Chapter 1

Introduction
1.1 Background and Context
The main goal of this thesis was to find the relation between the system of performance
appraisal and the satisfaction of the employee. The goal of this dissertation is achieved due to
the effective commitment of the organization. Moreover, another purpose of this dissertation
is to find the impact of intrinsic motivation on employee satisfaction and performance
appraisal. For the purpose of better understanding a case study of Vodafone has been taken,
which is a renowned British telecom company. In terms of size and revenue Vodafone is the
second largest telecommunication company in the world. Other than England, Vodafone is
working successfully in many other countries as well. This research study is aimed to
minimize the gap in literature about the impact of performance appraisal on the satisfaction of
the employee. Does the system of performance appraisal have any impact on the level of
satisfaction of the employee or not. In this research the impact of intrinsic motivation in terms
of general sector of merchandizing and of retail has been discussed.
According to Swoboda, Berg, Schramm-Klien & Foschte, (2013) in the past decade the
telecommunication industry is growing at a very fast pace and due to this the competition is
also becoming very fierce. Now all the other companies are offering different innovative
services and products to the customers so that their share in the market can be increased. It
was noted by Rosamond and hay (2002) different factors like advancement in technology,
globalization and innovation has made the industry to cop up with the ever changing
environment which includes management that is based to competence. As per Tuytens (2012)
the system of management that is based on competence gives the company an ability to
increase the communication between the system of human resource and the strategy of the
company. If the human resource and the business strategy will be on the same page then it
will have a positive impact on the company. Sp there is positive co-relation between
competences based management system and the effectiveness of the business. According to
Altinoz & Chikiroglu (2011) the environment of business is ever changing and companies
also have to evolve with this changing environment in order to survive. The companies
should also change their management of competence according to the requirement as this
would give them an advantage over its competitors. Now the importance of skilled workforce
is increasing day by day as it is becoming difficult for the companies to maintain competitive

advantage over other due to advancement in technology and due to innovative pricing
strategy.
It was noted by Sandhya and Kumar (2011) the different practices that are followed by the
human resource department in an organization affect the level of motivation of the employee
greatly. These practices play a vital role to increase the motivation level of the employee and
thus it increases the overall productivity level of the company. According to Prowse and
Prowse (2011) it is very important to measure the performance of the employee by a method
that is accepted by the employee. If the employee will be satisfied by the method of their
evaluation then it will be satisfied and work on its best. If the employee of a company have
trust and confidence on the system of performance appraisal that is used by a company then
they are found to be more satisfied and motivated. Now the sector of telecommunication is
very competitive in England and the only thing that differentiates one company to the other is
the customer services that are provided by the company to the customers (Yu, Nath and
Ranabathan, 2014). So now it has become very important for the companies to increase the
intrinsic motivation of the employee and the company should also minimize the turnover of
the employees.
Vodafone is a multinational British telecommunication company. In terms of both the number
of employees and the revenue generated by it Vodafone is the worlds second largest
telecommunication industry. The business of Vodafone spreads in 21 countries around the
world and it has partnership with other network in 40 more countries. The division of the
global enterprise of Vodafone gives the services of telecommunication and IT to consumers in
about 60 countries. So there are a large number of employees that work in Vodafone. The
purpose of this research is to find the perception that the employees have about the
performance appraisal system of Vodafone and how it affects the productivity level of the
employees. Moreover, the importance of intrinsic motivation is also determined in this
research ad what impact does it has on employee as it increases the commitment of the
employee towards the company.
1.2 Research aim and Objectives
The current dissertation is focused on investigating the link between perofmrance appraisal
and employee satisfaction in telecommunication industry of UK. The case company selected
is the leading British telecom service provider i.e. Vodafone. To achieve the study aim
following are research objectives.

1. Evaluating the importance of performance appraisal and emplo9yee satisfaction through

secondary research.
2. To study the impact of performance appraisal on employee jobs satisfaction at Vodafone
through affective organizational commitment.
3. To identify he most important factor that mediates the relationship of performance
appraisal and employee satisfaction
4. Recommendation for effective performance appraisal and employee job satisfaction
1.3 Research Questions
Following questions are answered in this case study:

How important is the relationship between the effective commitment of the employee to

the organization and performance appraisal?

Does intrinsic motivation play any role to affect the relation between the level of
satisfaction of the employee with the job and performance appraisal?

1.4 Rationale of Study

The topic of performance appraisal has been discussed and studied many times by many
researchers while considering different factors that affect the level of motivation of the
employee and how satisfied he is with the job. If an employee is motivated and satisfied then
he/she will work at its best and this would increase the level of productivity of the
organization. So for this reason many researches have been done in order to find the factors
that affect that level of motivation of the employees. A research was conducted by
Kampkotter (2014) according to his research performance appraisal has a direct impact on the
satisfaction of the employee with the job and it increases the level of satisfaction of the
employee with their job. Now if the employee will be satisfied with its job then it will work
on its best and benefit the company. Another research was conducted by Jinabhai & Lourens,
Akinbowale (2013), according to their research which was done on the system of appraisal
that was used in the banking industry of Nigeria system of performance appraisal increases
the level of satisfaction and that in turn increases the level of productivity of the employees.
A case study on performance appraisal in telecommunication industry was done in Kenya by
Abaja, Gichuhi and Ochieng, (2011) in this study the impact of performance appraisal on the
productivity of the employees was measured. According to Gichuhiet al, (2011) there exists a
positive co-relation between performance appraisal and the productivity of the employee. As
the employee will be satisfied and happy with its job so he/she will work without any stress
so the employee will work at its best and this in turn would increase the level of productivity
of the employee.

