babeŞ-bolyai university faculty of · pdf filefaculty of economics and business...

69
BABEŞ-BOLYAI UNIVERSITY FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie Student Florina TEODORESCU 2015

Upload: lamque

Post on 12-Mar-2018

223 views

Category:

Documents


5 download

TRANSCRIPT

Page 1: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

BABEŞ-BOLYAI UNIVERSITY

FACULTY OF ECONOMICS

AND BUSINESS ADMINISTRATION

CLUJ-NAPOCA

Bachelor’s thesis

Scientific Coordinator

Conf.univ.dr. Monica Aniela Zaharie

Student

Florina TEODORESCU

2015

Page 2: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

BABEŞ-BOLYAI UNIVERSITY

FACULTY OF ECONOMICS

AND BUSINESS ADMINISTRATION

CLUJ-NAPOCA

Bachelor’s thesis

Personality traits and

performance in real estate

sales

Scientific Coordinator

Conf.univ.dr. Monica Aniela Zaharie

Student

Florina TEODORESCU

Page 3: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

2015

Contents TABLE OF FIGURES .............................................................................................. 4

INTRODUCTION ..................................................................................................... 6

1. SITUATION ANALYSIS .................................................................................. 8

1.1. EVOLUTION OF WORK PSYCHOLOGY AND HRM ..................................................... 8

1.2. CURRENT STATE OF HR PRACTICES IN ROMANIA .................................................. 12

2. THEORETICAL JUSTIFICATION AND RESEARCH METHODS ................20

2.1. PERFORMANCE APPRAISAL .................................................................................. 20

2.2. FACTORS THAT INFLUENCE JOB PERFORMANCE ................................................... 35

3. METHODOLOGY AND RESULTS OF THE RESEARCH .............................44

3.1. OBJECTIVES AND RESEARCH HYPOTHESES ............................................................ 44

3.2. SAMPLE OF THE STUDY ........................................................................................ 46

3.3. RESEARCH INSTRUMENTS AND METHODOLOGY .................................................. 48

3.3.1. PERFORMANCE APPRAISAL QUESTIONNAIRE................................................ 48

3.3.2. PERSONALITY QUESTIONNAIRE .................................................................... 48

3.4. COLLECTION OF THE DATA ................................................................................... 50

3.5. RESEARCH RESULTS.............................................................................................. 51

3.5.1. PERSONALITY TESTING RESULTS ................................................................... 51

3.5.2. PERFORMANCE APPRAISAL RESULTS ............................................................ 55

3.5.3. CORRELATIONS BETWEEN FFPI FACTORS AND PERFORMANCE APPRAISAL

CRITERIA.. .............................................................................................................. …….56

3.5.4. OTHER CORRELATIONS ................................................................................. 57

4. CONCLUSIONS, FALLACIES AND FUTURE RESEARCH DIRECTIONS ..60

LIST OF REFERENCES ........................................................................................................ 62

APPENDIX ........................................................................................................................ 65

Page 4: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

TABLE OF FIGURES

Figure 1 - The distribution of sample according to age..............................................47

Figure 2 - The distribution of employees according to seniority ................................47

Figure 3 - Distribution of subjects according to scores on Extroversion ....................52

Figure 4 - Distribution of subjects according to scores on Agreeableness ..................52

Figure 5 - Distribution of subjects according to scores on Conscientiousness ............53

Figure 6 - Distribution of subjects according to scores on Emotional Stability ..........54

Figure 7 - Distribution of subjects according to scores on Openness to Experience ...54

Figure 8 - Averages of performance appraisal criteria across the sample ...................55

Page 5: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie
Page 6: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

6

INTRODUCTION

As the majority of research regarding the effects of personality features on

performance is focused mainly on the American population, the present study intends

to offer some insight into the particularities of the issue in a completely different

setting. While there is previous research on this subject focused on the European

population, in Romania, the study of the correlation between personality and

performance is still in its infancy. This thesis therefore hopes to offer some insight

into this matter and at the same time serve as a tool for companies wanting to improve

the success of their selection processes, as well as for individuals who wish to pursue

a career that will suit their personality and the needs that derive from it.

At present, most of the companies operating in Romania do not have and therefore,

do not use the knowledge of either Human Resource Management or Work

Psychology in their employee selection processes (Ticu, 2004). Most of these

decisions are made intuitively, and, as such, the rate of employee turnover and job

dissatisfaction increases, resulting in lower performance for the employees as well as

for the company. The solution, however, is not to attempt to imitate the western

model of management, especially regarding human resources, but to gain knowledge

in the fields of HRM and work psychology and understand the particularities and the

implications of the Romanian culture on organizational culture and the perspective on

work of Romanians.

The main aim of this thesis is to identify the degree to which certain personality traits

or combinations of personality traits influence individual work performance, if such a

correlation can be established in the first place. Performance will be assessed in a

professional context, in the field of real estate. The study will be focused on a sample

of 21 employees of a real estate agency based in Cluj-Napoca. The performance of

these employees will be assessed using supervisory ratings and sales data.

Page 7: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

7

There are three main objectives that derive from the aforementioned aim. The first of

them is the identification of correlations between performance and personality. Such

knowledge may be used as criteria for increasing the effectiveness of selection

processes.

Secondly, the present work intends to build a ground for further research on the

subject of the link between personality and work performance, a subject that has yet

to receive its due attention in Romania. Everywhere, there seems to be a chiasm

between theoreticians and practitioners, yet in Romania this chiasm seems to be

significantly more prominent. The present thesis is written with the intention to make

this chiasm smaller and to bring closer together the theory and the practice of work

psychology and HRM.

