Personnel Performance Appraisal System for Construction Contracting Organizations

Abstract

The nature of the construction industry is dynamic, and employees play multiple roles. This makes performance evaluation of construction employees complex and Organizations face challenges in streamlining the Personnel Performance Appraisal (PPA) system towards achieving distinct objectives. Previous studies have identified behavioural traits, attributes, personality traits, traits for particular designation in the organization, which contribute in improving the performance. Research has not been conducted on Personnel Performance Appraisal Systems in construction organizations in Indian context. This study focuses on proposing a framework for the PPA system and emphasized on identifying performance dimensions for construction contracting employees. Performance dimensions are classified as qualitative and quantitative dimensions and identified for different levels of management and integrated into the framework. This study also explored the nature of current PPA systems in construction organizations, and identified shortfalls during the appraisal process. The study adopts a mixed-method approach to achieve the objectives. Mixed method consists of a qualitative and quantitative approach. As part of a quantitative approach, a questionnaire survey is used as a primary approach. Frequency method, descriptive statistics and factor analysis are used to analyse the data. Semi-Structured interviews are used as part of the qualitative method. Appraisal forms and related documents from various organizations supplemented the data from interviews and survey. A comparative case study is conducted between an IT (service based) organization and a Construction Contracting Organization. This study focuses on management practices. Further case studies are conducted in construction contracting organizations to understand current PPA systems in use and their various aspects. The results indicated Self-appraisal is a part of the PPA process; dimensions are established by industry practice, job descriptions are set by managers and immediate superiors. Most of the organizations have taken steps to improve employee performance. Interpersonal relationship and bias have affected the employees during the PPA process. From exploratory factor analysis, 39 performance dimensions are identified and grouped as ii six key dimensions based on factor loadings. Case studies supported the results of the questionnaire survey; additional dimensions such as cost, time-related dimensions are identified. The performance dimensions are mapped into 3 levels of management and an assessment framework is proposed. Further, the appropriateness of the framework is validated with the help of experts. This proposed framework is expected to help HRM Department and appraisers in CI to strengthen the PPA systems in the Indian context.