Ministry of Higher Education

Ghazi Amanullah Khan

Institute of Higher Education
Faculty of Economy
Department of Business Administration
Project Title:

EFFECT OF HR PARACTICE ON EMPLOYEE

PERFORMANCE

Submitted by: Mohammad Iqbal

Under the Guidance of: Siddique Ullah Ahmadzai

Session: 2014-2018

Kabul - Afghanistan

I
II
EFFECT OF HR PARACTICE ON EMPLOYEE
PERFORMANCE

III
 ACKNOLEGEMENT

All acclamation and appreciations are for Al mighty Allah, who bestowed mankind with
knowledge and wisdom. We bow before his compassionate endowment. We also pay
our respect to last Holy prophet Hazrat Mohammad (PBUH), who becomes to well-
wisher of mankind.

We feel great pleasure and honor to express our deepest sense of gratitude and
sincere feelings of reverence and regards to our supervisor M. Imran Malik for his
efficient guidance and kind supervision throughout our project report.

We are extremely thankful to all of our teachers specially (Dr Waseef Jamal, Dr Amjid
Ali, Sir Ghulam Mustafa and Sir Adil Adnan), friends and all those employees who
teach in universities.

IV
 DEDICATION

The humble effort is dedicated to my parents, brothers, sisters, supporting teachers

and my supervisor Mr. Siddique Ullah Ahmadzai. I also dedicate this work to my
friends whose love prayers and magnanimous supports have a great contribution in my
carrier development and without Allah ‘s will it was almost impossible to make my
dreams come true

V
 EXECUTIVE SUMMARY

A number of researchers have established the relationship between HR practices and

employee performance but they mainly discuss developed countries. Little evidence is
available about relationship between HR practices and employee performance from
developing countries like Afghanistan. This study examines the relationship between
three HR practices i.e. compensation, promotion and performance evaluation and
perceived employee performance among university teachers in Afghanistan. The
results of the study indicate a positive relationship between compensation and,
promotion practices and employee perceived performance while performance
evaluations practices are not significant correlated with perceived employee
performance. Afghani universities need to revise compensation practices and define
clear career paths to enhance the performance of teachers.

VI
 TABLE OF CONTENTS

Contents Page #

Title page

Dedication

Acknowledgement

Executive Summary

Chapter # 1 INTRODUCTION

1.1 Background 1

1.2 Problem statement 1

1.3 Objective of the study 1

1.4 Scope of the study 2

1.5 Significance of the study 2

1.6 Definitions of the concepts used 2

1.6.1 Employee performance 2

1.6.2 Employee satisfaction 4

1.7 Sequence of the report 4

Chapter # 2 LITERATURE REVIEW 6

3.1.1 Implications and areas for future research are also discussed 9

Chapter # 3 RESEARCH METHODOLOGY 11

3.0 Methodology 11

3.1 Questionnaire 11

3.2 Sampling techniques 11

3.3 Types of data used 11

3.4 Instruments used 11

Chapter # 4 Findings and Analysis 12

4.1 Table 12

VII
4.2 Tests of normality 13

4.3 Demographic information 13

4.4 Pearson’s correlations 18

4.5 Linear regression analysis 19

Chapter # 5 CONCLUSION AND RECOMMENDATION 22

5.1 Conclusion & Discussion 22

5.2 Recommendations 22

5.3 Limitations 23

REFERENCES 24-26

VIII
Chapter One Introduction

CHAPTER 1
INTRODUCTION
1.1. Background

A number of researchers have reported that HR practices are positively linked with organizational and
employee performance (e.g. Guest, 2002; Harley, 2002; Gould-Williams, 2003; Park et al., 2003; Wright
et al., 2003; Tessema and Soeters, 2006). The focus and thrust of these studies have been towards
developed countries. Little research has been done to test the HR-performance link in developing
countries like Afghanistan. Aycan et al. (2000) termed Afghanistan as ‘under-researched’ country in the
field of HRM practices. The present study is an attempt to test the relationship between HR practices and
employee performance in a developing country i.e. Afghanistan among university teachers. Afghanistan
is one of the countries where literacy rate is very low. Apart from other factors teacher performance can
be considered a major reason for low literary rate. So far none of the Afghani universities is ranked
among top universities of the world. Government of Afghanistan is also emphasizing the growth and
development of university teachers with various initiatives. In this situation it is important to find out the
determinants which can enhance the teachers’ performance in Afghani universities. The objective of this
research is to facilitate the decision makers in universities across Afghanistan to follow the HR practices
which can improve the performance of University Teachers The present study could be helpful to human
resource managers of public and private sector universities in Afghanistan for formulation and
development of HR practices that will ensure high level of teachers’ performance resulting in increased
achievement and learning among students.

