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THE IMPACT OF PERFORMANCE MANAGEMENT SYSTEMS ON EMPLOYEE SATISFACTION AND ORGANISATIONAL PERFORMANCE: A CASE STUDY OF SUBWAY

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THE IMPACT OF PERFORMANCE MANAGEMENT SYSTEMS ON

EMPLOYEE SATISFACTION AND ORGANISATIONAL PERFORMANCE:

A CASE STUDY OF SUBWAY

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Executive Summary:

In contemporary working environment, Human Resource Department is engaging in various

strategic tools that can help in enhancing the production level of a firm along with

increasing the employees’ efficiency rate. In the concerned dissertation, the researcher will

emphasise on the impacts created by performance management techniques over

employees’ performance and organisational performance. Adoption of these techniques by

various managers, here Subway is helping in accessing the level of skill inherent within an

employee and accordingly areas of development is planned for the concerned employee.

The researcher in the present dissertation study has tried to interact with managers and

employees of Subway so that more accurate and specific details of the topic can be

collected. However, with application of appropriate research methodology ease of process

was achieved and a successful dissertation was conducted. Based on the discovered

research gaps, the researcher hasl also cited few recommendations.

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Acknowledgement:

Conducting this research has been one of the most enriching experiences of my life. The

contribution of this research to enhance my knowledge base and analytical skill has been

paramount. It gave me the opportunity to face challenges in the process and overcome

them. This would not have been possible without the valuable guidance of my professors,

peers and all the people who have contributed to this enriching experience. I would like to

take this opportunity to thank my supervisor ----------------------- for the constant guidance

and support provided to me during the process of this research. It would not be justified if I

did not thank my academic guides for their important and valuable assistance and

encouragement throughout the research process. I would also like to thank my friends who

had provided me with help and encouragement for collecting primary data and valuable

resources. Finally, I would like to thank the professionals from the fast food retail industry

who have participated in the research survey and provided with valuable inputs into the

subject. The support of all these people has been inspiring and enlightening throughout the

process of research in the subject.

Heartfelt thanks and warmest wishes,

Yours Sincerely,

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Table of Contents

Chapter 1..................................................................................................................................8

Introduction............................................................................................................................. 8

1.1 Introduction....................................................................................................................... 8

1.2 Research Aim:.....................................................................................................................8

1.3 Research Objective:............................................................................................................8

1.4 Research Questions:...........................................................................................................9

1.5.1 Background of the Topic:.................................................................................................9

1.5.2 Background of the Company: Subway.............................................................................9

1.6 Rationale of the Study:.....................................................................................................10

1.7 Purpose of the Study:.......................................................................................................10

1.8 Structure of the Study:.....................................................................................................11

1.9 Summary:......................................................................................................................... 12

Chapter 2................................................................................................................................12

Literature Review...................................................................................................................12

2.0 Introduction:.................................................................................................................... 12

2.2 Performance Management Systems:...............................................................................13

2.2.1 Elements of Performance Management:......................................................................14

2.2.2 Performance Management Techniques:.......................................................................15

2.2.2.2 Future Oriented Methods:.........................................................................................17

2.3 Employee Satisfaction:.....................................................................................................18

2.3 Motivation Theories:........................................................................................................19

2.6.3 Expectancy Theory:.......................................................................................................21

2.7 Job Description and Job Profile:.......................................................................................22

2.7.1 Job Description:.............................................................................................................22

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2.7.2 Job Profile:.....................................................................................................................22

2.8 Organisational Performance:............................................................................................23

2.9 Relationship between Performance Management and Employee Performance:............23

2.10 Conclusion:.....................................................................................................................24

Chapter 3................................................................................................................................25

Research Methodology..........................................................................................................25

3.1 Introduction..................................................................................................................... 25

3.2 Method Outline................................................................................................................25

3.4 Research Philosophy........................................................................................................ 26

3.4.1 Justification for selection of the chosen Philosophy:.....................................................27

3.5 Research Approach:......................................................................................................... 27

3.5.1 Justification for selection of the chosen Approach:.......................................................28

3.6 Research Design:..............................................................................................................28

3.6.1 Justification for selection of the chosen Design:...........................................................28

3.7 Data Collection Procedure:...............................................................................................29

3.7.1 Data Sources: Primary and Secondary...........................................................................29

3.7.2 Data Techniques: Qualitative and Quantitative.............................................................29

3.8 Population and Sample:...................................................................................................30

3.8.1 Sampling Technique:.....................................................................................................30

3.8.2 Sample Size:...................................................................................................................30

3.9 Ethical Considerations:.....................................................................................................30

3.10 Research Limitations:.....................................................................................................31

3.11 Summary:....................................................................................................................... 31

Chapter 4................................................................................................................................32

Research Results.................................................................................................................... 32

4.0 Introduction:.................................................................................................................... 32

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4.1 Quantitative Analysis: Employees of Subway...................................................................32

4.2 Qualitative Analysis: Managers of Subway.......................................................................43

4.3 Conclusion:.......................................................................................................................45

Chapter 5................................................................................................................................46

Analysis and Discussion..........................................................................................................46

5.0 Introduction:.................................................................................................................... 46

5.1 Data Interpretation for Employees of Subway.................................................................46

5.3 Summary:......................................................................................................................... 50

Chapter 6................................................................................................................................51

Conclusion and Recommendations........................................................................................51

6.1 Conclusion:.......................................................................................................................51

6.2 Linking with the objectives:..............................................................................................51

6.3 Recommendations:.......................................................................................................... 53

6.4 Future Scope of the Study:...............................................................................................54

Reference list:........................................................................................................................ 55

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List of Figures:

Figure 1: Company Logo.........................................................................................................10

Figure 2: Conceptual Framework...........................................................................................13

Figure 3: Maslow’s Hierarchical Needs...................................................................................20

Figure 5: Employees’ sustainability at Subway.......................................................................33

Figure 6: Satisfaction level with the work atmosphere of Subway as an organisation...........34

Figure 7: Rating for the work culture at Subway....................................................................35

Figure 8: Employees are appraised at a genuine level within Subway...................................36

Figure 9: Leaders at Subway are capable of encouraging you in positive manner.................37

Figure 10: Rate the performance appraisal techniques that are adopted at Subway............38

Figure 11: As a source of employee satisfaction, which element is more crucial for you as an

employee within Subway?.....................................................................................................39

Figure 12: Positive impacts of performance appraisal techniques at the work place............40

Figure 13: Areas that needs more focus while adopting performance management systems

............................................................................................................................................... 41

Figure 14: Performance management systems at Subway need modifications and alterations

............................................................................................................................................... 43

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List of Tables:

Table 1: Employees’ sustainability at Subway........................................................................32

Table 2: Satisfaction level with the work atmosphere of Subway as an organisation............33

Table 3: Rating for the work culture at Subway.....................................................................34

Table 4: : Employees are appraised at a genuine level within Subway..................................35

Table 5: Leaders at Subway are capable of encouraging you in positive manner..................36

Table 6: Rate the performance appraisal techniques that are adopted at Subway...............37

Table 7: As a source of employee satisfaction, which element is more crucial for you as an

employee within Subway?.....................................................................................................38

Table 8: Positive impacts of performance appraisal techniques at the work place................39

Table 9: Areas that needs more focus while adopting performance management systems..41

Table 10: Performance management systems at Subway need modifications and alterations

............................................................................................................................................... 42

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Chapter 1

Introduction

1.1 Introduction

Ahmad, (2008) stated that the ‘Employee Satisfaction’ survey is done, the topics to be dealt

are compensation, work pressure, perception of the management, flexibility of the company

and the employees, team work raw resources of the company and many more. The

company does this to see the work culture and the response of the employees. According to

Armstrong and Appelebaum, (2007) if the employees of the company are happy the happier

will be the environment of the company. The responsible people for the performance

management are the managers and the supervisors of the company.

1.2 Research Aim:

In the present study, the researcher will aim to put emphasis on the performance

management systems so that its impact over employee satisfaction and organisational

performance can be evaluated. However, this broad topic is narrowed with a specific

observation of a chosen company, Subway.

1.3 Research Objective:

According to research aim, the researcher has listed few research objectives that can help in

better research process. These objectives are as enumerated below:

To understand the need of performance management systems in an organisation

To critically analyse the factors behind employee satisfaction and organisational

performance

To examine the impact of performance management techniques over employee

satisfaction and organisational performance

To address the challenges faced in implementation of the performance management

techniques

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1.4 Research Questions:

In a dissertation study, research questions helps in bringing more focus to the key questions

that are ideally helpful in extracting the most relevant information for the research topic.

List of research questions are as mentioned herewith:

1. Why implementation and need of performance management techniques are

increasing within organisational environment?

2. What are the factors that bring and leads to employee satisfaction and

organisational performance within an organisation?

3. How performance management techniques create an impact over level of employee

satisfaction and organisational performance?

4. What are the challenges and barriers faced by an organisation during the

implementation process of the performance management techniques?

1.5.1 Background of the Topic:

Performance management system is the main factor that determines the organizations

long-term success and failure. If there is ineffective performance then the individual, the

organizational performance, and the productivity can go down. An employee satisfaction

survey via performance appraisal and evaluation is done to measure the satisfaction of the

employees regarding the job roles.

1.5.2 Background of the Company: Subway

Subway is an American based restaurant that is categorised under fast food retail chain. This

company first opened in United States of America in Bridgeport, during the year 1965.

Subway took its first step in United Kingdom in the year 1996. In 1996, Murray and Maria

Speirs opened their first Subway in United Kingdom’s city Brighton. In the year 2007,

Subway was ranked 15th time ‘Franchise 500’ in just past 19 years.

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Figure 1: Company Logo

(Source: SUBWAY - Eat Fresh, 2014)

In the year 2012, the company Subway promised to open 2000 stores in both United

Kingdom and in Ireland. By this action, the company can create a buzz of 6000 job vacancy

in the United Kingdom and in Ireland market. In the year 2012, there were 1423 stores of

Subway in United Kingdom. Subway is five times expanded from the year 2002 to the year

2012. Within Subway, the fast food restaurant, employees enjoy a healthy working

environment and are supposed to be retained effectively by the organisation (SUBWAY - Eat

Fresh, 2014).

1.6 Rationale of the Study:

Performance management is an essential element of an organisation. Performance

management gives a clear detail of the performance of the employees. The employee gets

the detail of their performance that how and by following what methods can the employees

gear up themselves (Bernardin, 2008). If the employee gears himself or herself then the

company can be benefitted.. In spite of all the problems and confrontation performance

management is to be there in every organisation. According to Arthur, (2008),the

performance management gives the worth and position of the employees. The position

where the employees stand is the most important thing an employee needs to know. The

place the employees need to cover to reach to the best position.

1.7 Purpose of the Study:

Daley, (2007)stated the reasons why the researcher has chosen performance management

is with the reference of performance the systematic planning can be done. Bohlander and

Snell, (2009) stated the worth of the employees can be seen after the management. Every

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employee gets clear understanding of the roles and personal jobs. Thus, performance

management is very essential for every organisation to deal with the lacking points and

increasing more and more of the better points (Cardy and Dobbins 2008).

1.8 Structure of the Study:

The researcher has tried to segregate the research study into specific chapters so that each

chapter can add an element in the research topic and quality (Darke, 2008). Based on these

six chapters, the structure of the research dissertation is emphasised.

Chapter 1: Introduction This initial chapter lists the research aim and objectives that are

further crosschecked in the dissertation study. S an introductory chapter, this chapter gives

a brief outlook about performance management systems and its impact over employee

satisfaction and organisational performance.

Chapter 2: Literature Review As a chapter of theories and literature, this chapter involves a

critical discussion of all the related concepts so that researcher and readers can have much

knowledge about the topic. In this chapter, concepts related to performance management

and employee satisfaction is included.

Chapter 3: Research Methodology Research methodology will enlist the selected list of

research tools and techniques that were involved in research of the concerned topic.

Chapter 4: Research Results Respondents’ involvement and their feedback is recorded in

this chapter that can help the researcher in better understanding of the research topic.

Chapter 5: Analysis and Discussion According to the collected data and information, the

researcher interprets the data that helps in extraction of the result and helps in reviewing

the research topic.

Chapter 6: Conclusion and Recommendations The final and concluding chapter throws light

on the overall topic and finally gives an overall conclusion to the study of performance

management system and its application in organisation, Subway.

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1.9 Summary:

This chapter tried to display the role of performance appraisal techniques when implied in

an organisation. If the performance and the management of the performance goes on the

right track then the organizational performance increases. Listing of research objectives and

questions, as per research aim has helped the researcher in understanding of the focus

areas and will help in detailing these mentioned areas as well. In the following chapter,

literature review, the related theories and concepts will further throw more light of the

chosen topic.

Chapter 2

Literature Review

2.0 Introduction:

Literature review as a section of research dissertation deals in explanation of the theories

and models that can be helpful in giving detail description of the study. Davis, (2007)

mentioned that role of literature review is also capable of highlighting the researcher’s

capability of critically accessing the theories and models. In the present research work, the

theories related to performance management, employee satisfaction and organisational

performance would be critically discussed so that much value and quality on the research

and findings can be collected.

The particular chapter is all about focusing upon the establishment of the good then the

better and the best working force of an organisation. Performances are recorded, and then

calculated then appraisals are given. After the appraisals are given then the most important

step comes, that is, the upgrading of the working force by giving feedback in the lacking

points, showing the ways and means with the help of which the employees gets to know

their mistakes and they get planned for not repeating the mistakes all again.

2.1 Conceptual Framework:

Conceptual framework in a literature review chapter helps in achieving the research

objectives based on the key tools and theories. In the concerned research study, impact on

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Performance Appraisal Systems

Organisational Performance

Employee Motivation

employees’ performance will be studied via application of various performance

management techniques.

Figure 2: Conceptual Framework

(Source: As created by the Author)

In the above diagram, illustration for performance management system and process is

deeply researched. Through study of various theories, models and concepts, the research

topic will be minutely criticised and evaluated to gain much penetrated thoughts and

concepts. Relationship that is formed between employees’ performance and performance

management techniques are helpful for better quality research on the topic.

2.2 Performance Management Systems:

Performance Management System (PMS) are complicated and comprises of various

processes (Eichel, and Bender, 2007). This system has become widely popular due to a

variety of social n economic pressure. In 2002, William identified globalisation, increase in

competition and increase in individualistic view instead of group of employee relationship.

These are some of the major parts contributing highly increasingly visibility of performance

management system. It is like facing fast moving and competitive environments. The

companies constantly are searching for some new unique ways from which they can

differentiate themselves searching for unique ways in which to differentiate them from the

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competition. They are looking towards their “human resources” which will provide this

differentiation (Ferris, 2008).

According to Ganong, (2008) the critical roles are played by the Line managers in managing

the performance of their teams, and therefore are very crucial to the implementation of a

successful PMS. This paper considers the vital role of line managers in achieving the motives

of the PMS at Tool Co has been considered in this paper. This is achieved, firstly, by

considering the theoretical aspects. This also includes the PMS model, which has to be

investigating. PMS processes were originally implemented by the line managers at Tool Co.,

will then discuss and will make corrections as to how Tool Co. could more successfully

implement its PMS (Camardella 2007).

2.2.1 Elements of Performance Management:

Performance management system as a process if comprised of various elements that in an

integrated manner are held responsible for success of the appraisal techniques.

Talent Management: Chan, and Lynn, (2008) stated talent Management is just like

investment. Every company wants to have the best and have the brightest employees, and

with Talent Management this goal can be easily achieved. The most costly item is its work

force in the company. As a company's workforce is the highest cost to it, it does make sense

to invest in it. With Talent Management it develops a more skilled workforce and attracting

a higher calibre of new employee (Daley, 2006). Recruiting the people who are correct, and

keeping a talented workforce is a first priority in today's business environment. Having a

talented group of employees has always been a key to success. It will translate into higher

productivity and saves a lot of money. Talent Management is the investment that will play a

major role over the course of its use (Glaser, 2008).

Compensation: Compensation is another way of saying wages earned. Dewberry, (2010)

commented that companies pay to their employees for providing a service to the business.

Compensation means to provide money or benefits in place of something, which has been

damaged or lost. It is a way of compensating to someone (Jordan, 2007).

Employee Experience Survey: An organisation adopts Employee Experience Survey (EES) so

that addressable of employees can take place. The perception as framed within the

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employee is visualised via EES. Goel, (2008) defined that these techniques are adopted via

both hard copy and online version where employees address their viewpoint regarding

organisation, leaders or the work experiment.

2.2.2 Performance Management Techniques:

It is important to use a variety of performance management techniques to regularly review

and measure the performance of your team. Some key methods it includes are performance

review meetings and performance objectives. Performance appraisal or review meetings are

an important element of the performance management cycle (Ferris, 2008). This allows

considering individual team members whose performance is based on a regular routine as

well as letting each person know how it is being performed and where and how it can

improve. Performance objectives should provide each team member with sufficient

challenges to make the best of their skills and abilities for contributing to the goals of

department and the wider organisation (Grote, 2008) Setting performance objectives should

be a vice-versa process of discussion and agreement with each team member. Ensure that

review objectives regularly so that they remain in line with wider team and as per the

department goals (Gruenfeld, 2009).

2.2.2.1 Past-Oriented Methods:

Few of the traditional methods are included that aims to implement performance

management system in an organisation. However, within these techniques, various Human

Resource experts to better fit the changing working scenario do many modifications and

alterations.

Rating Scales: The rating scale is the simplest and the most common form of technique for

the employees’ performance. According to Handerson, (2008), the rating system consists of

different rating scales. Every rating scale represents every assessment criteria of the job. The

scale ranges from excellent to poor. As the point will be high, the higher may be the salary.

The criteria are reliability plan production, present approach, co-operation and many more

(Tam, 2008).

Benchmarking Process: In the late 1970's however, it took a wider meaning (Hickman,

2007). It was applied to an organization, which said benchmarking is a process to determine

whom else does a particular activity the best and considering what it does to improve

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performance. It has a particular significance in technology, where the rapid change of the

business season can leave a company out. The observations are marked for keeping the

track of the actions of the employees of an organisation. Later on, it is sum up to the

calculations and at the end, the result is declared for the orientation (McCarthy, 2009).

Critical Incidents Methods: Collections of different observations of human behaviour are

done with critical incidents method. Observations are done to keep a track of the incidents

that helps in solving problems of practical life of the job. this information’s can be gathered

from many different ways but generally the employees are asked about the experience of

their work in the Organisation. An incident that is very critical in respect to the

performances can be stated to make a contribution that can be either positive or negative.

There are five major areas of the CIT method.as stated by Pearsoan, (2006) the first area is

the understanding of the incident and then reviewing it. Then the next process is fact-

finding, which involves collecting the details of the incident from the participants. When all

of the facts are collected, the next step is to identify the issues. Afterwards a decision can be

made on how to resolve the issues based on various possible solutions. Roberts, (2006)

stated that the final and most important aspect is the evaluation, which will determine if the

solution that was selected will solve the root cause of the situation and will cause no

supplementary struggle.

Behavioural Anchored Rating Scales (BARS): Expansion of BARS assessment have need of an

in detail thoughtful of apiece position’s key tasks, all along by means of an understanding of

the full assortment of behaviours put on show by individuals in carrying away such everyday

jobs (Rangone, 2008). Organisation rates this behaviour for every employee of the

organisation. Each of the behaviour is rated on the rating scale of the past oriented method.

The BARS fasten each one performance for pointing out up on a rating scale, which will be a

sign of whether the performance is outstanding, first-rate, entirely knowledgeable, or else

not up to scratch (Bianchi, 2014). The result is found up on a rating scale for each one’s job.

McConnell, (2007) states behaviour is rated for every employee. The rated behaviour sets

the position of an employee of an organisation.

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2.2.2.2 Future Oriented Methods:

Unlike traditional methods, future-oriented methods are framed with various strategic

needs so that a specific area of assessment can be targeted and more precise appraisal can

be conducted.

Management By Objectives (MBO): MBO is also stated as MBR that is Management by

results. The process of defining objectives of an organisation that the employees need to

follow to take an organisation to its peak is done by MBO. Aiming for the improvement of

the job of MBO is to set up the job choosing the course of action and the decision-making.

When employees themselves have been involved with the goal setting and choosing the

course of action to be followed by them, they are more likely to fulfil their responsibilities

(Cranfield University, 2014). According to Kerzner, (2008) the system of management by

objectives can be described as a process whereby the superior and subordinate jointly

identify its common goals, define each individual's major areas of responsibility in terms of

the results expected of him, and use these measures as guides for operating the unit and

assessing the contribution of each of its members.

Psychological Appraisal: The Psychological appraisals of the employees are done upon this

method. This evaluates the behaviour, personality, capabilities to draw using the

combination of the provided techniques. This evaluation is now a day done in many

different areas. During legal situations, educational situations the appraisals are done.

Detailed reports are submitted that include hiring and development recommendations,

advice on long-term implications, detection of potential problem areas and provision of

specific behavioural questions for subsequent interviews. It is about appraising of an

employee not in monetary terms but in motivational terms (Gray and Carroll, 2006). The

employees get encouraged with the psychological appraisals

Assessment Centres: personal attributes and skills of the candidates are weighed up at a

centre, which is called as assessment centre or selection centres. The large organisations

use the assessment sectors for the evaluation of the candidates. Assessment centres are the

most reliable methods of assessing the candidates any other method that is used for the

assessment can be 15% accurate or even lower than that. A large centre may book a training

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centre or a hotel for the assessment with all the trained psychologists. The assessment

process can go as long as 2 days. An organisation operates an assessment centre where

employees are analysed on a list of skills both hard and soft. Based on the assessment, the

employee is evaluated as per the performance level.

360-Degree Feedback: 360 Degree Feedback is an arrangement or method. In the particular

method the employees of an organisation takes the delivery of, not to be disclosed,

unidentified response on or after the individuals who work around them. 360 Degree

Feedback characteristically takes account of the employee's manager, upper class and direct

information. A mixture of about eight to twelve people fill out an anonymous online

feedback form that asks questions covering a broad range of workplace competencies. The

feedback forms include questions that are measured on a rating scale and ask them to

provide written comments (Gray and Carroll, 2006). The person receiving feedback also fills

out a self-rating investigation with the intention of including the same survey questions that

others take delivery of in their outward appearance.

2.3 Employee Satisfaction:

Satisfactions of the employees are very essential for an organisation. The lower the rates of

the turnover the higher the contentedness employee rate, both are directly related to each

other. There should not be high stress lack of communication and too much of

professionalism in an organisation. As of Gray and Carroll, (2006) all the feature leads to lack

of recognition, less growth opportunities of the organisation. All this leads to the downfall of

the organisation. Management should actively seek to improve these factors if they hope to

lower their turnover rate. Even in an economic downturn, turnover is an expense best

avoided Employee satisfaction or job satisfaction is, quite simply, how content or satisfied

employees are with their jobs. Employee satisfaction is measured by doing a survey with the

employees of an organisation. According to Ferris, (2008) another process use to determine

member of staff contentment is gathering in the midst of small groups of workforce and

enquiring the equivalent questions in words. Depending on the culture of the company,

either method can contribute knowledge about employee satisfaction to managers and

employees. Exit interviews are another way to assess employee satisfaction in that satisfied

employees rarely leave companies.

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In the survey, many questions are asked from the employees to check and understand the

satisfaction level of the employees. the survey address to many of the topics like

reimbursement, work pressure, insight for the administration rank, elasticity, team effort,

recourses and many more similar matter of concern. Things are the important matter of

concern for those organisations who wants to keep the employees satisfied and keep the

turnover lower. The satisfactions of the employees are just the part of the total problems

within an organisation. The satisfactions of the employees are not the dealings of complete

care and rest for the employees. it just deals with the basic needs of the employees.

Employee satisfaction is a word that describes that the employees are satisfied with the

basic needs of their desire that are to be fulfilled by the organisation. According to Ferris,

(2008)many measures assert with the intention of, that the member of staff contentment is

a factor in employee inspiration, employee ambition accomplishment, and

constructive member of staff self-esteem in the administrative centre.

Factors contributing to employee satisfaction include treating employees with rrespect,

providing regular employee recognition, empowering employees, offering above industry-

average benefits and compensation, providing employee perquisites and company activities,

and positive management within a success framework of goals, measurements, and

expectations (Fink, 2009). Unspecified member of staff satisfaction surveys administered

periodically that gauge employee satisfaction often measures employee satisfaction.

Member of staff satisfaction is looked by the side of many areas of the organisation. The

areas are like management, understanding of mission and vision, empowerment, teamwork,

communication and Co-worker communication.

2.3 Motivation Theories:

2.6.1 Maslow’s Hierarchy of Needs: there are five theories of needs of Maslow. The Maslow

pyramid gives the notion that the workforce need to think about the basic things first and

then should go higher (Cranfield University, 2014) The higher the employees go, the more

self actualized is the employee. The five needs are physiological needs, security needs, social

needs, esteem needs and self-actualizing needs

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Figure 3: Maslow’s Hierarchical Needs

(Source: Roberts, 2006, pp. 543)

Physiological Needs: The physiological need of an employee is the basic

requirements of a common human. Water, food and air to breath, these are the

basic requirements of an employee.

Security Needs: The second need of an employee is the need of safety and

assurance. The assurance from the employers that the employee is safe in the

company and the job in which he is there that is also safe.

Social Needs: An employee should be able to other employees and get social to

others. This reduces the work pressure in the work atmosphere. The employee

should be free to make friends, get into love. All these are the components of the

social needs.

Esteem Needs: When the first three needs of an employee are satisfied esteem

needs becomes more and more important for an employee. In this things that

shows self-respect, self value. After gaining the three human feels to be

respected. Thus, this need comes into the matter.

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Physiological Needs

Security Needs

Social Needs

Esteem Needs

Actualizing Needs

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Actualizing Needs: At this level an employee, understand the potential in himself

or herself. This level describes the desire within an employee that he wants to

get and even gets the desired things by the self will power.

2.6.2 Herzberg’s Motivation/Hygiene Theory: Herzberg’s motivation/hygiene theory is also

known as the two-factor theory. According to Herzberg the employees are not satisfied with

the basic needs of Maslow (Tam, 2008). The employees look ahead for the fulfilment of the

higher-level needs that are concerned with the achievements and with their level of the

work. The two factors are motivators and hygiene factors.

Motivators: motivators are the employees of the same organisation. The co-workers

motivates the employees and they all work as a team force. As stated by Lunenburg and

Ornstein, (2011) the examples are challenging work, recognition, responsibility that gives

positive fulfilment, taking place from the built-in conditions of the job profile.

Hygiene Factors: The examples are position, work security, salary, extra perquisite, work

conditions that do not give positive satisfaction, though dissatisfaction results from their

absence. These are extrinsic to the work itself, and include aspects such as company

policies, supervisory practices, or wages/salary.

2.6.3 Expectancy Theory:

According to Vroom, the relationship connecting people's performance at job and their

objective was not as simple as was first story bound by other scientists. Vroom stated that

an employee's performance is based on individuals’ factors such as personality, skills,

knowledge, experience and abilities.

Valence: It is the emotional behaviour of the employees when the employees get

rewards or benefits. These are the extra requirements of an employee. For this, the

management must take out the values of the employees for the extra requirements.

Expectancy: Every employee has an expectation with the work and a confidence up

o the work that the employee is doing. For polishing the employees, management

must see the needs of an employee in terms of betterment of them in their work as

of the better and effective training.

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Instrumentality: The perception of employees as to whether they will actually get

what they desire even if a manager has promised it. As stated by Lunenburg and

Ornstein, (2011) management must gain the confidence of the employees that the

fore said benefits are provided by the organisation.

2.7 Job Description and Job Profile:

Job profile and job description are two components that explains the work culture to the

employees and further helps in evaluating themselves as per their assigned roles and job

profiles. Performance management system crosschecks fulfilment of the assigned tasks and

responsibilities and results in a much successful appraisal process.

2.7.1 Job Description:

The description of the job is that it defines the role of the employee. The things that are to

done and covered is the description of the job. The correct description of the jobs gives the

basic idea of the task that the employee needs to do. The recruitment of new candidates is

done based on the description that the job deals in the particular areas. The new employees

work is to handle the given works fluently, patiently and efficiently. As of Lunenburg and

Ornstein, (2011) Job description is the tool of the recruitment process. The description helps

in advertising the job role of the desired candidates. Job descriptions should be very clear

and accurate so that the staffs can easily understand the task. While writing the job

description the job title should be present. The rate of pay for the vacancy should be

mentioned in the description of the job. The main location of the job should be clearly

mentioned in the description of the job. A job description should be very clear, precise,

crisp, and accurate so that every concerned person can be clear with the concept that is

provided in the job description (Kansal, 2006).

2.7.2 Job Profile:

Job profiling is done by both the employees and by the employers too. The job profile is

different from the viewpoint of the employers and the employees. According to the

employers, the job profile is the general idea of the information of the job applier for the

vacant position in an organisation (Somerick, 2009). The employer frames the basic apt of

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the applicant with the job profile. For the employee the job profile is the general picture

description of the past jobs and the positions in the previous organisation. The profile

should content the details of the older job experiences, salary, job description and the

reason of leaving older jobs. A job profile should be created by a candidate in a manner that

the employee gives all the relevant professional details of himself or herself and the

employer understand every detail clearly and quickly (Jackson, 2010).

2.8 Organisational Performance:

The employees working together in a team with team spirit in them are the ones who

comprise the performance of the organisation are the Organisational performers (Kroon,

2008). The organisational performer performs work together in a team. If the employees of

the organisation works efficiently and effectively all together then the company will be in its

peak time in not less than one year. As stated by Lloyd, (2009) the performance of all the

employees of an organisation together is the work that gives the term organisational

performance. When an organisation applied to one’s business, it really wants everyone

working together in supporting you to build a great business. Further, it needs everyone

pulling in the one direction and employees loves it when they enjoy their work, are focused

and innovative. This is a high performance business (Norton, 2014). The process, which

captures both quantitative and qualitative data, will allow the employees to identify and

priorities opportunities for improvement and create a supporting action plan, built on best

practice (McCrie, 2006).

2.9 Relationship between Performance Management and Employee Performance:

Demands and expectations of employees compared to the job they perform, the

possibilities of progress, the ways of controlling their work, as well as compensation,

become more and more determined and higher. Mani, (2007) stated the expectations of

highly educated workforce and their satisfaction with the workplace and the assignments

they full fill is a very important factor of the success of the organisation. At the same time, it

is expected that the success of the organization change along with the employee

satisfaction. In order to achieve the higher dedication of employees, multidisciplinary

knowledge is required, that has to be encircled by the team of process management

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(Longenecker, 2008). The outcomes of employee performance management are, among

others, keeping the best employees, and identification of the worse workers. It is also

emphasized that one of the significant outcomes and impacts of employee performance

management is the level of employee satisfaction in organizations. Employees’

performances inks between performance measurement and overall results of companies,

including the ones connected with employee satisfaction. Kane, (2008) stated the process

management manages the performance of the employees. The application of performance

management creates an impact over a level of employee performance. The level of

employee’s performance depends how the process management does the management of

the employees and then how the employees work in the present days by rectifying the old

mistakes and trying to be more and more up to the mark of the best level of the workforce

of the company (Krug, 2006).

2.10 Conclusion:

The researcher has observed that the chapter literature review enables the researcher to

get the knowledge and the impacts of performance management within an organisation. An

appraisal is considered as the most important function in the performance management.

Processing the performance of the employees in a report gives the performance and

improvement chart of the employees. The better the employees work and the better the

employees are satisfied both are directly related to each other. The more the employees

work the more benefits the employees will get from the organisation. The appraisals

depend upon the performance of the working staffs.

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Chapter 3

Research Methodology

3.1 Introduction

For knowing the complete detail result of the process research methodology is adapted.

Research methodology is appropriate in getting the full detail results. Veal (2006) discussed

that the theories and the concepts that are followed in research methodology gives the best

analysis of the research topic. For understanding the process that is adapted in the

consumer research, the information that is gathered from research methodology. In one

way going into detail of the process of the research topic, is a barrier, as there occurs

common errors. The researcher has tried to apply all the research methodologies in detail

so as to get the better analysis of Subway’s impact of performance management systems,

influence in the decision making process of all the consumers.

3.2 Method Outline

Analysing of performance management techniques on the basis on employees’ satisfaction

and organisational performance is researcher in this chapter, with context to Subway. The

selected positive philosophy will help in gathering information correct based on logics and

evaluation. Deductive approach will be allowing the researcher to conduct the study based

initially on secondary sources that can help in studying the impact of performance

management techniques over employee satisfaction and organisational performance.

Descriptive design will help the researcher in defining the used and applied concepts in the

detail manner further helping in defining the impact of study as well. Application of primary

and secondary sources will help in much details of the research topic and will bring better

quality of analysis.

3.3 Research Onion

For arranging the major parts of the research with an ability of successful analization,

research onion is a tool of methodology that does the proper task. Levine (2005) for the

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students research onion is very helpful as it leads the students follow a proper format and

the step by step stages of the process and thus getting proper result of the process.

Research onion is categorised in six divisions namely philosophies, approaches, strategies,

choices, time horizons, techniques and procedures.

Figure 4: Research Onion

(Source: Saunders et al. 2009)

As depicted from the above diagram, the research onion helps in studying each layer

enabling best research and lots of information from the analysis. Researcher needs to follow

every layer of the research onion so that the proper format and steps are followed for the

research process.

3.4 Research Philosophy

Research philosophy, a part of research methodology gives the determination of the correct

way of getting the details of the research topic. Ellis and Levy (2009) discussed that research

philosophy helps in explaining the assumption process undertaken by a researcher while

conducting a research topic. As the process of thinking of evaluation may vary so, the

selection of the research philosophy needs to be in a proper and systematic manner. The

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broad and common parts of philosophy are positivism, interpretivism and realism Cameron

(2009).

Positivism as a subject of philosophy helps in application of logic that can help in analysing

the hidden facts and information in a scientific manner. Although dominated by scientific

method, positivism tries to rejects metaphysics so that detail observation and knowledge

collection is enabled. Interpretivism as a mode of epistemology supports the concept of

complex structure involved in a social world of business and management activities. Finn et

al. (2000) described that interpretative study aims at defining the things with concepts of

natural law that to certain extent discards the scientific approach as well. Apart from

interactions, a researcher under interpretative study actively takes part in interpreting the

data or the result of the study to suit the need of the study. Lastly, realism is a mixed

approach of positivism and interpretative and thus involves characteristics of both the

philosophies. Realism describes application of human beliefs and helps in studying the

interactions of humans along with the realities.

3.4.1 Justification for selection of the chosen Philosophy:

Positivism since functioned in the current scenario gives a judgemental analysis of the

unseen evidence and information associated with consumers’ buying-process and impact of

performance management systems over it. Beside this, the type of study is limited to the

time boundaries therefore realism study was leftover as for the choice of research

philosophy. Even the selection of positivism philosophy binds the researcher’s role in

changing or extracting the information that leads to minimisation of data errors too.

3.5 Research Approach:

For studying the topic, an approach is required. The approach needs a format to the

revealed study. The research topics can be studied in two ways. The two ways are deductive

and inductive approach. Saunders et al. (2009) stated that inductive approach is a study that

helps in studying a research topic when enough data on the chosen one is not available. The

basic step of inductive approach is to observe. Observation helps to get relevant information

and builds the path of the research accordingly. However, Cameron (2009) noted that

inductive approach helps in serving and making new theory making process of any research

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study. Conversely, deductive approach is used as a process that describes the practical

application of the theories studied to gain access to content of the research paper.

Deductive approach aims to build a theory with more specifications and concepts of data

analysis. However, depending upon the nature of the study and research topic, the selection

for research approach is made that can help in better analysis of the topic.

3.5.1 Justification for selection of the chosen Approach:

In the researcher’s study, the topic will try to study the concepts related to performance

management techniques or process with the help of various theoretical knowledge.

Concepts and techniques of performance management required a selection of approach

that can help in understanding at a much precise and clear manner. However, inductive

approach fails to be implemented in the present topic as no new concepts or theories is

emphasised by the researcher. Further, impact of performance management systems in

employees’ decision-making process helps in understanding the concepts in a detailed

manner.

3.6 Research Design:

Gomm et al. (2000) illustrated that research design helps in explaining the framework of the

research topic that will help in selection of the collection and analysis pattern. During the

process of data collection, a particular kind of approach is applied that helps in better

description of the research design. Kinds of research design used in academic research

pattern are exploratory, explanatory and descriptive.

3.6.1 Justification for selection of the chosen Design:

Application of explanatory was avoided as it supports the concept of longitudinal study that

was not possible with the particular topic. Apart from that, descriptive design was able to

define the detail process involved in the application of performance management systems.

The extent of influence imparted by impact of performance management systems over the

employees’ decision-making process is aptly scrutinised with the help of descriptive design

as being the selected research design.

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3.7 Data Collection Procedure:

Data are considered as useful collection of information and facts helpful in studying any

research topic with better details. Cameron (2009) mentioned that data collections are

helpful in deriving accurate results to a research process and enables standard format of

research work.

3.7.1 Data Sources: Primary and Secondary

Data sources helps in getting the extraction of research topic. A data resource helps in

gathering the information according to the research topic. There are the two types of data

sources that provide materials that help in achieving details of a particular research topic.

The two types of data resource are primary and secondary. Ellis and Levy (2009) illustrated

that primary data are the data that are raw and are found for creating the base of the

research that is the data are used in the beginning of the research study. The firstly

collected data collection needs explanation of dependability and authority. While with the

case of secondary sources, the data that are collected are used in broadening the study of

the research topic, which also may facilitate better study of the topic. The study is more

based on the data description.

In this present study, Subway sources includes the interface sessions with the customers

and managers of Subway who helped in gaining information as per the research objectives.

Apart from that, literature sources of the dissertation can be considered as output of

information gained via secondary sources. Tools of secondary sources include both the

online and offline sources like journals, articles, books, websites, blogs and others.

3.7.2 Data Techniques: Qualitative and Quantitative

The oral form of data is easily recorded in the Qualitative data form. Levine (2005)

mentioned that qualitative data helps in adding up of the theoretical knowledge for the

practical job area. Unlike quantitative procedure, qualitative data is a better mode of

understanding of the topic. In this research, both the quantitative along with qualitative

method are functional. Employees will be into consideration for the quantitative method of

the research procedure while the managers will be into consideration for the qualitative

method of the research procedure.

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3.8 Population and Sample:

The total number of persons that are directly or may be indirectly involved in the research is

stated as population (Veal, 2006). In the research work, customers and employees of

Subway are considered as the population of the study that are widespread within and across

the nation, UK. However, the researcher cannot consider every customer so smaller

representation of the population is considered termed as sample.

3.8.1 Sampling Technique:

Sample taken for researching impact of performance management systems for the

employees’ decision-making process are smaller in number that can suit the criteria of the

research topic. The sample for employees was simple random probability sampling where

no criteria for selection were considered. On the other hand, managers of Subway were

considered for non-probability sampling technique.

3.8.2 Sample Size:

Qualitative and quantitative techniques are two divided forms for the sample size. For

studying the quantitative research techniques, 55 employees of Subway were considered

and were interacted with the help of online questionnaire forms. Conversely, managers of

Subway stores were considered for qualitative technique that will be 5 in number and will

be considered for interview sessions. Therefore, the sample size of the research study is 60,

taking both the qualitative and quantitative forms.

3.9 Ethical Considerations:

During the process of research methodology, a researcher needs to follow a code of conduct

that helps in identifying the wrong and right set of behaviours required to be adopted

during the process Cameron (2009). The researcher for analysing the impact of performance

management systems on the employees’ decision-making process tried to follow the basic

ethical considerations that can help in adding standardisation to the research topic.

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3.10 Research Limitations:

Ellis and Levy (2009) commented that limitations within a research topic are natural that

also defines the area with restricted scope and abilities. In the particular research work,

areas encountered with research limitations are enlisted as following:

Reliability: respondents are not pressurized or they are not into any kind of

influence in case of their answers. On the other hand, employees and managers of

Subway can be biased towards the organisation that may affect the findings of the

research topic. Thus, issues related to reliability are present in the study.

Time-restriction: as the study was cross-sectional, the researcher had time

restriction that led to study of the work within a short time. Further details of the

study was not analysed due to cross-sectional study that also erupted as a cause of

research limitations for studying the organisation, Subway.

Budget-limitation: With a limited budget, the researcher faced few limitations in the

study of the research topic the budget should be appropriate; else, it becomes a

great issue for the research conduction.

3.11 Summary:

The chapter states the different research apparatus of selection that can help in better

analysis of the topic. With the help of the chapter, the researcher tried to align the nature of

the study along with the available research techniques so that possibly the best research

methodology is framed out. The tools more appropriate to analyse the concepts of

performance management systems in employees’ decision-making process is emphasised

with reference to Subway.

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Chapter 4

Research Results

4.0 Introduction:

Research result in the concerned chapter will deal in the survey result that involves

respondents for the concerned topic, which is employees and managers of Subway

restaurant, UK. Based on the data analysis, the researcher will gather information related to

the performance management system and its impact on the employees’ satisfaction and

organisational performance. Ellis and Levy (2009) described that data analysis need to have

much information relate to the research objectives so that more focussed and better quality

of research is obtained.

4.1 Quantitative Analysis: Employees of Subway

In this section of analysis, employees of Subway are involved. The researcher via

quantitative analysis has tried to gather the feedback or response of the employees who are

55 in sample size.

Question 1: How long have you been employee of this organisation, Subway?

Table 1: Employees’ sustainability at Subway

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

LESS THAN A YEAR 15 55 27

LESS THAN 2 YEARS 14 55 26

LESS THAN 5 YEARS 12 55 22

LESS THAN 10 YEARS 9 55 16

MORE THAN 10 YEARS 5 55 9

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LESS THAN A YEAR LESS THAN 2 YEARS LESS THAN 5 YEARS LESS THAN 10 YEARS

MORE THAN 10 YEARS

0

2

4

6

8

10

12

14

16

LESS THAN A YEAR; 15 LESS THAN 2 YEARS;

14 LESS THAN 5 YEARS; 12 LESS THAN 10

YEARS; 9MORE THAN 10

YEARS; 5

How long have you been employee of this organisation, Subway?

Figure 5: Employees’ sustainability at Subway

Findings:

As observed in the above chart, less than a year and less than 2 year is opted by 15% and

14% of the respondents respectively. Apart from that, less than 5 years and less than 10

years are chosen by 12% and 9% of the respondents. Apart from that, more than more than

10 year is selection of 5% of the respondents.

Question 2: How far are you satisfied with the work atmosphere of Subway as an

organisation?

Table 2: Satisfaction level with the work atmosphere of Subway as an organisation

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

STRONGLY SATISFIED 18 55 33

SATISFIED 10 55 18

NEUTRAL 9 55 16

DISSATISFIED 7 55 13

STRONGLY DISSATISFIED 11 55 20

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STRONGLY SATISFIED SATISFIED NEUTRAL DISSATISFIED STRONGLY DISSATISFIED0

2

4

6

8

10

12

14

16

18

20

STRONGLY SAT-ISFIED; 18

SATISFIED; 10 NEUTRAL; 9DISSATISFIED; 7

STRONGLY DISSAT-ISFIED; 11

Satisfaction level with the work atmosphere of Subway as an organisation

Figure 6: Satisfaction level with the work atmosphere of Subway as an organisation

Findings:

As observed in the above chart, 33% of the employees are very satisfied with the work

atmosphere and 18% of the employees are just satisfied. 16% of the employees are neutral;

they are neither against nor for the satisfaction topic. 13% of the employees are dissatisfied

and 20% of the employees are strongly dissatisfied.

Question 3: How would you rate the work culture at Subway?

Table 3: Rating for the work culture at Subway

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

EXCELLENT 16 55 29

GOOD 14 55 26

AVERAGE 9 55 16

SATISFACTORY 11 55 20

NON-SATISFACTORY 5 55 9

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EXCELLENT GOOD AVERAGE SATISFACTORY NON-SATISFACTORY0

2

4

6

8

10

12

14

16

18

EXCELLENT; 16GOOD; 14

AVERAGE; 9SATISFACTORY; 11

NON-SATISFACTORY; 5

Rating for the work culture at Subway

Figure 7: Rating for the work culture at Subway

Findings:

As observed in the above chart, most of the employees rated as excellent and good. 29% of

the employees rated as excellent, 26% as good. 16% of the employees rated to be average.

Even for 20% of the employees it is satisfactory and for 9% it is not satisfactory.

Question 4: How far do you agree that employees are appraised at a genuine level within

Subway?

Table 4: : Employees are appraised at a genuine level within Subway

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

STRONGLY AGREE 20 55 36

AGREE 16 55 29

NEUTRAL 14 55 25

DISSAGREE 3 55 6

STRONGLY DISAGREE 2 55 4

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STRONGLY AGREE AGREE NEUTRAL DISSAGREE STRONGLY DISAGREE

0

5

10

15

20

25

STRONGLY AGREE; 20

AGREE; 16 NEUTRAL; 14

DISSAGREE; 3 STRONGLY DISAGREE; 2

Employees are appraised at a genuine level within Subway

Figure 8: Employees are appraised at a genuine level within Subway

Findings:

As observed in the above chart, among 55 surveyed employees 36% of the employees are

strongly agreeing, 29% of the employees are agreeing and 25% of the employees are neutral

with the appraisal at the genuine level. Apart from his, 6% disagrees and 4% strongly

disagree with the appraisal at the genuine level.

Question 5: How far do you agree that leaders at Subway are capable of encouraging you

in positive manner?

Table 5: Leaders at Subway are capable of encouraging you in positive manner

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

STRONGLY AGREE 14 55 26

AGREE 16 55 29

NEUTRAL 15 55 27

DISSAGREE 6 55 11

STRONGLY DISAGREE 4 55 7

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STRONGLY AGREE AGREE NEUTRAL DISSAGREE STRONGLY DISAGREE

0

2

4

6

8

10

12

14

16

18

STRONGLY AGREE; 14

AGREE; 16 NEUTRAL; 15

DISSAGREE; 6 STRONGLY DISAGREE; 4

Leaders at Subway are capable of encourag-ing you in positive manner

Figure 9: Leaders at Subway are capable of encouraging you in positive manner

Findings:

As observed in the above chart, 14 26% of the employees agree strongly and 29% of the

employees agree that the leaders at subway are capable of encouraging the employees in a

positive manner. 27% were neutral at the point. Moreover, 11% of the employees disagree

and 7% of the employees strongly disagree that the leaders at subway are capable of

encouraging the employees in a positive manner

Question 6: How would you rate the performance appraisal techniques that are adopted

at Subway?

Table 6: Rate the performance appraisal techniques that are adopted at Subway

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

EXCELLENT 5 55 9

GOOD 14 55 25

AVERAGE 18 55 33

SATISFACTORY 16 55 29

NON-SATISFACTORY 2 55 4

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EXCELLENT GOOD AVERAGE SATISFACTORY NON-SATISFACTORY0

2

4

6

8

10

12

14

16

18

20

EXCELLENT; 5

GOOD; 14

AVERAGE; 18SATISFACTORY; 16

NON-SATISFACTORY; 2

Rate the performance appraisal techniques that are adopted at Subway

Figure 10: Rate the performance appraisal techniques that are adopted at Subway

Findings:

As observed in the above chart, 9% of the employees rated excellent and 25% of the

employees says good that the Rate the performance appraisal techniques that are adopted

at Subway. 33% of the employees says it to be average. Moreover, 29% of the employees

rated satisfactory and 4% of the employees says non-satisfactory that the rate the

performance appraisal techniques that are adopted at Subway.

Question 7: As a source of employee satisfaction, which element is more crucial for you as

an employee within Subway?

Table 7: As a source of employee satisfaction, which element is more crucial for you as an

employee within Subway?

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

COMPENSATION &

BENEFITS 9

55 16

TRAINING AND

DEVELOPMENT 13

55 24

INVOLVEMENT AND 16 55 29

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EMPOWERMENT

SCOPE FOR CAREER

PROGRESSION 14

55 25

OTHERS 3 55 6

COMPENSA

TION & BEN

EFITS

TRAINING AND DEV

ELOPMEN

T

INVOLVEM

ENT A

ND EMPOWER

MENT

SCOPE F

OR CAREER PROGRES

SION

OTHER

S048

1216

COMPENSATION & BENEFITS; 9

TRAINING AND DEVELOPMENT; 13

INVOLVEMENT AND EMPOWERMENT; 16

SCOPE FOR CAREER PROGRESSION; 14

OTHERS; 3

As a source of employee satisfaction, which element is more crucial for you as an em-

ployee within Subway?

Figure 11: As a source of employee satisfaction, which element is more crucial for you as

an employee within Subway?

Findings:

As observed in the above chart, around 16% of the respondents chose involvement and

empowerment and scope of career progression was choice of 14% of the respondents only.

Around 13% of the respondents chose training and development whereas, 9% of the

respondents went with compensation and benefits. Apart from that, 3% of the respondents

selected others.

Question 8: What are the positive impacts of performance appraisal techniques at the

work place?

Table 8: Positive impacts of performance appraisal techniques at the work place

Findings:

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OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

BETTER EMPLOYEE

RELATION 14

55 25

BETTER WORK CULTURE 13 55 24

CAREER DEVELOPMENT 11 55 20

BETTER PRODUCTION

LEVEL 15

55 27

OTHERS 2 55 4

BETTER

EMPLO

YEE RELA

TION

BETTER

WORK CULTU

RE

CAREER DEV

ELOPMEN

T

BETTER

PRODUCTION LE

VEL

OTHER

S02468

10121416

BETTER EMPLOYEE RELATION; 14

BETTER WORK CULTURE; 13 CAREER DEVEL-

OPMENT; 11

BETTER PRO-DUCTION LEVEL;

15

OTHERS; 2

positive impacts of performance appraisal techniques at the work place

Figure 12: Positive impacts of performance appraisal techniques at the work place

Findings:

As observed in the above chart, better production level is choice of 15% of the respondents.

On the other hand, better employee relation and better work culture is opted by 14% and

13% of the respondents. Career development is choice of 11% of the respondents and 2% of

the respondents went with others.

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Question 9: What are the areas that needs more focus while adopting performance

management systems?

Table 9: Areas that needs more focus while adopting performance management systems

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

ENGAGING EMPLOYEES 5 55 9

FEEDBACK PROCESS 8 55 14

UNBIASED APPRAISAL

TECHNIQUES 12

55 22

MOST SUITABLE

APPRAISAL TECHNIQUES 15

55 27

ACTIVE PARTICIPATION 13 55 24

OTHERS 2 55 4

ENGAGING EM

PLOYEE

S

FEEDBACK PROCESS

UNBIASED APPRAISA

L TEC

HNIQUES

MOST SU

ITABLE

APPRAISAL T

ECHNIQ

UES

ACTIVE P

ARTICIPATIO

N

OTHER

S048

1216

ENGAGING EM-PLOYEES; 5

FEEDBACK PROCESS; 8

UNBIASED APPRAISAL

TECHNIQUES; 12

MOST SUITABLE APPRAISAL TECH-

NIQUES; 15ACTIVE PARTICI-

PATION; 13

OTHERS; 2

Areas that needs more focus while adopting performance management systems

Figure 13: Areas that needs more focus while adopting performance management systems

Findings:

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As depicted in the chart, a most suitable appraisal technique is the chosen topic by 27% of

the respondents. Unbiased appraisal techniques is the chosen one among 12% of the

respondents. On the contrary, feedback process and engaging employee is chosen by 8%

and 5% of the respondents. However, active participation and others is adopted by 13% and

2% consecutively.

Question 10: How far do you agree that performance management systems at Subway

need modifications and alterations?

Table 10: Performance management systems at Subway need modifications and

alterations

OPTIONS NO. OF

RESPONDENTS

TOTAL

RESPONDENTS

RESPONSE RATE (IN

%)

STRONGLY AGREE 3 55 5

AGREE 5 55 9

NEUTRAL 17 55 31

DISSAGREE 19 55 35

STRONGLY DISAGREE 11 55 20

STRONGLY AGREE AGREE NEUTRAL DISSAGREE STRONGLY DISAGREE

02468

101214161820

STRONGLY AGREE; 3AGREE; 5

NEUTRAL; 17DISSAGREE; 19

STRONGLY DISAGREE; 11

performance management systems at Subway need modifications and alter-

ations

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Figure 14: Performance management systems at Subway need modifications and

alterations

Findings:

As illustrated in the above chart, majority of the respondents are disagreeing with 19%

whereas neutral and strongly agreed is adopted by 11% of the respondents. Apart from

that, agree and strongly agree is the chosen option of 5% and 3% of the respondents

respectively.

4.2 Qualitative Analysis: Managers of Subway

Managers of Subway are considered for the qualitative analysis so that much discussion on

performance management techniques and it impact can be analysed. Interview with

managers helped the researcher in better understanding the practical implications of

performance management techniques at Subway.

Q1. At Subway, what is the role of Performance Management techniques?

Answer to Q1:

Performance management techniques at Subway are helpful in better analysis of the

employees and their working efficiency. The service sector, first and fourth manager stated

needs much quality based service so that customers are retained. However, second and

third manager commented that Subway aims to adopt performance management

techniques so that as per time and requirement, the employees can keep a record of their

development as observed within the organisation. Lastly, fifth manager mentioned that

performance management is also capable of increasing the efficiency level of an employee

where morale or a boost to perform and score better exists.

Q2. What are the factors that help in better implementation of Performance Management

System?

Answer to Q2:

As answered by first and third managers, competent and involved managers are one of the

key components for successful implementation of performance management system as it

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helps in better analysis of the employees. Apart from that, second and fifth managers stated

that acknowledgment of the most appropriate technique depending on the job profile and

group of people is much helpful in appropriate conduction of the performance management

systems. Lastly, fourth manager opined that employee acceptance level is crucial for

successful implementation of the technique as it needs participation of the employees so

that better quality of analysis and observation can be the outcome.

Q3. How performance management is linked with employee satisfaction?

Answer to Q3:

According to third and fifth manager, performance management displays the level of skill or

competencies available in the concerned employee that helps them in recognising their

level as an employee for the organisation, Subway. Apart from that, first and fourth

manager noticed that at Subway, employees are able to access the areas where

modifications and development is required so that they can perform better. Such

recognition is worth a place for satisfaction as they get informed and observed. However,

second manager stated that impact if performance management has a limited impact on

employee satisfaction as it is more useful for the management to recognise the competent

and skilful employee. On the contrary, other employees or colleagues might get jealous with

competent employees within the Subway.

Q4. What are the impacts created by performance management system over

organisational performance?

Answer to Q4:

As a tool of HRM (Human Resource Management), performance management system is

supposed to streamline the business goals along with the employees’ production level. First

and third manager remarked that performance management techniques are considered to

bring positive impacts over organisation by increasing the production level at Subway.

However, second and fifth manager opined that performance management is yet another

way of minimising the cost of organisation as by increased level of employees’ performance

better and more service level is extracted at the same level of cost as recorded earlier.

Organisation as mentioned by fourth manager under the influence of performance

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management techniques gets much motivated and encouraged set of employees that also

brings a competition level within the employees creating positive impact on the work

environment as well.

Q5. What are the challenges faced during implementation process of performance

management system?

Answer to Q5:

Implementation of performance appraisal process is bounded by several limits and barriers

that restrict the application process to certain extent. The change is obvious in very

organisation including Subway, thus the need of performance appraisal is varying as per

time. Second and third manager opined that changing environment and trending work

culture at Subway creates a certain level of restrictions in implementation of performance

management technique. Apart from that, first and fifth manager pointed that selection and

choosing the most appropriate performance technique is yet another crucial factor that

creates barrier for the organisation. Managers need to have detail knowledge of each

performance management technique along with being genuine and fair so that unbiased

result of the technique can be achieved.

4.3 Conclusion:

Performance management system is a tool that helps Subway in better implementation of

the organisational activities. With the help of performance management techniques,

managers aim to enhance the organisational effectiveness and further attempts to improve

the working culture of Subway. A successful execution of business strategy at Subway is

formulated with the help of performance management technique. Apart from that,

employees with the help of this appraisal tool are able to access their skill and competency

and accordingly recognise their worth in the organisation, Subway.

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Chapter 5

Analysis and Discussion

5.0 Introduction:

The researcher with the help of qualitative and quantitative technique has gathered the

relevant information relating to the performance management system and the effect

created over level of employee satisfaction and organisational performance.

5.1 Data Interpretation for Employees of Subway

Interpretation of the data will be helpful in better discussion and research of the concerned

topic and will also help in better understanding of the topic. Statistical data is analysed here

by the researcher for better study of the survey.

Discussion 1. Stability of Employees in Subway:

The presence of the new as well as the old employees is there in the organisation, Subway.

The presence of the new and the old employees shows that the company, Subway is

implementing the performance management efficiently and effectively. This helps the

employees know their worth in the organisation. The employees get the benefits in the

organisation. Both the benefits and the worth of the employees help Subway a lot in

retaining the people. The retention of the employees shows that the organisation is capable

enough in rendering good behaviour towards the employees. There is a link starting from

the stability of the employees. the more satisfied the employees will be the better will be

the performance of the employees. The better the performance of the employees the high

will be the satisfaction of the consumers. The higher will be the satisfaction of the

consumers the more will be the retention of the consumer will be there in the organisation.

The more the retention of the consumer will be there in the organisation the more will be

the turnover of the organisation.

Discussion 2: Satisfaction Level with the Work Atmosphere of Subway as an Organisation

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The organisation is getting a mixed review from the employees from the organisation

regarding the satisfaction level with the work atmosphere. As the company sells fresh food

so the environment of the organisation is. The company Subway needs to look ahead into

the matter of satisfaction of the work atmosphere. Many employees in the organisation are

in favour of the work atmosphere. There are many on the other side too. The employee

complains that the employers do not look into the matter of their good work. The

employees’ works for many years and even after gets no increments. According to the

employees of Subway, the managers of the departments are too rude. The rude employee

creates the bad ambiance of the organisation.

Discussion 3: Rating of the work culture at Subway

Work culture at an organisation is helpful in creating the working behaviour of the

employees. With better adoption of work culture, a professional environment is enabled

that seeks much alignment of organisational objectives. However, with adoption of

appropriate performance management techniques, employees are provided with their best

fit-in job that supports the concept of work culture ideally at Subway. Thus, the organisation

Subway, receives a mixed responses in terms of the work culture. The company should

enhance the work culture of the organisation. All the employees work together as a group

and the spirit of team work is there in the organisation, Subway.

Discussion 4: Employees are appraised at a genuine level within Subway

The rates of employees are higher in terms of agreeing the fact that the employees are

appraised at a genuine level. The rates of employees are appraised at the genuine level

within the organisation Subway. The employees are appraised when needed. The employee

gets motivated with the appraisals. Thus, it shows that the employees are appraised at a

genuine level within Subway. The rates of employees are higher in terms of agreeing the

fact that the employees are appraised at a genuine level. The company recognises the good

work of the employees. The employees get satisfied with the appraisals from the

organisation. The higher level of the satisfaction of the employees will led to The higher will

be the satisfaction of the consumers the more will be the retention of the consumer will be

there in the organisation the retention of the employees within the organisation

Discussion 5; Leaders at Subway are capable of encouraging you in positive manner

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the ratings shows that the leaders at Subway are capable of encouraging you in positive

manner as the ratings are towards the favour of the positive response. The positive

response of the employees towards the behaviour of the employees shows that the

relationship between the lower level and the higher levels of the employees. There is good

means of communication and bonding between the employees and the managers.

Therefore, the leaders of Subway are helpful and are the encouraging power of the

employees. The more the leader encourages the more the employees work within an

organisation. Thus, the motivational power is necessary for the employees to work more

efficiently. The motivation of the managers leads to the continuous good work of the

employees. The employees get appraisals, promotions and increments with good work.

Discussion 6: Rate the performance appraisal techniques that are adopted at Subway

The rates of the performance appraisal techniques that are adopted at Subway are not

good. According to the employees, the appraisal techniques are not genuine. The

techniques are irrational. Subway should be unbiased in terms of unbiased appraisal

techniques. As the most of the employees gives their view toward the most suitable

appraisal techniques, so the company should choose the most suitable techniques for the

appraisal of the employees. Regardless all the matters discussed are important so the

organisation should look into all the matters according to the ratings of the employees. The

rate of the performance appraisal technique should be right and correct within Subway.

Discussion 7: As a source of employee satisfaction the elements that are more crucial for

an employee within Subway

According to the employees of Subway, the employees face many satisfaction criteria in the

organisation. Most of the employees say that there is lack of involvement and

empowerment of the employees. This should be practised in the organisation. Scope for

career progression is lacking in the organisation too. The organisation lacks in proper

training and development of the employees in the specialization. There are many other

problems like compensation and benefits and any other problems are there too within an

organisation.

Discussion 8: Positive affects of performance appraisal techniques at the work place

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Performance appraisal technique is helpful in understanding the existing working conditions

of the employees along with their inherent skill as per their job profile. However, inclusion

of performance management techniques at work place like Subway is helping in bringing

positive work culture where production level that is service quality of employee is observing

growth. The organisation Subway should look into the positive impacts of performance

appraisal techniques at the work place the areas are better employee retention, better work

culture, career development, career development better production and many other small

impacts. Apart from that, employees feel that major areas of career development is

recognised via performance appraisal techniques and further initiates bright career for an

employee. Recognition of potentiality increases good vibes within the employees and thus a

healthy and good employee relation is promoted within Subway.

Discussion 9: Areas that needs more focus while adopting performance management

systems

Subway should be unbiased in terms of unbiased appraisal techniques. As the most of the

employees gives their view toward the most suitable appraisal techniques, so the company

should choose the most suitable techniques for the appraisal of the employees. : The

organisation should think of engaging employees in their decision making process. In the

day-to-day activities, the employees should be involved. The employees are the basic

proforma of an organisation. The authorities might take the employees’ feedback. The

feedbacks from the employees might make the bonding between the higher-level

authorities and the lower level employees strong. The employee works on the set paths of

the authorities. Employees are involved in running shifts at Subway that can cause an impact

on the health of the employees. However, company could focus on Healthcare facilities so

that employees at work place can feel secure and perform better as well. Performance with

much focus on extra benefits also helps in leveraging the employees’ satisfaction level.

Regardless all the matters discussed are important so the organisation should look into all

the matters according to the ratings of the employees.

Discussion 10: Performance management systems at Subway need modifications and

alterations

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Performance management system at Subway is excellent as it is helping the employees is

recognising their core areas of strength. Apart from that, this system also helps in

recognising the areas where much improvement and development is ideal. In such a work

culture, performance management technique is adding a source of inspiration to the

employees. However, with much of the modification such as less time involved and much

specific result oriented research could have been better as per respondents’ feedback. Few

of the respondents agree that the management systems at Subway need modifications and

alterations.

5.3 Summary:

The interpretation of qualitative and qualitative data helped the researcher in recognising

the importance of performance appraisal techniques in an organisational environment. The

researcher tried to analyse feedback on a through basis so that the internal environment of

Subway can be visualised. However, application of theoretical concepts and models were

much helpful in gathering relevant data details and better understanding of the topic as

well.

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Chapter 6

Conclusion and Recommendations

6.1 Conclusion:

Performance management process is an evaluation of seeing the focus of the employees

over the work. Performance management helps in gaining the mission and vision of the

company. Different kinds of systems are there in the performance management. However,

performance management is important but, still neither the manager likes to evaluate nor

the employees like to be evaluated regarding the performance. No managers like to give

continuously feedback. Giving feedback seems too boring to the managers and listening for

so long the managers seems boring to the employees. After performance management,

easy perception towards the organisational goal can be seen. Performance management

encourage bonding between the managers and the employees.

Subway as an organisation is an emerging one; it is growing both the customer base and

employee base on a rapid manner. However, implementation of various strategic

techniques such as performance management system is getting crucial for the organisation

so that with market growth better service delivery can be in balance. Leaders and managers

of Subway are trying to gather the feedback of the employees so that as and when required

most suitable techniques for appraisal can be utilised and implemented. The internal

scenarios of the organisation further seek much involvement of the leaders or managers in

the technique so that better quality pf assessment for employees can be conducted.

6.2 Linking with the objectives:

The researcher will try to link the objective with the findings and analysis so that success

rate of the dissertation study can be determined.

Linking Objective 1: To understand the need of performance management systems in an

organisation

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Performance management system at Subway is ideal way of ensuring that organisational

objectives are attained efficiently. Performance management provides much focus on the

key activities that can help an organisation in increasing the production level along with the

increase of job quality of the employees. As observed in Part A, Table 4, around 65% of the

respondents are in favour for genuine level of performance management technique

implementation. Subway utilises performance management technique in providing

satisfaction to the employees as they are better able to have a cross-check on their

performed list of activities. Apart from that, as noted in Part A, Table 5, major section of

respondents, 55% are agreeing with the fact that performance management technique

helps in providing positive encouragement to the employees of Subway. Thus, one of the

crucial need of performance management system is to bring positive growth and motivation

within the employees.

Linking Objective 2: To critically analyse the factors behind employee satisfaction and

organisational performance

Employee satisfaction along with organisational performance is result of successful

performance management appraisal. As seen in Part A, Table 1, Subway is successfully

retaining both the new and old employees that illustrates a successful implementation of

the performance management systems. Apart from that, work culture as analysed in Part A,

Table 3, are creating positive frame of performance appraisal techniques and helping

Subway as being a better organisation in maintaining healthy employee relation. An overall

emphasis on employee satisfaction and organisational performance as Subway is also

drawing focus on the factors that are bringing success to the performance management

techniques.

Linking Objective 3: To examine the impact of performance management techniques over

employee satisfaction and organisational performance

Employee satisfaction and organisational performance are crucial component of

performance management system. As seen in Part A, Table 7, factors such as compensation

& benefits, training & development, involvement & empowerment and career progression

are few of the elements that are positive impacts of performance management system

creating positive impacts on the work environment of Subway. Further, positive impacts in

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Part A, Table 8, can be cross-checked for performance appraisal techniques such as

employee relation, work culture, career development and production level as well.

Linking Objective 4: To address the challenges faced in implementation of the

performance management techniques

Adoption of performance management systems and its implementation is recognised by

every organisation but is involved with various challenges as well. Depending on the nature

of organisation and working environment, challenges and barriers frame various shapes. As

described in Part A, Table 9, few of the areas as stated by employees of Subway think needs

better attention and focus. These areas are engaging employees, feedback process,

unbiased appraisal techniques, most appropriate appraisal technique, active participation

and others. Further, in Part A, Table 10, few of the respondents feel the need of alterations

in the performance management systems at Subway that highlights the area of

development of the chosen techniques and processes.

6.3 Recommendations:

As of the scrutiny as well as outcome of the research study, the researcher has figured out

proposals, which may assist in connecting the breach between the issues and the proposed

solutions. According to the topic of the study, the researcher has suggested few criteria that

can help in better process management of Subway that can help in upbringing the relation

between the employees and the organisation.

Employees’ involvement in the decision-making process: The organisation should think of

engaging employees in their decision making process. In the day-to-day activities, the

employees should be involved. The employees are the basic proforma of an organisation.

The employees deals with the problems so the higher authorities should involve the

employees so that the employees can come up with the remedies sooner, faster and better

than the higher authorities. The employees can give the best solution to the problem as

they deals with the problems every day.

More focus on the Feedback and Grievances of Employees: The authorities might take the

employees’ feedback. The feedbacks from the employees might make the bonding between

the higher-level authorities and the lower level employees strong. The employee works on

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the set paths of the authorities. Therefore, the feedback of the employees gives a clear

vision of the rules and regulations set by the authorities. The authorities could make out

from the feedback of the employees that how far the rules and regulations implementations

are successful. Feedbacks of the employees are for the betterment of the organisations.

Thus, Subway might take the feedback from the employees.

More Focus on Healthcare Facilities: Employees are involved in running shifts at Subway

that can cause an impact on the health of the employees. However, company could focus on

Healthcare facilities so that employees at work place can feel secure and perform better as

well. Performance with much focus on extra benefits also helps in leveraging the employees’

satisfaction level.

6.4 Future Scope of the Study:

Based on the survey result and findings of the research topic, the research area has

developed few parameters that can be developed with much emphasis on certain sections.

As the research topic was merely involved in study of Subway could have been of much

quality with involvement of other competitive firms like McDonalds, Pizza Hut, Burger King

and others. Apart from that, a specific store of Subway if could have been selected for the

research topic then the narrow form of topic could have helped in better penetration of the

research study.

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