Lastly, this paper is itself meant to build on the pre-existing knowledge in the fields

of work psychology and human resource management. Thus, in line with that intent, a

number of hypotheses will be drawn in order to both verify the previous findings in

the context of a Romanian company and attest the discovery of new correlations

between specific dimensions of personality and individual job performance.

For the purpose of identifying the personality traits of the sample population, the five-

factor model of personality will be used, also known as the “Big Five model”.

Page 8: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

8

1. SITUATION ANALYSIS

1.1. EVOLUTION OF WORK PSYCHOLOGY AND HRM

Given the severe attempt to control information and supress the voices of

inconvenient personalities during the years 1945-1989, following the evolution of

what would become human resources management and work psychology is not an

easy undertaking. These files of history feature a strange combination of recorded,

proven facts and less known, ambiguous information blurred by controversy.

At the beginning of the 20th century, work psychology developed into the several

directions: personnel psychology, engineering psychology, work rationalization,

economic (behavioural) psychology, social psychology of work and organizational

psychology (Jurcău, Drugas, 2008). In Romania, the first studies regarding work

psychology appear in the wake of the 1st World War, following a period of economic

recovery. Work psychology and its evolution were shaped by the impact of several

factors, namely the contribution of universities, the activity of the first

psychotechnology laboratories and institutes, ergonomics as an established science

and several publications which had a resonating effect during the century.

Not long after psychology gains global recognition as an experimental science, the

seeds of psychology as an independent science begin to sprout also in Romania.

Under the supervision of W. Wundt, E. Gruber, C. Rădulescu-Motru, F. Stefănescu-

Goangă, the first Romanian pioneers of experimental psychology complete their

apprenticeship in the first laboratory of this kind established in 1879 in Leipzig,

Germany.

In 1906, Constantin Radulescu-Motru establishes the laboratory of experimental

psychology in the University of Bucharest, whose development will be laboured due

to the lack of funding. In Cluj-Napoca, Stefănescu-Goanga and C. Rădulescu-Motru

Page 9: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

9

obtain permission from the Ministry of Labour to form psychotechnology laboratories

in Cluj and Bucharest (Bejat, 1972). The year 1930 features the creation of the

Academical Society of Psychotechnology, which publishes “The journal of

experimental and practical psychology” (“Revista de psihologie experimentală si

practică”). The first issue of the journal features an ample description of the

Rationalization and Psychotechnology conference from Berlin. The Laboratory of

Bucharest also seems keep up with international developments, translating and re-

testing the Army Alpha tests and performing studies on people working in the oil

extraction industry from Valea Prahovei and workers from the cement factory of Gura

Hont (Rosca, 1967). The Army Alpha was a group-administered test developed by

Robert Yerkes and six others for the purpose of evaluating U.S. military recruits

during World War I. The test also featured a non-verbal exam dubbed Army Beta,

meant for illiterate or foreign-speaking soldiers.

The institute of experimental comparative and applied psychology of Cluj-Napoca is

established in 1922, under the direction of founder Florian Stefănescu-Goangă. The

activity on the institute is mainly centred around the adaptation and elaboration of

tests and questionnaires, as well as the development of psychotechnical tools. The

studies performed within the institute were published in the Journal “Psychological

studies and research”, which spanned the years 1929-1945. While greatly appreciated

by Nicolae Margineanu, the work of Stefanescu-Goanga did not elude criticism from

other members of the scientific community, who commented on the excessive

reliance on testing, which sometimes lead to conventional, biased results.

The attention of work psychology specialists was focused, among other issues, on

professional orientation, which represented a current issue in Romania. While abroad,

vocational guidance was mostly supported by those who worked in the industry, in

Romania, the issue was brought up by universities, especially by those in Cluj and

Bucharest. The founding of experimental psychology laboratories in the above-

mentioned university centres allowed the creation of the first research and studies

pertaining to work psychology and vocational guidance.

The Romanian psychology gained unanimous international recognition during the

interwar period, only to be suppressed, years later, by the communist regime. On the

Page 10: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

10

background of social transformations, political oppression and ideological confusion

characterizing the 1940s, work psychology moves through a difficult phase. While

vocational guidance remains in the forefront of preoccupations, the issue is deprived

of the scientific support provided by institutions.

After 1950, the development of small clusters of support built around personalities of

the realm of work psychology provides a foundation for continuing research. One

such collective is the one in Cluj, which managed to complete research in various

areas of work psychology under the guidance of Alexandru Rosca, some related to the

adaptation of the worker to the profession. Most often, the research conducted by this

group would take on issues related to selection and personnel training, organization of

work, product quality control, and accident prevention (Jurcău, Drugas, 2008).

The year 1964 witnesses the formation of the Association of Psychologists of

Romania. National conferences pertaining to the domain follow, each featuring a

segment dedicated to work psychology. The first symposium dedicated to work

psychology takes place in 1970; among other contributions, the symposium leads to

the identification of the main problems that plague the Romanian industrial

psychologist. The main themes of the symposium were vocational guidance, selection

and professional placement, engineering psychology, industrial and organizational

psychology (Pitariu, 1978).

This period is characterised by the apparition and publication of a series of work

psychology monographs and manuals, written by several prominent personalities in

the area. The researchers would publish their findings in issues of actuality such as

the prevention of fatigue and accidents, pertaining to the field of ergonomics, or

psychosocial issues, such as absenteeism and personnel fluctuation. The works

published would often have a practical character, due to the collaboration with

companies belonging to the mining and pharmaceutical industries.

