University of Portsmouthand CIPD Portsmouth Group

HR Bulletin: Research and Practice

A collection of articles on contemporary research and practice by academics, managers and students

Edited by David Hall

Volume 9 Issue 1 2014

Preface The ‘HR Bulletin’ (HRB) presents articles which showcase current HR and management initiatives, mainly in the Portsmouth area, although occasionally, it features contributions from overseas. These articles are written by University of Portsmouth students and staff. The ethos of this publication is to connect management practice and research, to stimulate discussion and encourage further investigation. The ‘HR Bulletin’ is produced in collaboration between The University of Portsmouth Business School (PBS) and Portsmouth CIPD Group.

The HRB plays an important role in disseminating the latest thinking about HR and people management to CIPD members and line managers in the Portsmouth area, and to the wider geographical audience it now reaches on-line. You can view HRB back issues via the link below.

The HRB is a valuable contribution to Knowledge Services provided by the University of Portsmouth Business School, and should be of interest to individuals and organisations who have an interest in HR and management, and what we do here at the Business School. If you would like to contribute an article for publication in the HRB, I would be delighted to hear from you. New writers are particularly welcome to take the opportunity the HRB offers to hone their writing skills - you will be encouraged and supported through the process from producing a draft to the final article. Dr David Hall Editor View HRB issues on-line at: http://www.port.ac.uk/organisation-studies-and-human-resource-management/research/hr-bulletin-research-and-practice/

Contents

Managers and employees perceptions of the effectiveness of the 1 HR Function in building Employee Engagement within Government Museums in Qatar Samantha Stokes-Baydur and Gary Rees A critical assessment on the role of HR in conflict resolution: a review of the literature Patrick Jones An investigation into the development of mental toughness in the British Army Adrian Newell and Charlotte Rayner The Impact of Organisational Change on Employee Commitment Jackie Hudson and Sally Rumbles A case study of Performance Appraisal in a SME: moving on from the ‘tick-box’ generation Jennifer Wood and Vijay Pereira

6

11

18

23

Managers and employees perceptions of the effectiveness of the HR Function in building Employee Engagement within Government Museums in Qatar Samantha Stokes-Baydur and Gary Rees Introduction

The topic of employee engagement remains central to many HR academic and practitioner debates. Whilst the origins of the term Employee Engagement (EE) can be traced back to Khan in 1990, the MacLeod Report (2009) prompted further interest in the UK. Whilst the concept of EE has academic interest and research attached to it, the question arises as to what role the Human Resources function has in nurturing, developing and reaping the benefits from EE. The main research objectives (ROs) of this investigation were:

1. How do managers and employees perceive the effectiveness of the HRF? 2. Who do managers and employees believe is responsible for Employee Engagement and

what is the role of Human Resources?

Employee Engagement

Kular, Gatenby, Rees, Soane and Truss (2008: 3) argue that “the existence of different definitions makes the state of knowledge of employee engagement difficult to determine as each study examines employee engagement under a different protocol.” Therefore multiple definitions of EE exist, driven by academics, theorists and management consultants using their own measures. Truss, Mankin and Kelliher (2012) acknowledge this dilemma and conclude that a way in which to differentiate practitioner and academic literature is to propose that from an academic perspective, EE is a state experienced by an individual in the workplace, whilst a practitioner uses the term engagement to refer to workplace engagement activities which are developed to raise engagement levels. Although there have been academic contributors to the topic of EE such as Khan (1990) and Sacks (2006), there has been little agreement by researchers on the precise meaning of EE.

HR’s Role in Employee Engagement

Shuck (2011) states that HR must drive the EE agenda through promoting the link between employee performance and its impact on business goals and HR’s role in instigating changes in attracting, selection and retention practices in order to focus on the EE agenda.

Brooks (2010) propose that in order to enhance EE, an organisation must focus on their customer, strategic direction and leadership, frequent and clear communication and rewards, training and development. Brooks (2010) states that HR can intervene and give managers support with EE by guiding them on how to interact with their teams and by creating a manager engagement toolkit to increase engagement. This author also believes that HR can play a highly influential role in collating and communicating stories of organisational achievements and states HR are the best placed function to facilitate this across the organisation. Robertson-Smith and Marwick (2009) cite Johnson (2004) in their study, who argue that engagement can only succeed when there is collaboration between HR and Line Managers. They conclude that HR should have transparent and fair policies that Line Management has a good understanding in.

1

Truss et al (2012) believe that HR will be called upon to develop EE strategies to improve engagement and believe that, as a central plank, HR can consider interventions around performance management, rewards, training, and employee voice in order to create an organisation climate which is contributing to EE. However, these activities must be in alignment with the overall people strategy of the organisation which supports the organisation’s strategic goals.

Research Methodology

This investigation focused upon how employees attached their own interpretations and meanings to aspects of their work environment, and their interpretation of how they view this environment. By adopting an interpretivist approach, differences between respondent’s answers were explored. A combination of methods were used to gather data including data from a recent organisation employee engagement survey and a selection of semi-structured face to face interviews from a purposive sampling method, resulting in 10 respondent interviews being conducted. The participants came from five museums within Qatar.

Research Findings

RO1: How do Managers and Employees perceive the effectiveness of the HR Function?

Although each museum is at a different stage of evolution, the participants were consistent in how they perceive the effectiveness of the Human Resource function (HRF). Managers specifically perceive the HRF’s effectiveness through the way in which it applies fairness in HR policies and practices, as well as wanting effective two way communication (MacLeod and Clarke, 2009; Brooks, 2010). Managers may be exposed to complaints from subordinates regarding unfair treatment about salary, benefits and allowances and this participant group may have higher expectations of HR in ensuring fairness in their practices, to limit the complaints from staff. Alternatively, managers may have directly received or witnessed unfair treatment, and wish to highlight this for focused attention. The findings also reinforced managers’ desire for two-way communication from HR, which is critical for any service provider. Managers are seeking effective verbal and written communication in order to improve relations with HR (Brooks, 2010).

By contrast, employees perceive the HRF’s effectiveness through how it supports and facilitates managers and employees to do their jobs, and highlights the support role required by HR. While specific support requirements may evolve over time, the employees are seeking HR to provide a consistent support service. The primary data research indicates that HR issues can prove time consuming, especially as the organisation’s HRF is in a different location to the Museum employees, which can mean spending several hours resolving what may be a simple or complex HR issue. For employees, HR needs to provide an efficient responsive service which in turn impacts how employees perform in their jobs.

The research reveals consensus amongst managers and employees that HR is effective when its delivery is primarily focused on protecting employee rights. As this was the only finding not prominent in the literature review, it could be directly related to the fact that the majority of research participants are living in Qatar, where they have negligible employment law rights and are seeking HR to perform the role of protector.

2

In terms of the HRF increasing its effectiveness through adding value, the research findings uncover a difference between the views of managers and employees. Managers perceive HR adding value through efficiently supporting the museums, so that the museums staff can deliver what they are required to. This view is supported by Ulrich and Brockbank (2005) who believe the HR profession adds value when it supports others to reach their performance goals. This research finding reinforces the need for the HRF to efficiently support the museums and perform the role of an enabler in terms of providing the right support for the museum staff to meet their goals and objectives.