1.2. Problem statement

The problem statement for the current research study revolves around examining the relationship of
employee’s performance and Hr practices.

1.3. Objectives of the study

1 To analyze the relationship between HR Practices and employee performance

2 To analyze these practices critically in the light of HR best practices

3 To identify the problems related to HR practices in the organization

4 To lay down recommendations for the organization to overcome those problems

1
Chapter One Introduction

1.4. Scope of the study

There are number of HR practices that could be tested in connection with employee performance.
Shahzad et al., (2008) have studied eight HR practices and their relationship with perceived employee
performance. These light practices include recruitment and selection practices, placement practices,
training practices, compensation practices, employee performance evaluation practices, promotion
practices, grievance procedure and pension or social security. Huselid (1995) used eleven HRM practices
in his study which are personnel selection, performance appraisal, incentive compensation, job design,
grievance procedures, information sharing, attitude assessment, labor-management participation,
recruitment efforts, employee training and promotion criteria. This study examines the relationship
between three HR practices i.e. compensation, promotion and performance evaluation and perceived
employee performance. Afghanistan is a developing country with very low per capita income and above
three practices which have a relatively direct impact on financial earnings and social status of an
individual may be considered the major determinants of employee’s performance. This is the reason these
practices have been selected for this study.

1.5. Significance of the study

The current study will be specificallay helpful to chek the performance of the employee.

On the other hand, the study will be helpful for alls the employee problem associated to use the
performance.

1.6. Definitions of the concepts

Definitions of the main concepts used in the current study are explained below. The terms used in this
study are also used by different authors time and again.

1.6.1. Employee performance

Alternative words used for employee performance appraisal can be employee appraisal, performance
review, or career development discussion, used by different authors. It is a method by which the job
performance of an employee is evaluated generally in terms of quality, quantity, cost, and time. A
performance appraisal is a part of guiding and managing career development. It is the process of
obtaining, analyzing, and recording information about the relative worth of an employee to the
organization. Dulewicz (1989) studied a basic human tendency to make judgments about those one is
working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the
absence of a carefully structured system of appraisal, people will tend to judge the work performance of
others, including subordinates, naturally, informally and arbitrarily.
2
Chapter One Introduction

The human inclination to judge can create serious motivational, ethical and legal problems in the
workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments
made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is, appraisal was
used to decide whether or not the salary or wage of an individual employee was justified.

In one of the writings of Khan (2007) he states that the fundamental objective of performance appraisal is
to facilitate management in carrying out administrative decisions relating to promotions, firings, lay offs
and pay increases. For example, the present job performance of an employee is often the most significant
consideration for determining whether or not to promote the person. Managers must recognize that an
employee’s development is a continuous cycle of setting performance goals, providing training necessary
to achieve the goals, assessing performance as to the accomplishment of the goals and then setting new,
higher goals. A performance improvement plan consists of the following components.

a) Where are we now? The answer to this question is found in the performance appraisal process.

b) Where do we want to be? This requires the evaluator and the person being evaluated to mutually agree
on the areas that can and should be improved.

c) How does the employee get from where he or she is now to he or she wants to be? This step is critical
to the performance improvement plan. The appraiser and a person to be evaluated must have mutual
consensus on the specific steps to be taken. These steps may include training the employee so as to
improve his or her performance. It should also contain the mechanism adopted by the appraiser/ evaluator
to assist employee in the achievement of performance goals.

