ENHANCING ORGANIZATIONAL PERFORMANCE: EVALUATING PERFORMANCE APPRAISAL SYSTEMS IN SELECTED INSURANCE COMPANIES WITH FOCUS ON SALEM DISTRICT
DOI:
https://doi.org/10.29121/shodhkosh.v5.i6.2024.6308Keywords:
Performance Appraisal System, Insurance, Insurance Companies, Salem DistrictAbstract [English]
This comprehensive study examines the performance appraisal systems within selected insurance companies in the Salem District, aiming to evaluate their effectiveness and propose recommendations for improvement. The study employs a quantitative research design, utilizing surveys and possibly interviews to gather data from employees and managers within the selected companies. Through systematic sampling, a sample size of 102 participants is determined, ensuring a diverse representation of perspectives. The findings reveal high internal consistency reliability (Cronbach's Alpha = 0.924) among the measured items, indicating strong reliability in the measurement instrument. Demographic analysis shows no significant association between performance appraisal and variables such as gender, age, area of working, monthly income, and experience, except for a borderline significance with experience. However, significant differences are observed in work performance metrics based on gender and age, highlighting potential disparities in quality of work, quantity of work, teamwork, and collaborative behavior. The study's implications for theory and practice underscore the importance of considering demographic variables in performance appraisal systems. Recommendations for improving these systems include clarifying performance criteria, providing manager training, implementing 360-degree feedback mechanisms, and leveraging technology solutions. Overall, this study contributes to both academic knowledge and practical implications in the field of insurance companies, offering insights for policymakers, HR professionals, and insurance company executives to enhance organizational performance and employee satisfaction. The duration of the study spans four months, from December 2023 to March 2024.In conclusion, this study provides valuable insights into performance appraisal systems within the insurance sector, laying the foundation for future research and practice in the field.
References
Akyüz, G., Tosun, Ö., & Salih, A. K. A. (2020). Performance evaluation of non-life insurance companies with Best-Worst method and TOPSIS. Uluslararası Yönetimİ ktisatveİşletme Dergisi, 16(1), 108-125. DOI: https://doi.org/10.17130/ijmeb.700907
Ardestani, S. S. V. (2024). An appraisal of performance appraisal system in public sector: a study of an insurance company. Asian Journal of Multidimensional Research (AJMR), 3(2), 81-94.
Attia, E. F., Yassen, S., Chafai, A., &Qotb, A. (2024). The impact of board gender diversity on the accrual/real earnings management practice: evidence from an emerging market. Future Business Journal, 10(1), 24. DOI: https://doi.org/10.1186/s43093-024-00307-7
Beer, M. (1981). Performance appraisal: Dilemmas and possibilities. Organizational Dynamics, 9(3), 24-36. DOI: https://doi.org/10.1016/0090-2616(81)90036-X
Boice, D. F., & Kleiner, B. H. (1997). Designing effective performance appraisal systems. Work study, 46(6), 197-201. DOI: https://doi.org/10.1108/00438029710367622
Bretz Jr, R. D., Milkovich, G. T., & Read, W. (1992). The current state of performance appraisal research and practice: Concerns, directions, and implications. Journal of management, 18(2), 321-352. DOI: https://doi.org/10.1177/014920639201800206
Brignall, S., & Modell, S. (2020). An institutional perspective on performance measurement and management in the ‘new public sector’. Management accounting research, 11(3), 281-306. DOI: https://doi.org/10.1006/mare.2000.0136
Brown, M., & Heywood, J. S. (2018). Performance appraisal systems: determinants and change. British journal of industrial relations, 43(4), 659-679. DOI: https://doi.org/10.1111/j.1467-8543.2005.00478.x
Cederblom, D. (2023). The performance appraisal interview: A review, implications, and suggestions. Academy of Management Review, 7(2), 219-227. DOI: https://doi.org/10.2307/257300
Daoanis, L. E. (2022). Performance Appraisal System: It’s Implication to Employee Performance. International Journal of Economics and Management Sciences, 2(3), 55-62.
DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of progress?. Journal of applied psychology, 102(3), 421. DOI: https://doi.org/10.1037/apl0000085
DeNisi, A. S., Cafferty, T. P., &Meglino, B. M. (2014). A cognitive view of the performance appraisal process: A model and research propositions. Organizational behavior and human performance, 33(3), 360-396. DOI: https://doi.org/10.1016/0030-5073(84)90029-1
Elliott, K. (2015). Teacher performance appraisal: More about performance or development?. Australian Journal of Teacher Education (Online), 40(9), 102-116. DOI: https://doi.org/10.14221/ajte.2015v40n9.6
Evangeline, S. J., &Thavakumar, D. (2015). The impact of compensation, performance evaluation and promotion practices on employees ‘job performance–a study on insurance companies in Batticaloa district.
Faur, F. C., Albescu, C. M., &Grapini, I. (2022). Human resources management practices and approaches in insurance. Technium Soc. Sci. J., 32, 750. DOI: https://doi.org/10.47577/tssj.v32i1.6757
Fletcher, C. (2010). Performance appraisal and management: The developing research agenda. Journal of Occupational and organizational Psychology, 74(4), 473-487. DOI: https://doi.org/10.1348/096317901167488
Ghazi, K. M., Salem, I. E., Dar, H., & Elbaz, A. M. (2024). Leveraging strategic leadership for boosting operational resilience in hotels: the role of crisis response strategies and e-readiness. International Journal of Contemporary Hospitality Management. DOI: https://doi.org/10.1108/IJCHM-05-2023-0650
Ilgen, D. R., & Feldman, J. M. (2023). Performance appraisal: A process focus. Research in organizational behavior.
Kagioglou, M., Cooper, R., & Aouad, G. (2011). Performance management in construction: a conceptual framework. Construction management and economics, 19(1), 85-95. DOI: https://doi.org/10.1080/01446190010003425
Kangangi, G. W., & Kamure, B. (2014). The Role of performance management on strategy implementation in the Insurance Industry in Kenya. Strategic Journal of Business and Change Management, 2(8), 133-157. DOI: https://doi.org/10.61426/sjbcm.v1i2.24
Khanna, D. K. (2016). Factor affecting Performance Appraisal of Employees: A Study of Life Insurance Company. Available at SSRN 3434236. DOI: https://doi.org/10.2139/ssrn.3434236
Kolo, I., Haliru, M. H., & Adam, U. F. (2024). Effect Of Work Life Balance Variation And Succession Planning On Employee Performance Of Quoted Commercial Banks In Fct Abuja Nigeria. Journal of Business Development and Management Research.
Krishnakumar, K., & Arul, M. (2024). Effect of Bank Credit on the Business Performance of Unorganised Event Management Firms in Salem District. International Journal of Banking, Risk & Insurance, 12(1). DOI: https://doi.org/10.21863/ijbri/2024.12.1.003
Kuo, K. C., Kweh, Q. L., Ting, I. W. K., & Azizan, N. A. (2017). Dynamic network performance evaluation of general insurance companies: an insight into risk management committee structure. Total Quality Management & Business Excellence, 28(5-6), 542-558. DOI: https://doi.org/10.1080/14783363.2015.1100516
Kuo, Y. F., & Chen, P. C. (2008). Constructing performance appraisal indicators for mobility of the service industries using Fuzzy Delphi Method. Expert systems with applications, 35(4), 1930-1939. DOI: https://doi.org/10.1016/j.eswa.2007.08.068
Lawler, E. E., Mohrman, A. M., & Resnick, S. M. (1984). Performance appraisal revisited. Organizational dynamics. DOI: https://doi.org/10.1016/0090-2616(84)90029-9
Levy, P. E., & Williams, J. R. (2004). The social context of performance appraisal: A review and framework for the future. Journal of management, 30(6), 881-905. DOI: https://doi.org/10.1016/j.jm.2004.06.005
Maina, M. W. (2014). Strategic planning and performance rating of insurance companies in Kenya (Doctoral dissertation, University of Nairobi).
Mayer, R. C., & Davis, J. H. (1999). The effect of the performance appraisal system on trust for management: A field quasi-experiment. Journal of applied psychology, 84(1), 123. DOI: https://doi.org/10.1037//0021-9010.84.1.123
Murerwa, T. G. (2020). Effect of Performance Contracting on Employee Performance. A Case of Insurance Firms Nairobi County (Doctoral dissertation, KeMU).
