Thesis proposal .docx

8/17/2019 Thesis proposal .docx

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1. heChapter One: Introduction

1.1 Background of the study

Among other organizational resources, human are one of the most critical and valuable resource to

achieve organization objective. Human resource (HR) can be defined as the most important

resource to affect production performance in organizations (Stone, 2!). "ffectiveness and

efficienc# of an organization cannot be achieved $ithout effective management of human

resource. %erformance anal#sis is an e&amination of the 'no$ledge, s'ill, abilities, and attitudes of

emplo#ees, their current and future career goals and objectives, and the match bet$een

emplo#ees and organizational e&pectations. Such an anal#sis also helps determine ho$ emplo#ee

performance helps the organization achieve its strategic goals and objectives (*ille#, 2+).

he main focus of Human resource management is the organizations interest in emplo#ees performance. Human resource management (HR-) is a function performing b# all managers to

deplo# human s'ill, 'no$ledge, e&perience, and ma&imizing their performance to achieve

organization objective (Armstrong, 2).

%erformance management is a one function performed b# HR manager as $ell all managers $hich

about ho$ people should be managed to achieve the performance that the organization needs to

succeed (/arter and 0ran', 21, pp !23). According to 4ratton (2) human resource

activities are designed to match individuals to organizational tas's, to motivate the $or'force, and

to deal $ith conflicts and tensions at $or'. HR- practices, therefore, aim to achieve t$o sets of

objectives5 improve emplo#ee performance and enhance organizational effectiveness.

Armstrong (Armstrong s handboo' , 2+) noted that emplo#ee performance is a function of both

abilit# and motivation, it ma'es sense to have practices aimed at enhancing both. hus there are

several $a#s in $hich emplo#ees can ac6uire needed s'ills (such as careful selection and training)

and multiple incentives to enhance motivation (different forms of financial and nonfinancial

re$ards). 7n addition to these 8ob performance is vie$ed as a function of three factors and is

e&pressed $ith the e6uation. According to this e6uation, motivation, abilit#, and environment are

the major influences over emplo#ee performance. %erformance standards are designed based on

information from job anal#sis $hich is s#stematic process of determining the characteristics of

job, s'ills and 'no$ledge re6uired to performing jobs, and evaluate emplo#ees performance based

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on the standard (9ir'patric' :onald ;, 2, pp 3


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1.2 Statement of the problem

"mplo#ees are the most valuable asset in an# 'ind of organization $hich engaged in profit ma'ing

or nonprofit or service giving or production. A successful and highl# productive business can be

achieved b# engaging them in improving their performance. ?ot all emplo#ees are e6ual in their

$or'ing and the# have different modes of $or'ing in that some have the highest capabilit#

regardless of the incentive $hile others ma# have an occasional jumpstart. 7f the# are handled

effectivel#, the result can be greater productivit# and increased emplo#ee morale. "mplo#ees in a

firm are re6uired to generate a total commitment to desired standards of performance to achieve a

competitive advantage and improved performance for sustaining that competitive advantage at

least for a prolonged period of time, if not forever.

Human resource can be defined as the most important resource to affect production performance in

organizations. Human resource is an important factor of production. A $ell trained, motivated

$or'force ma'es it possible to achieve the organizations success. 0or this reason management has

to suppl# not onl# ra$ materials, facilities, and e6uipment, but it also has to motivate its

emplo#ees. %roductivit#, 6ualit# and customer relation are the 'e# areas of success and these

depends on performance of the emplo#ees. "mplo#ees $ill perform $ell if the# are motivated.

(Stone, 2!). =rganization has man# resources among these, emplo#ees are the most valuable assetsof an# organization $ithout $hom no production activit# can ta'e place. he success of an

organization largel# depends on the 6ualit# of its emplo#ees $hich is measured b# their performance.

hus, good emplo#ees performance is the part for the success of the organization. ?elson and

Cuic' (2@) argue that a job $ith high motivation and h#giene factors leads to high performance

and fe$ complaints among emplo#ees. "mplo#ees performance li'e all other s#stems, the# do not

function $hen their components do not $or' together smoothl# and efficientl#. hus,

understanding relationship bet$een the organization and its emplo#ees is the 'e# to improve the

organizations abilit# to move through change effectivel#. =rganizations need to understand the

factors that affect emplo#ees performance because such insight $ill help them ma'e decisions

that $ill inculcate improved performance from the emplo#ees and to an e&tension the overall

performance of the organization (-$angi, 22).