Starting from 1975, psychology falls from communist grace; university professors

and prominent figures of the field are promptly dismissed and directed towards other

work places. The departments of psychology in universities all over the country are

Page 11: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

11

subsequently removed. This abrupt banning of psychology takes its toll on the rhythm

of development of psychology as a whole.

After 1989, the Faculties of psychology of Bucharest, Cluj and Iasi are reinstated and

new universities are established at Timisoara, Oradea, Constanta and other Romanian

cities.

Ever since the fall of the Communist regime in Romania, the academic circles of

work psychology and human resources have been slowly covering the ground lost in

the previous decades. During the 80s, while Ceausescu and his followers were

occupied with the aggressive abolition of psychology, in the rest of the world, IT and

telecommunications were flourishing, globalization and internationalization were

changing the rules of the game for production and consumption, and the importance

of human resource management was reconsidered in the light of new findings related

to its strategic character. After the veil of communism was lifted, there was

humungous growth in publications and research. The newfound freedom manifested

itself in collaborations with work psychologists from Western countries. The new

political and social conditions, the unrestricted access to books and conferences

contributed to minimizing the gap between Romanian and mainstream work

psychology and human resource practices (Kiss, 2012). The economic crisis that

followed, which damaged not only industrial giants who seemed untouchable, but

also demolished several myths relating to the supposedly failsafe western managerial

practices, continues to shape the way human resources are managed in today’s

organizations.

During last years of transition, Romania, along with the other Central and Eastern

European countries, continuously borrowed practices, principles and management

methodologies used by developed countries. The labour market was also going

through change, as a result of the population decrease after the regime change. The

population decrease, caused by reduced fertility rate, reduced number of live births

and increased number of deaths, coupled with the contraction of economic activity,

which led to the departure of a significant fraction of the total population abroad,

caused a significant change in the size of the workforce (Russu, 2014).

Page 12: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

12

1.2. CURRENT STATE OF HR PRACTICES IN ROMANIA

In the meantime, growing awareness regarding the importance of human resources

was taking its toll on the way that these were managed. Economic competition and

the advent of multinational companies and foreign investors have contributed to

shifting the mentalities regarding the importance of human resources in organizations.

While there continues to be a gap between domestic HR practices and Western ones,

the situation seems to be improving as time passes.

As such, data from a 2006 study regarding the human resources market of Romania

conducted on companies of all sizes reveals that in the majority of the companies, the

HR manager has less of a strategic influence, since most of the decisions regarding

Human Resource Management are taken by the General Manager (53.6%) or the

Administrative Board (19.2%), while the HR Manager is in charge of these decisions

only 12% of the time. In the following year, data from the same study shows a slight

amelioration in the situation, with the HR manager making strategic HR decisions in

19% of the cases. Other data points to the fact that a HR strategy is more likely to be

established in companies that have a higher number of employees, which are, perhaps

not coincidentally, the companies who also have an established HR function. As such,

95% of companies with over 1000 employees have a HR strategy, as opposed to 57%

of small organizations with less than 10 employees (Marinas & Puia, 2009).

However, the greater cause for concern is the fact that most companies are not

transparent regarding the objectives of their human resource strategies. It is a fact

well known that in order to have better odds at reaching a particular strategic

objective, each and every employee needs to be engaged and of course

knowledgeable about the workings inside the company. While there is a tendency for

improvement, at present, survey data seems to indicate that most companies’

employees are not familiar with the objectives of HR strategy (Marinas & Puia,

2009).

As what regards the annual spending budget on HR activities, the average for

Romania is 92 EUR per employee (Romanian HR profile 2006). Survey data shows

that a third of companies invest between 150 and 200 EUR per employee for training

Page 13: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

13

and development, while 38% of companies invest less than 50 EUR per employee

annually. To put this into perspective, the data from the Official Statistics of Finland

(OSF): CVTS, Continuing vocational training survey reveals that in Finland, course

training costs average at an impressive 573 EUR per employee annually. The

situation does not look especially favourable, even less so when we take into account

the fact that a high quality training course would cost an organization upwards of 50

EUR per employee. In these conditions, it is clear that one in three companies provide

none or poor quality training for their employees. Survey information from 2007

suggests a slight decrease in spending, with the average training budget per employee

estimated at 87 EUR per year. On the other hand, the training budget allocated to top

managers is approximatively three times larger. On a brighter note, there is proof

indicating that there is a larger population of employee being exposed to training in

2007 than in the previous year, as there were less companies that completely lacked a

training budget, and more companies that recorded a training budget higher than 200

EUR.

The main training subject requested was communication training (83%), closely

followed by Sales (73.4%) and Team Building (62%). There is also significant

interest in Presentation skills, Negotiation and General Management, the latter one

specific to manufacturing companies which often have issues with middle

management employee retention. Since the employee training and development

market is only in its infancy in Romania, it is expected that organizations offering

training will be more highly specialised in the future, and also slightly decrease the

prices for team building, communication and sales.

The Romanian labour market is characterized by a shortage of well prepared and

experienced candidates, who demand higher and higher salaries. According the HR

professionals, it is dissatisfaction with the salary that is behind most employees’

decisions to leave. Another factor often located behind employees’ decisions to leave

is the desire to change the type or field of activity. However, this information should

be viewed with a healthy dose of scepticism, as few companies (37%) organize “exit

interviews”. There seems to be continuous pressure on companies to increase salaries,

as the indicator for reasons to leave due to compensation has increased since the

Page 14: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

14

previous year. The main reasons for employee discharge are, in order of frequency,

indiscipline, incompetency, restructuring and theft.