However, the most critical way the HRF can add value to the museums, as perceived by employees, is through providing learning and development opportunities. This view is reinforced by Brooks (2010) who states the importance of learning and development and its positive impact on EE. The research reveals there is a constant need for museum employees to enhance their technical skills and keep their skills up to date in order to add value and perform well in their roles. Therefore, learning and development opportunities will be of utmost importance to employees, as they continue in their professional development and contribute to the performance of the museums. As the budget and process sits with the HRF within the case study organisation, there is a clear call for HR to ensure they analyse the learning and development needs of the museums and provide the technical development opportunities the museum staff need in a timely manner.

RO2: Who do Managers and Employees believe is responsible for Employee Engagement and what is HR role?

The research highlights agreement between managers and employees that HR policies and procedures have a motivating and demotivating impact within the work environment. However, the negative impact can be mitigated through increasing awareness of HR policies and procedures in order to manage the expectations of all staff. Gatenby et al (2008) support this finding and assert that HR policies and procedures have a direct impact on employee engagement. The HRF must therefore ensure transparency around policies and practices and use creative ways to raise awareness and understanding amongst all levels of employees.

Managers and employees perceive the individual and their line manager as having equal accountability for engagement, with HR also playing a support role. Kahn (1990) acknowledges the importance of the individual in determining levels of engagement or disengagement, whilst Shuck et al (2010), focused their research into the influence of the line manager on levels of employee engagement. The research indicates that individual engagement can be encouraged and fostered by an engaged line manager whose role it is to ensure open communication channels and to give the right support at the right time. As evidenced by the EE survey results, managers in the organisation are already doing well in supporting employees and this area can be improved further by HR giving structured support to managers in how to interact with their teams and further increase levels of engagement (Brooks, 2010).

In terms of HR’s role in EE, the research participants agreed that HR needs to positively influence EE through providing an efficient service to support the museums to deliver what they need to and by increasing awareness of HR policies and procedures to manage expectations.

3

Recommendations

1. Conduct a HR role assessment survey with employees and management to capture their expectations on HR Divisions service priorities and requirements.

2. Develop and implement retention and engagement strategies that align HR and Business Strategies.

3. Further develop an organisational culture that values all employees and provides a supportive and motivating learning environment focusing upon communication, performance, career development and employee involvement.

4. Following a thorough training needs analysis, implement a skills development programme.

5. Arrange quarterly drop in sessions on HR policies and procedures. 6. Provide a dedicated HR helpline for employees. 7. Increase competences of line management so as to encourage engagement across the

organisation. 8. Introduce employee voice initiatives. 9. Follow on with timely further Employee Engagement Surveys.

Conclusions

Despite some of the limitations of the interview sample size within this study, interesting findings and areas for future research emerged. The debate around employee engagement will continue to run. Perhaps the greatest question lies within the role of HR and how it can make a positive impact upon both employees and performance.

References

Brooks, W. (2010). Engagement by Design. Hemsley Fraser. Retrieved from: http://www.hemsleyfraser.com/US/useful-information/ResourcesLibrary/HF%20Engagement%20by%20Design%20Paper%20-%20US.pdf

Gatenby, M., Rees, C. and Soane, E. (2008). Employee engagement in context [online]. Research insight. London: CIPD. Retrieved from http://www.cipd.co.uk/hr-resources/ research/employee-engagement-context.aspx

Kahn, W.A. (1990). ‘Psychological conditions of personal engagement and disengagement at work’, Academy of Management Journal, 33(4), 692-724. Retrieved from 3TUhttp://postgradicm.wikispaces.com/file/view/Kahn+W+(1990)+'Psychological+conditions+of+personal+engagement+and+disengagement+at+work'.pdf U3T

Kular, S., Gatenby, M., Rees.C., Soane,E., Truss, K. (2008). Employee Engagement: Literature Review. Kingston University. Retrieved from: 3TUhttp://eprints.kingston.ac.uk/4192/1/19wempen.pdfU3T

MacLeod, D. and Clarke, N. (2009). Engaging for Success: Enhancing Performance through Employee Engagement, London: Department for Business, Innovation and Skills. Retrieved from 3TUhttp://dera.ioe.ac.uk/1810/1/file52215.pdfU3T

4

Robertson-Smith, G. and Marwick, C. (2009). Employee Engagement – A review of current thinking, Brighton, UK: Institute for Employment Studies. Retrieved from: http://www.nhsemployers.org/SiteCollectionDocuments/Staff%20engagement%20current%20thinking.pdf

Saks, A.M. (2006) Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 2006, 600-619. Retrieved from: http://www.emeraldinsight.com/case_studies.htm/journals.htm?articleid=1575563andshow=htmlandWT.mc_id=alsoread

Shuck, B. (2011) Four Emerging Perspectives of Employee Engagement: An Integrative Literature Review. Human Resource Development Review, 1-25.

Truss, C., Mankin, D., Kelliher, C. (2012). Strategic Human Resources Management. Oxford: Oxford University Press.

Ulrich, D and Brockbank, W (2005). The HR Value Proposition. US: Harvard Business Press.

5

A critical assessment on the role of HR in conflict resolution: a review of the literature Patrick Jones Introduction Conflicts within organisations are fast becoming a natural occurrence and an emerging research paradigm in academic and practitioners’ circus. Conflict is viewed as a negative behaviour between two parties and can be described as behaviour intended to obstruct the achievement of some other person’s goals. Any form of disagreement which may lead to conflict could evolve due to differences in views and opinions on particular issues concerning goals achievements. Some of the most common sources of conflict can include values regarding ethical issues concerning how the organisation should operate; viewpoints on goals achievement; different interests in distribution of resources; clarity of rules and regulations; cultural differences and environmental change. The latter is mostly attributed to external forces of change such as change in government legislations, the use of technology; and organisational structure resulting to imbalance of power (Mullins, 2013). As much as conflict portrays a negative impact within organisation, the positive effect of it may be concealed within the performance of the organisation in which the conflict exists. How then is conflict resolved within organisations and whose responsibility is it to resolve conflict? Managing conflict in organisations can be traumatic in its own rights. There may be issues regarding the interests of managers subscribing to a unitary philosophy to suppress conflict whenever possible. This approach could be viewed as the work of ‘agitators’ operating a strategy that involves denigrating those seen to be the cause of conflict, even dismissing such employees from the organisation. Relevant literature There are a number of emerging empirical theoretical assumptions on conflict management. One of the traditional theories is based on the assumption that conflict is negative, caused by ‘trouble makers’ and should be subdued. An alternate view is that conflict between human beings is unavoidable and should be managed. Conflict can emerge as an outcome of change and can be beneficial to organisations, if managed effectively. Current theory considers innovation as a mechanism for bringing together various ideas and viewpoints into a new and different fusion. An organisational environment with a degree of tension, which may encourage conflict, can be an important factor for organisations committed to developing or working with new ideas. Other theoretical assumptions (Lewin,1999) consider the emergence of external influences, e.g. unionised and non-union on managing organisational conflict as a new paradigm of an emerging relationship between all organisational stakeholders (Lipsky, Seeber and Fincher, 2003). These assumptions align with the ‘dispute system design’ developed by Ury, Brett and Goldberg, (1993) based on three primary methods which are viewed as a cost effective way of resolving disputes and six ways of setting up dispute/conflict resolution procedures. The first method suggests resolution of conflict through power-based methods such as industrial strike; the second assumption is that resolution can be handled through right