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"mplo#ee performance has been sho$n to have a significant effect on organizational performance

(/ollis and -ontgomer#, ++1). his is due to the reason that individual performance is the

foundation of organizational performance (7vancevich and -atteson, +++). 7dentif#ing factors

that affect emplo#ees performance can help improve recruitment, retention and organization result

(-ohammed and ?imalathasan, 2).

-an# ;iteratures stated that there are numerous factors affecting emplo#ees performance.

"mplo#ee performance affects the overall performance of an organization and its bottomline

(%urcell 2@). :ifferent scholars tr# to point out the factors affecting emplo#ees performance in

case of different sectors throughout different countries. -ost of them deal $ith determinant factors

and its impact on emplo#ees performance and their finding sho$ that performance of the

emplo#ees has significantl# affected b# different factors including individual, organizational, and

job related factors.

he $or' nature of service industries is mostl# dominantl# faced b# direct contact $ith customer.

As a result, selecting people $ho are properl# suited to e&cel in customer service environment and

then improve the s'ill level of those $or'ers to help meet the mar'et demand and lead to

continuous improvement of a service organizations performance. As the ban'ing industr# is a

major service industr# $hich pla#s a vital role in the econom# development of the countr#.

Recentl# in our countr# the ban'ing industr# gro$th in a fast manner and aggressive competition

is observed since the demand of ban'ing service not #et fulfilled and the government ban'ing

polic# $hich restricted the foreign ban'ing companies these implies giving good opportunit# for

local ban' companies. Hence, one of the indicators in enhancing and improving the services

industr# is job performance. ;i'e other organizations engaged in the service sector Begagen 4an'

is one of those services providing organization $hich depend on the performance of its 6ualified

emplo#ees. As $e discussed above there are numerous factors has its o$n impact on emplo#ees

performance $hich ma# hinder organization to utilize full capacit# of their $or'ers.

herefore, it is indispensable to generate relevant evidence through a detail stud# to highlight

solution for improving the performance of emplo#ees. his research $ill tr# to describe the

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determinants of emplo#ees performance in Begagen 4an' in Addis Ababa cit#. Specificall#, it

tries to determine the effect of leadership, organizational culture, $or'ing environment, motivation

and training on individual performance. Secondl#, this stud# $ill dra$ some recommendations and

indicate directions for further research. (AA/H H" R"0"R"?/" 4==9)

1.3 esearch !uestions

he above statement guide the researcher to builds up research 6uestions regarding the

determinant factors $hich affect the performance of emplo#ees of the ban', the stud# tried to

ans$er the follo$ing main research 6uestions5

• Bhat are the major factors that influence the performance of emplo#ees in Begagen 4an'D

• Bhat is the effect of those factors on the performance of emplo#ees in the stud# areaD

• Bhich valid solutions can be suggested to increase the performance of emplo#ees in

Begagen 4an'D

1." Ob#ecti$e of the Study

he overall general objective of this research is to investigate the determinants factors affecting

emplo#ees performance in Begagen ban' in Addis Ababa cit# branches. 7t $ill also highlight ho$independent variables affect the emplo#ees performance either positive or negative.

Specific Ob#ecti$e of the Study

he aim and 'e# specific objectives of this research are as follo$s5

• o determine the major factors influencing the performance of emplo#ees in Begagen

4an' Addis Ababa.

• o investigate the effect of each factors on the performance of the individuals in the stud#

area.

• o establish valid conclusions and recommendations $ith the identification of impacts,

both positive and negative factors on emplo#ees $or' performance $hich helps for the

concerned bodies to improve the staff job performance.

• o provide and indicating directions for further research.

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1.% &ypothesis

he h#pothesis assumes that emplo#ee performance is affected b# and dependent on multiple

factors including leadership, organizational culture, $or'ing environment, motivation and training.

his stud# aims to figure out the effect of abovementioned variables on the performance of

emplo#ee in $hich it based on and adopted from the literature (;e ran, 22) as depicted in

figure belo$.

'ig. 1 Conceptual 'rame(ork ) adopted from ;e ran, 22

Significance of the study

he stud# $ill focuses on the implication of performance appraisal s#stem of the compan# on

emplo#ees performance. So this research $ill indicate the e&act aspects of the s#stem on

emplo#ees performance, and it $ill provide insights for the improvement of the s#stem. he result

of the stud# $ill help the compan# to ree&amine the s#stem, and to ta'e appropriate action.

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his research also $ill be helpful for other organization to reconsider their performance appraisal

s#stem and to understand the implication of the s#stem on emplo#ees performance.

7n addition to this, the research $ill serve as a reference for researchers $ho are interesting to

conduct a research on the topic.