As espoused by Anthony, Perrewe and Kacmar (1996, pp. 374-5), a performance appraisal system must
be well defined, corporately supported and monitored. It must also be widely communicated and focused
towards achieving corporate objectives. In essence, a performance appraisal system must be integrated as
part of a performance management system aligned toward achieving corporate goals (Schneier, Shaw &
Beattie, 1991, p.298)

This system is a part of management by objectives approach, which focuses on individual goals and
objectives and does not necessarily relate these to corporate objectives, nor does it assess the skills and
abilities required of the individual to perform their duties. The main outcome of this system is the
determination of appropriateness of pay increments. Fisher, Schoenfeldt and Shaw (1997) advise that this
is not an appropriate use of a performance appraisal system.

3
Chapter One Introduction

Another study states that performance appraisal should be used as an employee development tool to
identify areas of skill and ability deficiency to improve the focus for training and development, as the
possession of appropriate skills and abilities are key elements in improving individual performance
(Marchant, 1999).

Fisher et al. (1997, p.456) caution against the use of these systems for purely reward determination
purposes.

A study by Savory and Syme (1996) of hospital pharmacists found that satisfaction with issues such as
appropriate evaluation systems, rather than with pay or job security, correlated best with increased
organizational commitment. Reid and Levy (1997) recommend that subordinate appraisal of managers
could also be undertaken to identify areas of skill and ability deficiency which could be utilised to further
the development of these managers. The final product from such a system should be the development of
an appropriately trained and skilled workforce.

1.6.2. Employee satisfaction

Employee satisfaction with work or job satisfaction, are the alternate terms to be used to know whether
the employees working in an organization likes or dislikes their jobs. Khan (2007) describes employee
satisfaction as how well our personal expectations at work are in line with outcomes. The idea of
organization as a social system requires that some benefits are received by its participants as well as by its
customers and clients. “Satisfaction” and “morale” are similar terms referring to the extent to which the
organization meets the needs of employees. Measures of satisfaction include employee attitudes, turnover,
absenteeism and grievances.

Malik, Bibi, and Rahim (2010) state that people enjoy working, and strive to work in those organizations
that provide positive work environment where they feel they are making difference and where most
people in the organization are proficient and pulling together to move the organization forward. The
organizations in this regard are struggling hard to keep their valued employees satisfied. In another study
Malik, Saleem and Ahmad (2007) defined employee satisfaction with work as the degree to which an
employee likes his or her job. In simple words it can be said as the likeness to the job that motivates the
employees to be present at their work places and carry out tasks to accomplish goals.

1.7. Sequence of the research project

The current research project comprises five chapters in all. The researcher compiles the background of the
study, problem statement, objectives, scope and importance of the research project in chapter No. 1. In
chapter No. 2 the researcher has mad efforts to compile the summary of relevant research studies to the
current topic and examining the same relationships throughout the world. Chapter no. 3 comprises of the
4
Chapter One Introduction

methods used to carry out this research project. It includes information about the sample, sample size,
sampling technique and the instruments used for the study. Chapter of the current study is based on the
results after applying different statistical tests. Lastly chapter No. 5 comprises of the conclusion,
discussion, recommendations and limitations that the researcher faced in the course of this research
project.

5
Chapter Two Literature Review

CHAPTER 2
LITERATURE REVIEW
Literature Review

The intent of this literature review is to provide background information to examine the relationship of
employee performance and Hr practices which is a key to organizational development. Importance of
employee performance and employee and Hr practices can not be ignored.

Raqui et al. (2010) describe this study focuses on the factors affecting the empowerment practices in
education, information technology and telecommunication service sectors in Malaysia. A total of 305
employees were interviewed using a convenience sampling method and a set of well-structured
questionnaire. Logistic Regression Models (LRMs) in four sets of variables and paired-sample t-test in
one set of variables (orientation) were employed to test the data and analyze empowerment and related
performance. The results appear as inspiring on certain factors which eventually propelled empowerment
as a means of organizational performance. Based on statistical results, 3

Joseph (2009) theorizes about the assessment of HRM practices on perceptions of firm performance
through Monte Carlo Method (MCM), and the Hausman’s Specification Test (HST) in the Ivorian
framework. 320 enterprises were surveyed and factor analysis of 13 bundles of HRM practices was
undertaken. The confirmation of the findings through simulation (MCM) permitted the examiner to
authenticate the reliability of the results in using the HST. The results of this paper highlight that in the
Ivorian context there are significant connections between HRM practices and firm performance; that the
strategic alignment of HRM is also a driver for firm performance.