6

based method by taking into account organisational rules and principles i.e. collective agreement, or through a set out legislative employment rights; and third, conflict resolution can be addressed through interest based method i.e. parties agreeing on joint problem solving approach to accommodate each other’s needs and facilitated by mediation. The principles of setting up conflict resolution include: (1) a preference to put emphasis on peoples’ interest and associated conflict resolution practices; (2) provision of allowing flexibility to opt between right-based methods and interest based methods; (3) provision of right and power based back up such as expression of grievances or arbitration, to interest based processes; (4) the use of post-dispute feedback for continuous improvement of the processes and systems; (5) the use of classical conflict resolution process suggesting that conflict can be resolved in a high to low sequences involving the use of negotiation or conciliation before arbitration; and (6) encouraging motivation, skills and resources essential to supporting the effectiveness of procedures and processes (Ury et al, 1993). This model continues to attract criticism from some quarters but it provides a set of guidelines on the resolution of conflict and other alternative dispute practices (ADR) principles. Rowe (1997) argued that some aspects of the model focused too much on non-unionised environment, limiting the system to certain categories of employees. The provision of multiple-interest based approach would accommodate different employee preferences in conflict resolution, and allow conflict issues to be addressed simultaneously through different processes. However, given the option employees might opt for interest based way of settling workplace conflicts (Rowe, 1997). Costantino and Sickles Merchant (1996) concurred with the model of Ury et al. (1993) but recommended incorporating organisational development principles to help address the ‘root’ causes of organisational conflict. Costantino et al., (1996), suggest the provision for alternative dispute resolution practices is essential to conflict resolution. Other strategic means for conflict resolution There are a number of generic strategies for conflict resolution, most of which are in their metamorphosis stage. Any type of strategy employed to tackle organisational unrest will depend on the type of organisation in which the strategy is being implemented; the complexity of the conflict, and the type of conflict being experienced by the organisation. The actions of parties involved in conflict can be resolved by parties not agreeing to compete with each other, i.e. one ‘winner’ as the outcome; cooperating and collaborating with each other, i.e. create a ‘win, win situation’ for all sides; competing and at the same time cooperating to achieve compromise; one party may opt to avoid the situation – this is no way of resolving a conflict, especially if it is an important issue; and accommodating the other side’s wished to resolve a situation, which can be an effective approach to maintain good relationships within a organisation after a conflict situation. A vast body of literature has grown in the area of conflict management which includes different points of view on whose responsibility it is to resolve organisational conflict, e.g. management, ombudsperson, facilitators, mediators, fact-finders arbitrators, etc. Rowe (1997) stresses that conflict management must be embedded in line management and team management rather than be the sole responsibility of management functions such as HR and legal department. Lipsky et al. (2003) promote the need to for line managers and

7

supervisors to include and manage the lower levels of organisations in conflict resolution, a view echoed by Costantino and Sickles Merchant (1996). The role of Human Resource managers in conflict resolution Human resource departments are viewed by some authors to play a significant role in conflict resolution. The employer-employee relationship regarding the economic and sociological components is explicitly specified by a contract of employment (Beardwell and Claydon, 2010). In addition, Beardwell and Claydon (2010) stress that employment relationship is subject to a range of other processes, e.g. management competence, work-group control, management and employee motivation and the potential for workplace disagreement. Armstrong (2010) noted that when formulating policies in the areas of industrial relations, organisations may be consciously or unconsciously decide on the extent to which they want to adopt a HRM approach to employee relations. It is clear that HR departments are involved in employees’ contractual issues but to what extent they should be involved in industrial relations issues is open to debate. Bratton and Gold (2012) commented that the HRM- industrial relation discourse poses some interesting questions for academics and practitioners, i.e. the commitment of workers to organisational goals, the perception of employees’ commitment by HR department, and functions of traditional HRM model alongside traditional collective bargaining. Bratton and Gold’s (2012) argument from an industrial relations perspective is that unions face strategic choices and they can either simply oppose the changes or opt for a proactive interventionist strategy, adopting the more positive elements of the HRM model approach. Torrington et al (2011) states that HR specialists play different role in the recognition, bargaining and consultation processes, depending on the status achieved by the HR function within the organisation. They identified three types of roles: • Facilitating role - by organising agendas for conflicts resolution • Advisory role - by being present in industrial disputes • Executive role - by chairing consultative meetings. Guest (1995) identified four policy options for organisations on industrial relations and HRM: • the new realism – a high emphasis on HRM and industrial relations: this involves

integrating HRM and industrial relations • traditional collectivism – priority to industrial relation without HRM: this entails retaining

the traditional pluralist industrial relations arrangement within an unchanged industrial relations system

• individualised HRM – high priority to HRM, an approach that is described as being opportunistic and essentially, piecemeal according to Guest (1995).

• No industrial relations (the ‘Block Hole’), an approach common with some USA organisations, where the assumption is that managing human resource is not a priority for management and these organisations do not see any compelling reason to operate within a traditional industrial relations system. Armstrong (2012) stressed that when such organisations are facing a decision on whether or not to recognise a union they are increasingly deciding not to do so.

8

Conclusion and conceptualisation The role of HR department in conflict resolution has been quite unclear in the past and still is to some extent. The ‘traditional’ HR functions of recruitment and selection, reward management, training and development, and performance management have overshadowed the concepts of employer/employee relations. There has been much debate centred on whether or not to view industrial relations as a separate process from HR management of employer-employee relations or to see it included in the HR domain. Union representation and discourse about unionised perspectives may not necessarily be a part of the HR department function but do play significant role in organising and facilitating union members and management conflict issues. The involvement of HR in organisational conflict may vary in accordance to the gravity of the conflict or dispute. Most individual and inter-group disputes should normally be settled by department supervisors or managers, and issues concerning the employee-employer contractual relationship can be dealt with at a higher level if that is appropriate. An approach to resolution of disputes taken by this author is to view conflict at different levels within a hierarchy structure and consider how these different levels of conflict may be managed within an organisation. This concept is of intervention is presented in the ‘LMH Conflict Resolution Model’ in Figure 1, which describes different levels of intervention and HR involvement. Figure 1 LMH Conflict Resolution Model

Level of conflict

Description Resolution involvements

Lower-level conflict

Individual or groups of individual disputes arising from achieving set goals

Can be resolved mainly by department supervisor/manager. Very common in smaller organisations (also common practices in larger organisations) with little or no HR involvements.

Middle-level conflict

Individual or groups of individual versus management issues arising from the use and distribution of organisational resources, and disputes on the balance of power.

Consultation with HR department to explain and clarify organisational policies and practices and other legal issues.

Higher-level conflict

Individual or groups of individual versus management on operational disputes. Some of the issues may relate to employment right, disciplinary procedures that could threaten job security.

Involvement of HR could be on consultation and/or procedural basis. There may be elements of supportive role. This level is common in unionised organisations and can be exercised in un-unionised organisations if clarifications of issues are required.

The LMH conflict resolution process is a generic model designed to identify HR involvement in organisational conflict resolution. It is by no means a rigid problem solving grid meant to identify specific roles for HR within an organisation. It does, however, provide a basis for and framework further research into the relationship between HR functions and organisational conflict resolution.

