114281.docx Employee appraisal

8/14/2019 114281.docx Employee appraisal

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Employee appraisal as motivation strategy to improve productivity: National Drilling

Company (NDC)

Background of Study

Performance Appraisal System has been considered by scholars and human resource

professionals as a most effective HRM tool. However, an effective system of performance

evaluation is still a challenging issue to managers and employees due to cognition, motivation

and behaviour. Some recent studies reported that PAS is discriminatory, punitive and

judgemental system in the view of some employees of financial service institutions like banks.

Evaluation is a judgment on the behaviour of an employee in the performance of his duties. The

judgment may be expressed in different ways: by rating, by an inventory of strengths and

weaknesses in relation to the work performed, by a professional assessment to the objectives of

the previous maintenance period. Bernard Martory Daniel Crozet (2007) defines assessment as a

judgment made by a supervisor or co-workers on the behaviour of an employee in the

performance of his duties. For Tania Saba et al. (2008), the performance evaluation can be

defined as a structured and formal system to measure, evaluate and modify the characteristics,

behaviours and results of an employee in a specific job. According to Jean-Franois Dhnin and

Brigitte Fournier (1998), the annual performance evaluation allows for a professional

assessment: it consists of a direct meeting between the employee and his immediate supervisor

where career development and promotion are discussed. Eric Campoy et al. (2008) perceive the

assessment as standardized and periodic situations in which the company measures the

performance of each employee together. These appreciation or formal assessment devicesdetermine depth, individually and collectively, the decisions of HRM as a whole: compensation,

training, mobility. Definitions regarding the evaluation or assessment of personal data that we

are not exhaustive, but we feel good we stop them there so as not to dwell on the definitions. It is

according to the above mentioned definitions that the study was prepared on the contributing part

of employee participation in appraisal planning on employee motivation.

Literature

Most of the past studies have rarely discussed the performance appraisal and employeemotivation in UAE. As such review of the literature on the subject of appraisal system and its

effects on employees motivation in National Drilling Company (NDC), an UAE based company,

was not easy to obtain. This has forced most of the researchers on foreign- literature even if they

conduct research on domestic organisations. Thus, results of this study help as an additional

source of reference to conduct research in future.


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The assessment of performance or skills is an essential aspect of management for a company. It

serves as an effective way to measure the contributions of individual employees. A well-

conducted evaluation process greatly involved in the assignment of the strategic goals of the

company as it brings together the interests of the company and men who work there.

Theories of equity, expectancy and path-goal are the theoretical bases of performance appraisalsystem es (Kellough and Nigro, 2002; Perry, 2003; Risher, 2002; Vroom, 1964). The equity

approach as a theory was developed by Adams (1965) to make supervision effectively.

Employees are encouraged when they find that they are handled fairly in all the aspects. If

employees feel that they are treated inequitably they automatically cut their efforts (Fulk, Brief

and Barr, 1985; Hyde, 2005). According to Vroom (1964), expectancy theoretical approach

refers that the workers will be stimulated to exercise great efforts when they have the belief that

such efforts will cause high level of performance (expectancy). So, they get rewards, bonuses

incentives, promotions and increments through this high performance and such rewards are

precious to them. Effective goals, according to Goal-setting theory (Locke and Latham, 1979),

are goals that are clear, ambitious and achievable. We must understand what we are trying to

achieve and what we want to avoid. We need to be challenged to achieve the goals that are

challenging and that we move to higher levels of performance. Yet, while the objectives should

be ambitious, they must also be feasible. Goals that are so high they cannot be used to de-

motivate with individuals.

Effective appraisal system should identify clarity, honesty and equality, appreciate productivity

through excellent programs of rewards and be aware of appraiser leadership traits (Winston and

Creamer, 1997). Decenzo and Robbins (1998)suggested some ways to perform performance

appraisal, including absolute standards, relative standards and management by objectives.

Through absolute standards employeesperformances are matched with a standard and their

overall assessment is independent of other co0worker in a team (Dessler, 2000). In relative

standards, individualsperformances are compared against other people. The approach of

management by objectives evaluates employees as how well they achieved the given objective

that has been ascertained to be most important.

Managers of the human resource have realised the crucial association between justice and

effectiveness of organisation (Cropanzano and Folger, 1991). Distributive justice, according to

Aristotle, the first kind of particular justice exerted in the distribution of honours or wealth or

other benefits that may be distributed among the members of a political community. It copes

with the ends accomplished or the content of equality, while procedural justice is employed to

accomplish such ends or the equality process (Cropanzano and Folger, 1991). The reactions of

workers to the equality and exactness of the appraisal system may affect their overall motivation

level to make weak performance strong.

It has demonstrated by researchers that managers often twist the outcomes of appraisal to

promote their own self-interests (Longenecker, Gioia, and Sims, 1987). If the aforementioned


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observation is correct, then the systems of due process may well provoke managers negative

reactions by limiting their capability to alter the appraisal outcomes. However, it is also true in

the view of Bernardin and Villanova (1986) and Murphy and Cleveland (1991) that the

performance of managers is heavily reliant on the hard works of those who work for them. As a

result, it might be asserted that they will act in response positively toward a due-process

appraisal system.

After its successful launch in March 1972 the National Drilling Company (NDC), celebrates 30

years of excellence. The company since its inception contribute a vital part in promoting the

UAE economic with other sister organisations.

