organization. Moreover, it is very difficult to create the difference

between performances of different units. Hanafizadeh, Kazazi and Bolhasani (2011) suggested

that rating method of performance appraisal are very easy to understand and simple to use.

Moreover, all the employees are treated equally and measured on the same rating criteria.

Appraisal process of performance is same for all the employees in the organization. Further,

traits that have been selected should be relevant and justified with the job. This method is helpful

in motivating the employees for better performance and employees itself can compare their

performance with other employees.

Critical Incident Method: According to Gatewood, Feild and Barrick (2010), critical

incident method is the type of qualitative approach, which can be used to achieve the description

of work. This method is very much useful in analyzing the training need or performance

development programs for employees. In this method individuals are reported with some

incidents, which reflect either good or bad performance. Evaluator can measure the performance

from some critical issues that separates the ineffective from the effective job performance. In

support of Gatewood, Feild and Barrick (2010), Bernardin (2010) stated that managers prepare

the list of critical incidents of each employee and make performance evaluation. This method

creates a base for the managers that will help in doing comparison. This method is very much

useful as it makes the difference between the successful and unsuccessful performance.

Employees with lot of critical incidents need to give training for the improvement.

According to Mikulic and Prebez (2011), critical incident method helps the managers in

improving their working environment. Employees will also make changes in their working

behaviour and perform more efficiently. Further this method entails the description of situation

26

that and various consequences. Gorman and Evers (2011) argue that critical incident method

cannot measure the performance in quantitative terms. Further managers have to note down all

the incidents of employees regularly, which cannot be practically possible.

Forced Distribution: This method use the specific distribution for giving rates to the

employees. In forced distribution, evaluator uses the various components of job instead of single

factor for doing the job evaluation. Employees are rated according to the distribution such as

10% low, 20% above, 40% average, etc. that avoids the problem of neglecting and central

tendency (Denisi and Griffin 2005). On the other side, this method uses the not very much

popular among the managers of different organization. Moreover, this method sometimes creates

mistrust and reduces the morale of employees. This method creates discrimination, even if

employees have almost similar performance, which does not motivate the employees (Mathis

and Jackson 2009).

According to Goel and Bourell (2011) in forced distribution, managers make group of

employees according to predefined frequencies and give rates to the performance of employees.

Frequencies are determined in advance by the organization, which helps in easy evaluation of

performance.

360 Degree Appraisal: According to Mason, Power, Baker and Swift (2009), 360 degree

feedback performance appraisal is the process in which employees get feedback of their

performance. Feedback is given by their managers, peers, direct reports, subordinates, team

members etc. at timely intervals. Sometimes employee getting feedback also has to give the self

rating. In this method around eight to twelve people fill up the feedback form including the

organization competencies. In feedback form, some question are included that are evaluated

through rating scale and person giving feedback can also write the comments for the

27

performance. In support of Mason, Power, Baker and Swift (2009), Dai, Tang and Meuse (2011)

states that feedback that is given to employees is confidential and are provided by the workers

around them. This method helps in analyzing the strength and weakness of the employees. With

the help of feedback form, employee can analyze the critical areas and can make development

plan.

This method is also known as multi rater method because rating is given by various

people within the organization. Self rating of employees helps in making self assessment. 360

degree feedback is very much useful for the organization in taking the administrative decision

such as promotion, merit rating and transfer. Further, it is helpful in changing the perception of

other employees and in taking justified decision (Lepsinger and Lucia 2009).

Management by Objectives (MBO): According to Sommerville (2007) in this method

managers and employees decide the common goals and objectives in advance. Earlier stated

standards and objectives provide a base for the employees in doing self assessment. Employee

performance can measure by analyzing the extent to which objectives have been met (Pecora,

Cherin and Bruce 2009). Joint decision of superior and subordinates helps in satisfying the needs

and wants of both. Moreover, it is helpful in enhancing the performance. In this method,

performance is evaluated on the basis of earlier stated objectives. This help in analyzing any

deviation in the stated objectives and corrective actions can be taken if required. According to

Sorensen and Minahan (2011), after setting the objectives, employees can do the self audit and

can apply the required skills and knowledge for making the performance effective.

Earlier stated objectives help the managers in identifying and measuring the employee

traits suitable for the job. Superiors appraise the performance on the basis of actual results not by

employee traits. Human resource can be utilized optimally through the MBO method. In against

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of Sorensen and Minahan (2011), Bipp and Kleingeld (2011) stated that employee cannot take

decision or make changes according to the environmental changes. Sometimes employees in the

organization are not clear about the objectives that affect the overall performance of

organization. Almqvist, Catasu´s and Skoog (2011) give suggestion and states that objectives

should be framed after considering the previous performance of employees. Managers have to

develop the action plan and also provide training to the employees in order to achieve the desired

objectives efficiently. Managers can also guide the employees on how results can be efficiently

achieved. Various method used by the managers helps in measuring and evaluating the

performance properly.

2.5. Methods used by Nike for Performance Appraisal:

Performance appraisal is an important tool that helps in motivating the employees to give

their best on the job. It also helps in determining the efforts made by an individual to complete

their job on time and within available resources. There are various performance appraisal

techniques that help the employees to get fair and correct remuneration for their work and

motivate them to work for the development of the organization. For providing effective and

efficient appraisal to employees there are certain appraisal techniques that are used by Nike to

decide the actual value of appraisal that is sufficient for an employee to get motivated towards

his work such as 360 degree appraisal and Behaviourally anchored rating scales (BARS).

According to Daft and Lane (2009) behaviourally anchored rating scales technique is

used by the organization in order to provide rating to each employee based on his performance

for performing his work on the job. The criteria for observing the success of the work is based on

the work done by employees in critical situations or the performance of an employee from his

fellow beings. In favour of Daft and Lane (2009), Daft and Marcic (2010) said that this technique

29

is beneficial for the organization as well as for the employees, as it is easy to measure the

performance of each employee for the management. At the same time employees can also judge

their performance in compare to their co-workers.

Cassidy, Kreitner and Kreitner (2009) stated that organization use the technique of

behaviourally anchored rating scales by dividing the performance into scale points ranging from

five to seven such as extremely good performance, good performance, slightly good

performance, slightly poor performance, poor performance and extremely poor performance.

This rating scale facilitates the manager to effectively rate the performance of their subordinates

in order to provide deserved appraisal to each employee. In support of the Cassidy, Kreitner and

Kreitner (2009), Schermerhorn (2011) discussed that it helps in analyzing the work of the

employees and give importance to the work done by employee on the job rather than looking at

more general employee characteristics such as personality and vague work habits. In order to rate

the performance of each employee in Nike, manager at each level effectively observe the

performance and rate their performance according to the predefined rating scale.