9

References

Armstrong, M, (2012). Handbook of Human Resource Management Practice. Kogan page.

Beardwell, J, and Claydon, T, (2010). Human Resource Management: a contemporary approach. Prentice Hall.

Bratton, J. and Gold, J, (2012). Human Resource Management: Theory and Practice. Basingstoke: Palgrave macmillan.

Costantino, C.A. & Sickles Merchant, C. (1996). Designing Conflict Management Systems. San Francisco, CA: Jossey-Bass.

Guest, D, E, (1995). Human Resource Management, Trade Union and Industrial Relations. London: Routledge.

Lewin, D. (1999). Theoretical and empirical research on the grievance procedure and arbitration: a critical review. Champaign-Urbana: Industrial Relations Research Association. Lipsky, D.B., Seeber, R. & Fincher, R.B. (2003). Emerging systems for managing workplace conflict: lessons from American corporations for managers and dispute resolution professionals. San Francisco, CA: Jossey-Bass.

Mullins, L, J, (2013). Management and Organisational Behaviour. Harlow: Prentice Hall

Rowe, M. (1997). Dispute resolution in the non-union environment: an evolution toward integrated systems for conflict management? East Lansing: Michigan State University Press.

Torrington, D, Hall, L, Taylor, S, (2011) Human Resource Management, Harlow: Prentice Hall.

Ury, W, L, Brett, J, M, and Goldberg, S, B, (1993) Getting dispute resolved: designing system to cut the cost of conflict. Cambridge Mass, Jessey-Bass, San Francisco, CA.

10

An investigation into the development of mental toughness in the British Army Adrian Newell and Charlotte Rayner Introduction

This study examines the development of mental toughness through the experience of 'tough' environments and reward/punishment regimes. It has long been recognised that success on the battle field is dependent on the 'human element' as well as tactics and physical equipment superiority (ARTD, 2009). Screening, developing and testing for physical aptitude is relatively straight forward; however the measurement and development of mental robustness is less well understood (Jones, Hanton and Connaughton, 2002). Military discipline is a 'bedrock' where discipline highlights and eradicates undesirable behaviour and (crucial to this paper) is believed to contribute to the development of mental toughness (Director General Leadership, 2014) through coping with the threat of punishment. This study seeks a closer understanding of the relationship between punishment and mental toughness in the British Army. The Literature Competitive sport holds a large proportion of focused mental toughness research. Mental toughness has been described as one of the most used, but least understood phrases in sport psychology (Jones, Hanton and Connaughton, 2002). Although no agreed definition of mental toughness exists, there is consensus that it is a dispositional construct enabling individuals to deal with obstacles, distractions, pressure and adversity from a wide range of stressors (Clough & Strycharczyk, 2012). Hardy, Bell and Beattie (2013: 1) defined it as "the ability to achieve personal goals in the face of pressure from a wide range of different stressors" which is adopted for this study. Within sports, mental toughness is rated as one of the most important psychological characteristics in determining competitive success, e.g. Sheard, 2010; McGraw et al., 2012. Research has found mental toughness is related to coping with testing circumstances (Kaiseler, Polman and Nicholls, 2009), greater pain tolerance (Crust and Clough, 2005) and achievement (Bell et al, 2013). A number of qualitative studies have attempted to understand how mental toughness develops, e.g. Bull, Shambrook, James and Brooks (2005). Whilst genetics may play a part, social environmental influences have a role (Crust and Clough, 2011). Given the apparent benefits, the discovery of techniques for mental toughness development is attractive. Repeatedly practicing tasks whilst subjected to mild levels of anxiety can help prevent mistakes when levels of anxiety are increased (Oudejans and Pijpers, 2010). Systematic desensitization training is a behavioural therapy technique used to help individuals cope in stressful and anxiety related conditions (Deffenbacher and Suinn, 1988). Exposure to the threat of negative consequences and the development of strategies to avoid such consequences is central. In order for the negative threat to be credible, a genuine negative consequence attached to poor performance is needed (ibid) and this might be punishment (Hardy et al 2013).

11

Kazadin (1975) conceives punishment as the presentation of something undesirable or the removal of positive outcomes such as a restriction of privilege. Podsakoff, Bommer, Podsakoff and MacKenzie (2006) conducted a meta-analysis into the relationship between leader operant behaviours and subordinate attitudes, role perceptions and performance. Non-contingent reward held no effect. Contingent reward had the strongest relationship with subordinate satisfaction. Non-contingent punishment had the strongest negative relationship. It is agreed that punishment can elicit negative emotions in subordinates and that administering punishment contingently and fairly by those that are trusted can mitigate these effects (Podsakoff et al., 2006). Research continues, for example Rubin, Bommer, and Bachrach, (2010) found that contingent punishment had a positive effect on subordinate trust and OCB, while non-contingent punishment had a negative effect on both trust and OCB. In the military, Attwater, Cambreco, Dionne, Avolio and Lau (1997: 147) reported the effects of reward and punishment in an all male military college. Perceptions of leader effectiveness were highly correlated with contingent reward. Then (as now) “non-contingent punishment is regarded as being useful for building stress and frustration tolerance”, but they found a significantly higher emotional response (mainly anger) by subordinates experiencing non-contingent punishment. Links to performance were unclear, and mental toughness untested. We seek to explore these issues as the practice of non-contingent punishment continues to exist within the British Army. Study design

There are limited empirical studies on mental toughness (Gucciardi, Gordon and Dimmock, 2009) or valid measurement tools. The invalidity of self-reporting mental toughness is convincing (Hardy et al., 2013). The recently developed Military Training Mental Toughness Inventory (Arthur, Fitzwater, Hardy, Beattie, & Bell, under review) provides a useful tool for measurement of mental toughness by an independent person.

We were fortunate to gain access to the Infantry Battle School which delivers rank-specific courses in order to acclimatise personnel for leadership in arduous field conditions. Physically and mentally demanding, successful course completion is a prerequisite for promotion. The arduous nature of the training presents instructors with the opportunity to practice punishment and reward combinations. These factors helped set the conditions for a unique and challenging academic opportunity. Resource constraints (time and access to a sample group) meant that a cross-sectional design was required. This investigation sought to explore associations between experience, performance, punishment/reward and mental toughness to provide pointers for future research. Specifically, this research aimed to establish: 1. The relationship between mental toughness, contingent/ non-contingent punishment

and performance. 2. The effect of operational deployment on mental toughness.