However, the relationship between performance appraisal and the satisfaction of the
employee in the telecommunication industry of UK and also the role of intrinsic motivation
was not found. So the results of this research are very important and can be used by other
telecommunication companies in the UK in order to improve their system off performance
appraisal. By using the result of this research the telecommunication companies will be able
to manage their employees in a better way and the employees will also stay motivated and
satisfied. If the employees will be satisfied and motivated then they would work at their best
which would benefit the company.
The result of this dissertation would increase the limited literature on the affect of
performance appraisal on employee satisfaction and the role of intrinsic motivation in
bringing employee satisfaction. The telecommunication companies in UK can also use the
results of this dissertation in order to improve the their system of performance appraisal so
that they can keep their employee satisfied which would in turn increase the level of
productivity of the company.
1.5 Structure of Dissertation
There are 6 chapters in this dissertation and there is also a statement on personal
development. All these six chapters have been discussed below:

Introduction
In this chapter the base theory has been discussed in detail. The way the base theory is
related with the research problem which is the impact of performance appraisal on the
satisfaction of the employee and the role of intrinsic motivation has been discussed in
detail in this chapter. The aims, goals and the objectives of the research have been

explained in detail in this chapter and the rationale of study has also been discussed.
Literature Review
In this chapter all the existing literature has been described so that the topic could be
understood in a better way and also to make sure that the current research doesnt
mixes with the old literature. Using the existing literature a theoretical framework has
been established for the current research study. In this chapter all the relevant data is
collected is collected from the existing literature and then the findings are evaluated

and in the end summarized.

Research Methodology

In chapter 3 all the existing methods of performance appraisal has been discussed.
The justification of the method that is preferred selected for this study has also been
provided. In this chapter the results of all the existing methods are used to choose an

appropriate method for the research.

Data Analysis and Findings
In this chapter the analysis of all the collected data is done. The data is collected
through quantitative analysis and then the findings are used in order to extract the
useful information. The analysis of all the collected data is done and then the useful

information is used to explain the goals and objectives of the research.

Conclusion
In this chapter a relation is established between the objectives of the research and
question related with the research with the findings of the data collected through
quantitative methods. In the end using the above information a conclusion is made in

this chapter.
Recommendations
In this chapter recommendations are made based on the result of the research. The
main purpose of these recommendations is to make the appraisal system of

performance of the selected organization or company better.

Personal Development Statement
In this section all the enhancement in the skills and abilities of the researcher has been
elaborated that happened during the research.

1.6 Chapter Summary

In this chapter a contextual background of the goals and objectives has been established in
order to explain the objectives of the company. At first the analysis of the collected data is
done and then the results are used to devise an effective strategy that could be used to
improve the appraisal system of the selected company. This chapter also includes all the
questions that are related to the research and then these questions are answered according to
the results of the analysis of the data that is collected during the research. The whole structure
of the dissertation is also present in this chapter. In the next a review on the data that is
already present is done and secondary data is evaluated while keeping the goals and
objectives of the research in mind. Then all the valuable findings are used to assist in
achieving the main goals and objectives of the research which is to find the impact of
intrinsic motivation on the performance appraisal system that is used in an organization.

Chapter 2

Literature Review
The meaning, antecedents and the consequences of all the factors that have been
used in this research are explained in this chapter. At first all the literature work was
reviewed and then hypothesis were developed based on the results gathered from
the literature reviews. In the end the theoretical framework of the research has been
shown.
2.1

Defining Performance Appraisal (PA)

There are many people who have tried to explain what performance appraisal is
according to their knowledge. As per Kampktter, (2014) the word performance
appraisal is heard a lot of times by us but many still dont understand what it really is.
Many authors, gurus, leaders and managers has tried to explain what performance
appraisal is according to their knowledge. But even after all their attempts this word
appears to be a jargon to the ordinary people. May be the reason behind so many
definitions of this word is the impact it causes to the people, organization or to the
economy (Akinbowale et al, 2013).
The principles of performance appraisal were recognized and observed since early
1900s (Murphy, Kevin, Deckert & Paige, 2013). At that time performance appraisal
was used and designed to create a control oriented management from top to bottom.
As per Abdulkadir, Isiaka & Adedoyin, (2012) PA is a way to control the system and
this system is used by almost all the successful organizations in order to make the
employers work in a way the organizations wants them to be. As per Brown, Hyatt &
Benson, (2010) performance appraisal gives the organizations an ability to maintain
control over the employees and it also trains the employees enabling the goals of the
organizations to be achieved in an effective manner. Moreover PA is a tool to
manage the effectiveness and the efficiency of the employees. According to Gordon
& Stewart, (2009) PA is a vital part of the human resource practices and
management. It is a way to measure the performance of an employee that weather
his daily activities are in accordance with the goals of the organizations or not. The