Johari andYahya (2009) studied a growing emphasis has been given on employees’ job performance as a
source of competitive advantage to promote responsiveness in enhancing overall organizational
effectiveness. Although performance depends very much on personality traits, other external factors, also
known as system factors or opportunities to perform, have a significant amount of influence on
employees’ task and contextual performance. Constraints to perform, such as bureaucratic structure and
ineffective job design, will influence individual task and contextual performance negatively. Such
circumstance inadvertently hinders high organizational performance. This paper proposes that
organizational structure, namely formalization and centralization, have direct effects on employee task
performance and organizational citizenship behavior (OCB). Also, this paper posits that job
characteristics, namely skill variety, task identity, task significance, autonomy, and feedback, exert
influence on employee task performance and OCB. To examine the applicability of the proposed
framework, seven main propositions are identified and analyzed.

6
Chapter Two Literature Review

Shahzad et al., (2008) described that a number of researchers have established the relationship between
HR practices and employee performance but they mainly discuss developed countries. Little evidence is
available about relationship between HR practices and employee performance from developing countries
like Afghanistan. This study examines the relationship between three HR practices i.e. compensation,
promotion and performance evaluation and perceived employee performance among university teachers
in Afghanistan. The results of the study indicate a positive relationship between compensation and,
promotion practices and employee perceived performance while performance evaluations practices are
not significantly correlated with perceived employee performance. Afghanistani universities need to
revise compensation practices and define clear career paths to enhance the performance of teachers.

Heneman and Malinowski (2007) studied the link between HR practices and organizational performance
has been well established by research in the private sector, suggesting that the HR system has great
strategic potential as a driver of organizational effectiveness. This result suggests that school districts may
want to move toward designing and delivering HR practices that focus on the necessary employee
performance competencies, creating an HR system with vertical and horizontal alignment around those
competencies. To create an aligned HR system, a school district must first assess the for a process for
assessing human resource alignment (HRA) that we have successfully current state of alignment of its
district-level HR practices, and develop ideas for HR practice improvement that will be alignment-
enhancing. This paper provides the template field tested in a large public school district for the strategic
job of teacher. We also provide some caveats to consider prior to deciding to do an HRA analysis.

Wright et al,, (2003) examines the impact of HR practices and organizational commitment on the
operating performance and profitability of business units. Using a predictive design with a sample of 50
autonomous business units within the same corporation the article reveals that both organizational
commitment and HR practices are significantly related to operational measures of performance, as well as
operating expenses and pre-tax profits.

Marwat et al., find out the fast growing telecom sector there are 6 big players offering services wit
stratagem and always looking for faster growth through employees’ performance by a means. Through
this research study we explored contribution of human resource management practices including
selection, training, career planning, compensation performance appraisal, job definition and employee
participation on perceived employ performance. Results highlighted that all the tested variables are
positively correlation of compensation (0.67) and training (0.66) are highest respectively.

The positive relationship of above mentioned HRM practices with employee retention. Conclusions as
well as directions for future research are discussed. this study concludes that the higher education,
information technology, and telecommunication service sectors in Malaysia used empowerment as

7
Chapter Two Literature Review

strategy to accelerate organizational performance. This advancement is in line with Malaysia’s national
vision of 2020.

Peccei and Innocenti describe A sizeable body of research has examined the impact of HR practices
(HRPs) on various aspects of organizational performance (Guest et al., 2003; Huselid, 1995; Ichniowski
et al., 1997; Wall and Wood, 2005; Wright and Boswell, 2002), as well as on a range of employee
attitudes and behaviors at work (Appelbaum et al. 2000; Guest, 2002; Godard, 2001; Ramsey et al. 2000
;). However, the mechanisms linking HR practices to both organizational performance and employee
related outcomes have not received systematic research attention (Guest, 1997; Wright and Gardner
(2003). The present study focuses on the relationship between HR practices and employee attitudes and
behavior, and on the mediating role played by employee work experiences in this relationship.
Specifically, based on the explanatory model proposed by Peccei (2004) and using data from a number of
different occupational groups in a sample of Italian organizations’.