12

Measures Determination of mental toughness in The British Army employs the Military Training Mental Toughness Inventory (MTMTI). The questionnaire consists of 6 items using a 7 point scale: 1 (never), through 4 (sometimes), to 7 (always). Punishment and reward were measured using the Leadership Reward and Punishment Questionnaire (LRPQ; Podsakoff and Todor, 1984). The non-contingent reward items were removed as previous research has consistently revealed that non-contingent reward neither positively or negatively contributes to performance or satisfaction (e.g. Rubin et al., 2010). Without the non-contingent reward items the questionnaire comprised 20 questions using a scale anchored at 1 (never) to 5 (always). Performance during the course was measured using the final course grade awarded by an independent panel of directing staff and is based on a range of competencies tested throughout the course. Procedure and participants This research employed an observer-rated mental toughness inventory to examine the relationship between (non) contingent punishment, reward and mental toughness. Cohorts of officers, sergeants and corporals (N =316) undergoing training at the British Army’s Infantry Battle School undertook testing at the end of their 7-12 week courses. An observer-rated mental toughness inventory MTMTI) was employed to examine the relationship between (non) contingent punishment, reward and mental toughness. Cohorts of officers, sergeants and corporals (N =316) undergoing training at the British Army’s Infantry Battle School undertook testing at the end of their 7-12 week courses. Involvement was voluntary and 87% of trainees agreed to participate: 316 male Army infantry officers, sergeants and corporals (Mage = 26.3, SD = 3.1). Courses were rank-specific; officers, sergeants and corporals and cohorts are described below. The officer cohort (n = 90, Mage = 24.3, SD = 1.7) averaged 1.4 years (SD = 1.1) in the Army and most had recently passed basic officer training. Most (92%) had degree education. The sergeant cohort (n = 126, Mage = 28.4, SD = 2.9) averaged 10 years service (SD = 2.1) and were the most operationally seasoned of the cohorts having led sections (8 men) or platoons (26 men) whilst on operations. They will have completed the corporals' course. The corporals cohort (n = 100, Mage = 25.5, SD = 2.3) averaged 6.3 years service (SD = 1.9). Holding some experience of operational deployment, most tasks would have been undertaken with close supervision and with limited leadership opportunities. The corporals were the most junior rank of the three cohorts. Findings

Although the measures used in the study had all been validated during previous research, CFA was conducted. The MTMTI demonstrated an excellent factor structure (χ2 (9)=19.54, RMSEA=0.03, SRMR=0.02, NNFI=1.0, CFI=1.0). After removing 3 items, contingent reward (LRPQ) resulted in a satisfactory factor structure (χ2 (14) = 38.10, RMSEA=0.06, SRMR=0.03, NNFI=0.99, CFI=0.99). One item was removed in contingent punishment

13

resulting in a good factor structure (χ2(2)=1.71, RMSEA=0.00, SRMR=0.02, NNFI=1.0, CFI=1.0). Non-contingent punishment demonstrated a very good factor structure (χ2 (2)=0.23, RMSEA=0.00, SRMR=0.00, NNFI=1.0, CFI=1.0). Descriptives, correlations and alpha coefficients are displayed in Table 1. Table 1 Means, standard deviations, zero order correlations and alpha coefficients (diagonal) Scale Mean SD 1 2 3 4 5

1 Performance 3.91 1.18

2 Mental Toughness

4.79 1.2 .57** (.93)

3 Contingent Reward

3.47 0.89 .20** .13* (0.9)

4 Contingent Punishment

3.35 0.84 -0.05 -0.09 -0.02 (.68)

5

Non- Contingent Punishment

2.12 0.91 -0.22** -0.19** -.46** .33** (.78)

N = 316, * * p=<.01, * p=<.05

Bivariate correlation analysis revealed a significant positive relationship between mental toughness and performance in all three cohorts (corporals: r.58, p >.01; sergeants: r .48, p>.01; officers: r.69, p>.01). Analysis of variance revealed no significant differences in mental toughness between ranks (F=1.72, p =.181). Correlations and moderated hierarchical regression revealed no significant effects for contingent punishment in the whole group or any cohort. Non-contingent punishment had a significant negative correlation with course performance and mental toughness. Independent sample t-test also revealed significant differences in observer-rated mental toughness between high performing students who achieved a distinction, instructor recommendation, or both (n=41) and those who performed satisfactorily and achieved a generic pass (n=275) (t(60.18) = 9.39, p>.01). Independent sample t-test revealed significant differences in mental toughness between those who had served in Afghanistan (n=208) and those who had not (n=108) (t(314) =2.27, p=.02). However, no significant differences were revealed between those who had served in Iraq (n= 110) and those who had not (n=206) (t (314) =.30, p=.23).

14

When all of the data were simultaneously entered into the analysis, stepwise regression revealed that the behaviour exhibiting the greatest variance in performance was non-contingent punishment in the corporal (r²=.05, β =-.23, p=.02) and sergeant cohorts (r²=.05, β=-.23, p=.01). Discussion Results revealed significant correlations between mental toughness and performance in a British Army context which confirms the importance of mental toughness as a construct of value. Consistent with previous research in other contexts was the significant negative effect of non-contingent punishment. This finding is important for the British Army which embeds non-contingent punishment within Military Discipline practice, and these findings would suggest such practices are reviewed as to their purpose as their effect on performance and mental toughness appears to be negative. Including non-contingent punishment in military discipline may be counterproductive for a fighting force. With a future dependence on Reservists, punishment regimes in such difficult-to-recruit groups could be critical to their success. The second of the specific requirements of this study was to analyse the effect of operational deployment on mental toughness. Deployment to Afghanistan is recognised as a stressful operation and those who had deployed scored significantly higher on the MTMTI than those who had not. Deployment to Iraq did not reveal any significant difference in mental toughness. It is possible that the contribution of experience to mental toughness degrades over time, or the nature of the deployment was different or both (Mulder, 2008). However recent deployment into a hostile environment remains a primary indicator for mental toughness and aligns with previous research. Given the lack of difference between the ranks in mental toughness scores, and that sample officers will have had limited deployment experience, further research is needed as the officers achieved a mental toughness score without deployment. Social background and education (Crust and Clough, 2011) officer training and other variables may have complex bearing on an individual’s level of mental toughness. It is possible officer selection and basic training embeds useful components not present in corporal and sergeant training, or other demographic factors are involved. Given the statistical robustness of the MTMTI, its use earlier in the course as well as on exit may detect if mental toughness develops during training at the Battle School. Longitudinal studies could be straightforward to administer at various officer and other rank training establishments. With women taking a prominent position on the front line, gender specific research is needed to understand differences in mental toughness development. Greater reliance on Reservists would indicate a need to explore how mental toughness can be developed in those who only conduct a comparatively short period of time in training. References: ARTD (2009). A guide to leadership in the ARTD. Booklet issued to all permanent training staff in the Army Recruiting & Training Division. AC: 71928.