In against of Cassidy, Kreitner and Kreitner (2009), Decenzo (2009) stated that

behaviourally anchored rating scales technique is not an effective technique to judge the

performance of the employees as sometime rating is based on the perception of the manager and

the process is time consuming. In support of Decenzo (2009), Grobler and Warnich (2005) stated

that this technique required high observational skill in the managers and also requires proper

determination of critical behaviours of the employees, so that manager can rate the employee in

an effective manner. The researcher also stated that behaviourally anchored rating scales

technique required large time to collect data and make effective decision. He also stated some

30

disadvantages such as it requires high observational technique and some time leads to misleading

data.

Along with the behaviourally anchored rating scales technique (BARS), Nike also uses

360 degree performance appraisal technique, where the top management collect the information

about the employee does not only from his supervisor but also from his co-workers. According to

Sommerville (2007), 360 degree performance appraisal technique does not only judge the

working ability of an employee but also determines the overall skills in order to maintain

effective training system in the organization. The researcher further stated that this helps in the

overall development of an employee by imparting new skills. Nike is conducting performance

appraisal by determining the overall work of the employee. For example, if the assessor is the

manager, his/her staff will be often asked for feedback in order to understand the style and

methods for doing the task.

In support of Sommerville (2007), Armstrong (2009) stated that 360 degree appraisal

system is beneficial for both the organization as well as employees. It helps in understanding the

performance of the employee in more comprehensive manner that will increase the creditability

of the appraisal. The researcher also stated that 360 degree performance appraisal facilitates the

top management in making more accurate assessment of the performance. It also motivates

employees to perform their best for completing the task and helps in maintaining good relation

with their client. Collecting information from large sources results into getting more accurate and

precise information and thus helps the top management to take effective decision for the

appraisal for their employees.

Mondy (2008) defined that 360 degree appraisal technique is best suitable for the Nike as

it motivates employees to take effective participation in the performance appraisal and creates

31

honesty in the culture of organization. In against of Mondy (2008), Catano (2009) stated that this

appraisal technique consumes lots of time and become complex work for the administrator to

manage the information in proper format. The researcher also describes that mismanagement in

the collected information creates confusion and frustration among many employees of the

organization that may result into decreases in the moral of the employees. In favour of Mondy

(2008), Robbins (2008) stated that this appraisal technique helps in motivate those employees,

who undervalue themselves and are not confident in their work. Positive feedback from their

supervisor, colleagues and other employees leads to the development of self confidence within

them. This development of self confidence is also beneficial for the organization as they work

with more enthusiasm and therefore work for the development of organization.

Both the appraisal techniques used by Nike is beneficial for the organization as one of the

technique provides power to the supervisor to rate the working of the employee that is helpful for

the organization. This technique creates good working environment in the organization as

employees obey the order given by the supervisor and thus work efficiently for the development

of the organization. At the same time, 360 degree appraisal technique motivates the employees to

take part in the appraisal system. It also motivates employees to work effectively as this

technique takes feedback from different sources that bounds employees to show his capability in

every field.

2.6. Summary:

From the above discussion, it can be summarized that this chapter of dissertation helps in

identifying the aims and objectives of research topic. This chapter also explains various

performance appraisal methods used by Nike for evaluating the performance. Performance

appraisal method helps in measuring and identifying the performance of individuals. This

32

chapter of dissertation also discusses about the theoretical framework of performance appraisal

method. From the above discussion, it can also be concluded that, performance appraisal has

various roles and importance in managing the workforce of organization. Performance appraisal

is very much important for assessing the performance of employees. Nike has adopted various

training and development program after doing the performance appraisal.

Nike has adopted two performance appraisal methods such as 360 degree feedback and

behaviourally anchored rating scale (BARS). 360 degree feedback helps individuals in doing the

self assessment and self audit whereas behaviourally anchored rating scale measures the

employee performance according to their traits. Performance appraisal helps in taking the

justified administrative decision such as promotion, merits, transfer, etc. and also fair

remuneration to the employees. Every organization adopts the suitable performance appraisal

methods based on their organization. Nike collects information about their employees through

360 degree feedback method.

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CHAPTER 3 METHODOLOGY

3.1. Introduction:

This chapter is related with selecting the appropriate methodology for collecting the data

for the research work. It shows the work done by the researcher for collecting the authenticated

and reliable data for the research activity. With the help of this chapter, researcher creates link

between the research question and the research objectives. This chapter emphasis on the different

methods and the techniques that are used by the researcher for collecting data from the different

data sources and also shows which source is more reliable.

This chapter presents the philosophy, paradigm, research design, research approach and

different data collection technique used by the researcher for collecting information in order to

increase the creditability of the research work. At the same time, this chapter consists of

appraisal the framework to examine the authenticity and applicability of method utilized by the

researcher in the dissertation and also recommends different approaches to enhance the

efficiency of the research strategies and process.

3.2. Research Paradigm and Philosophy:

Research paradigm and philosophy is important tool for the researcher for designing the

research strategy and to select the appropriate method for collecting the data in an effective

manner. According to Maxwell (2005), research paradigm is a perspective held by the group

researchers, in order to define the set of assumption, concept, value and practices for conducting

the research work. “Paradigm is an interpretative framework, which is guided by a set of beliefs

and feelings about the world and how it should be understood and studied (Hammell 2004)”.

34

In other words, paradigm helps the researcher in conducting the research work by

explaining the proper set of beliefs and values in order to persuade the direction of the research.

It helps in finding the appropriate way to complete the research work by presenting the valid and

applicable argument for fulfilling the aim of the research problem. There are three types of

research paradigm that defines the research into three different types based on their issues;

therefore it is important to understand all the three types (Blaikie 2007). They are defined as

positivist paradigm, interpretive paradigm and realism paradigm.

Positivist Paradigm: This is an approach that is based on the scientific methods to show

the truth and reality in the objective of the research problem. This technique is based on the

assumption that natural science helps in finding the true knowledge of the problem. Positivistic

researcher applies this method for exploring the facts and figure of the research problem with the

help of general sources. In order to conduct the research work under positivism, researcher has to

collect large number of data sample instead of collecting specific and precise data. In this

method, researcher has to focus on quantity of data rather than quality for finding the specific

solution (Polit and Beck 2008).

Interpretivism Paradigm: Interpretivism paradigm is helpful in understanding the

multiple truths and meanings of a single fact. These multiple truths and facts are suitable in

different situations and therefore with the help of this research technique, researcher can easily

identify the appropriate meaning of the fact in the current situation. This research technique is

based on understanding the facts rather than explaining the problem, i.e. it focuses on

interpreting the rules and regulation according the need of the researcher (Cohen, Manion,

Morrison and Morrison 2007). Interpretive philosophy helps the researcher to show interest

35

among people and their style in order to create interrelationship between their ideas and real

world.

Realism Paradigm: Realism focuses on the real situation and helps the researcher in

determining the thought process of an individual toward the real time situations. There are two

types of realism viz. Direct and critical realism. Direct realism helps the researcher to determine

the reaction of individuals on the real time situations. It helps in identifying the response of

people on the basis of what they see, hear and feel about the research problem (Cohen, Manion,

Morrison and Morrison 2007). On the other hand, critical realism researcher evaluates the

response of the individual in order to respond to the real world situations.