There are numerous reservoirs of oil and gas in the UAE in general and in Abu Dhabi in

particular, and the extensive plans and strategies of development contributed an important part in

establishing a local drilling firm. The NDC was the first wholly-owned subsidiary of (ADNOC)

in 1972, was established by a verdict under Sheikh Zayed bin Sultan Al Nahyan authority.

Due to NDC commitment to HSE policy, the company has won several awards in recent years in

this area. The company persists to develop its effective drilling operations, and feels that this

would not have been feasible if it was not for its sister companies support, and the incessant

direction and dedication of its board of directors.

An Arabic Symbol of Excellence

The Emirate of Abu-Dhabi confined headlines across the globe because they commenced

to deliver oil to other countries through the 4.2bn dollars pipeline, which avoids the Strait of

Hormuz. The effective measure emerged to completion with the NDC contributing a leading part

in the development of petroleum sector of UAE.

NDC is considered as a largest UAE based drilling firm. The company has drilled over 4,000

offshore and onshore underground reservoirs with a depth surpassed 21.5 million feet, thus

playing a visible role to the UAE oil income of more than 85bn dollars only in 2012. As going

the market before forty years, NDC has made exclusive experience and profits in well-organized

drilling services, and it has developed to become an Arabic symbol of superiority in the field of

drilling.

Back in history

The most excellent impressive development and progress reached by NDC were made feasible

due to the assistance of UAE leadership. Almost every ruler have given close concentration to

the industry development and growth as the starting of the last century, when they recognized

what resources could be concealed under the sand and water.


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Victor Lebedev is a well-known expert on the Arabic East. He asserts that in the early of 1920s,

all the rulers of the Persian Gulf emirates articulated their interest in having their British

customers involved in viewing their areas for natural resources.

Sharjah Emirate was the rules who first had sent a direct invitation to the authorities in the UK

about the exploration of oil. The leaderships of Abu-Dhabi were the most recent to call Britishbusiness to lead and deal with the oil rush there. In the light of Lebedev, however, Abu-Dhabi

was the place where the first commercial oil was extracted.

The focus of Local authorities is Hydrocarbons since that time. The National Drilling Company

(NDC) was founded by the Abu-Dhabi Council of Ministers in 1972. This company became the

initial link in the 15 companys chain that works under the authority of the ADNOC. At present

the company is producing about 2.8mn barrels of oil on the daily basis (Forbes 2012).

NDCs services

The National Drilling Company offers a range of services. The company does everything doable

to fulfil the basic needs of the drilling issues. The NDC, at present, a fleet of more than 30

offshore and land oil rigs are maintained. The company also operates the service ships for multi-

purpose as well as exploits five special well rigs. These all assist the company to gratify the

demand for resources of petroleum products. To know the NDCs solutions of pioneering

offshore drilling, people can observe its Al Ghweifat Multiservice Supply Vessel, which is the

high class of its type.

In line with progress and sustainability

A key objective of the NDC is to stay in touch with the gradual progress of the industry as wellas with the sustainable development and growth. The company faces the demanding issues with

the help of high-tech technologies that enable them enhancing the level of production.

The National Drilling Company, as for example, energetically uses directional drilling. This

enables the companys numerous wells to be extracted at different angles. This approach aids to

radically cut the affected area of oilfield. This method also gives the possibility for well

production in more aggressive environments.

Together with directional drilling method, the company extensively employs the methods called

horizontal drilling. This method increases the production as well as minimises the

industrial footprint on ecosystem. For the potent, reliable and consistent commitment of the

National Drilling Company to ecological protection, the company has obtained international

acknowledgment and received numerous awards in the areas related to safety and innovation.


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QUESTIONNAIRE ADMINISTRATION AND RESPONSE RATE: All the questions were

self-administered in the study because all the participants could the ability of read and write. The

author conducted the field editing of completed questionnaires and follow-up visits in order to

make sure that each question was responded and that responses were consistent prior to the

questionnaires were gathered after all. Usually, the rate of response was very motivating. 78

questionnaires were distributed and 70 were answered and returned indicating 89.74% response

rate. After editing the questionnaires from subordinates, three (3) questionnaires were dropped

because they did not comply with instructions which demanded ticking only one correct answer

to a given item. Another one (1) was dropped in order to get the sample size of 66 indicating a

100% response rate. In the case of supervisory staff, 12 respondents completed and submitted

their questionnaires. Finally, a total sample size of 78 respondents was obtained for the study.

DATA HANDLING AND ANALYSIS: This consisted of field editing and data entry. It was to

eliminate errors such as double answers. Data was cleaned and coded for entry into the SPSS for

Windows software. Computer editing was done after keying in the data. The data were analysed

and presented statistically using frequency tables, pie charts, bar charts and inferential tools vis-

-vis scatter plots, cross-tabulation and correlation for the interpretation of the data and

hypothesis testing.

ETHICAL CONSIDERATIONS:Permission was sought from the participants before the

conduct of the study. That is, introductory letters were sent to the management of the selected

institutions and their approval received before the commencement of the research. The author

made telephone calls and prior visits to management so that data gathering periods were

scheduled at convenient hours in order not to unduly interrupt their work schedules. No names or

any identifiable information from respondents were taken as a way of ensuring the ethical

principle of anonymity in social research to prevent possible victimisation. The respondents were

informed that their participation was voluntary and as such they could opt out at any stage of the

research process.

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114281.docx Employee appraisal