Data from HR Outlook studies spanning the years 2010-2013 indicate that the main

areas of activity of HR departments in companies, in order of budget distribution, are:

Training and professional development

Recruiting

Specific HR logistics

Remuneration

Internal communiation

While e-learning was not particularly popular with companies during the first decade

of the 21st century, in 2010 it was responsible for a slight decrease in training and

development costs, in comparison to the previous year. Recruiting continues to be a

major preoccupation of all companies, with significant costs associated to it due to the

increasing tendency of outsourcing it or collaborating with external consultants.

While external consultants are not often involved in the HR activity of the company,

when they are, it is most likely in relation to recruitment and selection (35% of the

cases), performance management (15% of the cases), and internal communication

(20% of the cases).

The least important activities, as reported by the HR Outlook 2010 survey, were

performance management, organizational studies, consultancy for HR processes and

systems development, and litigation and compensation.

By the year 2013, data from the HR Outlook report looks significantly different in

some areas. One of these is the performance management budget allocation, which

registered an increase of 36% since the previous year. Companies spent more on

Performance management, and less on HR Administration. This may be a clue as to

the shift in paradigm, as the HR function moves closer and closer to becoming a key

strategic function.

Page 15: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

15

Regarding Knowledge Performance Indicators (KPIs), the one that receives the most

attention is the Turnover rate. HR Departments use this indicator almost twice as

much as they use the Productivity or Profit per Employee indicators. For Recruitment

and Selection, the main KPI under surveillance is the average recruitment time. It is

interesting to note that the time needed for recruitment metric is considered by

companies to be more important than the metrics related to cost, such as the average

recruitment cost (HR Outlook 2013). The preferred recruitment sources are

newspaper advertisements (80.8%), internal recruitment systems (60.5%),

recommendations (47.3%), specialized websites (46.3%) and specialized companies

(34.5%). Perhaps unsurprisingly, most companies rely on other methods of

recruitment, resorting to collaborating with specialized companies only in slightly

over a third of the cases. As for Professional development and training, the most used

indicator is the Training Rate also known as Total number of training hours per year

(46%), followed closely by the Total Training Cost/Employee (41%).

All in all, Recruitment and Training and Development continue to be at the top of

most HR department’s budget, across the years, together accounting for 44% of the

budget. The situation, however, differs drastically when it comes to performance

appraisals and performance management, which is currently at the lower end of the

priority list for Romanian companies.

Several studies and surveys conducted on SMEs paint a completely different picture

for the state of HR practices in Romania. The companies surveyed in the above

mentioned studies, regardless of size, did have an HR function inside their

organizational structure. Multinational and large companies often have the added

advantage of foreign managerial know-how, which contributes significantly to

strategic management. In the absence of this knowledge, and given the relative youth

of the SME sector in Romania, it is perhaps understandable that human resources and

their management are so blatantly neglected in Romanian small and medium

companies. The existence of a gap between HRM research and practices is obvious

even in large companies, yet in SMEs, this gap is even more debilitating, since

managers of small companies are often constrained by the scarcity of resources, and

cannot simply imitate the large companies’ model of HRM.

Page 16: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

16

According to Marinas & Puia (2009), who conducted a study on small and medium

companies, public companies, large companies and multinational companies, an

estimated 79% of the investigated companies had a HR department. Another study

conducted on SMEs indicated that only a third of companies had a HR department.

By correlating this information with the respective size of the companies interviewed,

it is revealed that preoccupation towards HRM increases together with the company’s

size. According to the same study, only 30% of companies seek assistance from

specialized companies for HR activities like evaluation, professional development

and recruitment and selection (Grigore, 2008). In Romania, there is a history of DIY

culture with regard to almost everything, and HR practices are no exception. Just as a

few years ago, sellers and buyers would avoid seeking the services of a real estate

company, in order to avoid unnecessary spending – because they could manage by

themselves just fine, so it is now that companies most often prefer to conduct HR

activities by themselves, without external consultancy. The reason behind this

decision is simple: one on hand, the benefits of collaborating with specialized HR

companies are not widely known, and on the other hand, the resources available to

SMEs are so limited that they do not allow for the use of consultancy for HR specific

activities.

Managerial training seems to relieve the issue of requesting consultancy services for

HR activities, which inevitably leads to the conclusion that the knowledge factor

weighs significantly in the decision to employ or not to employ the services of a

specialized HR company, since the trained manager becomes more aware of the

importance of human resources management and of the possibilities of company

growth that it would allow, if managed effectively. Furthermore, as a result of

training, a manager would understand the complexity of the HR field, and admit that

it would require continuous effort to resolve HR issues, which may lead to

questionable solutions.

Regarding the recruitment methods, it has been revealed that most companies

belonging to the SME category predominantly use informal channels for the purpose

of recruitment of both executive and management personnel. The method assumes the

existence of previous knowledge on candidates. The second most used recruitment

method is the publication of job and vacancy advertisements in internal recruitment

Page 17: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

17

systems, which allows a company’s employees to be informed about vacancies. This

is an especially efficient approach because it decreases the acclimatization period of

the employee, since he/she is already accustomed to the company culture and

practices, it promotes engagement, since it acts as a strong motivator for employees,

and it reduces overall costs for selection. Internal recruitment systems are used for

both executive and management personnel (Marinas & Puia, 2009). Among other

widely used recruitment methods for executive personnel are mass-media recruitment

(38%) and employment requests published in newspapers (34%) (Grigore, 2008).