Along with the research paradigm, research philosophy also helps the researcher in

determining the data sources for conducting the research work in an effective and efficient

manner. It helps the researcher to select the appropriate data and facilitates him to find the

authenticity of the data. In this research problem, researcher has to focus on understanding the

importance of the effective performance appraisal system in Nike in order to maintain good

working climate in international business (Goddard and Melville 2004).

In this research, researcher used interpretive paradigm technique in order to determine the

appropriate data collection technique as it helps the researcher to find the meaning and

importance of various performance appraisal technique used by organizations. On the other hand,

positivism and realism philosophies are not appropriate as it focus on the general information

and do not satisfy the demands of the research problem.

3.3. Research Design:

Research design is an important step for before proceed for conducting the research work.

It is also known as the blueprint of the research that helps in finding the answer to the research

36

problem and suggests the way to collect and analyze the relevant data in most suitable way.

There are mainly two types of research design namely, descriptive research design and

explanatory research design.

Descriptive Research Design: Descriptive research design is used by researcher in order

to provide description about the naturally occurring phenomenon or the act, which is not

artificially manipulated. In this type of research work researcher generally finds answer of the

questions such as how, what, when and why (Goddard and Melville 2004). In other words, in

descriptive research study, researcher starts with general question about the research problem

and collects the data in order to find the effective result for the problem. Descriptive research

might be conducted for heuristic reasons, for example to find out more detailed information

about the research problem or to test for priori hypothesis.

Explanatory Research Design: Explanatory research focus on the “why” question of the

research problem. It helps in defining the nature of the research problem i.e. generalizing the

result based on the population from which sample is drawn. Unlike descriptive research,

explanatory research shows the general information and reveals casualty between the given

variables. In this research approach, researcher use experimental method for showing the

creditability of the report (Krysik and Finn 2010).

In this research work, researcher use descriptive research design for collecting the

relevant data for the research. This approach helps the researcher to collect the information about

the given question and shows the specific result to the given research problem. Also, the

explanatory research design is not suitable here as researcher has not to conduct and experiment

for finding the accurate result of the research.

3.4. Research Approach:

37

Research approach helps the researcher to select the right path for collecting the

information as well as helps in conducting the research work efficiently. It provides a well

defined way to researcher for completing the research work. There are two types of research

approach i.e. inductive research approach and deductive research approach.

Inductive Research Approach: Inductive approach is also known as bottom to top

approach as researcher has moves, its research work form specific to general observations. In this

research approach, researcher has to collect the specific information and then make the

observation to the broader and generalize way in order to understand the topic in more detailed

way. It helps the researcher to broaden the research area and thus collect more and more

information for making hypothesis. In this type of research work conclusion is generally based

on assumption and involve a degree of uncertainty (Engel and Schutt 2005).

Deductive Research Approach: this approach is just opposite to the inductive research

approach as in this research approach researcher has to move his research work from general to

specific. Deductive research approach is also known as top to bottom approach, where researcher

collects information in broader sense and move the research work to find the specific solution of

the problem. In this type of research work, conclusion is based on logic and available facts hence

must be certain in nature (Engel and Schutt 2005). In this approach, researcher has to show

arguments based on the laws, rule and accepted principles for increasing the creditability of the

research work.

In this dissertation inductive approach is used by the researcher as initially, analysis of

data is based on the various approach of the performance appraisal technique and then research

has to find the impact of these techniques on international business of the Nike. The deductive

38

approach is not used as the research is associated with positivism philosophy that is not

appropriate for this research.

3.5. Research Strategy:

There are number of strategy for collecting the information about the research study and

to determining the accurate result for the given problem. In order to collect information for

conducting the research work, research can use various methods such as literature review, case

study, observation, etc. In this research work, researcher uses literature review, case study and

survey through questionnaire technique for collecting the information. Researcher adopts

literature review technique to study the academic articles and book in order to understand the

various concept of the performance appraisal system (Walsh and Wigens 2003). Survey is taken

by researcher from the employees of the organization for determining the practical implication of

the appraisal system and case study helps the researcher to understand the problem faced by the

organization in the current appraisal system.

3.5.1. Case Study:There are various forms of case study that helps in building the in-depth knowledge of

the case. It helps the researcher in providing the description of the experience and provides exact

information regarding the objectives of the research problem. Case study can be defined as

explanatory and exploratory methods that are used by researcher in order to find the reliable data

for conducting the research work (Pellissier 2008).

Therefore, the case study of Nike for understanding the various methods used by the

organization for performance appraisal helps the researcher to understand the importance of

system in maintain good organizational environment in the international business. At the same

time this helps the researcher to provide effective suggestion for making the system more

39

effective that will help in increasing the moral of the employees and work for the development of

organization (Pellissier 2008).

3.6. Qualitative and Quantitative Design:

There are two approaches for conducting the research work in an effective manner. In

qualitative research approach researcher has to collect the data more precisely and more close to

the research problem. In this research approach researcher concentrates on quality of the data

collected and tries to collect data from most authentic sources (Creswell 2003). On the other

hand, in quantitative research approach researcher collects data in large quantity and do not focus

on the preciseness of the data from the research problem. In this approach research approach to

large number of participant and collect their views for conducting the research work in an

effective manner (Creswell 2003).

In this research work researcher has selected qualitative research approach for finding the

effective solution for the given problem. Qualitative research approach is also suitable as

researcher has selected interpretive research philosophy and inductive research approach. At the

same time, this research is based on constructive parameters, which comprises descriptive and

applied research studies (LeCompte and Schensul 2010).

In order to understand the importance of performance appraisal and to select the best

appraisal technique in the international market researcher has to collect the data more precisely

from the employees of the organization as well as from the top management. Therefore the data

collection technique must be based on quality information not on quantity. In this research work,

researcher has collected data from both primary as well as secondary sources therefore

qualitative approach is more suitable to increase the creditability of the research work.

40

3.7. Data Collection Methods:

Data collocation is an important step for conducting the research work. It helps in

understanding the problem effectively and provides base to the researcher to find solution for the

given problem of the research. There are two ways to collect data such as primary data collection

technique and secondary data collection technique. Primary technique also subdivides into

various categories such as interview, questionnaire survey, focus group analysis, etc. At the same

time, secondary data collection includes journals, articles, scholarly books, websites, annual

reports, censuses reports, projects, etc. (Phillips and Stawarski 2008).

3.7.1. Primary Data Sources:

Primary data are those data that are collected especially for a particular research and are

not used in any other research work. In this technique, researcher collets data directly from the

target audience and understand the feeling and behaviour of the people in concern to the research

problem. There are various methods to collect primary data such as interview, questionnaire

survey, focus group analysis, observation, etc. In this dissertation, researcher use survey through

questionnaire for collecting primary data from the employees of the Nike organization for

understanding the performance appraisal technique (Phillips and Stawarski 2008).