15

Arthur, C., Fitzwater, J.P.J., Hardy, L., Beattie, S., & Bell, G. (under review). Military Training Mental Toughness Inventory. Attwater, L. E., Cambreco, J. F., Dionne, S. D., Avolio, B. J., & Lau, A. N. (1997). Effects of rewards and punishments on leader charisma, leader effectiveness and follower reactions. Leadership Quarterly, 8:133-152. Bell, J., Hardy, L., & Beattie, S. (2013). Enhancing mental toughness and performance under pressure in elite young cricketers: A 2 year longitudinal intervention. Sport, Exercise, and Performance Psychology, 4: 281-297 Bull, S. J., Shambrook, C. J., James, W., & Brookes, J. E. (2005). Towards an understanding of mental toughness in elite English cricketers. Journal of Applied Sport Psychology, 17:209-227 Clough, P., & Strycharczyk, D. (2012). Developing mental toughness: Improving wellbeing and positive behaviour in others. London: Kogan Page Ltd. Crust, L., & Clough, P. J. (2005). Relationship between mental toughness and physical endurance. Perceptual & Motor Skills, 100:192–194. Crust, L., & Clough, P. J. (2011). Developing mental toughness: from research to practice. Journal of Sport Psychology in Action, 2:1, 21-32. Deffenbacher, J. L., & Suinn, R. M. (1988). Systematic Desensitization and the reduction of Anxiety. The Counselling Psychologist, 16:9-30. Director General Leadership. (2014). Developing leaders: A British Army guide. Royal Military Academy Sandhurst. AC64547. Hardy, L., Bell, J. J., & Beattie, S. J. (2013). A neuropsychological model of mentally tough behavior. Journal of Personality, (in press). doi: 10.1111/jopy.12034. Jones, G., Hanton, S., & Connaughton, D. (2002). What is this thing called mental toughness? An investigation of elite sport performers. Journal of Applied Sport Psychology, 14:205–218. Kaiseler, M., Polman, R., & Nicholls, A. (2009). Mental toughness, stress, stress appraisal, coping and coping effectiveness in sport. Personality and Individual Differences, 47:728–733. Kazadin, A. E.(1975) Behaviour modification in applied settings. Homewood, 111, Dorsey McGraw, L., Pickering, M. A., Ohlson, C. & Hammermeister, J. (2012). The influence of mental skills on psychosocial characteristics of Stryker Brigade Soldiers. Military Medicine, 177:77-84. Mulder, L. B. (2008). The difference between punishments and rewards in fostering moral concerns in social decision making. Journal of Experimental Social Psychology, 44:1436-1443. Oudejans, R. R. D., & Pijpers, J. R. (2010). Training with mild anxiety may prevent choking under higher levels of anxiety. Psychology of Sport and Exercise, 11:44–50.

16

Podsakoff, P. M., Bommer, W. H., Podsakoff, N. P., & MacKenzie, S. B. (2006). Relationships between leader reward and punishment behaviour and subordinate attitudes, perceptions, and behaviours: A meta-analytic view of existing and new research. Organizational Behaviour and Human Decision Processes, 99:113-142. Rubin, R. S., Bommer, W. H., & Bachrach, D. G. (2010). Operant leadership and employee citizenship: A question of trust? The Leadership Quarterly, 22: 400-408. Sheard, M. (2010). Mental toughness: The mindset behind sporting achievement. London: Routledge.

17

The Impact of Organisational change on Employee Commitment Jackie Hudson and Sally Rumbles Introduction One of the outcomes of the global economic crisis is the ever increasing amount and speed of change which has resulted in organisations downsizing and reducing staffing levels in order to remain competitive. The student housing market is certainly not immune to recession and collapse of large parts of Opal group, a major player in the student accommodation sector in 2013 highlighted a new concern in what had previously been a sector that had been largely impervious to economic pressures. Recent studies into the effect of organisational change have focused on ‘survivor syndrome’; that is to say on those employees surviving organisational downsizing and the resultant affect that that organisational restructuring has on employee commitment levels. There are numerous studies on the effects of organisational change on employee commitment but to date the majority of studies have taken a quantitative approach without exploring the qualitative aspects that would enable us to understand the true feelings and effects that organisational change has on the individual. The aim of this research project was to explore the extent to which organisational change impacts upon employee commitment to an organisation to specifically address two research questions: 1. How and to what extent does organisational change impact upon employee

commitment? 2. What has been the effect of significant organisational change on employee commitment

in survivors at Student Accommodation PLC?

Change Management

Much has been written on the subject of organisational change and there are multitude of change themes to consider, for example, what constitutes major change, how to lead change, how to make sense of change and how to survive change. With varying opinions on definitions and its impact it is hardly surprising that there is no agreement on what constitutes organisational change. However, it is widely agreed that change is constant, in fact, Hughes (2010) comments that with the amount of change occurring, perhaps organisational change itself is the “only constant”. Whatever the reasons for change, it is the effect and actions of staff that will ultimately influence the result, whether they are the leaders and instigators of change, or the recipients, the human factor in the change process is critical to its success. One clear aspect of this is the effective communication of change and poor communication can impinge significantly on an organisation’s ability to undergo a successful change programme. Kotter (2012), for example identifies the importance of “communicating the vision” as one of eight key steps in successful change management and poor or “under” communication as “one of the major reasons” for the failure of change initiatives. More recently studies have sought to research the impact of change on organisational commitment.

18

Employee Commitment

Organisational commitment, according to Porter, Steers, Mowday, and Boulian (1974), has three components: Belief and acceptance in the organisation’s goals; a willingness to exert considerable effort on behalf of the organisation and a desire to remain within the organisation. Research indicates that the behaviours and actions of committed employees are generally more positive than those who are not and as a result levels of commitment can be a reliable indication of behaviour such as turnover intention. Employee commitment can thus be an important factor during change. Jaros (2010) has concentrated on the theme of commitment to change itself or ‘C2C’, and found that there has been little qualitative research to advance our understanding of how the process of commitment to change is developed and its subsequent effects on organisational change outcomes. Meyer and Allen (1997) developed a three component model that considers the types of commitment typically displayed by employees during a change process and categorise these elements as ‘Affective’, ‘Normative’ and ‘Continuance commitment’ as explained in Figure 1 below. Using Meyers and Allen’s model, this research considers how levels of commitment might alter in the survivors of organisational restructure, with negative behaviours often being referred to as “survivor syndrome”.

Figure 1 Meyer and Allen’s employee commitment model

Affective Commitment (AC)

“Reflects commitment based on emotional ties the employee develops with the organization primarily via positive work experience”.

Employees remain with the company, in spite of change, because they want to

Normative Commitment (NC)

“Reflects commitment based on perceived obligation towards the organization”.

Employees remain with the company because they feel they should do (i.e. feelings of loyalty towards either the organisation, or perhaps a manager/fellow employee.

Continuance Commitment (CC)

“Reflects commitment based on the perceived costs, both economic and social, of leaving the organization”.

Employees remain with the company because they need to, and not because they want to.

Research Methods

Student Accommodation PLC is a leading player in the student accommodation market and employ 270 staff across the UK working in roles ranging from senior management to ‘blue collar’ positions. Twenty-six out of a total of 33 student accommodation residences underwent significant organisational change (i.e. redundancies had taken place; reduction in working hours, change of core hours resulting in early starts or late finishes, or place of work had been changed). In-depth, semi-structured interviews were conducted with a representative cross section of staff across the organisation, who had directly experienced the change. A cross section of 14 staff were interviewed using open ended questions to encourage the participants to speak freely about their experiences of and feelings following change around four key categories that were identified from the literature:

19

• Reactions to the change • Views on communication and consultation • Views on job security • Levels of commitment post re-structure, particularly focussing on any elements of

survivor syndrome and where overall commitment levels lay, i.e. were the survivors broadly displaying affective, normative or continuance commitment?

The qualitative data was analysed using a thematic analysis technique that allowed for key themes to be identified from the study.

Analysis of Findings and Conclusions

Four key themes have been identified from the research: Commitment, Trust, Information & Communication and Job Security and these themes concur with previous studies.

Commitment Evidence from the research concurs with the literature that commitment levels are congruent with the amount of change undergone; Brockner, Grover and Blonder (1988). Levels of commitment in survivors at Student Accommodation remain lower than the company would wish 12 months post-change. However, in general, good levels of normative commitment were apparent. There was little evidence of affective commitment, and only in managerial staff. Lack of significant AC can lead to turnover and absenteeism and since this research was undertaken, turnover at manager level has increased at Student Accommodation for the first time in over 3 years. Turning to the research question, the research finds that significant organisational change impacts more on blue collar staff than managerial staff, and feeling overworked, in particular, lead to resentment and a fall in service levels to the customer.