Recruitment agencies are also used when a company is searching for management

personnel. The nature of the job seems to account for the variability in the preferred

methods for recruitment.

In what regards the selection phase, there are a number of criteria that revealed itself

as most important for SMEs:

Qualities, knowledge and personal abilities

Diplomas or certificates for studies

Work experience

Previous position held

References or recommendations from a third party

Of these, the one that weighed the most as a criterion was Qualities, knowledge and

personal abilities, followed by diplomas or certificates for studies. The fact that these

two come in the first and second positions does not come as a surprise, as it would be

only natural for the selection process to be reliant on personal abilities and qualities,

and for the candidates to be distinguished by their education and studies. Not far

behind the second criterion was work experience, which is preferred by some

entrepreneurs to differentiate between candidates, while others prefer little to no

experience, as it allows them to train the employees according to the company’s

values and culture. These findings are also confirmed by Marinas & Puia (2009).

Regarding the selection methods, the same study conducted by Grigore in 2008 found

that for execution personnel, the most used methods are the interview and practical

testing, whereas management personnel is most often selected through interview, CV

Page 18: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

18

and KSA tests. Another study indicated the occasional use of motivational letters for

managerial staff selection (Marinas & Puia, 2009). The study has revealed a positive

correlation between the size of the enterprise and the use of formal methods of

selection. For example, KSA testing is used in microenterprises only in

approximatively 10% of the cases, as opposed to medium companies, where it is

reaches a percentage of 70%. Although less popular, the same trend can be seen for

personality testing, which is rarely used in small enterprises, but is used in 1 in 4

medium companies. Some causes behind the restricted use of personality testing in

companies may be the lack of knowledge, potential ethical issues and the cost

associated with purchasing and using viable personality inventories and

questionnaires.

When it comes to training and developing human resources, most SMEs prefer to

accomplish this in their own companies, at the workplace (Grigore, 2008). The

situation does not differ in other types of companies, as proven by the study of

Marinas & Puia (2009), with the majority of companies preferring on the job training

for their employees. Besides cost issues, another possible reason for this is the fact

that a company with a small number of employees is restricted by this and cannot

afford to stifle production in order to send an employee to external training.

Nonetheless, it seems that also in the case of training, the size of the company

influences the range and diversity of training that employees receive.

The situation is strongly divided in the case of personnel evaluation: 52% of SMEs

evaluate their employees, while the rest of 48% do not (Grigore, 2008). While the

existence of performance evaluations or lack thereof depends on the size of the

company, the figure is surprisingly small, even for medium companies (63%). Of

those that use performance appraisals, almost half prefer results measurements as the

main method for evaluation. The rest are divided among behavioural observation,

peer appraisals and other methods of evaluation. Regardless, formalized systems for

evaluation are usually rare in SMEs, and the evaluation process lacks constancy in

interpretation and operationalization. As for whom is responsible for conducting the

performance appraisals, it is most often the direct manager (60% of cases), and only

an estimated of 23% for the department manager (Marinas & Puia, 2009).

Page 19: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

19

All in all, it can be said with certainty that there is a connection between the size of a

company and the degree to which HRM has a formalized functioning inside a

company. While many of the issues affecting the proper implementation of HRM

inside a company are due to lack of knowledge and can be remedied by training

management personnel, some are simply caused by the lack of resources. The

challenge for small companies is to develop using very flexible HRM practices using

scarce resources, and avoid falling into rigid procedures. At present, the approach of

SMEs to HRM is rather reactive. Managers should strive to make it more proactive,

and performance evaluations are one of the ways in which companies can be brought

closer towards an effective, systemic and proactive HR management.

Page 20: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

20

2. THEORETICAL JUSTIFICATION AND RESEARCH

METHODS

2.1. PERFORMANCE APPRAISAL

According to S, Rothmann and E. P. Coetzer (2003), job performance is a complex

construct which indicates the performance of employees in their tasks, the initiative

they take, the resourcefulness they show in solving problems, the degree to which

they complete tasks, their available resources and the time and the energy they spend

on their tasks.

Appraising performance is defined as the act of observing and evaluating an

employee’s work behaviour and accomplishments. Performance appraisal is intended

to offer a measurement of real performance against expected performance.

Performance appraisals may be used for various purposes, ranging from wages, salary

and benefits to promotion, demotion, or termination actions to training, counseling

and career-development options. The systematic methods of identifying and

measuring employee performance can become extremely useful tools for Human

Resources in planning and improving an employee’s future performance.

Furthermore, having an effective performance appraisal system can lead to many

benefits, including the ability to control marginal performance, reduction of losses

from ineffective performance, and generally leads to a more efficient use of

personnel. The organization, however, is not the only one who can gain from a well-

built performance appraisal system, as also individuals may gain rewards for effective

performance, as well as a clear understanding of their career path.

As for the person or persons responsible for evaluating performance, possibilities are

vast. The assessment may be performed by immediate supervisors, peers,

subordinates, evaluation committees, personnel department staff, training department

staff, external sources, and also by one’s self. It is possible for an organization to use

only one or a combination of the following methods in order to conduct performance

Page 21: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

21

evaluations. While the most popular method seems to be that of reviews conducted by

an employee’s immediate supervisor, it is not necessarily the most effective. On one

hand, supervisors are viewed by employers as legitimate performance evaluators who

are qualified to make career development decisions. On the other hand, it is possible

that the employee subjected to the performance appraisal feel uneasy regarding the

process, especially if there are frictions and tensions standing in the way of

communication with his/her supervisor, which may ultimately bias the results of the

appraisal.