This primary data also helps the researcher to understand the problem faced by the

employees from the current appraisal technique in the organization, so that researcher can

provide effective recommendation to improve the current system. There are two types of

sampling strategy that can be implemented by the researcher to select the sample size for

collecting primary data for the research. These include probability sampling and non probability

sampling technique. Under probabilistic sampling stratified random, cluster, systematic and

simple random are classified that are useful for selecting the sample size from the entire

41

population (Cohen, Manion, Morrison and Morrison 2007). On the other hand, non probabilistic

sampling technique includes convenience, quota and purposive.

Primary data collection is a time consuming process but provides most authentic and

valid data to the researcher. In order to collect primary data from the employees of Nike,

researcher have allocated time duration from 05th November 2011 to 15th December 2011 and

for collecting the primary data researcher has used simple random sampling strategy under non-

probability sampling strategy and therefore selected 50 employees on the random basis.

3.7.2. Secondary Data Sources:

Secondary data are the data that are utilized by some other researcher in their research

work. Researcher has to analyse and take effective in order to understand the research problem

and to find the effective solution for the research problem. There are various sources for

collecting secondary data such as books, newspapers, academic journals, scholars, literature

review companies report and other authorized source to address the research questions (Porche,

D. J. (2004). It helps in critically review the research problem and finds out result for the

predefined problem. Additionally, this method facilitates the researcher to find the relevant data

and information for showing the recommendations in order to improve the current system of the

organization (Marlow 2010).

In other words, secondary data collection method is an effective way for collecting data

and information for the research work as it facilitates the researcher to collect effective and

reliable data. This method also helps the researcher to evaluate the existing studies about the

research problem and can compare the studies of other researcher for presenting the result in

effective manner (Boslaugh 2007). In this research work, researcher uses secondary data from

various sources such as journals, articles, scholarly books for enhancing the understanding about

42

the performance appraisal techniques. This method is cheaper and less time consuming from the

above discussed method.

3.8. Summary:

This chapter explain the introduction of the methodology that is used by the researcher in

order to collect authentic and appropriate information for conducting the research work. Further,

this chapter describe the research philosophy that is helpful for researcher for increasing the

creditability of the research work. Research approach and design used by researcher are also

explained in this chapter that makes the work easier for the researcher and describes the blueprint

of the research work in order to show direction for the efforts of the researcher.

This chapter also explains that case study strategy is helpful for the researcher to

understand the problem of the performance appraisal technique used in Nike and also explain the

advantage and disadvantage of it. This chapter is also helpful in understanding the data collection

technique used by the researcher for understanding the problem in the critical way and provides

recommendation for improving the appraisal technique in the company. Lastly, the chapter

explain the other research approaches that can be used by researcher for making the research

work effective and efficient.

43

CHAPTER 4: DATA ANALYSIS AND FINDIGS

4.1. Introduction:This research work focuses on the importance of effective performance appraisal system

in order to operate business in international market. This chapter of dissertation helps the

researcher to create detailed discussion about the findings of the research study. This chapter of

dissertation also helps the researcher to explore the main findings related to the research topic

that is the role and importance of performance appraisal system for the successful operations of

business in international market. This chapter is also quite significant to explore the analysis and

findings about different performance appraisal methods that can be used by the organizations to

achieve competitive advantages in international market. The main aim of this research is to

explore the theoretical framework of performance appraisal that is related to the research topic.

To conduct this chapter in effective manner, researcher has used thematic framework. It helps the

researcher to analyze each and every objective.

4.2. Thematic Framework:Thematic framework is the tool that is used for classifying and dividing the data based on

their themes and concepts. Thematic framework is prepared on the basis of research study. Each

research study has different framework according to their themes and subtopics (Ritchie and

Lewis 2003). Conducting evaluation through thematic framework helps the researcher in

analyzing the gathered data in appropriate manner. Thematic framework assigns the codes to the

collected data and also helps the researcher in developing the qualitative structure. Further, this

framework also uses interview records, video footage, filed notes etc. to analyze the research

effectively.

44

Researcher creates link between the people’s attitude and beliefs for examining the data

properly. Further, it is also supportive to compare the attitudes and beliefs in order to find out the

solutions for research problems (Loenen and Delft 2006). Moreover, thematic framework

considers the written records that help the researcher in translating the data into actual situation

and find out the outcomes of research issues.

4.3. Theme Consideration:According to Ryan and Bernard (2003) theme is a group of different linked categories

that depicts the similar meaning. Theme plays a very crucial role, while framing the process of

thematic analysis. Theme considers the significant data in order to find out the solutions for the

research related issues. Further, this is also helpful in finding maximum output from the gathered

data and information. Thematic analysis helps the researcher in framing the various themes for

the research. Additionally, it is flexible in nature and solves the research issues effectively and

efficiently. This type of research study creates the theme based models and with the help of this,

researcher finds out the issues in collected data. Themes are prepared through the collected data

as well as investigator’s theoretical understanding. Themes can be prepared through the

characteristics of phenomenon that has been studied (Ryan and Bernard 2003).

4.4. Generalization and Categorization of Themes:To create an effective analysis of the data and information, researcher use template

framework with thematic analysis. It helps the researcher to provide different codes for collected

data and information in effective manner. It also helps the researcher to generate themes in

advance to effectively conduct this chapter. For this, researcher can divided data and information

in two most important themes such as priori and posteriori themes. These themes helps the

researcher to generate initial templates and also helpful to record participants responses during

the research process. According to Bernard and Ryan (2009), priori themes help the researcher to

45

conduct qualitative research in effective manner. It also helps the researcher to use wide range of

data and information and interpret them in effective manner in order to generate result for the

research study. On the other hand, researcher also uses posteriori themes that help the researcher

to identify important themes from the research study.

Table 1: Priory Themes: Role and Importance of Effective Performance Appraisal System:

A Priory Theme Role and Importance of Performance

Appraisal System

Service Rationale

Management of

Human Resources

Effective performance appraisal system helps

the organization to manage employees

according to their skills and ability in the

organization.

Develop monitoring

system to judge

employee’s performance.

Improve in moral of

employees

An effective performance appraisal system

also helps employees to develop their moral

by creating personal experience and

knowledge.

It helps to improve

personal skills and

knowledge.

Identify employees’

needs and demand

Performance appraisal also identify basic

needs and demand of employee, which gives

employee satisfaction in the organization

Different performance

appraisal system such as

360 degree, graphic

rating scale, ranking

methods, critical incident

method, etc.

46

To effectively accomplish this table, different important themes and codes are useful. In

order to successfully complete this table, both primary and secondary resources helps during the

implementation process. With the help of priori themes, researcher is also able to create

differentiate the major themes or points to make posteriori themes. It is because, this table

follows the response collected from survey through questionnaire method (Creignou and Kolaitis

2008). With the help of this table, researcher has become able to develop the understanding

about role and importance of performance appraisal system to operate business in international

level.

