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 devices determine 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 employee motivation 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.

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 wellconducted 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 appraisal system 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 demotivate 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 employees performances are matched with a standard and their overall assessment is independent of other co0worker in a team (Dessler, 2000). In relative standards, individuals performances 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

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.

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 British business 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 multipurpose 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 well as 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.

RESEARCH METHODS RESEARCH DESIGN: The current research study was employed an exploratory method of research to explore the use of performance appraisal system in employee motivation in the National Drilling Company (NDC), UAE. The social survey was the method that employed in the study. A set of well organised questionnaire was employed to gather primary data. The study used descriptive and inferential statistics to quantitatively analyse the collected data. SAMPLING PROCEDURE: Employees of the registered financial institutions in the Abu Dhabi were the target population in this study. Employees of four institutions, however, were preferred in the Abu Dhabi for reasons of closeness and ease to signify the majority population of workers in all these institutions. They comprised Abu Dhabi Securities Exchange, the Central Bank of the United Arab Emirates, Amlak Finance PJSC, Union National Consultancy, etc. SAMPLE SELECTION: 147 were the total employees in the preferred institutions. Out of them, 15 were from supervisory employees, and 132 were subordinates. 10 respondents were purposively chosen for the managerial staff, due to their strange role in performance appraisal process. While in the subordinates case, the random sampling method was applied to choose 68 participants because the organisations did not allow total enumeration. TOOLS FOR COLLECTING PRIMARY DATA: To collect primary data, the questionnaire method was employed. For this study, two questionnaire sets were organised; one for department managers who carries out the performance appraisal and the other for subordinates. FIELDWORK: In Abu Dhabi, companies have standard rules controlling the conduct of research into their operational activities. These standard rules ascertain what information should be exposed to research workers. Therefore, it is ethically binding on research workers to look for consent from higher level of management prior to researches is performed in organisations. Letters of introduction, hence, were delivered to the chosen institutions for consent. This approach provided the author the chance to develop good relationship with organisational officials. In addition, an opportunity was also offered by it to the author to gather information about the employees for the collection of a suitable sampling method for this research. PRE-TEST AND POST-TEST OF THE QUESTIONNAIRE: A tool of pre-test of the study was important to make sure that the questions inquired were understood by all the participants and to determine rational sequence of questions. Therefore, questionnaires were sent through mail to employees of National Drilling Company (NDC) for pretesting. The outcomes of the opening piloting assisted in reorganising the questionnaire as well as making the required corrections. In the study, it was experienced that many participants failed to respond on openended questions. This means that same would happen in the collection process of final data. Following restructuring of questionnaire, it was post-tested to employees of NDC. The responses of the questions indicated that the closed-ended questions were favoured by the respondents.

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.