result of these reviews is that Pa is a tool that for the purpose of administration in the
organization (Grant, 2008).
There are many authors who suggested that PA is more than just a tool that carried
the development purposes of the employees. According to Jr, P.W.T. & McNall,
(2010) PA is a tool that can be used to get specific results from the employees like
self enhancement and the improving relationship between the employees. The
performance of the employees can also be judged by PA and then the employees
can be rewarded accordingly (Kavanagh, Benson & Brown, 2007). This whole
process results in the increase in the efficiency of the organization due to continuous
communication between the employees and the organization (Kline & Sulsky, 2009).
It was noted by Kondrasuk, (2011) that the main purpose of PA was to let the
employee know that that weather his or her performance is in accordance with the
goals of the organization or not. It also points out the factors in the employee that
needs training or development.
The most common definition of PA is that it is a concept of improving the
performance of the employee and developing them. The use of PA is different in
different organizations. Some other definitions of PA are as follows:
a) Performance appraisal is a tool to identify and check the competencies of the
staff and the core competency of the organization and the external demands
(Najafi, Hamidi, Vatankhah & Purnajaf, 2010).
b) Performance appraisal is also defined as a structural interaction between the
employee and his/her superior. Normally it includes periodic checks of the
performance of the employee by taking interviews (Nickols, 2007).
c) PA is defined as a process of central management. It means that the process
of performance appraisal should be somehow linked with the planning of the
business and clinical audit etc. (Prowse & Prowse, 2010).
d) As per (Sandhya & Kumar, 2011) PA is a tool that is used to achieve many
objectives of the management of human resource.
As already explained above there are many definitions of PA, but for this research
performance appraisal is a way to get these objectives within the organization.

a) Performance appraisal can be used to keep the employees in control within

the organization (Tutar et al, 2011).
b) By this employees can be used to set goals of the organization (Tuytens,
(2012).
c) It can also be used to keep check on the performance of the employee that he
or she achieves the goals set by the organization or not (Swoboda et al,
(2013).
d) To give rewards to the employees intrinsically as well as extrinsically (Grant,
2008).
e) It can be used to achieve certain goals like enhancing relationships and for
self enhancement (Harvard Business School Press, 2006).
f) It improves the performance of the employee due to the continuous interaction
and feedbacks between the employee and the organization (Harvard
Business School Press, 2006).
g) It can also be used to identify the areas in the employee that need to be
improved by training and development processes (Bacal, (2011).
h) To create an environment and specify behavior in the goals of the
organization can be achieved (Kampktter, 2014).
2.2

The Importance of Performance Appraisal

According to Murphy et al, (2013), performance appraisal has been visible since
1900s. Now over the years the role and importance of performance appraisal has
been changing with the changing environment and according to the objectives and
the goals of the organization (Henderson). According to Kuvaas, (2007), the system
of performance appraisal is not easy to pass from one organization to the other it has
t be tailor made according to needs and requirements of a particular company and it
may or may not fit the requirement of the other company. At first, the process of
performance appraisal was incorporated for many potential agendas. As per
Abdulkadir et al, (2012) some of the problems and agendas that lead to the
procedures of performance appraisal within an organization are as follows:

For

management by using feedback.

Identifying that how much room is there for improvement and how that

improvement can be made.

Identifying the needs of the individuals their training and development.

better

communication

between

the

employees

and

the

upper

Identifying young talent within the organization for promotion in the future and
succession planning and the potential individuals for retention and

termination.
Remuneration and reward on performance basis.
It also serves as a powerful tool for the manager to keep control. By setting all
the goals and objectives in hierarchical order and reviewing failure and
success.

From literature reviews each of these points have their own importance. The first
step of performance appraisal is to provide direction to the employees so that the
employees can work in an effective manner to achieve the objectives of the
organization efficiently (Brown et al, 2010). In this way control over the employees
can also be kept by setting up a clear system of rules proper procedures to
standardize employee behavior, which is also noted by Elicker, (2006).
The second stage is evaluating the performance of the employees (Brown et al,
2010). As per Bacal, (2011) PA improves both the performance of the employee and
the relations between the employee and the supervisor. According to Aguinis, (2008),
the system of performance appraisal gives the manger a way to evaluate the
performance, effectiveness and efficiency of the employees and to manage the other
resources effectively. When providing feedback the employees should also explain
their feelings and insight about their own performance (Harvard Business School
Press, 2006). So, an effective performance appraisal system motivates, informs as
well as it also creates a good communication system between the employee and the
supervisor (Kampktter, 2014).
The third step is the development of the employee and the business (Brown et al,
2010). As per Gordon & Stewart, (2009) many authors have written that performance
appraisal is conducted in order to recognize the opportunities, strengths and the
weaknesses within the organization so that improvement could be brought within the
processes that are practiced within the organization. Furthermore, it was suggested
by Prowse & Prowse, (2010) the system of performance appraisal should not only
evaluate the things that has been accomplished by the organization but should also
guide the future development and improve the current processes and address the
deficiencies n the skills.