Another option which has its advantages and disadvantages is the self-appraisal

method. Self-appraisals are known to contribute to employee satisfaction with the

evaluation process. The reason for this is that having employees participate in setting

their own performance goals, determining evaluation criteria, rating themselves, as

well as discussing their performance with supervisors reduces their tendency to

become defensive regarding appraisals and leads to greater improvement in

performance. The downside is that employees have a tendency to over-estimate their

performance when they are permitted to make their own performance appraisal.

Moreover, employees with lower performance are less precise in reviewing their own

performance than are employees with greater performance. (Ticu, 2004).

Another viable option is that of employee evaluations of supervisors and managers.

This is an excellent tool for assessing the performance of managers and supervisors

since it allows for multiple ratings from different sources, minimizing the chance that

the results may be heavily biased, and it encourages employees to view workplace

demands through the eyes of their supervisors. Additionally, the employees offer a

valuable viewpoint of their supervisor’s performance, since they are in the ideal

position to assess the leadership ability of the supervisor. This method is also

beneficial to the organizational culture, because it promotes an environment of

participation and provides valuable feedback to managers. The method is not without

its flaws, as some supervisors may feel threatened by employee evaluations and apply

negative sanctions to the work group if negative reviews are offered. Fearing

reprisals, employees may also inflate ratings. In addition to this, it is often said that

workers may not fully understand a supervisor’s job requirements, and as such, they

are not in a position to review their performance. Another potential flaw of this

Page 22: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

22

method is the biasing of results due to the possibility of employees emphasizing

criteria relevant to their own relationship with the supervisor, which may or may not

be highly relevant for their performance. Some of these issues may be remedied by

anonymity.

A method that is increasingly growing in popularity is the 360 Degree review method.

In this method, all members of the organization’s internal environment which have

contact with the individual under review give appraisal input. The method is said to

be effective when reviewing all levels of management, including even the senior level

managers. The 360 degree review method features a questionnaire that includes

specific open ended questions related to the manager’s effectiveness and style,

questionnaire which has to be completed by all contact persons within the

organization. The input is based on observation through direct contact and interaction

with the reviewed person. Consultants are often used to assist in the process’

administration. They also work with managers in order to develop an action plan for

communicating results. External evaluators, such as consultants or assessment-centre

raters, may also be employed to conduct performance appraisals. The performance

appraisal obtained with the help of external evaluation may be more accurate, since

they often employ standardized techniques which are known to be statistically

accurate and legally protected. However, involving them in the appraisal process is

costly, and they typically evaluate behaviour in hypothetical rather than actual

situations.

Another option for conducting performance appraisals is the peer review appraisal

technique. Research has shown that peer appraisals are reliable and valid predictors of

job performance. There are a number of factors that lead to the validity of the method.

First of all, peers often have first-hand knowledge of one another’s performance. In

addition, there is less pressure and tension involved in a review made among peers.

Employees may respond better to peer-provided reviews than to management or

supervisory feedback, since the power disadvantage is removed. However, a single

rating provides lower reliability than would provide a set or an average of several

peer ratings. Among other issues that may affect the results of this method is the

unwillingness of peers to evaluate each other, biases caused by friendship or dislikes,

as well as competition within the work group. It is known that raises may be

Page 23: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

23

considered as the most important feature of the appraisal process, fact which may

influence the outcome of appraisals. Peer reviews may switch the focus of

performance appraisals from raises to actual performance and methods to improve

performance. This is in line with the recommendation of experts in the field to

separate discussion of raises and promotions from performance appraisal discussions,

since combining the two can only lead to lack of clarity regarding performance

appraisals discussions. Simply put, the performance appraisal and review should be

focused solely on past performance and should be viewed from the standpoint of

expectations and behavioural modifications required in order to meet or even exceed

future expectations and performance goals. Some researchers argue that including

raises in the performance evaluation discussion has a positive effect on the morale of

the employee and on future performance streaks (Ticu, 2004). However, raises and

salary discussions do not impact either phase of appraisal process, and should be kept

until after the appraisal process is concluded. Involving discussion of salary in the

appraisal process may only lead to demotivating an employee if he or she does not

obtain the raise or promotion expected. Feedback should be focused on work

performance relative to work demands and expectations.

Now that discussion of the possible responsible persons for conducting appraisals is

complete, it is possible to shift the focus towards the performance appraisal

techniques available at present. There are nearly as many techniques as there are

options for performance evaluators. A number of 8 techniques will be presented and

explained, featuring also the advantages and the disadvantages specific to each

technique.

Trait based measures such as creativity, honesty, dependability, decisiveness,

cooperation, resourcefulness, enthusiasm, loyalty, personality, leadership, integrity,

judgement, tact and initiative are used in certain organizations in order to conduct

performance appraisals. The appraisals are based on traits because it is believed that

traits such as the ones mentioned above manifest themselves in the workplace and

affect job performance. The people who rate the employee under review indicate their

personal perceptions of the respective employee regarding those traits with the help of

a checklist, a yes/no scale, or a graphic rating scale indicating a relative quantity of

the trait. One of the disadvantages of this method is that it provides ample room for

Page 24: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

24

error, because raters may have significantly different perceptions and understandings

of the traits, be forced into the role of judge, and have difficulty defending or

argumenting their decisions. The raters may not know or correctly use the criteria

available. Judgements based on trait-based measures are subjective and prone to

litigation. According to research, receiving high ratings on trait-based measures does

not necessarily mean that a person is highly performant at their job. Therefore, it is

recommended that organizations use such methods sparingly, perhaps in conjunction

with other techniques, or avoid them altogether in performance evaluations.