The researcher also used posteriori themes to analyze and interpret the data and

information in effective way. The posteriori themes are quite effective for the researcher to

propose valid result from the collected data and information. It also helps the researcher to

generate accurate result for the research study by the collected data and information.

Table 2: Posteriori Themes: Role and Importance of Effective Performance Appraisal System

A Posteriori

System

Role and Importance of Performance Appraisal

System

Service Rationale

Manage business

operations

By motivating employees towards the work or

special assignment, organization manages

business operations.

Quick response to

change, improve in

moral of employees etc.

Improve in

performance

Identification of training need helps the

organization to improve employees’

performance in order to achieve organizational

goals and objectives.

Increase in skills and

knowledge and

understanding about

specific task.

Increase in An effective performance appraisal system Increase in market

47

competitive

advantages

motivates employees and gives rewards that

directly related to the achievement of

competitive advantages from the international

market.

share and satisfy

employee’s

expectations in

effective manner.

Provide training

and development

programs

Effective performance appraisal system also

identify the skills of employees and also helpful

to provide effective training and development

program.

Improve skills and

knowledge that support

the organization to

improve its business in

the market.

In order to create effective research and to complete this chapter in effective manner,

researcher has used survey through questionnaire method. It helps the researcher to find out

appropriate result for the research study. To create effective result, researcher concentrated on

each and every data and information during the implementation process of the research study. In

this process, researcher provides the effective and valid result with the help of in-depth analysis

of data and information. It also helps the researcher to achieve research aims and objectives in

effective manner.

It has been discussed in the literature review that an effective performance appraisal

system plays an important role in the organization and helps the organization to manage human

resource in effective manner. With the help of effective appraisal system, managers can identify

employees’ skills and knowledge that helps them to manage business operations in international

market. Researcher also identified that an effective performance appraisal system helps the

organization to develop an system that support the employees to improve their performance and

48

judge employee performance in the international market. Use of appropriate performance

appraisal system also helps the organization to divide particular work according to the

employees’ ability and skills. It helps the organization as well as employees to satisfy their needs

and demands in effective manner in the organization.

It has been investigated by the researcher that an effective performance appraisal system

is also helpful for the employees to improve their moral in the organization. It is identified by the

researcher that performance appraisal system helps the employees to improve their experience

and knowledge. Researcher also investigated that an effective performance appraisal system

motivates employees for better performance in the organization. It is because a performance

appraisal includes the reward system that motivates employees to create better work on specific

task or assignment. Performance appraisal system also provides the feedbacks to the employees

that help the employees to improve their skills and knowledge in effective manner. In

quantitative data collection, researcher finds out that:

An effective performance appraisal system leads the organization to evaluate employees’

performance in the international market and also helps to give specific task or job to the

required skilled employee. It helps the organization as well as the employee to get satisfaction

from the job.

With the help of different performance appraisal system, an organization can evaluate

their employees’ performance on a specific task or job. Different performance appraisal systems

have their own advantages that help the organization to improve employee performance in the

organization. It has been investigated by the researcher that an effective performance appraisal

system also helps the organization to identify the needs and demand of the employees. It helps

the organization to improve employees’ skills and knowledge in effective manner. With the help

49

of effective performance appraisal system most of the organization achieve organizational goals

and objectives in effective manner. It is because performance appraisal system leads the

organization to fulfil employee’s demand and provide effective working environment that

motivate employees to work effectively in the organization. According to one of the respondents:

With the help of effective performance appraisal system, organization can determine that

the employee perform his or her job effectively or not. This leads the employees as well as

organization to improve skills and knowledge that is directly related to the effective performance

in the organization. Organizations use different performance appraisal system according to the

nature of the organization. This helps the organizations to evaluate employees’ performance in

effective manner. These methods also help the organizations to find out the basic needs and

demand that are related to the development of organization at international level.

This analysis also helps the researcher to explore some posteriori themes such as manage

business operations, improve in performance, increase in competitive advantages and provide

training and development programs, etc. These themes are also helpful for the researcher to

define the role and importance of effective performance appraisal system to manage business in

international market.

4.5. Posteriori Themes:

4.5.1. Manage Business Operations:The main aim of performance appraisal system is to manage human resource in effective

manner and to generate effective work that helps the organization to manage their work

effectively. An effective performance appraisal system helps the organization to motivate

employees towards the work or special assignment that helps the organization to effectively

manage their operations in international market. It also helps the organization to judge the

performance of employees on a specific task. From the survey through questionnaire process, it

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has been identified by the researcher that with the help of effective performance appraisal

system, managers can identify the decent salary and reward packages for the employees

according to their skills and knowledge in the organization. One of the respondents in semi-

structure interview stated that:

An effective performance appraisal system helps the employees as well as organization to

identify employees’ skills and knowledge in order to perform a specific task in the organization.

Performance appraisal system also helps the employees to receive feedbacks from his or her

seniors, colleagues and management team to improve their skills and knowledge in effective

manner. An effective performance appraisal system also helps the organization to evaluate the

performance of employees and delegate the responsibilities and authorities to perform the work

in effective manner.

From the survey through questionnaire process, it has been also identified by the

researcher that with the help of effective performance appraisal system, organization operates

their business operations in effective manner in the international market (See Graph 1).

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Graph 1: Performance appraisal is important for organization to manage operations.

Form the process, it has been identified that approx 48 percent employees believed that

an effective performance appraisal system is important for the organization. They believed that

performance appraisal boost them to operate business activities in international market and

perform very well. After analyze the questionnaire, it has been also identified by the researcher

that only 14 percent employees believed that effective performance appraisal system has low

influence on managing operational activities at international market. They argued that there are

some other factors also that help the organization to manage its operational activities such as

behaviour of employees, their attitude towards the work and other employees, etc.

From the survey through questionnaire process, it has been also identified by the

researcher that there are several performance appraisal systems that helps the organization to

record feedbacks from the employees and provide effective assistance to develop the skills and

knowledge of employees. An effective performance appraisal system also helps the organization

to achieve its organizational goals and objectives in effective manner. An effective performance

appraisal system also helps the organization to manage its operational activities in efficient

manner. In the semi-structure interview process, one of the employees of Nike stated that:

The use of 360 degree performance appraisal system helps the company to create

effective working environment for the employees. With the help of this performance appraisal

system, employee receives timely feedback. It helps the employees to improve their performance

in the organization. This method also helps the employees to develop the understanding about

strengths and weaknesses to perform a specific task within the organization.

According to survey through questionnaire process, 360 degree performance appraisal

system is a most important performance appraisal system that helps the employees as well as

52

organization to get feedback on their performance from the different level of employees and

management teams (See Graph 2).

Graph 2: Most Important Performance Appraisal System that supports the Business at

International Market.

After analyzing the questionnaire, it has been identified that approx 54 percent employees

believed that 360 degree performance appraisal is important for the organization to judge the

performance of employees. It helps the employees to receive feedbacks from all the levels of

employees and management team within the organization. After that, approx 18 percent

employees preferred graphic rating scale performance appraisal system and approx 16 percent

employees want critical incident method for performance appraisal in the organization.