Long, Kowang, Ismail and Rasi, (2013) has summarized the importance of
performance appraisal in Malaysia. According to them a performance appraisal
system was designed for the Malaysian Public Services and it included a systematic
annual procedure to check and evaluate the performance of the staff that weather
they meet the target set by their organization or not. This evaluation includes the
employee set targets and the evaluation of the perceived behavior and the
achievements made y the employees during the year of evaluation. All the activities
that were targeted by the departments and the programs and different projects were
decided in these in this system according to the predetermined policies and
strategies that are devised by the organization at the start of the year of evaluation.
Long et al, (2013) also explained that focus of appraisal is on the integration and the
achievement targets of individuals their behavior and their performance as compared
to the targets set by the organization. It was also suggested by Akinbowale et al,
(2013) the system of performance appraisal is used mainly for the purpose of
judgment and for developmental purposes so that effective administrative decisions
can be made.
2.3

Performance Appraisal as a mean to increase work productivity

According to Murphy et al, (2013) the definition of performance appraisal is often

poorly and vaguely defined. The concept of work performance is very broad and it
can be easily simplified. There are two ways in which work performance can be
defined. According to Kuvaas, (2007) definition, work performance is the result of
action.

As per this definition the performance of work can be defined as the

accomplishment of the assigned task. Work performance can also be defined as the
actions and the behaviors that one take in order to accomplish the goals of the
organization, which can be scaled in terms of the level of contribution of an
individual.
Brown et al, (2010) suggests that work performance should not only be associated to
individuals it should be considered as a result of the activities of both humans and
the whole organization. It was noted by Elicker, (2006) that work performance is the
behavior or an action that is linked to achieve the goals and objectives of the
organization. Whereas managing performance is the process of linking the goals of
the organization with the department, individual goals. According to the Tuytens,
(2012), performance appraisal is defined as the act of performing some specific set

of activities, their execution and the functions that are required from a person and it
includes many other attributes. Performance itself is an activity and it is a result of
many different activities, it is a product of a process and a behavior and an output
plus accomplishment (Sandhya & Kumar, 2011).
It was noted by Beauregard & Henry, (2009) that both process (input) and the
product (output) are included in the work process. That is the reason that it is seen
both as a service and a service being performed. It was also noted by the author that
output is a process that adds profit and value whereas process is a procedure that
adds cost. Here performance is related to the performance of the organization the
tasks accomplished its duties and its products. As per Gittell, Seidner & Wimbush,
(2010) performance can also be related to the performance of a department, primary
process (tasks and duties related to it a certain product), or a persons performance
which includes all the individual tasks, duties and services. The external variables
determine the individuals opportunity to perform (Mano & Mesch, 2010). It was also
confirmed in a study on work performance by Gittell et al, (2010). It explains the
evolution in the environment in which a person works and in order to determine the
work performance of a person his/her current and future work is required.
Beauregard & Henry, (2009) explains that work performance is the quantity or the
quality of standards that are required to achieve the objectives or to do a certain job.
According to the definition of performance of work by Tutar et al, (2011), it is
important to view the concept of work performance in the term of system approach.
This system is shown in the figure 2.1. The important things that affect the work
performance are input, aptitude, personality, management, work experience and the
resources available in the work environment.
Figure 2.1

Work performances in the term of system approach

Adapted from Tutar et al, (2011)

There are three variables that can describe work performance. These three variables
are (i) motivation and workload, (ii) knowledge and skills, and (iii) tools and climate
(Nickols, 2007). This also matches with the model of Kondrasuk, (2011) which also
explains the variables that determines a successful job performance. As per
Kondrasuk, (2011) the cluster of skills is competency and the key to a successful job
performance is behavior. The abilities, motivation, knowledge and the skills that an
individual brings to his/her job are the competencies. Work performance for research
purpose is defined as the process which the individual goes through to achieve a
particular goal.
2.4

Performance Appraisal as a mean to reduce employee turnover

The phenomenon of employee turnover is studied very thoroughly however, still no

particular reasons are identified for the employees to leave the job. The changing
and rotation of employee and labor in the market and between different firms, jobs
and occupations is known as employee turnover (De Moura, Abrams, Retter,
Gunnarsdottir & Ando, 2009). According to Chan & Corresponding, (2010) turnover is
the ratio of the number of members of an organization who left it during a particular
period to the total number of people present in that organization during that period.
Many times turnover is defined as the process of filling the vacant places within an
organization. Whenever a person leaves a job he/she leaves behind a vacant space
and now there is a need to hire and train a new employee and this whole cycle of
replacement is called turnover (Bu, McKeen & Shen, 2011). The term turnover is
often used by organizations to calculate the employees relationship in an
organization as they look to leave (De Cuyper, Mauno, Kinnunen & Mkikangas,
2011). A few more definitions are explained below:
a) The intention of turnover is estimated by the individual. He/she calculates the
probability that he/she may leave the organization permanently at some point
(De Cuyper et al, 2011).
b) The intentions of turnover are thoughts of an employee that he/she may leave
the organization (Chan & Corresponding, 2010).
c) The intentions of turnover are considered as a conscious decision made by an
employee to leave organization (Solinger et al, 2008)).