1.%. Scope and limitation of the study

1.%.1. Scope of the study

his research stud# is limited to the S7?"/ "H7=%7A %;/ (4ole Subsite around *erj

-enrat#el). he researcher $ill also focus onl# on the implication of performance appraisal

s#stem on emplo#ees performance of the named compan#. herefore the scope of this research is

onl# delimited to the S7?"/ "H7=%7A %;/.

1.%.2. *imitation of the study

7t is ver# difficult and be#ond the scope of this paper to investigate the implication of all factors

that affect emplo#ees performance. he researcher $ill not consider those factors in this research.

he limitation $ill be directl# related $ith time, budget and availabilit# of resources for not

consider those factors.

1.+. ,ime frame and budget estimation

1.+.1. -ork schedule

o. /cti$ities 0ue 0ate. hesis proposal ( /hapter) :ecember >, 21

2. ;iterature revie$ (chapter 2) :ecember @, 21

@. -ethodolog# (chapter @) and data collection instruments 8anuar# 2+, 2<

3. %roposal :efense 0ebruar# 12, 2<

1. :ata collection, Anal#sis, Results, 7nterpretation and:iscussion

-arch @, 2<

. 0inal Brite up April 2!, 2<

!. Submission of final draft -a# @, 2<

+. :efense %eriod 8une


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1.+.2. Budget estimation

S.o 0escription

nit rice ,otal Cost

4irr /ent 4irr /ent

1. :uplication paper 2 00 3 00

2. ?ote 4oo's 2 00 2 00

3. %en @ 00 @ 00

". %encil >1 > 00

%. 0lash :is' 1 00 1 00

+. 7nternet 0ee =ver all 1

Sub ,otal 1+4 55

6iscellanies 78pense

4. ransport /ost 1

9. %hotocop# and printing of reference and first draft @

. 0inal report printing and binding 1

15. =ther e&penses >

Sub total Cost 19%5 55

,otal Cost 3%"4 55

1.4. Organiation of the study

he final report of this research $ill encompass a total of five chapters.

he first chapter of the research $ill include detail introduction of the research topic. he ne&t

chapter of this research $ill be conceptual and theoretical aspects of e&tensive literature revie$ onthe stud# area. he third chapter of the research $ill discuss about the methodolog# of the

research. he researcher ma# change same procedure of the research design through process due to

the nature of the topic. And the fourth chapter of the research $ill include the presentation,

anal#ses and interpretation of the data. he final chapter $ill be conclusions of the research based

on the finding, and valuable recommendation $ill be for$arded.

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2. e$ie( *iterature

=rganizations are undergoing a transformation for coping against the changing needs of the

environment and e&celling in the business b# building up their adaptive capabilities for managing

change proactivel#. Sustainabilit# of business organization is depends on talent, s'ill, 'no$ledge

and e&perience of emplo#ees and on their performance (Armsstrong -ichael, 2+).

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he main objective of the performance appraisal s#stem $as to e&ercise control over the activities

of the emplo#ees through disciplinar# actions and management of re$ards and promotions. he

supervisors $ere e&pected to rate their emplo#ees on certain traits ranging bet$een a scale of

unsatisfactor# to outstanding performance and these ratings $ere susceptible to various errors li'e

central tendenc#, bias, halo effect, etc (Armsstrong -ichael, 2+).

2.1. erformance appraisal

he functions of HR- have become far more complicated as toda# the major focus of strategic

HR- practices is on the management of talent b# implementing such performance appraisal

s#stem $hich enhance the competencies of the emplo#ees (Agar$al An'ita , 2).

%erformance appraisals entail setting performance targets, revie$ing the achievement of targets,

and devising $a#s to enable emplo#ees to meet targets. he s#stems establish clear e&pectations

on $hat an emplo#ee is e&pected to do, set the guidelines on $hat constitutes successful job

performance, and strive to identif# barriers to effective performance (Agar$al An'ita , 2).

%erformance appraisals $ere mostl# carried out annuall# for measuring the degree of

accomplishment of an individual and $ere implemented on a top do$n basis in $hich the

supervisors had a major role to pla# in judging the performance of an emplo#ee $ithout soliciting

active involvement of the emplo#ee (Agar$al An'ita , 2).

he performance appraisals $ere organized in a bureaucratic manner and suffered from

unnecessar# dela#s in decisions and corruption. %erformance appraisals $ere mostl# narro$l#

focused and functioned in isolation $ithout bearing an# lin'age $ith the overall organizational

vision or goals. he side effects of the performance appraisal s#stem $as it generated s'epticism

amongst the managers and the emplo#ees on an# ne$ initiative of the HR (Agar$al An'ita ,

2).