Khera (2009) define over recent years there has been an increasing interest in the field of human resource
management. Currently, the literature encourages the consideration of human resources as strategic
factors, not only because they play important role in strategy implementation, also because they are
beginning to be reckoned as sources of sustainable competitive advantage. Relationships between human
resource management and productivity have been studied from different perspectives. This study is an
attempt to investigate the extent to which Commercial Banks of India differ on aspects of human resource
management practices and the key Human Resource Practices contributing to employee productivity from
a sample of 184 respondents from three commercial banks of India (one foreign sector, one private sector
and one public sector bank).

Bhattacharya and Doty find out the components of human resource (HR) flexibility and their potential
relationship to firm performance have not been empirically examined. The authors hypothesize that
flexibility of employee skills, employee behaviors, and HR practices represent critical sub dimensions of
HR flexibility and are related to superior firm performance. Results based on perceptual measures of HR
flexi-ability and accounting measures of firm performance support this prediction. Whereas skill,
behavior, and HR practice flexibility are significantly associated with an index of firm financial
performances, the authors find that only skill flexibility contributes to cost-efficiency.

Quresh et al., Human resource management (HRM) practices are being increasingly considered as major
contributory factors in financial performance of organizations. This research study effectively highlights
the

importance of HRM practices with impact on financial performance of banks (FPB) operating in
Afghanistan. The major objective of the study is to find out the relationship between ‘HRM Practices’ and
8
Chapter Two Literature Review

the ‘Financial Performance of Banks’. As a sample, 46 scheduled banks were contacted, of which 38
responded. The HRM practices selected for the research study were selection, training, performance
appraisal system, compensation system and employee participation. Empirical evidence was calculated
through stepwise regression analysis, Pearson correlation and descriptive statistics to support theoretical
models that link HRM practices with financial performance of banks. The study concluded that all tested
variables have a positive relation and impact on financial performance of banks but the major
contributory practices are selection, training, compensation and employee participation. Singh (2001)
describe Human resource management is the strategic and coherent approach to the management of an
organization’s most valued asset- its people. Numerous studies have demonstrated a crucial link between
HR practices and organization’s productivity and performance, and even more important its profitability.

But there is little research done on the relationship between HR practices and employee job
performance. This paper investigates the influence of HR practices on job performance. A sample of
200 employees of SEDC were selected for this study and a survey questionnaire was used to
collect the data. The instrument for HR practices was adapted from the HRM Practices questionnaire by
Snell and Dean (1992).and for the job performance scale (JPS) was adapted from scale developed by
Kennedy, M.B, Lassk, F.G., and Burns, M.B (2001) . The HR practices instrument was also refined
based on review of literature on HRM practices. The Cronbach alpha for the instruments was 0.96
indicating high internal consistency The findings of this study were determined by using both descriptive
and inferential statistics. Results of

this indicate that there exist a significant positive relationship between HR practices and job
performance.

Implications and areas for future research are also discussed.

LOPEZ et al.( 2005), describe This paper deals with the relationship between high performance human
resource practices, organizational learning and business performance. The hypotheses proposed here are
tested on a sample of 195 Spanish companies employing over 200 people, and using structural equation
modeling as a statistical technique. Our findings show that high performance human resource practices
have a positive effect on organizational learning, which in turn has a positiveInfluence on business
performance. Nevertheless, a direct effect of human resource practices on business performance has not
been observed. Thus, we can conclude that human resource practices by themselves are not a source of
competitive advantage.

Khan et al., find out Performance efficiency of Public Sector in Bangladesh has been an area of
concern for both the government as well as the general public. IMF and World Bank have also been
stressing on needs to introduce measures for good governance in various sectors. However,
9
Chapter Two Literature Review

efficiency of any organization depends largely on the efficient processes as well as the human resource to
do a number of operations. This paper is based on the research to analyze the effects of shortfalls
in the recruitment and selection process undertaken by different public sector organizations. Aim of this
research is to identify the weak areas in the selection process and recommend some solution to it.