Trust Research by Meyer and Allen (1997) found that maintaining trust assists with the bonding of individuals to the organisation, and survivors of change need to trust the competency and honesty of top management; Robbins (1999). In Student Accommodation, the strongest area of trust was at a local level. Trust of the company diminished for those in blue collar positions, and the majority of managerial employees linked trust of the company to the presence of the incumbent Chief Operating Officer (COO). The research concludes that if the COO leaves the company within the next year, an exodus of senior managers may follow.

Information & Communication Jaros (2010) noted little qualitative research undertaken to advance the understanding of how employees develop the process of C2C, and its effects on the outcomes of change. This research has highlighted that a lack of understanding for the reasons for change directly causes employees to feel negative to the change, and has a subsequent effect on their levels of commitment to the organisation. This research concurs with the literature and concludes that the importance of internal communication is key to aiding the process of understanding change, and improved and more timely internal communication by managers at Student Accommodation could substantially improve commitment levels at blue collar levels.

20

Job Security The research concluded that at all levels, job security remained a concern. The model created by Brockner (1988), demonstrated the psychological state of job insecurity as being one of the elements that affects the behaviour and attitude of survivors. Opinions on job security at Student Accommodation were split into two camps: those (particularly blue collar) employees who felt that the company had “done it once and would do it again”, and the managers who were affected by the suspension of the student accommodation fund, the lack of growth and worries that the company would be sold or that the COO would leave in the near future.

Limitations and conclusions Throughout the study, the researcher aimed to remain objective. However, due to the role of HR Manager, it can be argued that the research could not be totally objective. Qualitative research, by its nature uses small numbers of participants and between 7-8% of participants from each group took part in this qualitative research. However, secondary survey data gathered from the relevant sections of the 2013 employee opinion survey were analysed and appear to affirm the findings of this research, and therefore the researcher would conclude that the findings of the sample population appear to be representative. Organisational change can bring uncertainty; a lack of support; increased workload; job insecurity and reduce levels of commitment.

Hayes (2010) noted that willingness on the part of employees to commit to future change can be reduced due to their experiences, and subsequently influence levels of overall commitment to the organisation. The research into significant organisational change in employees at Student Accommodation has shown that all these factors have come to the fore; in particular, more attention needs to be paid to internal communication to ensure that that employees are committed to the reasons for change, and attention needs to be given to how to manage future change to ensure a successful outcome as almost 70% of organisations undertake further reductions in the year following an initial downsizing, Applebaum and Donia (2001). For survivors of organisational change at Student Accommodation, some themes, particularly feelings surrounding job security, are still very strong over a year later, and this should be a concern to which the senior leadership team must be aware, and seek to address.

References:

Applebaum, S. H., & Donia, M., (2001). The realistic downsizing preview. A management intervention in the prevention of survivor syndrome (part II). Career Development International, 6(1), 5-19 Brockner, J. (1988). The effects of work layoffs on survivors: Research, theory, and practice. In B. M. Staw & L. L. Cummings (Eds.), Research in Organizational Behavior, 10, 213-255. Greenwich, CT: JAI. Brockner, J., Grover, S.L., Blonder, M.D. (1988), "Predictors of survivors' job involvement following layoffs: a field study", Journal of Applied Psychology, 73(3), 436-442.

21

Hayes, J., (2010). The Theory and Practice of Change Management, (3rd ed) Basingstoke: Palgrave McMillan.

Hughes, M., (2010). Managing Change: A critical perspective (2nd ed) London: CIPD.

Kotter, John P., (2012). Leading Change, (2nd ed) Boston: Harvard Business Review Press.

Porter, Steers, Mowday, and Boulian, (1974), “Organizational Commitment, Job Satisfaction, and Turnover among Psychiatric Technicians”, Journal of Applied Psychology, 59, 603-609. Robbins, S. P., (1999). Layoff-survivor sickness: A missing topic in organizational behaviour. Journal of Management Education, 23(1) 31-43. Jaros, S., (2010). Commitment to Organizational Change: A Critical Review, Journal of Change Management, 10(1), 79-108. Meyer, J. P., and Allen, N. J., (1997). Commitment in the Workplace: Theory, Research and Application, Sage Publications, London.

22

A case study of Performance Appraisal in a SME: moving on from the ‘tick-box’ generation Jennifer Wood and Vijay Pereira Focus of study

This research studied performance appraisal in a small and medium enterprise (SME) operating in the building and manufacturing sector. The SME consists of a parent company and three subsidiary companies. The research was conducted across all four companies by using questionnaires and interviews. The overall aim of the research was to discover the impact of the SMEs performance appraisal system on employees’ work motivation. This research set out to help the SME identify any issues it has with its existing appraisal system, and to help mangers understand any post-appraisal consequences affecting employees. The research looked at how managers are using appraisal to motivate their staff. This investigation aimed to help the SME to move on from the ‘tick-box generation’ when carrying out employee performance appraisals.

Performance appraisals and feedback

‘If individuals are to maintain effective performance in an organisation, or more particularly if they are actually to improve their performance, it is essential that they receive adequate and unbiased feedback on how well they are doing.’ (Jones and Page, 1983: 319).

Theory and research suggests that providing employees with feedback on their performance is a key component to improving the performance of individuals and the organisation (Brown, Hyatt and Benson, 2009). Companies have the opportunity to provide employee feedback on performance and provide objectives through the performance appraisal (PA) process. It is also suggested that PAs are a key HR function. However, research suggests that most organisations, especially SMEs, are dissatisfied with their appraisal system. Moreover, manager’s attitudes towards PAs is that it is a formal process and is merely a paper filling tick-box exercise, suggesting that there could be a negative attitude towards performance appraisals in some companies by managers and employees.

An ineffective process system in which employees and managers disagree about the formers contribution can create conflict and lead to negative consequences, such as theft, vandalism, intentional idleness, absenteeism and intention to resign by employees. Poor appraisal processes tend to avoid differentiation between good and unsatisfactory performance, giving rise to employees being incorrectly ranked in terms of their performance, to avoid disappointment, dissatisfaction, inter-employee jealousy, hostility and discomfort felt by some managers in providing negative feedback. A poor appraisal system also restricts opportunities to add value through effective employee development, when most employees are appraised as being inaccurately assessed as being ‘excellent’ in terms of their performance. At an organisational level, performance management should ensure that employees’ performances and skills are aligned with the strategic goals of the company. An effective and comprehensive appraisal process assists in assessing if an organisation has the necessary human resource capacity and competences in house. Such a process also supports the implementation of strategic change and can foster good workplace harmony.

23

Although there is a body of literature suggesting that feedback improves employee performance (Lorenzet, Cook and Ozeki, 2006), there is little to suggest that organisations are providing good quality and effective feedback to encourage and support motivation of the workforce. Effective PAs are more likely to enhance the opinions and experiences of employees involved in appraisal processes, and help foster a positive attitude in employees about their role and contribution. Brown et al. (2009) concur by suggesting that a high quality PA leads to greater job satisfaction and an increase in motivation in employees. Similarly, Kuvaas (2011) argues that for feedback to be effective, regular informal feedback by managers to employees is required. However, it is not apparent whether organisations are doing this other than providing feedback in an annual performance review. This research carried out in an SME was based on two key questions:

1. What are the implications for employees post-performance appraisal? 2. How do managers use the performance appraisal process to help motivate employees to

increase their effectiveness and efficiency?