It can be seen from the definitions that the meaning of most of the definitions is the
same and it is the intention of the employee to leave the organization he/she s
working in. In this study preference is given to turnover intention to be the dependent
variable because as per De Moura et al, (2009) it is majorly co-related with turnover
and there may have a survival bias to the adoption of turnover and this may lead to
an incorrect conclusion. Therefore, the intention of turnover was considered to be the
better variable in this research.
2.5
Jaros,

Effective Organizational Commitment

(2010)

suggests

that

the

commitment

of

organization

has

been

conceptualized into three dimensions. The first dimension is the dimension of

effective commitment. This commitment comes from positive experience of work.
Second dimension is the dimension of continuance commitment and it is based on
the possible cost for leaving the company or investment. According to Jaros, (2007)
normative commitment is the third dimension. Mano & Mesch, (2010) defined that
organizational commitment is the attachment to the job or sense of commitment to
the job. All these dimension exist at the same time. The effective commitment was
found to be greatly co-related to the normative commitment (Solinger, van Olffen &
Roe, 2008). As per Jaros, (2010) those individuals that have a positive view about
the organization in which they work in are more committed to it and think about the
values of the organization as their own and in the end develop an effective
commitment to the organizat. The most sought out form of commitment by the
organization is the AOC and it is the highest level of commitment to an organization.
The feelings of an employee and his connection with the organization can be
described as the commitment of an individual with the organization as noted by
Davilia & Jimenez Garcia (2012) who focused on effective organization commitment.
According to (Solinger et al, 2008) AOC is the most common form of commitment
and here the level of commitment with the organization is high. The time period of
working for those employees who have the highest form of AOC is greater than
others as they are not forced to work ther work on their own desire and they want to
stay in the organization as added by Jaros (2010).
The existence of affective commitment to the organization depends on the
identification of an individual by the organization properly as per Prows & Prows

(2010). Davila & Jimenez Garcia (2012) strongly argued that organizational
commitment only exists when the goals of the organization and an individual are the
same and when it is felt by the individual that his/her attachment with the
organization can give them some reward or payment. Nickols, (2007) presented the
same idea of effective organization commitment. When the employees aim to prefer
their organization instead of them this kind of thought attains a lot of importance by
this definition. [(The aspect of action of organizational commitment is the thing that
attracts researchers to predict the outcome of this attitude like absenteeism; lower
turnover and better job performance in the work environment, sharing behavior and
sacrificing are the result of commitment as well (Prowse & Prowse, 2010)]. Jaros,
(2010) argued that main antecedent of effective commitment to the organization is
the reason for remaining on the job and this personal characteristic is based on the
motivation theory. For research purpose the effective organizational commitment is
defined as the attachment that an employee feels with his/her organization.
2.6

Intrinsic Motivation

Intrinsic motivation focuses on perception that an individuals action is selfdetermined (Fullan, 2011). As per Grant, (2008) intrinsic motivation within a person is
caused by his desire to be competent and by his self-determination, but in the real
life situation these two things (sense of competency and self-determination) often
covert. As the acquisition of competency has not been found to be motivating
enough unless it occurs due to self-determination therefore, it is the reason that
more importance is given to self-determination (Hung, Durcikova, Lai & Lin, 2011).
An operational definition was also provided by Levesque, Copeland, Pattie & Deci,
(2010) of intrinsically motivated behaviors. According to his definition these behavior
are the ones that are caused without having any contingency. In social psychology
intrinsic motivation has mostly been measured by observing the persistency of
behavior in a period of free choice and in the removal of intrinsic rewards (Hung et
al, 2011).
In the literature of marketing, the approach of expectancy value was taken by
Levesque et al, (2010) in order to measure the intrinsic motivation. In his research he
found six intrinsic outcomes using a thermometer scale for the salespeople. The
outcome was decided after interviewing the sales manager and salespeople in