Mohd et al.,( 2008) describe This study examines a model involving Human Resource Management
(HRM) practices, perceived organizational support, and organizational commitment. It was hypothesized
that HRM practices (performance appraisal, training and career development) will be support would
serve as a mediator in the relationship between HRM practices and commitment. The statistical results on
data gathered from a sample of 214 employees within the Malaysian manufacturing sector demonstrated
that career development and performance appraisal have direct, positive and significant relationships with
organizational commitment. In addition, perceived organizational support was found to partially mediate
the relationships between two of the three HRM practices (career development and performance
appraisal) and commitment. Theoretical and managerial implications are suggested.

FEY and BOJRKMAN (2000) describe this study examines a model involving Human Resource
Management (HRM) practices, perceived organizational support, and organizational commitment. It was
hypothesized that HRM practices (performance appraisal, training and career development) will be
positively related to organizational commitment, and that perceived organizational support would serve as
a mediator in the relationship between HRM practices and commitment. The statistical results on data
gathered from a sample of 214 employees within the Malaysian manufacturing sector demonstrated that
career development and performance appraisal have direct, positive and significant relationships with
organizational commitment. In addition, perceived organizational support was found to partially mediate
the relationships between two of the three HRM practices (career development and performance
appraisal) and commitment. Theoretical and managerial implications are suggested.

10
Chapter Three Research Methodology

CHAPTER 3
RESEARCH METHODOLOGY
Methodology

3.1. Questionnaire

The total sample size of the study is 80 respondents who are teaching in universities in Peshawar region.
Total 80 questionnaires were distributed in different branches of the universities among the employees.
The rest were non responsive. The questionnaire was based on questionnaire used by shahzad et al.,
(2008) for measuring impact of various HR practices on employee performance.

The reason for selecting this questionnaire is that it was used to study the impact

of same variables as in present study and was well tested on reliability and validity scales. Questionnaire
that was administered consisted of three HR practices which are Compensation Practices (6 items),
Promotion Practices (3items) and Performance Evaluation Practices (6 items) and Perceived Employee
Performance (4 items).

3.2 Sampling technique

The non probability convenient sampling technique is used because of convenient accessibility and
proximity of the subjects to the researcher. The other reason for selecting non probability convenient
sampling is due to limitations of time and lack of resources. The primary data of the research is collected
through floating questionnaires among the teachers of universities.

3.3. Types of Data collected

For the current research project, the researcher collected two types of data namely the primary data and
the secondary data. For the sake of analysis and respondent’s responses the primary data was gathered to
analyses their responses and for the sake of literature and theoretical support the researcher relied on the
secondary data.

3.3. Instruments used

The instruments used to collect data from the respondents to examine the relationship of employee
performance appraisal systems and their satisfaction was basically adopted. The questionnaire employed
to collect data was already used by different research studies and have been adopted from the published
research studies to cope up with the reliability and validity issues.

11
Chapter Four Findings and Analysis

CHAPTER 4

FINDINGS AND ANALYSIS

Analysis

4.1. Reliability of the instruments used.

In this section the researcher examines the reliability of the instruments used for collecting the
information from the respondents. If a research tool is consistent and stable, and, hence predicta ble and
accurate, it is said to be reliable. The greater the degree of consistency and stability in an instrument, the
greater is its reliability (Kumar, 2005: 152-154).

Table 4.1. shows the reliability analysis for the questionnaires used to tap the responses from the
respondents about performance appraisal procedures system and employee satisfaction.

Table 4.1.

Reliability analysis

Variable Nature No. of Items Cronbach’s Alpha

PER Independent variable 19 0.888

SAT dependent variable 18 0.884

PER: Performance appraisal procedures system

SAT: Employees satisfaction.

The reliability analysis show that both the scales used to gather data were highly reliable enough to be
used for the study.

4.2. Testes for normality of data.

Skewness is used to examine the normality of the data which ranges from + 1. Table 4.2. shows the
statistics for the normality of the data.

12
Chapter Four Findings and Analysis

Table 4.2.

Skewness

Variable N Skewness

PER 101 0.637

SAT 101 0.188

Figure 4.1. shows the normality of the data collected from the respondents.

ibution of PER.