Narrative essay appraisals are basically a written description of an employee’s

qualities, attitudes, and behaviour, as seen by his workplace peers. The appraiser is

supposed to be a person familiar with the employee’s performance, and has to

produce an unstructured, honest statement regarding the employee’s strengths,

weaknesses, as well as areas needing improvement. The method is effective in

providing specific performance feedback to the employee. If used effectively, it can

facilitate communication between a supervisor and an employee, and also act as a

catalyst for goal setting and individual development. Among the drawbacks of this

technique, there are the facts that it is highly subjective and it is also dependent on the

appraiser’s writings skills, which means it’s difficult to implement in all work

environments. Looking at it from a legal standpoint, we see that the method is flawed

in the sense that certain statements written by people unfamiliar with affirmative

action laws may be difficult to defend in court.

The critical-incident technique involves the supervisor making periodical notations of

important performance actions taken on by employees. The notations feature both

positive and negative actions and outcomes. In essence, it is a collection of files of

effective and ineffective actions or performance of employees recorded by the

supervisor. The files may serve to stimulate the memory during a performance

review, may provide employees with meaningful feedback about specific work-

related behaviour, can serve as the basis for completing other performance appraisal

instruments. It is important to note that these files may be used for the purpose of

providing written documentation for backing up decisions regarding personnel, in the

event of appeals or litigation. The drawback of this method is that it is painstakingly

time-consuming when the supervisor takes on the responsibility of performing it

Page 25: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

25

conscientiously for all employees. Moreover, supervisors are human too: They may

display bias in what they choose to record, and for whom, according to personal

sympathies. It is possible and likely for a supervisor to record more negative incidents

for a disliked employee or fail to document poor performance of a well-liked

employee. In case of a litigious environment, it is wise to have documentation to base

any personnel decision, including performance reviews and appraisals.

Checklists can range from lists of traits to descriptive statements of job-related

behaviour. The technique involves an appraiser indicating with a check mark the

traits employees manifest or job-related behaviours employees perform. Checklists

facilitate comparisons to standard, since each employee is assessed on the same items.

The objectivity of the method depends on the degree of specificity and

descriptiveness of the items on the checklist. For example, checking a form in order

to indicate whether an employee has initiative requires much interpretation on the part

of the evaluator. In contrast, checking an option on a continuum of behaviours related

to the initiative trait depends more on the observation of an employee’s behaviour

than on subjective judgement.

Graphic rating scales consist of several job performance qualities and characteristics

moulded into statements. The scales may have one out of two forms, either having the

appraiser’s responses based on the frequency with which the employee under scrutiny

demonstrates a certain behaviour or quality, in which case the spectrum consists of

‘always’, ‘often’, ‘sometimes’, ‘rarely’, ‘never’, or having the appraiser’s responses

based on the extent of agreement with a descriptive statement about the employee

(e.g. strongly agree, agree, undecided, disagree, strongly disagree). Examples of

statements used in a graphic rating scale include “The employee can be expected to

take extended coffee breaks or roam around purposelessly”, “The employee meets

reporting deadlines”, or “The employee keeps in touch with the customers throughout

the year”. Since the items or statements on the graphic rating scales usually involve

job behaviours rather than generalised traits, they are more objective than several

other evaluation methods. The use of specific statements, such as “reporting

deadlines” and “extended coffee breaks” decreases the chance that the item may

subject to the appraiser’s interpretation. If constructed carefully and used in

combination with reliability and validity data, graphic rating scales may provide an

Page 26: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

26

efficient, standardised and legally sound method of structuring performance

evaluations. In addition, the method is known to work well with peer reviews and 360

degree reviews.

BARS, or the behaviourally anchored rating scales, are a type of graphic rating

system that has specific behavioural descriptions for each point along the scale. The

descriptions are meant to aid the appraiser in defining outstanding, good, average or

poor performance, hence the name ‘anchor’. Ideally, the scale should be constructed

with the inputs of both evaluators and employees to be rated. However, this is not

always possible, since the development of the scale is a complex process involving

the collection of incidents descriptive of various levels of performance of a particular

job (competent, average or poor). The incidents are further categorised into overall

performance dimensions such as technical ability, communication skills, leadership

and so on. The last step in the development of the BARS scale is the assignment of

numerical values that translate into anchors along a continuum. The following is an

example of an item from a BARS, for the dimension of Accuracy and Quality of

work:

Excellent: Work is of highest quality. Errors are extremely rare, if any. There

is little to no wasted effort.

Good: The employee checks and observes his/her work. Quality can be relied

upon.

Average: The employee usually turns in acceptable work. Not many errors are

made.

Below average: Work is sometimes unsatisfactory because of errors or

untidiness of the employee.

Poor: The employee is a careless worker. He/she also tends to repeat certain

types of errors.

The BARS method, as all methods, tends to have both advantages and disadvantages.