4.5.2. Improvement in Performance:An effective performance appraisal system also plays an important role in improving

performance and productivity of organization as well as employees’ performance in the

international market. From the literature review analysis, it has been identified by the researcher

53

that an effective performance system helps the employees to develop their skills and knowledge

on specific field that helps the employees to create effective work on the assignment or task. In

Nike, 360 appraisal system and behaviourally anchored rating scale system helps the company to

collect information and data related to the employee performance. It helps the organization to

develop employees’ skills and knowledge according to their ability. One of the human resource

employees of Nike stated in semi interview process that:

The use of 360 degree appraisal system and behaviourally anchored rating scale system

helps the company to collect information about employees not only from the co-workers but also

from top management team in order to create effective development of employees’ skills and

knowledge on some specific tasks. To collect information about employees, organization asks to

fill the appraisal form that helps the organization to evaluate overall performance of employees

in effective manner. It also helps the company to decide training needs of the employees to

develop the personal as well as professional skills and knowledge.

From the survey through questionnaire process, it has been identified by the researcher

that an effective performance appraisal system also helps the employees to develop their

performance in the international market. Most of the employees believes that effective

performance appraisal system motivate them to share their knowledge and skills with other

employees and gain some extra experience from the other employees that helps them to improve

their performance in the market (See Graph 3).

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Graph 3: Performance Appraisal Helps to Improve Performance of employee in

International Market.

After analyzing the questionnaire, it has been identified by the researcher that approx

52% employees or participants agreed that performance appraisal system helps the employees to

improve their performance in the market. It has been also identified from the questionnaire that

only 8% employees were disagreed on that. They argued that performance appraisal system is

not only a technique that help the organization to improve performance of employees but also

with the help of other effective tools and techniques such as working environment, culture, etc.

employees’ can improve their performance in the organization.

In current scenario, most of the organization uses effective performance appraisal system

to judge the performance of employees. This helps the organization to compare employees’

existing performance with previous performance in the organization. With the help of this

comparison, organization is able to develop and implement some effective training and

development programs that help the employees to develop their skills and knowledge about the

55

organization and its function in order to achieve organizational goals and objectives. In the

interview process, one of the respondents stated that:

Company uses dual performance appraisal system to evaluate adequate performance of

employees in effective manner. With the help of both of performance appraisal system such as

behaviourally anchored rating scales techniques and 360 degree performance appraisal system,

company has become able to compare employees’ performance with the previous performance.

In the questionnaire process, most of the employees or participants agreed that

performance appraisal system helps the organization to compare employees’ existing

performance with the previous performance. According to the questionnaire, approx 46 percent

employees believed that an effective performance appraisal system helps the organization to

compare employees’ existing performance with pervious performance in effective manner. They

argued that effective performance appraisal system record the data and information related to the

employees that help the organization to find out the previous data of employees. It also helps the

managers to decide, whether the employee is suitable for the specific task or not (See Graph 4).

56

Graph 4: Appraisal System helps to compare Employees’ Existing Performance with

Previous Performance.

4.5.3. Increase in Competitive Advantages:In today’s competitive environment, most of the organizations use performance appraisal

system to develop employees’ skills and knowledge about the organization and its functions in

international market. It also helps the organizations to achieve competitive advantages from the

international market. It is because effective performance appraisal system includes some rewards

for the employees that motivate employees to achieve effective performance within the

organization to receive efficient rewards from the organization. It also helps the organization to

increase in productivity of employees as well as organization in the international market.

Through survey by questionnaire process, it also has been investigated by the researcher that

performance appraisal system is an effective tool that helps the organization to motivate

employees at international market. One of the executive level employees of Nike stated that:

Effective performance appraisal system helps the organization to define its activities in

front of employees and management team. It also helps the organization to motivate employees

towards the organizational function and provide effective platform to improve efficiency and

productivity in order to achieve organizational goals and objectives in international market.

After analyzing questionnaire, researcher identified that most of the employees of Nike

believed that an effective performance appraisal system is a tool that motivate employees at

international market and perform their best in order to achieve competitive advantages from the

market. In the questionnaire process, approx 68 percent employees agreed that performance

appraisal system helps the employees to improve their existing skills and knowledge in the

organization and gain experience from the old and senior employees to create effective work in

the organization. On the other hand, approx 22 percent employees were not in favour and argued

57

that there are also some other factors that helps the organization to motivate employees towards

the work such as working environment, behaviour of seniors, work timing, etc.

These factors also motivate employees to give their best in the organization and to

achieve competitive advantages from the market (See Graph 5).

Graph 5: Performance Appraisal is an Effective Tool to Motivate Employees

From the analysis of data and information, it has been found by the researcher that in the

performance appraisal system, 360 degree performance appraisal helps the organization to

receive proper feedback about the employees and their performance in effective manner. With

the help of 360 degree performance appraisal system, organization collects the different point of

views of employees, management team and co-workers about the specific employees that helps

the organization to decide proper salary or incentive for the employees in the organization. This

performance appraisal system also helps the organization as well as to the employees to judge

their performance with the co-workers and try to improve skills and knowledge in effective

manner. This performance appraisal system develops some standards that help the organization

to evaluate employees’ performance on such parameters. One of the executive employees of

Nike presented his views during the interview process and stated that:

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The 360 performance appraisal system helps the company to evaluate employee’s

performance with his or her co-workers. It helps the organization to motivate employees towards

their work. This performance appraisal system is also helpful for the employees to rate their

performance in the organization. It also explores the characteristics of employees in effective

manner that help the employees to create effective work within the organization.

It has been also investigated by the researcher that 360 degree performance appraisal

system helps the organization to determine overall development of employees to achieve

organizational goals and objectives. It is also found by the researcher that 360 degree

performance appraisal system also motivates employees to perform their task in timely manner

and to maintain their relationships with the other employees and with the client effectively (See

Graph 6).

Graph 6: 360 Performance Appraisal System helps to Provide Proper Feedback to

Employees

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After analyzing the questionnaire, it has been found that approx 66 percent participants

strongly agreed that 360 performance appraisal helps the organization to provide proper feedback

about the employees. The participants argued that with the help of this performance appraisal

system, organization also develop some training program that support the employees to develop

their skills and knowledge in order to achieve competitive advantages and to achieve

organizational goals and objectives in international market.

4.5.4. Provide Training and Development Program:An effective performance appraisal system also helps the organization to implement

training and development programs for the employees in order to develop their skills and

knowledge in the competitive environment. An effective performance appraisal system provides

the platform for the employees to compare their performance with the co-workers or

management executives to get a position or incentives within the organization. An effective

performance appraisal system also helps the organization to provide proper feedbacks of

employees’ performance. It also helps the organization to implement effective training and

development program, which helps the employees to improve their management skills to achieve

organizational goals and objective. By providing training and development programs,

organization also improve employees’ behaviour and attitude that help the employees to create

good relationship with other employees as well as with the clients in international market.