Figure 4.2. shows the normality distribution of the data gathered from the respondents about their
PER
satisfaction,

25

SAT
20

20
Frequency

15

15
10
Frequency

5
10

0
1.00 1.50 2.00 2.50 3.00 3.50 4.00
5
PER

0
1.00 1.50 2.00 2.50 3.00 3.50 4.00
Figure 4.2. Normality distribution of the data for SAT.
SAT

4.3. Demographic information of the respondents.

13
Chapter Four Findings and Analysis

4.3.1. Gender of the respondents.

Table 4.3. Shows the information about gender of the respondents.

Table 4.3.

Gender of the respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid Male 53 52.5 52.5 52.5
Female 48 47.5 47.5 100.0
Total 101 100.0 100.0

In all there were 101 respondents who responded to the questionnaire in which female respondents took
more interest to participate. It is evident from the percentage of the female respondents that is 48%.

Figure 4.3. shows the respondents distributionin a from of a pie chart.

Figure 4.3. Gender of the Respondents

Figure 4.3. Pie chart for gender.

4.3.2. Marital status of the respondents

Table 4.3. shows the frequency distribution of the education of respondents

Table 4.4.

14
Chapter Four Findings and Analysis

Marital status of the respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid Married 62 61.4 61.4 61.4
Unmarried 39 38.6 38.6 100.0
Total 101 100.0 100.0

There were 62 married respondents and 39 unmarried respondents. Married respondents were more active
to participate in the current study.

Figure 4.4. Marital status of the respondents.

4.3.3. Educational level of the respondents

Table 4.5. shows the education details of the respondents.

15
Chapter Four Findings and Analysis

Table 4.5.

Educational level of the respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid Matric 4 4.0 4.0 4.0
Intermediate 12 11.9 11.9 15.8
Graduation 35 34.7 34.7 50.5
Masters 34 33.7 33.7 84.2
M.Phil 12 11.9 11.9 96.0
Doctorate 2 2.0 2.0 98.0
Others 2 2.0 2.0 100.0
Total 101 100.0 100.0

Table 4.5 shows that 04 percent respondents were having metric qualification and 11.9 percent of the
respondents were having intermediate qualification. More over 34.7 % respondent were having graduates
33.7 % of the respondent were having master degrees 11.9 % respondent of the study were having M.
Phil. 2.0 % respondent were doctorate and 2.0 % respondents respondent were having others
qualifications.

16
Chapter Four Findings and Analysis

4.3.5. Department of the respondents

Table 4.6. shows the frequency distribution of the respondents with respect to their department in which
they work.

Table 4.6

Department in which the respondent work

Cumulati ve
Frequency Percent Valid Percent Percent
Valid Finance 23 22.8 22.8 22.8
Administration 23 22.8 22.8 45.5
Logistics 14 13.9 13.9 59.4
Grant s 21 20.8 20.8 80.2
HR 17 16.8 16.8 97.0
Other 3 3.0 3.0 100.0
Total 101 100.0 100.0

17
Chapter Four Findings and Analysis

Table 4.6. shows that 22.8 percent respondents were from finance department 22.8 percent respondents
of the study were from administration department, 13.9 percent respondent were from logistic
department, 20.8 percent respondent were from Grants department, 16.8 percent respondent were from
HR department and 3.0 percent respondent were from other department

4.4. Pearson’s Correlation.

In this part of the study the inter-relationship of the variables is discussed. Either they have positive o
negative relationship with one another. Here it is also discussed that which variable has the strongest
relationship with others. Table 4.7 shows the results of Pearson’s correlation. The Pearson's correlation is
used to find a correlation between at least two continuous variables. The value for a Pearson's can fall
between 0.00 (no correlation) and 1.00 (perfect correlation). Other factors such as group size will
determine if the correlation is significant. Generally, correlations above 0.80 are considered pretty high.

18
Chapter Four Findings and Analysis

Table 4.7.

Correl ations

PE R SAT
PE R Pearson Correlation 1 .694**
Sig. (2-tailed) .000
N 101 101
SAT Pearson Correlation .694** 1
Sig. (2-tailed) .000
N 101 101
**. Correlation is signi ficant at the 0.01 level
(2-t ailed).
The independent and dependent variables that are the performance appraisal procedure system and
employee satisfaction respectively are having positive relationship that is r = 0.694. it means that both the
variables have a strong relationship.

