1.7 Limitations/Delimitations Factors of Research7
1.8 Outline of Organization of the Research8
CHAPTER 2: LITERATURE REVIEW9
2.1 Introduction9
2.1.1 Searching for Sources11
2.1.2 Quality of information11
2.1.3 Use of information12
2.2 Theoretical Review13
References17
CHAPTER 1: INTRODUCTION
1.1 Background of the Research
The emerging body of researchers has emphasized that organizations have survived in the pursuit of both development and performance by providing significant attention to make huge investment into the human capital (LaFleur, Arnold & Smith, 2012; Mitchell & Beach, 2011; Ngoc, 2012). Many researchers have agreed on the common terms that employee performance in today's organizations is critical to the survival of the success and production process within an organization (Giangreco et al., 2010; Raymond, Cadieux & St-Pierre, 2012; Wagar, Carroll & Rondeau, 2011). Being it large, medium or small organizations or being it any sector of corporate settings, the importance of employee performance cannot be ruled out. It is because of the array of the employee performance from purpose driven human labour and streamlined employees that constantly supported the foundation of each organization's production processes, development, organizational success, and challenges organizations face in today's highly competitive world. The employee performance in the particular organization pointed out that those employees are satisfied, determined, happy, and enthusiastic to the challenge themselves to the maximum in order to meet the organizational goals and set challenges.
Researchers such as (Giangreco et al., 2012; Jung & Takeuchi, 2010) examined that in general interest, every organization today must have an internet in looking for the ways that could ignite this fire of determination and enthusiasm among employees through different strategies that could lead to higher employee performance and low productivity issues (Yang & Lin, 2009; Mohd & Rosman, 2012). Some of these wide strategies organizations must be familiar with include motivation, development, and retention to keep employees ignited with something that crucial for their success and development as well as of the organization as a whole (Mansor et al., 2012). Some other management strategies fall under these categories include incentives, remuneration, compensation, and appraisal (Osman, CF & Galang, 2011). Performance appraisal, being increasing concern to the organizations, is gaining wide popularity among the literature and research studies of employee performance. The objective of appraisal process is to begin with establishing a performance criteria or benchmark or standards and is usually articulated within organizations with phrases like “A full day's work” (Zheng, O'Neill & Morrison, 2009). Yang & Lin (2009) emphasized that despite the size of organization, expectations put by the top management on employees must be clear enough as it is very essential and critical for communication with employees or subordinates working them. In essence, the purpose of the current research is to analyze and investigate the effect of performance appraisals and employee performance while specifically focusing on SMEs (Small-to-medium enterprises).