advance and all the items related to the outcomes were created. As per Fullan,
(2011) intrinsic motivation is the characteristics of a job like variety and challenge
that gives the individual a high personal meaning as well as a feeling that the
individual is doing the right job. It is also argued by Aguinis, (2008) that the feeling of
self-satisfaction results due to intrinsic motivation. In the recent studies the definition
of intrinsic motivation is that it is a motivation that seeks rewards that comes with the
job or a task at hand (Wong-On-Wing, Guo & Lui, 2010).
The issue lies between the different of opinion about the concept of intrinsic
motivation in the literature of marketing and socio-psychological. Especially, the
definitions that are used in the literature of marketing dont looks to be stranded in
fundamental processes. Hung et al, (2011) intrinsic motivation is mostly defined from
the work of Grant, (2008) and others. But these definitions fail to explain that which
of the rewards achieved by a person were due to intrinsic motivation. But it has been
made clear in the work of Schmidhuber, (2010) that the thing that is sought is a
sense of competence. It was further noted by Wong-On-Wing et al, (2010) that the
effects of the characteristics of job like different challenges that an individual may
face effects the intrinsic motivation of an individual and it is dependent on the
feelings of competence that an individual faces during the job. Schmidhuber, (2010)
argued that intrinsic motivation is directly related to the feeling of reward and
satisfaction that one feels after performing his/her job.
As per Schmidhuber, (2010), intrinsic motivation has been defined most accurately in
the book Motivation in Education written by Pintrich &Schunk. This definition is to
the point and it adds up the participation of different people in different activities. (As
cited by Schmidhuber, (2010) the definition of intrinsic motivation given by Patrick
and Schunk says that someone is motivated to start an activity for its own sake.
Moreover, they also noted that those individuals who are motivated intrinsically
complete the task at hand more effectively because they enjoy doing it. The desire
and motivation in the individuals comes from within them and they are not externally
motivated. The main reasons of motivations were also explained by Grant, (2008),
which are:
a) The satisfaction that one feels after completing a task.
b) The appreciation that one receives after completing the task and during the
task.

c) Spreading their knowledge for the greater good.

According to the definition of intrinsic motivation found in the paper written by Fullan,
(2011) enjoys a very healthy support. The definition of intrinsic motivation mentioned
by Fullan, (2011) is very sound and is the used as a variable in this study. For this
study the definition of intrinsic motivation is taken as something that is deeply
desired for self-determination and for competence that enables the individuals to
behave in a way other than the one that is compelled by external contingencies.
2.7

Theoretical Framework
2.7.1 Performance Appraisal and Organizational Commitment
As per Bacal, (2011) the practices of HR greatly affects the outcomes in an
organization by improving the behavior of employees. Furthermore, according
to Aguinis, (2008) good HR practices increases the efficiency of the
organization by creating an environment in which employees are comfortable
to work in due to which the organization is able to achieve its goals. So, the
practices of HR affect both the employee and the organization. Moreover it
was noted by Long et al, (2013) that performance appraisal offers a lot of
benefits to the organization like improved job performance.
PA is an important part of the HR practices (Harvard Business School Press,
2006). It is a way to check or to link the performance of the employee with the
objectives of the organization (Bacal, 2011). Different studies have confirmed
that PA does effects job satisfaction which in turn will lead to better job
performance (Murphy et al, (2013); Kuvaas, (2007). It was further noted by
Abdulkadir et al, (2012) all the factors that contribute to an effective PA system
will ensure better performance. So there is very obvious relation between HR
practices and PA.
Bacal, (2011) mentioned that determining the goals and objectives of the
organization is a basic step to make an effective PA system. Then the goals of
the department and individuals are checked. In this way the employer would
know in advance that what standards are expected from him/her in the

organization.

This

process

clarifies

the

role,

description

and

the

responsibilities of the job. It also explains that how individuals role and
responsibilities helps in achieving the goal of the organization and the reason
why team and individuals performance is important for the organization.
According to Gordon & Stewart, (2009) a very important role of PA is to give
feedback of the growth and development of the foster employee.
Kavanagh et al, (2007) stated that through various studies and literatures it
has been found that the role of feedback and goal setting in PA is to increase
the performance of an individual. So, as a result there is positive co-relation
between PA and employee satisfaction and work performance (Kline & Sulsky,
2009). Najafi et al, (2010) also mentioned another major role of PA, which is
to equip the employees with new and latest knowledge and skills.
The process of PA clarifies the expectations of the organization from the
activities and actions of the employee (Nickols, 2007). If the employee doesnt
know how much authority does he has and what is expected from him and
how his performance will be judged then he/she will not be able to make
effective decisions and will take the approach of trial and error and will not be
able to please his/her superiors (Kondrasuk, 2011). As per Kline & Sulsky,
(2009) feedback from the managers tells the employee that what is expected
from them and weather their performance is up to the expectations or not.
This clear thinking increases the performance of the employees and keeps
them satisfied. So, PA clarifies the role to the employees thus removing
ambiguity which in turn increases the performance of the employees.
It was noted by Abdulkadir et al, (2012) the strategies of PA can be used to
convey the strategies, plans and objectives of the organization to the
employees. Furthermore, the emotional aspects of super-ordinate objectives
may influence the employees greatly and then they will have a cause to work
(Kuvaas, 2007). As a result, the employees will probably become more
motivated and committed to their organization. Working competitively includes
putting more value on the employees that have more experience, ideas and
preferences. The participation of the employees is very necessary because