4.5. Linear regression analysis.

The general purpose of regression analysis is to learn more about the relationship between independent or
predictor variable and a dependent or criterion variable. In the social and natural sciences regression
procedures are very widely used in research. In general, regression analysis allows the researcher to ask
(and hopefully answer) the general question "what is the best predictor of ...". For example, educational
researchers might want to learn “what are the best predictors of success in high-school”. Psychologists
may want to determine which personality variable best predicts social adjustment. Sociologists may want
to find out which of the multiple social indicators best predict whether or not a new immigrant group will
adapt and be absorbed into society.

The results of the linear regression analysis for the independent variable (performance appraisal
procedure system) and dependent variable (employee satisfaction) are illustrated as under.

Table 4.8. show the model summary for the regression analysis to show the strength of the relationship
between the independent and dependent variable. The value of R square shows that the independent
variable is 48.1% responsible to bring change in the dependent variable. It’s almost near to 50%. It means
that it has its importance to be preferred by the organizations and organizations should pay attestation to
improve the performance systems. The more developed performance systems results in more satisfied
19
Chapter Four Findings and Analysis

staff in the organization. The value of R shows that performance appraisal procedure system has a strong
positive relationship with employee satisfaction (0.694).

Table 4.8

Model Summary

Adjusted R Std. Error of

Model R R Square Square the Estimate
1 .694a .481 .476 .47923
a. Predictors: (Constant), PER

Table 4.9. shows the statistics for ANOVA test and confirms that the overallmodel has got a good fit (F =
91.850) more over the relationship of the variables is significant (sig. = 0.000).

Table 4.9

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 21.094 1 21.094 91.850 .000a
Residual 22.736 99 .230
Total 43.830 100
a. Predictors: (Constant), PER
b. Dependent Variable: SAT

Table 4.10. shows the beta coefficients for the relationship of the independent and dependent variable and
shows that the variables has got the strong and significant relationship (beta = 0.713, 0.000)

20
Chapter Four Findings and Analysis

Table 4.10

Coefficientsa

Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .737 .157 4.706 .000
PER .713 .074 .694 9.584 .000
a. Dependent Variable: SAT

To summarise the results of the regression analysis ir is clear that performance appraisal systems have a
positive relationship wth employee satisfaction.

21
Chapter Five Conclusion and Recommendations

CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

5.1. Conclusion & discussion.

The current study is aimed to examine the relationship of the variables like performance appraisal
procedure system and employee satisfaction in a sample of people working in International Rescue
Committee (IRC). After collecting the data, the researcher come up with the results that performance
appraisal procedure system has a strong positive and significant relationship with employee satisfaction.
Performance appraisal is a process of obtaining, analyzing and recording information about the relative
worth of the employees.

The focus of the performance appraisal is measuring and improving the actual performance of the
employees. Its aim is to measure what an employee does. Whereas, Employees’ satisfaction is the
terminology used to describe whether employees are happy, contented and fulfilling their desires and
needs at work. Many measures support that employee satisfaction is a factor in employee motivation,
employee goal achievement, and positive employee morale in the workplace.

The linkage between employee satisfaction and fair appraisal system is very strong that leads an
organization to better financial performance, based on numerous studies that support the correlation.

The results of the current study show the positive relationship of the independent and dependent variable.
This may be due to the reason that the organization considered for the project was an international
organization having high and stable standards for performance evaluation. As well the element of the
fairness also prevails. If the organizations through out the world make the standardized system of
performance evaluation and apply it fairly there are chances of having greater employee satisfaction from
their work environment.

5.2. Recommendation

IRC is a U.S based with its headquarters at New York. IRC operates in about 30 countries and is active
throughout the U.S. Being a multination non - for profit organization is maintaining a standardized
employee appraisal system throughout the globe. Keeping in view the results of the study the researcher
recommends that similar type of study should be conducted in the government and non-government
organizations of Afghanistan.

Carrying out similar type of studies in the government and non-government organizations of Afghanistan
will help us in identifying the shortcomings in the appraisal systems followed at different organizations

22
Chapter Five Conclusion and Recommendations

and also help us to make a standardized system that leads to maximum employee satisfaction. The
employee satisfaction will lead to overall organizational success.

5.3. Limitations

The significant limitations of the research project which caused difficulties in the way of completion of
the research project include the shortage of time,

23
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