Murphy, K. R., & Cleveland, J. N. (1991). Performance appraisal: An organizational perspective. Allyn & Bacon.
Murphy, K. R., & Cleveland, J. N. (1995). Understanding performance appraisal: Social, organizational, and goal-based perspectives. Sage.
Ndegwa, J. W. (2011). The Impact of Performance Management in Business With in Insurance Industry in Kenya: the Case of Salama Insurance Broker (Doctoral dissertation, University of Nairobi).
Neely, A. (1999). The performance measurement revolution: why now and what next?. International journal of operations & production management, 19(2), 205-228. DOI: https://doi.org/10.1108/01443579910247437
ner Kaya, E. Ö. (2016). Financial performance assessment of non-life insurance companies traded in Borsa Istanbul via Grey relational analysis. International Journal of Economics and Finance, 8(4), 277. DOI: https://doi.org/10.5539/ijef.v8n4p277
Obafemi, T. O., Adedipe, O. A., &Ojewole, E. O. Effect of Internal Control System on Financial Performance Of Some Selected Consumer Goods Firms In Nigeria.
Olatubosun, T. J. (2021). Performance Appraisal As A Tool For Enhancing Organizational Productivity (A Study Of Great Nigeria Insurance Plc).
Prowse, P., & Prowse, J. (2009). The dilemma of performance appraisal. Measuring business excellence, 13(4), 69-77. DOI: https://doi.org/10.1108/13683040911006800
QASSEM, A., & AL-WOSABI, A. H. M. E. D. The Role of Job Satisfaction In Enhancing Service Quality Provided By The Public Telecommunication Corporation In Yemen.
Radwan, N. (2024). A Decision Support System for Employee Performance Evaluation under Uncertainty in Hotel Industry. مجلةالجمعيةالمصريةلنظمالمعلوماتوتکنولوجياالحاسبات, 34(34), 74-85. DOI: https://doi.org/10.21608/jstc.2024.338411
Roberts, G. E. (2003). Employee performance appraisal system participation: A technique that works. Public personnel management, 32(1), 89-98. DOI: https://doi.org/10.1177/009102600303200105
Salahat, M. A. (2014). The effect of recruitment, training and performance appraisal on the satisfaction of palestinians Insurance Customers: A proposed framework. International Journal of Management, IT and Engineering, 4(7), 361-380.
SHAKIR, S. M. S. (2024). The Impact Of Strategic Human Resource Management Practices And Innovation On Sustainability Competitive Advantage: Through The Mediating Role Of Human Capital Development (Afield Study In The University Of Fallujah) (Doctoral dissertation).
Shayo, A. F. (2013). The Effects of Performance Appraisal System on Employees’ Performance in Tanzanian Community Radios: A Case of Selected Radios in Dar es Salaam (Doctoral dissertation, The Open University of Tanzania).
Sillup, G. P., &Klimberg, R. (2010). Assessing the ethics of implementing performance appraisal systems. Journal of Management Development, 29(1), 38-55. DOI: https://doi.org/10.1108/02621711011009063
Suvvari, A., &Goyari, P. (2019). Financial performance assessment using Grey relational analysis (GRA): An application to life insurance companies in India. Grey Systems: Theory and Application. DOI: https://doi.org/10.1108/GS-05-2019-0010
Tajouri, O., & Lakhal, L. (2024). The impact of TQM practices on organizational performance and on innovation: the mediating role of organizational learning. International Journal of Quality & Reliability Management. DOI: https://doi.org/10.1108/IJQRM-06-2022-0188
Thurston Jr, P. W., & McNall, L. (2010). Justice perceptions of performance appraisal practices. Journal of managerial psychology, 25(3), 201-228. DOI: https://doi.org/10.1108/02683941011023712
Townley, B. (1993). Performance appraisal and the emergence of management. Journal of Management studies, 30(2), 221-238. DOI: https://doi.org/10.1111/j.1467-6486.1993.tb00302.x
Wiese, D. S., & Buckley, M. R. (1998). The evolution of the performance appraisal process. Journal of management History. DOI: https://doi.org/10.1108/13552529810231003
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 V. Uma Maheswari, Dr. D. Suthamathi
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