According to one of the respondent “An effective performance appraisal system helps the

organization to find out lacking areas of an employee and provide effective training to improve

these areas for personal as well as professional satisfaction. In today’s competitive environment,

most of the companies use different appraisal system that helps the employees to evaluate their

performance with other employees within the organization. It creates better working

environment and helps the organization to achieve its objectives and goals in effective manner.”

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It has been identified from the survey through questionnaire process that approx 54

percent participants were strongly agreed that an effective performance appraisal system helps

the employees to develop their personal as well as professional skills and knowledge in the

international market. On the other hand, in the questionnaire process approx 8 percent

participants were disagreed on that and stated that there are also other factors that helps

employees to increase in performance in the organization such as policies, guidelines for work

etc. These factors also help the employees to develop their skills and knowledge to achieve

organizational goals and objectives in effective manner (See Graph 7).

Graph 7: Performance Appraisal helps Employees to develop their Skills and Knowledge

4.6. Research Outcome:From the above analysis, researcher has proposed several outcomes that help the

researcher to generate effective result for the research study. According to the given findings, an

effective performance appraisal system plays an important role in organization to develop the

employees’ skills and knowledge as well as manage business operations at international level.

61

With the help of effective performance appraisal system, organization can easily evaluate

employees’ performance in the organization. On the other hand, effective performance appraisal

system also helps employees to compare their performance with their co-workers and other

employees of the organization. According to the findings, the researcher also proposed that an

effective performance appraisal system helps the company to increase competitive advantages

that directly related to the overall performance of the organization.

In the findings, it has been cleared that effective performance appraisal system helps the

organization and employees to improve their performance in the global competitive environment.

An effective performance appraisal system also helps the employees to increase morale and

motivate them to put their best efforts in order to perform a specific task or assignment. With the

help of effective performance appraisal system, Nike is able to manage their business operations

in international market that directly affect the profits in positive manner. In today’s scenario,

Nike use duel performance appraisal system such as 360 degree performance appraisal and

behaviourally anchored rating scale that helps the organization to rate employee’s performance

in some defined standards. It also helps the employees to create self assessment and also helpful

in providing ratings according to the performance. It helps the employees to evaluate their

performance with other employees within the organization.

With the help of these two performance appraisal systems, organization is also able to

identify training needs of employees. These performance appraisal systems help the organization

to measure the performance of employees according to their strengths and weakness. According

to the findings, it also has been identified that an effective performance appraisal system also

helps the organization to create effective decision making within the organization. It helps the

company to take important decisions related to the employee satisfaction and improvement of

62

employees’ skills and knowledge. It has been cleared that companies in today’s environment

adopt different performance appraisal techniques to improve employees’ performance in the

market.

Different performance appraisal systems such as 360 degree performance appraisal,

management by objectives, forced distribution, critical incident method, ranking method and

graphic rating scale adopt by the organizations according to the nature and need of the

organizations. These also help the organization to operate its business at international level.

4.7. Summary:From the above discussion, it can be summarized that the thematic analysis framework

helped researcher to effectively evaluate data and information in order to generate proper result,

which are related to the research topic. Thematic analysis framework also helped the researcher

to create some effective themes related to the collected data and information. With the help of

priori and posteriori themes, researcher is able to find out the outcomes of the research study in

effective manner. With the help of this chapter, researcher has become able to develop the

understanding about the role an importance of performance appraisal system in Nike to operate

business at international level. An effective performance appraisal system helps the organization

to create effective competitive advantages at the international level.

It can also be summarized that effective performance appraisal system also helps the

employees to develop their skills and knowledge in effective manner. In today’s competitive

market, most of the organizations use different performance appraisal systems that help them to

evaluate accurate performance of employees in order to achieve organizational goals and

objectives. With the help of 360 performance appraisal and behaviourally anchored rating scale,

Nike motivates employees towards the work and develops the skills and knowledge of

63

employees. It also helps the organization to improve its position and also helpful to achieve

competitive advantages in the international market.

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CHAPTER 5: CONCLUSION AND RECOMMENDATION

5.1. Introduction:With the help of this chapter, researcher is able to present overall summary of the

research study. This chapter of dissertation also helps the researcher to present some

recommendations that are effective for Nike to improve its performance appraisal system to

manage operational activities at international market. With the help of this chapter, researcher

can summarize the findings that were collected in the previous chapter. This chapter is also

helpful for the researcher to create relationship with research findings and research objectives in

order to achieve research aims and objectives.

In addition, this chapter also provides some recommendations that help Nike to improve

its performance appraisal system to give more satisfaction to the employees. With the help of

these recommendations, company is also able to evaluate employees’ performance in the

international market more effectively. These recommendations are based on the realistic and

valid information that helps Nike to develop its performance appraisal system in order to develop

the participation of employees in decision making process and to develop skills and knowledge

of employees for successful operations in international market.

5.2. Assessment of Findings:An effective performance appraisal system plays an important role in the company. With

the help of effective performance appraisal system, organization can motivate employees to do

their best in order to perform a specific task in the organization. A well planed performance

appraisal system is also helpful for the organization to achieve goals and objectives at

international market. Different company uses different types of performance appraisal systems to

motivate employees towards their work in international market. With the help of 360 degree

65

performance appraisal system, Nike is able to receive feedbacks about the employees from their

co-workers and management team in effective way.

360 degree performance appraisal system helps the company to evaluate employees’

performance in efficiently. This performance appraisal system also helps the organization or

managers to develop the understanding about the particular employee’s strengths and weakness.

Additionally, it also helps the organization to divide work according to the individual’s ability in

the organization. An effective performance appraisal system also supports the employees to

develop their personal skills and knowledge. With the help of performance appraisal system,

employees motivate to share their experiences with other employees that help new employees to

gain experiences about the particular situation. It helps the new employees to develop their

personal as well as professional skills and knowledge to manage the work.

The outcome of his research study also focuses that with the help of effective

performance appraisal system, employees can also develop the effective relationship with other

employees and external stakeholders. It is because effective performance appraisal system helps

the employees to create effective co-ordination with other employees and external stakeholders

to perform a specific task or assignment within the company. It develops the effective

relationship among the employees. The outcomes of this research study also stated that an

effective performance appraisal system also helps the organization to manage its operational

activities at international market. It is because an effective performance appraisal system helps

the organization to divide responsibilities and duties according to the ability of employees. It

makes easy for the organization to manage its operations in effective manner in the international

market.

66

In the literature review of this research study, it is identified that Nike use duel

performance appraisal system that help in managing its operations at international level. Use of

360 degree performance appraisal system and behaviourally anchored rating scale system, Nike

is able to rate their employee’s performance. It helps the company to evaluate accurate

employee’s performance with compare to their co-workers within the organization. It is also

identified from the findings that effective performance appraisal system also helps the managers

to identify an effective salary or incentive packages for the employees in international market. It

is because with the help of effective performance appraisal system, managers can evaluate

accurate performance of employees that helps the organization to decide salary packages for the

employees.