Findings

The response rate for the questionnaires was 54% (97 returns from a total of 180). In addition, this research included carrying out six interviews with managers. The data from the questionnaires showed it was clear that managers across the company are using appropriate methods during the PA process to motivate their staff towards their work performance. These methods included giving constructive feedback, setting goals, giving informal feedback and supplying 360° feedback, where possible. The findings suggested that managers are setting goals for employee’s performance and this helped motivate their staff. This supports the argument that setting goals during the PA can increase employees’ performance by allowing them to have something they believe in and are committed to working towards. In addition, managers said that without setting targets as part of the appraisal process, there is no point in the PA as they, i.e. manager and employees, need to work towards achieving specified goals to be able to have meaningful discussions at the next appraisal discussion.

Findings also suggested that there is no formal process of 360° feedback system within the company but managers do provide employees with feedback from colleagues and customers which can be motivating for employees. It was suggested that this company should not necessarily focus on implementing a 360° system yet but focus on providing good quality feedback as part of the PA process, to help encourage employees and managers to see the process as an effective performance improvement tool.

A further component of appraisal discussed was informal feedback, and although it was evident that managers are giving employees informal feedback on an ad hoc basis, not all managers appeared to have a well defined or understood process for doing so. It was evident that some employees desire more informal feedback than their managers are providing.

The findings of this research suggested that the majority of employees are motivated post- PA as a result of the PA process, but some participants overall opinion of the process was largely negative. The main theme from the respondents’ comments was that the employees

24

believed the PA process is a ‘tick box’ exercise, illustrated by the following comment from an employee:

“…the PA system does little, it appears to be more of a tick-box exercise any real purpose’ and “It has its uses but it seems like a tick-box exercise”.

Themes from the findings

The qualitative data from the interview and questionnaires identified clear themes, and identified why there was negativity from some employees and offered insight into the different opinions of the PA process. Although it is suggested that performance appraisals are one of the most important HR exercises, this proposition is debateable in an organisation where many employees view the PA process merely as a ‘tick box exercise’. This opinion was evident across all four companies, where, although it was discovered that PA helps motivate employees in their work performance, that some participants believed the process was no more than a tick box exercise. This research has provided some insight into why some employees and managers believe the PA process is being operated as a tick-box exercise.

It was clear from the interviews that this view of a ‘tick box’ exercise was widely held across the organisation, with some of the interviewees suggesting the managers’ role was paramount in the PA process, i.e. to motivate staff to help improve their performance. The interviewees suggested that if the employees’ perception was that managers believe the PA process to be a tick-box exercise, then this will reflect on the employees and in return, they will tend to also regard the process as a tick-box exercise. It was suggested that managers who are unable to carry out effective appraisals need training to apply this performance method effectively as a motivational tool.

In summary, this research found that managers partly viewed the PA process as a tick-box exercise. There was no evidence to suggest if the company used training to support and encourage managers to use the method effectively as a motivational intervention. Another finding from the interviews was that the more mature employees and managers did not see the point in the PA system, and that they were more likely to view the process as a tick-box exercise. However, it was discovered that the younger generation of employees, sometimes described in the literature as ‘Generation Y’, viewed the PA process as a development tool and this generation aspired to be motivated by the process, which is supported by the view of in Earle (2009) who proposes that ‘Generation Y’ desire more learning and development opportunities from their employees.

Summary and insights

This research found that employees agreed that the PA process is a good motivational tool, and managers believed that the tool was an effective way to increase productivity. However, even though there was evidence that the PA process helps motivates staff, themes from the data highlighted some issues surrounding the process. It is concluded that employees seek more informal feedback, in addition to receiving it ‘now and then’ from managers. It was identified that employees regarded the PA process as a tick-box exercise due to a lack of informal feedback in addition to feedback provided by the formal the PA process. It was also discovered that employees felt that the outcome of the PA depended on the managers’ opinion of the PA process, i.e. if managers believed it to be a tick-box exercise this was

25

reflected in their employees’ opinion. Finally, the perceived outcome of the PA depended on the age of the employee. It was suggested by managers that more mature workers did not see the point in the PA process, whereas. the younger generation of employees benefited more from the process. This article has highlighted that although the PA is still widely used as a performance tool which is effective, companies should be more conscious of different opinions surrounding the process and implement strategies that produce a more beneficial PA process, particularly in the area of providing more informal feedback and a process that meets the needs of all generations of employees.

A recommendation from this research is that SME organisations should implement a PA processes that encourage and provide more informal feedback. Employers need to be mindful of the fact that the new generation of workers desire learning and development opportunities, and, finally, companies should train and develop managers up to carry out effective PAs and how to apply it as a performance tool that helps to motivate their staff.

References

Brown, M., Hyatt, D., & Benson, J. (2010). Consequences of the performance appraisal experience. Personnel Review, 39(3), 375-396. Earle, H.A. (2009). Building a workplace of choice: using the work environment to attract and retain top talent. Journal of Facilities Management, 2(3), 244-257. Jones, L., & Page, D. (1983). Keeping individual performance on track – with proper feedback. Education and Training, 25(10), 316-319. Kuvaas, B. (2007). Different relationship between perceptions of developmental performance and work performance. Personnel Review, 36(3), 378-397. Lorenzet, S.J., & Cook, R.G. (2006). Improving performance in very small firms through effective assessment and feedback. Education & Training, 48(8), 568-583. Wilson, J.P., & Western, S. (2000). Performance appraisal: An obstacle to training and development? Journal of Industrial Training, 24(7), 384-390.

26

HR Bulletin 2014 – Volume 9 Issue 1

Articles and contributors: Managers and employees perceptions of the effectiveness of the HR Function in building Employee Engagement within Government Museums in Qatar Samantha Stokes-Baydur BA (Hons), Chartered FCIPD Acting Chief Human Capital Officer, Qatar Museums Authority Gary Rees BSc (Hons), MBA, Chartered FCIPD, FRSA, FHEA, MBPsS Principal Lecturer in Organisational Studies and HRM, Portsmouth Business School A critical assessment on the role of HR in conflict resolution: a review of the literature Patrick Jones PGCE, MSc, MBA, MCMI Lecturer in Organisational Studies and HRM, Portsmouth Business School An investigation into the development of mental toughness in the British Army Adrian Newell Major, British Army and student reading for a MSc Leadership and Management Charlotte Rayner BA, MBA, PhD Professor of HRM, Portsmouth Business School The Impact of Organisational Change on Employee Commitment Jackie Hudson Chartered FCIPD HR Manager and student reading for a MSc HRM Sally Rumbles BA (Hons), MSc, Chartered MCIPD, FHEA Principal Lecturer in Organisational Studies and HRM, Portsmouth Business School A case study of Performance Appraisal in a SME: moving on from the ‘tick-box’ generation Jennifer Wood Student reading for a BA (Hons) HRM Vijay Pereira B’Com, LLB, MSc, PhD Senior Lecturer in Organisational Studies and HRM, Portsmouth Business School