both the managers and the employees discuss the goals of the organization
together (Sandhya & Kumar, 2011). It is important to not only take into
account the qualification of an employee but also the knowledge and the skill
that he has for future innovations.
Jaros, (2010) argues that the employees will be more committed to the
organization if they will believe that activities of PA will develop them in
different aspects. It was noted by Solinger et al, (2008) that PA increases the
motivation and commitment of the employee as it clarifies the goals of the
organization. Keeping in view the literature on performance appraisal and its
impact on affective organizational commitment, hypotheses is developed for
testing.
H1:

affective organizational commitment is positively influenced by

PA satisfaction

2.7.2 Mediating Role of Intrinsic Motivation

To understand the relationship of the outcomes of the employees it is
important to understand the components of intrinsic motivation other along
with the concept itself, which depends on punishment and reward (Fullan,
(2011). Grant, (2008) also argued that intrinsic motivation depends on the
positive experiences that one has in a good working environment. These
positive experiences make the employee more motivated and satisfied.
According to Hung et al, (2011) intrinsic motivation makes an employee happy
and due to this the employee works at his/her full potential and it makes the
work personally fulfilling. Levesque et al, (2010) mentioned that the key
component to make an employee motivated is intrinsic motivation and it is
also a major factor of employee empowerment. Schmidhuber, (2010) asserts
that it is intrinsic motivation that gives an employee en ability to be selfmotivated and self-leading due to which an employee gets self-knowledge
and self-awareness. The employees that are self-motivated will be able to
adapt to the changing environment effectively and will not require training and
development.

Wong-On-Wing et al, (2010) referred to the research of Thomas & Velthouse

(1990), which resulted in a complete model of intrinsic motivation. It includes
four judgments known as the task assessments. These judgments include
choice, competence, meaningfulness and progress. All these elements joined
together make up intrinsic rewards. These intrinsic rewards are required for
sustaining and producing empowerment (Schmidhuber, (2010). It was noted
by De Moura et al, (2009) a feeling of meaningfulness comes in an employee
when he/she feels that the work he/she is doing is worth their time and
energy.
According to Fullan, (2011) there is a positive co-relation between effective
commitment and intrinsic motivation. According to this the advantages of an
interesting and a challenging job are attributed to the organization. Those
employees who have an interesting and challenging job are less interested in
leaving it (Hung et al, (2011). Finally, many studies have found that there is
negative co-relation between turnover intentions and intrinsic motivation
(Levesque et al, 2010). Keeping in view the existing literature regarding the
role of intrinsic motivation on employees commitment with the organization
the same variable was tested using following hypotheses:

H2:

Intrinsic motivation mediates the relationship between PA and

affective commitment

2.8

Summary

This chapter provided detailed evaluation of existing literature on the area of

research study i.e. performance appraisal, organizational commitment and intrinsic
motivation. A conceptual/theoretical framework was developed after a thorough
secondary data evaluation, which led to the construction of research hypotheses.
Next chapter provides an overview of research design that has been developed to
conduct this dissertation.

Chapter 3

Research Methods
3.1

Introduction

According to Anthony & Jack, (2009) the practical framework is discussed in research
method that shows the direction of exploration. A survey was conducted by means of a
questionnaire that measured the level of interest of and motivation of the VODAFONE
customers. The extent of commitment and dedication was measured by motivating the
employees and other methods. Different methods and techniques are described below with an
aim to deal with problems that are usually faced during the research questionnaires. Study
population and sample collection are used to explain the scheme of the research method.
3.2

Research Design

As per Bricki& Green, (2007) the research scheme is composed of two parts i.e. the
quantitative part and the qualitative part. By using both the methods research questions are
elaborated in a better way that makes it easier to understand them, which in turn makes it
easier to understand and more productive.

Out of the two techniques the quantitative

research technique provides a more formal, sophisticated and orderly image (Kothari, 2012).
According to the view of Smith (2012) there are some benefits of qualitative approach that
includes its delivery of short but to the point results of observation and all this allows to get
an in depth look of the social procedures and viewpoints.
Another added advantage is that the quantitative research provides an in depth analysis that is
based on the methods of studying a philosophy, it is measured with the help of laws from
statics and calculated by doing several numerical trials. All this is done just to check whether
the assumptions made in the philosophy hold ground or not. If different variables are the part
of a particular study then the best way to analyze, is by quantitative approach (Kothari, 2012).
But according to Smith, (2012) qualitative approach is mostly used to gather information and
on th4e basis of that provide a detailed description that contains an in depth analysis.
On the other hand alternative association between affective commitment and PA for
VODAFONE is investigated that is also one of the main goal of the study. There is also a
hypothesis that explains the central role of motivation between the satisfaction of PA and

commitment to affective organization. The main features of the research design are explained
below:

3.3

Population
Techniques for sampling
Size of sampling
Tools for research
Collection of data
Population and techniques for sampling

In this case the target population is said to be the one which is under observation and
scientists want to draw results from them (Smith, 2012). In order to do this investigation the
target selected was the employees of VODAFONE. It included people from all the
departments that included people from human resource department, customer service officers,
customer service managers, customer service representatives and people from IT department.
The impact of performance appraisal was studied on them.
The study shows that the model contains multi faces for example motivation, performance
appraisals etc. in order for their deployment only the concerned people from the concerned
departments were contacted. That means that if these are the people that are given this task
they are well equipped in their departments and know what they are doing. And they are well
aware of the fact that how it can affect their lives and careers.
One of the sampling techniques that is used for this study is the convenience sampling
technique which is one of the other nonprobability techniques under sampling techniques. Of
all the techniques this technique is used because:

This technique is dynamic, economical and cheapest of all the techniques that are

being used for the purpose of data collections.

It normally provides enough data for the timely identification of the problem.
Time can be utilized in the best possible way.
All the data about the employees is not available so the best technique in this scenario
will be probability sampling.

Measures

The responses from the people were collected with the help of a five point Linkert scale. The
range of the scale give the people the liberty to mark their choices from strongly agree to
strongly disagree.
Size of Sampling
The size chosen for this particular study is 200 and the people are chosen from the three
different branches of VODAFONE.
Tools for research
Questionnaire is a very simple but on the same hand a very effective instrument for research
(Anthony & Jack, 2009). It is normally cheap, cuts cost and cuts the type of data that results
due to the prejudices of the investigator during the interview practice. In the meantime the
research wanted to keep its focus on the main points i.e. views and attitudes of the key
personnel. So the unknown nature and patterns in the questionnaire helps the people taking
part in the survey to come up with their inner feeling and attitudes towards a particular
problem.
The main tool used for this particular study was the questionnaire. But it wasnt an ordinary
questionnaire, specially structured questionnaire were designed keeping the task in hand in
mind. With that the variables were studied by utilizing statistical tools.
3.4

Collection of Data

There are two methods used for the purpose of data collection i.e. Primary Source and
Secondary Source.
Questionnaires are taken as the primary source of data collection as it is taken directly from
the people. On the other hand the data collection from secondary sources is collected by
means like

Annual reports of VODAFONE

Official press releases of VODAFONE
Thesis that are published or different articles
The internet

There are several ways in which questionnaire data is collected that includes questionnaires
through the mails or other electronic devices or means, interviews on telephone etc. (Smith,

2012). The questionnaires were distributed in masses in the presence of investigators and
researchers. And in general the queries that were received were not open ended.
3.4

Considerations on the basis of ethics

In the study the writer has remained neutral throughout the job and is aware of his limitations
and the extent of his competency. The participants of the research were given the liberty to
keep their personal information hidden if they dont want to show it. In this way they were
given a more comfortable and friendly environment that helped in getting the inner feelings
out of them without any fear. This was also followed by the researchers and the rules were
observed. The data that was collected is not used anywhere else, it is only used for the soul
purpose of study and the permission was taken for that. Certain levels of considerations on
the basis of ethics were taken into account that is explained below:

3.5

Moral codes
Objectivity
Following the rules and ho0nestly using the data only for academic purpose
Full exposure of different techniques for research
Truthful data collected from the people participating in the research
Making the participants aware of everything that they are taking part in an academic

research
There will be no misrepresentation and all the results will be fair
Hypothesis or research propositions

According to Kothari (2012) hypothesis and proposition are not that suitable. Both have
almost the same meanings and proposition is defined as the claim before time that can be real
or fabricated. So once the proposition is made, a theory is developed on the basis of that and
experimentati9on starts on the hypothesis in order to find its truthfulness. The hypothetical
factors that are utilized in this study are explained below:
H1: Satisfaction with Performance Appraisal System has a positive influence on
Organizational Commitment.
H2: Intrinsic motivation affects the relationship between performance appraisal satisfaction
and organizational commitment.

According to Akinbowale, Lourens&Jinabhai, (2013);Kampotter, (2014); Ochieng,

Abaja&Gichuhi, (2011) different type of practices lead the way toward the HR practices that
makeup an effective organizational commitment. Although researchers have deduced the
facts that the commitment of the employee is responsible for effective HR practices, but some
of the researchers are also against this they think that it is effective to some extent and the HR
practices also have a key role that define the behavior of the employees. An example given by
Kampkotter, (2014) that the HR practices and commitment to the work both hold a normative
as well as an emotional place, so either the organization can be inclined towards the welfare
of employee or the HR practices or otherwise. Although there is a connection that has been
bridged between the employees and the HR practices but still there are things that need
attention.
Some of the researches argue that persistence commitment is affected by positive HR
practices (De Moura et al, 2009). But on the other hand (Solinger et al, 2008) states that there
is no connection between the effective commitment and the HR practices. According to
Katherine, Song, Yaping& Kenneth (2009) continuance commitment is affected by the HR
practices but not the affective commitments.
3.6

Chapter Summary

The study has provided a detailed insight about the research techniques that are available to
us and in what circumstances these can be affectively used. It was an essential task to develop
a suitable research design so that a defined approach was followed without any hindrance in
order to achieve the aims and objectives of the research.

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