It is also identified from the outcomes that an effective performance appraisal system is

also helpful for the organization to provide effective training and development programs for the

employees according to the need and demand of the employees within the organization. With the

help of effective performance appraisal system, managers can develop the understanding about

employees’ strengths and weakness. To resolve these weaknesses, managers can propose some

training programs that help the organization as well as employees to develop skills and

knowledge in effective manner.

5.3. Developing Relationship between Research Findings and Objectives:With the help of developing relationship between research findings and research

objectives, researcher is able to solve research problems in effective manner. Following

description helps the readers to understand the relationship between research findings and

objectives.

67

5.3.1. Role and Importance of Performance Appraisal System to Operate BusinessLiterature review and survey through questionnaire method helps the researcher to

develop the understanding about the role an importance of effective performance appraisal

system to operate business at international level. The findings describes that an effective

performance appraisal system helps the organization to improve its market shares by increasing

skills and knowledge of employees at international level. In order to evaluate employees’

performance in the international market, an effective performance appraisal system helps the

organization to create effective working environment. It also helps the organization to motivate

employees towards the work or a specific assignment. With the help of effective performance

appraisal system, organization develops the skills and knowledge of employees that helps the

organization to manage its operations at international level.

Performance appraisal system plays an important role in the organization. With the help

of an effective performance appraisal, organization is able to find out training needs of the

employees. With the help of this, organization is also able to communicate organizational

mission and vision to the employees in effective manner. It helps the organization to motivate

employees towards the work. It is directly related to the improvement in market share and to

achieve competitive advantages from the market.

In order to manage business operation in international market, Nike uses duel

performance appraisal system such as 360 degree performance appraisal system and

behaviourally anchored rating scale system. These systems help the company to effectively

evaluate performance of employees and team members. With the help of these performance

appraisal systems, Nike also makes the decisions about the salary and incentive packages of

employees according to their skills and knowledge.

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5.3.2. Different Methods of Performance Appraisal and the Methods Used by NikeAs indentified in the findings there are various methods of performance appraisal that are

used by the organizations according to the nature. Different performance appraisal methods such

as 360 degree performance appraisal, graphic rating scale, ranking method, critical incident

method and forced distribution help the organizations to evaluate performance of employees in

accurate manner. From the findings, it has been identified that different performance appraisal

systems help the employees as well as organization to improve performance and skills and

knowledge of employees in effective manner and provide a decent salary for their work. In Nike,

company use effective performance appraisal systems that help the company and employees to

provide feedbacks to improve the performance in international market.

5.4. Recommendations:

5.4.1. Timely Evaluation of Performance System:In order to improve the effectiveness of appraisal system, company should evaluate its

performance system in timely manner. It can be helpful for the organization to create an effective

performance appraisal system for the employees. For this, company should include analysis of

different markets, competitors, etc. It can helpful for the company to receive feedbacks from the

different stakeholders of the company about the employees.

5.4.2. Improvement in Communication Channel: Company should also focus on improvement of communication channels within the

organization. Improved communication channels would be helpful for the company to increase

in skills and knowledge of the employees in effective manner. It can help the employees to create

effective work with his/her ability and efficiency in the organization. It can also help the

organization to create effective performance appraisal system in the organization. It is because

with the help of increased communication channels, organization can also receive feedbacks

69

about the employees easily. It can help the organization to identify an accurate salary packages

for the employees in the organization.

5.4.3. Focus on Observable Behaviour:In order to improve performance appraisal system within the organization, company

should more focus on observable behaviour. For this, managers should interact with employees

and observe the behaviour and attitude of employees towards their co-workers, seniors and

management team. In order to observe employees’ behaviour, manager can implement an

interview session within the organization and receive feedbacks from the employees about the

organization, environment, etc. It can be helpful for the organization to create an effective

performance appraisal system in which employees receive feedback and improve their

performance to achieve organizational goals and objectives in effective manner.

5.5. Further Research Directions:In this research study, researcher defined several roles and importance of effective

performance appraisal system. This research study also identifies various performance appraisal

systems that are used by the organizations to create effective performance appraisal of

employees within the organization. During the research study, some constrains effect the

research study and reduce the reliability and effectiveness of collected data and information.

These constrain also affect the research study in terms of effectively conduct research study.

Constrains such as time and cost affect the research study and creates the problem to conduct

research study in effective manner. Due to these constrains, researcher has avoided some

important elements that are essential for the research study. In future, proper management of

these constraints can assist the future researcher to conduct an effective research study in the

same research topic.

70

With the help of proper management of these constrains, researchers can reduce the

impact of limitations and also helpful to provide an effective, valid and reliable results. In this

research, researcher has described the importance of performance appraisal system in the

international market with the example of Nike. Due to some constrains, researcher has ignored

some importance such as increase in market share, improve in company morale, communicate

organizational messages, etc. are also important for the organization, which can be achieved by

the effective performance appraisal system in the organization. In future, researchers can also

take case study method to generate more accurate information and data related to the company

and topic. With the help of case study method, researchers can develop the understanding about

the role and importance of performance appraisal system.

5.6. Summary:From the above discussion, it can be concluded that this chapter helps the researcher to

develop the understanding about the relationship between research findings and research

objectives. With the help of this chapter, researcher is able to create link between research

objectives and findings and produce effective result that are helpful for the company in decision

making process. In this chapter, it is identified that performance appraisal system helps Nike to

achieve competitive advantages from the international market. This chapter also provides some

recommendations that are effective for Nike to improve its performance appraisal system to

calculate accurate performance of employees at international level.

71

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APPENDIX

Questionnaire:

Name: Gender:

1. Is performance appraisal an effective tool to motivate employees at international level?

a. Yes

b. No

c. Can’t Say

2. To what extent, do you believe that performance appraisal is important for the

organization to operate its business in international market?

a. Low Influence

b. Influential

c. High Influence

d. No Response

3. Do you agree that performance appraisal helps the employees to improve their

performance in the international market?

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

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4. To what extant do you believe that an effective performance appraisal system helps the

organization to compare employee’s existing performance with the previous

performance?

a. Low Influence

b. Influential

c. High Influence

d. No Response

5. Do you agree that an effective performance appraisal system helps the employees to

develop their personal as well as professional skills and knowledge in the international

market?

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

6. Do you agree that 360 degree performance appraisal system helps the organization to

provide proper feedback to the employees?

a. Strongly Agree

b. Agree

c. Neutral

d. Disagree

e. Strongly Disagree

7. Which performance appraisal method is used in your organization? Is it effective?

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Answer:

8. In your opinion which is the most important performance appraisal system that support

the business of organization in international market?

a. Graphic Rating Scale

b. Ranking Method

c. Critical Incident Method

d. 360 Degree Appraisal

9. Which elements of your performance appraisal system do you find most effective to

enhance your performance?

Answer:

10. In your opinion, what are some necessary steps that Nike can take to improve its

performance appraisal system?

Answer: