UNIVERSITY OF TECHNOLOGY

MASTER IN PUBLIC SECTOR MANAGEMENT

The Mishandling of performance appraisal can do more harm than good. Discuss .

May 2011

Table of Contents 1.1 Introduction 1.2 Definition 1.3 Purposes of performance appraisal 1.4 Benefits of a performance Appraisal System 1.4.1 Organizational efficiency 1.4.2 Employee Motivation 1.5 Critics of performance Appraisal System 1.5.1 Scope of the system 1.5.2 Individual performance in context 1.5.3 Applying the concept of Quality in the performance appraisal process 1.5.4 Attitudes and approach of supervisors 1.5.5 Current performance versus future potential 1.5.6 Multi skilling versus tight specification. 1.5.7 Managerial performance versus professional performance. 1.6 Inconsistencies in the assumptions of an appraisal system 1.7 Failure in the implementation of performance 1.8 Consequence of Performance Appraisal system 1.8.1 Deviant behaviors

1.8.2 Professionalism 1.8.3Violation of human dignity 1.8.4 Alienation of employees 1.8.5 Lack of customer focus 1.8.6 Internal politics and conflicts 1.8.7 Short termism and Individualism 1.8.8 Low commitment 1,9 Reengineering the Performance appraisal systems 1.10 TQM and Performance Appraisal 1.11 Performance Appraisal in the Public Service 1.11.1 Introduction 1.11.2 Definition 1.11.3 Purpose of Performance Management System 1.11.4 Scope of the system 1.11 5 Evaluation 1.11.6 Dealing with poor performance 1.11.7 Performance Appraisal the flaws in the system 1.12 Conclusion

1.1 Introduction
The term performance appraisal has generally meant the annual interview that takes place between the manager and the employee to discuss the individuals job performance during the previous 12 months and the compilation of action plans to encourage improved performance.

1.2 Definition
Moon (1993, p. 8) succinctly defined appraisal as a formal documented system for the periodic review of an individuals performance while Fletcher defines performance management as an approach to creating a shared vision of the purpose and aims of the organization, helping each individual employee understand and recognize their part in contributing to them, and in so doing manage and enhance the performance of both individuals and the organization. He suggests that the main building blocks of such an approach include: (a) development of the organizations mission statement and objectives; (b) enhancing communications within the organization so that employees are not only aware of the objectives and the business plan, but can contribute to their formulation; (c) clarifying individual responsibilities and accountabilities; (d) defining and measuring individual performance; (e) implementing appropriate reward strategies; (f) developing staff to improve performance, and their career progression in the future;

1.3 Purposes of performance appraisal

There is an increasing use of the performance appraisal process which is generally motivated by an organizational desire to affect employee behaviors and attitudes and, ultimately, organizational performance. This occurs as a consequence of the establishment of goals at the beginning of the evaluation cycle which provide employees with clear performance targets, the monitoring of performance during the evaluation cycle (which can be used to assist poor performers) and the reinforcement provided for good performance through the provision of rewards, usually in the form of higher pay. This process is seen to encourage employee performance in subsequent performance cycles (Moon (1993, p. 8)

Other authors have stated that there are potentially many reasons for undertaking performance appraisal. It includes: (a) improvement in the communication between boss and subordinate through the use of feedback between them; (b) identification of the scope for performance improvement and the means to achieve it; (c) identification of individual training and development needs; (d) identification of the potential of individuals for future promotion, secondment, retention or termination - all for succession planning purposes; (e) remuneration and reward, on the basis of performance; (f ) as a powerful means of managerial control, through the setting of objectives in a hierarchical fashion and a review of success or failure in achieving these.

1.4 Benefits of a performance Appraisal System 1.4.1 Organizational Efficiency

Organizational efficiency can be affected by the quality of the performance appraisal process There is a body of empirical research that suggests that performance appraisals do result in increases in employee performance and productivity ( Taylor and Pierce, 1999). These improvements are seen to derive from the greater employee identification with and commitment to the objectives of the organisation. Work efforts are directed to activities that will be of benefit to the organisation. Poor performing employees are identified during the evaluation cycle and given feedback on how to improve. They might also undertake some developmental activities (for example, training) in order to rectify performance deficiencies.

1.4.2 Employee Motivation

Employees are motivated to work at a higher level by the offer of financial incentives that are contingent on their performance, and these financial incentives are important in encouraging the retention of high performing employees (Lebas, M.J. (1995) According to the instrumental school of thought, employees value PA process controls as it promotes predictability (Cardy, R.L. (1998). Process controls can be established through operation of formal procedures (such as the right to present evidence to a supervisor) and enhance quality by ensuring that the process applies to all employees.

The relational school of thought postulates that individuals care about PA quality because it signals their status and worth within the organization. The relational school of thought emphasizes the needs for belonging and self-esteem and acknowledges the informal actions of someone in a position of authority over the employee (Hartle, F. (1997). Further, an individual's standing is thought to be conveyed by their interpersonal treatment during social interactions (Gerst, R.M. (1995)

Low quality interpersonal treatment conveys the view that management regards the individual as being of low status and disrespect for individual rights communicates that their interests are unlikely to be protected (Jas, P., Skelcher, C. (2005)

1.5 Critics of performance Appraisal System 1.5.1 Scope of the system

However, empirical studies have shown that no single performance appraisal system will effectively produce high quality results in all areas as discussed at section 1.3. Each system inevitably will be skewed or slanted towards one or more of these purposes at the expense of others. Organizational appraisal systems are an attempt to formalize these activities for the benefit of both the individual and the organisation (Torrington and Hall, 1991, p. 480). An organization's performance appraisal system can be a practical tool for employee motivation and development when employees perceive their performance appraisals as accurate and fair (Ilgen et al., 1979). Appraisal practices often include formal review and feedback sessions, and may include procedures for establishing work objectives, conducting self-appraisals, and setting performance goals. The processes inherent in these systems and the performance appraisal outcomes themselves can have an important influence on employees' reactions toward their work, their supervisors, and their organization as a whole. The appraisal process can also become a source of frustration and extreme dissatisfaction when employees perceive that the appraisal system is biased, political or irrelevant (Skarlicki and Folger, 1997) However, developing an appraisal system that accurately reflects employee performance is a difficult task. Performance appraisal systems are not generic or easily passed from

one company to another. Their design and administration must be tailor-made to match employee and organizational characteristics and qualities (Henderson, 1984, p. 54).

1.5.2 Individual performance in context

There is a growing recognition that the work performance of people in organizations comes primarily from within, but is also powerfully affected by the social, economic and political environment in which people work. Moncrieff ( 1992) has expressed this in the formula:

Individual = energy ability motivation x performance external factors Energy is the individuals capacity to do work. It is also about flows and blockages, particularly those caused by stress. It is now recognized that personal happiness, strength and peak performance are associated with the setting and achievement of personal goals and that this activity produces an energetic sense of flow. Ability is the sum of the knowledge, skills and innate abilities which enable an individual to convert energy into productive output. It is a more encompassing term than behavioral competence, Motivation is the will to channel energy in a particular direction and to use ability to achieve particular ends. External factors may be environmental (legislation, state of the economy, etc.), organizational (structure, policies and systems, etc), team-related (demands on time and other resources) or job-related (scope and discretion) However, no single performance appraisal system can capture all these variables for an individual.

1.5.3 Applying the concept of Quality in the performance appraisal process

Quality is typically defined as establishing and operating processes that promote organisational efficiency. The aim of a quality approach is to reduce variation in every process in order to obtain greater consistency (Roch, S.G., Shanock, L.R. (2006), PA is a complex process and there is a lot of scope for variation, particularly when the supervisor is required to make subjective judgments of employee performance (as compared with an objective performance appraisal where the measurement focuses on the quantifiable aspects of job performance). Subjective judgements have the potential to dilute the quality of the PA process as they may be influenced by bias or distortion as a result of emotion (Longenecker et al., 1987; Murphy and Cleveland, 1995)

1.5.4 Attitudes and approach of supervisors

The attitudes and approach of supervisors to the PA process has been identified as a source of quality variations in PA. One source of quality variation derives from the general attitudes that supervisors have towards the process. Many writers have identified the reluctance of supervisors to undertake appraisals. Hartle, F. (1997), notes that when surveyed about most disliked tasks, managers say they hate conducting appraisals, second only to firing employees. Weightman, J. (1996), believes that many practitioners see appraisal as a necessary evil in corporate life. As a consequence Pollitt, C. (2005), stated that supervisors conduct appraisals in an arbitrary and perfunctory manner as they believe that conducting performance appraisals requires considerable amounts of time and effort, generates few rewards and adds considerably to the manager's level of conflict and stress.

Lawton A, McKevitt, D., Millar, M. (2000), believe that managers often avoid the appraisal process because they either fear the consequences or they feel the potential returns from their appraisal efforts are not worthy of the required investments. A second source of quality variation derives from the way supervisors exercise their responsibilities under an appraisal process. Researchers have demonstrated that supervisors make mistakes (for example, halo errors), are uncomfortable about providing negative feedback, often put off doing appraisals or apply their own set of internal values about performance when assessing their employees (Moncrieff, J. (1992). In order to encourage supervisors to conduct high quality performance appraisals, a supervisor is likely to find the assessment of their performance is partly a function of the way they manage the evaluations of those who report to them (Cunningham, G., Harris, J. (2005). Empirical research has demonstrated that supervisors are a major source of quality variations in PA, but quality is ultimately the assessment made by the recipients of the process namely employees.

1.5.5 Current performance versus future potential.

The short-termism which is a feature of organizations emerges in the continuing obsession with current performance at work, in terms of task accomplishment - with what is to be done, at the expense of how it is to be done. Managers are encouraged to focus on producing visible short-term results at the expense of their organizations capacity to deliver results in the longer term. Performance appraisal systems reflect this trend, but managerial performance in the short term is a poor indicator of future potential, hence the growing use of assessment and development centre methodologies to identify this.

1.5.6 Multi skilling versus tight specification.

Two contradictory trends produce a tension in considering managerial performance. Both historical approaches and modern job evaluation approaches push for tighter and more detailed job descriptions.

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In the opposing direction, the growing deregulation of labor markets and the moves towards multiskilling and flexible working embodied in business process re-engineering suggest that individuals should be capable of performing a wide range of work activity as need and circumstances arise.

1.5.7 Managerial performance versus professional performance.

In all organizations where the core services are provided by professional staff there is the question of whether systems designed to appraise managerial performance are applicable to the performance of professional staff. Many professions therefore opt for audit - an approach which emphasizes intra-professional autonomy, leadership and authority; standard-setting and retrospective peer review - in direct contrast to the managerial leadership, accountability and hierarchical boss/subordinate relationships inherent in systems for appraising managerial performance skewed or slanted towards one or more of these purposes at the expense of others.

1.6 Inconsistencies in the assumptions of an appraisal system

The performance appraisal system is fraught with inconsistencies: (a) The performance appraisal system by its design is a hybrid of a performance measurement and performance management. Performance measurement is quantifying, either quantitatively or qualitatively. Performance management is action, based on performance measures and reporting, which results in improvements in behaviour, motivation and processes and promotes innovation. These are two extremes concept, yet many performance appraisal system incorporate both these factors into a single process (b) There is an no operational definition for the indicator and there is no guarantee that the data are replicable, and the source data are not clearly defined. (c)There is an assumption that the precision and accuracy of the measurements are the correct ones

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(d) Frequently indicators are focused on short-term results which can hinder innovation and prevent investment in longer term initiatives (Allio, 2006). Alternatively, by the time the data have been collected, analysed and communicated they are old news and they have changed from being useful to merely providing accountability. (e) Indicator are usually split indicators into lagging indicators (which report results after the event) and leading indicators (which are used to predict a future event, for example, employee satisfaction can be used to foretell customer satisfaction). These differences are not made in most performance appraisal system. A data is most useful when it is analyzed and used in a predictive and dynamic way rather than as painting an historical picture. (f) One of the main problems is the lack of statistical rigor and testing carried out on performance indicator data (Brown, 2005). The results are audited, but rarely validated or reliability tested (Evans, 2004: Carlin, 2004) (g) There are no difficulties of interpretation and simplistic measures are used performance evaluation data. (h) It does not create dysfunctional behavior in an organization. It has been reported in a study that within schools, extra attention is given to those borderline pupils to ensure they pass the exams, excessive time is given to exam techniques, and a narrower curriculum, based only on the contents of the exams, is studied in an attempt to improve teacher performance

1.7 Failure in the implementation of performance

Some of the causes of failure in the implementation of a performance appraisal system are summarized below: (a) There entire process does not begins with some data collection and diagnosis aimed at establishing a base line of existing systems, attitudes and orientations, etc. 12

(b) There is no collaboration with trade unions and professional associations which is built in at the outset, although there should be some scope for further negotiation once a system is introduced. It should be pointed out that trade union and professional association representatives can have useful contributions to make to the design of systems in ways which reflect the concerns of their members. (c) There is no adequate briefing and preparation. This is especially important if a new system is designed to replace earlier approaches which have a high degree of ownership by some staff groups. Adequate lead time and a planned and phased introduction which is consciously managed are vital components. (d) No training investment is planned and implemented. There are two aspects to training need, the mechanics of the system and the interpersonal skills needed for counseling, coaching, mentoring, etc. The second is the more important, and to skimp on training investment is dangerous. (e) The system does not embodies some element of self-appraisal in addition to boss/subordinate review. (f) There is no understanding and acceptance that some managerial tasks are collective rather than individual in nature, and that team or group appraisal is therefore a key element. (g) There is no recognition that performance appraisal is a central management process, which means that it needs to be linked to such activities as business planning, etc (h) There is no recognition that performance appraisal can be applied in modified versions to non-managerial staff. (e) There is realization that performance appraisal can be used to install performance appraisal. Setting a manager objectives to have all his/her staff subject to appraisal by an

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agreed date and then reviewing performance against this is an obvious means of doing this. (f) There is not an understanding that, despite good practice, performance appraisal systems often decay and, therefore, from time to time need to be reviewed, rejuvenated and relaunched. (g) It is also possible to specify failure criteria (h) There is an underestimation of the time, effort and cost of designing a good system and then making it work; (h) There is an unwillingness or inability to design and redesign work and jobs as a result of the outcomes of the appraisal process; (i) Where paperwork systems associated with appraisal are over-complex and where the system has degenerated into an annual ritual, rather than a central, ongoing and regular management activity; (j) Where there is over-concentration on the achievement of quantitative objectives and a corresponding underplaying of qualitative aspects, on the principle of what gets measured is what gets done; (k) Where there is an unwillingness to address the problem of unequal standards of appraisal applied by different appraisers in different parts of the same organization.

1.8 Consequence of Performance Appraisal system 1.8.1 Deviant behaviors

It has been reported in the literature review that performance appraisal create deviant behaviors. Deviant behaviors fall into the following categories;

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(i) (ii)

setting undemanding targets and working to only just achieve them; performance clustering around the target either through deliberately underperforming or manipulating the data;

(iii)

concentrating on meeting targets at the expense of other (unmeasured) factors; and

(iv)

choosing indicators and targets to influence the results/manipulating the measures.

Chang (2006) cites the example of waiting lists, on which performance was based. Subsequently the waiting lists were reduced. This improvement was achieved by selecting the easy operations first (not based on clinical need), and those waiting for major operations such as hip replacements had to wait longer than previously.

1.8.2 Professionalism
It has also been reported that performance measurement reduces the professionalism of public sector staff and turns services into commodities, which runs counter to all thinking on quality and results in poorer performance(Adcroft and Willis (2005)

1.8.3Violation of human dignity

Performance appraisal are assertions of organizational control which violate the assumption that everyone is acting with competence and in good faith. Violating this assumption lowers morale and confidence (Meyer and Rowan, 1977, p. 359)

1.8.4 Alienation of employees

Pidd (2005) defines public sector organizations as consisting of being predominantly hierarchist, and this can result in myopia, sup-optimization, tunnel vision, measure fixation and misrepresentation. Performance management systems have emphasized the 15

rational, financial and numerical aspects to the detriment of the qualitative factors, hence alienating most employees

1.8.5 Lack of customer focus

Behn (2005) suggests that problems occur because managers implement a performance system with rules and regulations and then leave it to run, rather than take a hands-on operational approach, and use leadership skills to motivate people [] to produce more, or better, or more consequential results that are valued by customers. As such, performance appraisal has tendency to make employee to focus on internal process and internal politics rather than concentrating on the big picture i.e the customers.

1.8.6 Internal politics and conflicts

Around the world there are common issues arising in performance management systems from conflicts between different interest groups internal politics between factions and coalitions, pressures from special interest groups, conflict between central agencies wanting control and departments/local bodies and professionals all wanting autonomy (Radin, 2003)

1.8.7 Short termism and Individualism

It has been reported that managers have become more focused on obtaining immediate results, to the detriment of the long-term vision and ethos of the public sector. In many respects, this change in the management style and system represents a shift in values from equity, security and resilience features of the public sector to efficiency and individualism

1.8.8 Low commitment

Traditional research has viewed performance appraisals as analogous to the psychometric process of constructing a test. The test metaphor relies on the assumptions that an objective view of reality exits and, in the ideal appraisal situation, that both rater and the employee share this view. However reality is completely different and this has 16

cause interpersonal conflicts , turf fighting , decrease of commitment and has been major cause of low motivation.

1,9 Reengineering the Performance appraisal systems

Waldman, D.A. (1994) has distinguished between enabling and disabling systems in work organizations. The former encourage individuals and groups in organizations to improve their performance, while the latter act as a drag or brake on this process. Using this distinction it is possible to devise some rules of thumb for the design of effective performance appraisal systems. (a) The system should identify minimum standards to be achieved - a floor below which no one has an excuse for falling, rather than a ceiling beyond which no one can rise. This implies that, provided minimum standards are adhered to (and this can be proven), then diversity of approach for different areas of sub-organization entirely acceptable. (b) The system should start with a basic assumption that people want to do a good job and are trustworthy. There is a powerful element of self-fulfilling prophecy in this approach, not least because a system designed to check and double-check performance will not encourage people to give of their best - because someone else will change it ! (c) The performance appraisal system should be expressed, as far as possible, in terms of a set of principles which people will need to follow, rather than rules which they have to obey. Principles allow for choice, discretion and room for manoeuvre, which a rigid system does not. For this reason they will be more attractive to professional staff who value their autonomy. (d ) The touchstone for judging the success of the appraisal system should be the extent to which it helps the organization deliver a better service to the customer. or professional groups is

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(e) The system should be minimalist and not generate mountains of data. The Pareto principle or 80/20 rule should apply - what are the 20 per cent vital few data which are needed, rather than the 80 per cent interesting many, which are not. (f) Performance appraisal systems should be line management designed and driven, with the role of the HR function being to provide support in ways that line management deems important. Design of the system would need to begin with how it reflects and affects the mission, purpose, etc. of the organization, before going on to the design of paperwork, training, etc. (g) The system needs to be piloted in representative parts of the organization, but with the understanding that the purpose of the pilot is not to consider if performance appraisal is to go ahead, but how it is to be done. (h) Performance appraisal systems need to fit into the natural rhythms of organizational life - the existing peaks and troughs of activity, often associated with the financial year and the business planning cycle. (i) Finally, a performance appraisal system designed to promote dialogue between people .It should not be allowed to transform into one whose main purpose is to generate information for record-keeping or planning purposes.

1.10 TQM and Performance Appraisal

The majority of literature on performance appraisal in the context of TQM are based on the discussion originally proposed by Deming (1986), who listed evaluation of performance, merit rating and annual review as the third of his seven deadly diseases of western management. In fact, in an attempt to facilitate the journey towards business excellence through TQM initiatives, Deming suggest that organisations should relinquish and eliminate performance.

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He stressed that system factors exert a major influence on organisational performance and thus variance in performance is determined by systems-level features Systems-level features are generally beyond the control of the employee. Examples of system factors include: quality of raw materials, equipment, suppliers, co-worker support, and even proper training and direction by management (Cardy and Dobbins, 1996). More specifically, for Deming (1986), over 85 per cent of variance in organisational performance is due to system factors and only 15 per cent of performance variance is due to person factors (see, for further details, Bounds and Pace, 1991; Cardy and Dobbins, 1996). According to Deming (1986), managers need to maintain statistical process control charts on their employees, and only employees who are out of control limits (upper and lower 7.5 per cent) should be considered as performing higher or lower than other employees. Deming indicated that differences in employee performance within the middle of the distribution should be attributed to system factors. appraisal practices Second, Deming (1986) questioned the degree of fairness of the current performance management systems since they hold the worker responsible for errors that may be the result of faults within the system (cited in, Ghorpade et al., 1995, p. 33). In addition, Deming (1986) characterised the current approach to appraising performance in western management as management by fear, claiming that staff are forced to look for short term, individual achievements, in an attempt to meet their appraisal objectives Taken together, the following issues were highlighted as the main difficulties of performance appraisal from a TQM perspective: (a) Holds the worker responsible for errors that may be the result of faults within the system;

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(b) Focuses on the past rather than the improvement of future performance; (c) Promotes worker behavior that compromises quality; (d) Creates a band of discouraged workers who cease trying to excel; (e) Robs the workers of their pride in workmanship; (f) Disregards and, in fact, undermines teamwork; (g) Disregards the existence of a system; (h) Disregards variability in the system; (i) Uses a measurement system that is unreliable and inconsistent; (f) Encourages an approach to problem-solving that is superficial and culprit-oriented; (g) Tends to establish an aggregate of safe goals in an organisation; (h) Creates losers, cynics, and wasted human resources; and (i) Seeks to provide a means to administer multiple managerial functions . (j) Promote individualism rather than team work a sine qua non for cross funtional process improvement The consequences are (a) They promote worker behaviour that compromises quality;

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(b) They create a band of discouraged workers who cease trying to excel; (c) They assign an inordinate amount of responsibility for poor performance to individual employees while undervaluing the importance of the overall work process; (d) They rob the workers of their pride in workmanship; (e) They assume a false degree of measurement accuracy; (f) They engender dysfunctional employee conflict and competition (g) They underemphasize the importance of the work group; and they are often used as a managerial Theory X control device White and Nebeker (1996, p. 202) precisely discussed team-oriented performance management and its congruity with the TQM context and listed the following steps needed to develop a team approach to performance management: (a) The performance management focus must shift from individuals to teams (b) An atmosphere of blame must be changed into one of trust so that the appraisals can be used to develop employees skills and abilities (driving out fear); and (c) Awards and recognition must emphasize teams (team-based awards).

1.11 Performance Appraisal in the Public Service 1.11.1 Introduction

This part of the assignment will critically look at performance appraisal in the public service. The PRB initially proposed a performance management system for the public

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service in its 2003 Report and in the 2008 Report, it is recommended that the system should be operationalised as from 2011 .

1.11.2 Definition
The Guide to Performance Management of the Ministry of Civil service Affairs defines performance management as a purposeful, continuous process aimed at positively influencing employee behavior for the achievement of the organizations strategic goals; the determination of the correct activities as well as the evaluation and recognition of the execution of tasks/duties with the aim of enhancing their efficiency and effectiveness; and a means of improving results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, objectives, standards and support incentives.

1.11.3 Purpose of Performance Management System

The purpose of the system is set out below: The primary aim of the Performance Management System at Ministries/Departments is to improve performance by focusing on key areas of activity, which are identified through strategic planning processes. It seeks to establish clear links between organizational development, the delivery of quality services and the development of employees at work. It also purports to create a common bond of ownership among all employees as well as an environment where all individuals are developed, motivated and inspired to deliver a quality performance. In short, the main purpose of the new system is to manage and improve performance at all levels in the Ministries/ Departments.

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1.11.4 Scope of the system

The Performance Management System requires that the management of performance at individual level integrates with the management of performance at organizational and unit levels. To ensure that the system is effective, it must be seen as part of an integrated HRM system and not as an isolated event or tool and should take the following into consideration:Ministry vision, mission and values Departmental medium term strategic plans as well as annual plans and budgets Service delivery improvement plans Job descriptions Induction and orientation Job rotation Recognition programmes (non monetary) Employee personal development plans Workplace skills plan

1.11 5 Evaluation
The evaluation is carried out using two criteria : (a) An individual key result are /Key task in terms of the requirement, with emphasis on the outputs and their measures and the actual achievement against these outputs.

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(b) The competencies of the employees on at least 10 factors

1.11.6 Dealing with poor performance

According to the guidelines, some of the options open to the Appraiser for overcoming poor performance are: Personal counseling. On-the-job coaching Training. Redefining the PA. Work environment audits to establish whether there are other factors affecting performance.

1.11.7 Performance Appraisal in the Public Service the flaws in the system
(a) The system is framed to measure both output and competence . As mentioned in the literature review, measuring competence is a subjective factor and it could be perceived as unfair by the appraisee, hence de motivating the employee. (b) The system has been poorly planned and enough training has not been given to public officers (i.e both appraisers and appraisee) (c) The performance system is generic in the sense that it does cater for the diverse work force of the public sector eg a doctor will be assessed on the same basis as a Clerical Officer.

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(d) Although the outcome of a performance appraisal is to identify the area where an employee need to improve, there is not a systematic process to capture those information in the process eg training. (e) With respect to training, the Ministry has limited resources allocated to training as well as it has not both the capacity and capability to train all the employees in the public sector e.g a Civil service college (f) The Ministry is promoting quality in the Civil Service by assisting organization to implement ISO 9001:2008. As noted in the literature review, a famous author on quality i.e Deming (1986) was against performance appraisal because it does not promote team work but rather an individualistic behavior. On one hand PMS is at odd with quality and on the other hand no provision has been made in the PMS to frame and design the system to include team work. (g) The system does not make provision for sociologist and psychologist to assist line managers as performance appraisal is a people issue. (h) There has not been a learning process as the system has not been tested on a pilot run in one or two Ministries. This could have served as a basis for fine tuning the system. All these factors point out that performance appraisal is the public sector will create more harm than good and it is heading towards a total failure. On the basis, there is a great danger that performance appraisal will be taxed as a management fad in two or three years time

1.12 Conclusion
The above discussions on this topics have pointed out that there are two school of thought surrounding the benefits of performance appraisal the MBO (Management by Objectives) school and the quality management school.

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In the MBO school, workers could be motivated provided that the system is comprehensive and take into account the specificities of the organization while in the Quality Management school, there is a need to foster team work in a performance appraisal system As such it can be concluded that there is more risk of mishandling performance appraisal in the MBO school.

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References
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