2.2. erformance management system

he performance appraisal tends to be more formal and structured. Although most performance

appraisal s#stems allo$ customization of 'e# performance areas or $hat constitutes performance

based on the emplo#ee, the s#stem nevertheless remains rigid $ith laid do$n procedures and

rating parameters binding on all emplo#ees e6uall#. %erformance appraisal is usuall# standardized

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based on the emplo#eeEs designation, or at best on the emplo#ees job description rather than on

the emplo#ees actual $or' e&igencies (Agar$al An'ita , 2)

2.3. 7mployees; performance and performance appraisal system

%erformance is the accomplishment of a given tas' measured against preset 'no$n standards of

accurac#, completeness, cost, and speed. "mplo#ees performance is the contribution of emplo#ees

for the achievement of organization objective. %erformance appraisal is a management tool that

managers can manage emplo#ees performance $ith specified set of rules. 7t is a means of getting

results b# understanding and managing performance $ithin an agreed frame$or' of planned goals,

standards and competenc# re6uirements. "mplo#ees e&pected to perform acceptable level of the

standard and managers follo$ up, and evaluate the performance of emplo#ees to attain the stated

objective of an organization (Armsstrong -ichael, 2+).

3. esearch 0esign and 6ethodology

his research is 6ualitative research design because the researcher onl# $ants to describe the

implication of performance appraisal s#stem on emplo#ees performance. he researcher believes

that this 'ind of research design are provides plentiful data about the research topic, and supportive

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to meet the research objective. As stated above in the scope of the stud#, the research $ill be

conducted in S7?"/ "H7=%7A %;/.

he researcher $ill use probabilit# random sampling techni6ue to select the sample from the

population. he data $ill be collected through 6uestionnaire and intervie$, and different anal#tical

tools are underta'en in this research.

3.1. Sample sie

he compan# has a total of 1 emplo#ees, and + of them are permanent emplo#ees. he

researcher $ill categories the total population (+) based on emplo#ees position (department

directors and subordinates), and ta'e 1F sample based on the proportion of each stratum. he

classification and numbers of sample trul# represent the total population and $ill help to get

ade6uate data.

his sample includes both the department director (supervisors) and other members of each

department (subordinates) $ho $ill ta'e part in filing the 6uestionnaire.

Ho$ever, Human resource director $ill be included in the 1F sample, but the# $ill be treated

separatel# and the# are subjected to an e&tended personal intervie$ regarding the issue.

3.2. Sampling techni


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s#stem. o determine this, researcher $ill collect data from HR department of S7?"/

"H7=%7A %;/ regarding to emplo#ees contract status.

Accordingl#, < department director (supervisors) and 3 other members of the department

(subordinates) $ho fulfill the above stated re6uirement $ill be selected. he HR director $ill ta'e

intervie$ separatel#. :epartment directors and HR director are ver# familiar $ith the performance

appraisal s#stem of the compan# and the# $ill give ade6uate information about the s#stem.

Sampling techni


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HR directors. Cuestionnaires (includes both closedended and openended) $ill also be distributed

to department director (supervisors) and other department member of emplo#ees (subordinates)

e&cluding HR directors. he secondar# data $ill be gathered from relevant documents related $ith

the topic.

7n order to chec' the validit# of 6uestionnaires, the researcher $ill be distributing sample

6uestionnaire for fe$ selected respondent from both categories before distributing the final.

3.". 0ata /nalysis 6ethod

he researcher $ill appl# 6ualitative anal#sis techni6ue due to the nature of the data to be

collected and use simple 6uantitative anal#sis techni6ues. he data from intervie$ $ill be

anal#zed through descriptive anal#sis. :ata from 6uestionnaires $ill be anal#zed through both

descriptive and statistical anal#sis and using tables, and simple percentages.

". Bibliography

. Armstrong -ichael, (2), Human Resource Management Practice, Repli'a %ress %vt ;td

7ndia.

2. a#lor Stephen,( 2!), Human Resource Management , >th edition, -atev /roms Artes

*raficas, Spain

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@. Aguinis, Herman, (2+), Performance Management , 2nd "dition, :orling 9indersle# %vt. ;td

7ndia.

3. /arter "arl - A And 0ran',( 21), Improving Employee Performance Through Workplace

Coaching , in *reat 4ritain.

1. :el%o Am#, (2>), The performance handbook legal and practical rules for manager , 2nd

edition, consolidated %rinters, inc.

Documents

Thesis proposal .docx