The technique is considered precise and objective, because each decision option is

based on behavioural anchors. The anchors corresponding to excellent, average or

poor behaviour according to criteria for a particular job do not allow for

interpretation, as they are clearly specified. Moreover, because the anchor

Page 27: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

27

descriptions are developed by people who are familiar with the job, they are more

likely to be accurate illustrations of the range of job performance, and also contain the

proper job terminology. On the other hand, the development of the BARS is time-

consuming, when it must be done for each job in an organization. The method is also

not completely legally sound, as, in order for a method to be legally defensible,

ratings must be supported by documentation for specific instances in which the

employee performed of failed to perform a certain action.

Even though the reliability of a particular method is high, it is still necessary and very

important that the formal methods of performance appraisal be thoroughly analysed

and used in a way that fits and organization’s goals. Each method has different

impacts and different types of results. The graphic rating scale is recommended to be

used when the organization requires a quick and easy solution that results in a

numerical rating. On the other hand, critical incident techniques are appropriate for

use when numerical scores are not necessary and managers display diligence in

recording both positive and negative events. The BARS method is most appropriate

in cases in which the organization places importance on behavioural examples, and

clear job descriptions allow for a description of detailed behavioural objectives.

The cost-related outcomes technique is based on quantitative measures of

performance outcomes or results. For the purpose of quantitative measurement, any

one of several criteria may be used, such as sales volume, claims processed, reports

written, units produced, turnover rate, absenteeism rate, and accidents. The chosen

criteria may serve as absolute indicators of an individual’s, a department’s, or an

organization’s cost/revenue/profitability effectiveness. Measurement is very precise

and objective. While the method is excellent for organizations whose performance

may be assessed according to cost-outcome criteria, especially when used in

combination with other measures, the method may not fare so well in other

organizations, since not all jobs or aspects of jobs are able to be quantitatively

measured. Indeed, we may ask ourselves how is it possible to quantify problem-

solving, or employee-development activities? Also, cost-related outcomes speak only

of the frequency with which an action was completed, completely setting aside any

discussion related to the quality of the work performed. The quantitative criteria are

liable to be influenced by an array of factors beyond an employee’s control.

Page 28: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

28

Management by objectives, also known as MBO, is an appraisal method in which

supervisors and subordinates mutually agree on a set of measurable performance

goals for a certain period of time. Following the establishment of the goals, the

supervisor-employee team develops plans of action and specifies resources available

for the achievement of the goals. The third step of this method is the monitoring of

the progress and the evaluation of goal achievement in a performance-review session.

The main problem to which MBO is vulnerable to is the potential for supervisors and

employees to disagree on performance goals for a given period of time. In such cases,

it is difficult, if not impossible, to decide whose goals become the evaluation criteria

against which performance is assessed. Another disadvantage is that MBO focuses on

an array of small, specific accomplishments, often completely excluding broader and

less measurable long-range objectives. Also, the achievement of goals depends on the

provision and availability of resources. If these are not in place, then the employee’s

failure to meet the established objectives may be due to external forces, situation

which renders the performance appraisal process highly unfair.

As mentioned briefly in the presentations of each of the methods, performance

appraisals are not without flaws, and while, depending on the needs of the

organization and the available resources, some methods might be more appropriate

than others, there are a number of problems that plague all performance appraisals,

simply because they are based on human judgment, rendering them prone to

subjectivity and error. Being aware of the common problems that affect appraisals,

organizations trying to find and apply an appraisal technique that is at the same time

fair, objective, and related to the job requirements of the individual being evaluated,

are more likely to be successful in their endeavour.

Objectivity seems to be the largest issue when it comes to appraisals, due to a number

of reasons. First of all, an appraiser may unconsciously inflate ratings in a desire to be

accepted by his peers. Another possibility is that of the appraiser having a friendship

with the employee under evaluation, which can negatively impact the objectivity of

the process. The same negative impact can be a result of the appraiser showing

reluctance to make negative evaluations of an employee’s performance for fear of

reprisal, violent reactions, or simply out of the desire to avoid making their

Page 29: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

29

department or organization look bad. Another possible situation is that of appraiser

increasing the grade of the employee in order to appease them or to aid them in

obtaining a raise or simply a favourable appraisal. The evaluation process may also be

subject to unintentional bias or overt discrimination based on sex, race, age, religion,

political ideology, or any of a number of factors that pertain to the beliefs of the

employee. Even though awareness regarding discrimination is being raised, this

continues to be an issue that plagues organizations in areas beyond performance

appraisals.

The appraisal process may also be obstructed by more structural causes, such as the

lack of knowledge regarding proper appraisal techniques. In such cases, appraisers

may lack the skill and knowledge to both complete and also communicate the

performance appraisals to the employees. It is important to note, with this occasion,

that the appraisal process itself does not end when the evaluation is complete, but also

includes the very important stage of communicating the results to the parts concerned.

This last step may sometimes make the difference between a successful appraisal and

a failed one. This category can also include the fact that appraisers are often named

inappropriately; they have little opportunity to observe employee behaviour. Another

common issue plaguing appraisals that pertains to the structural category is the status

effect. It has been documented that people in higher level positions automatically

receive better ratings that people in lower-status jobs. While more common in

companies that display more preference towards rewarding seniority, it is still a very

important issue that can render the evaluation process ineffective, if overlooked.

Appraisers may also unintentionally bias the evaluation due to their own human

nature. The appraisal process may be influenced by the fact that appraisers may lack

motivation to complete a task which they strongly dislike. This may be due to the fact

that there is a general lack of understanding and fear regarding evaluations, often

shared by all members of an organization. Even if the knowledge regarding appraisals

is in place, success is not guaranteed, since appraisers, as all human beings, can have

fallible memories and thus fail to document behaviours. Evaluations may be affected

by what is called the hallo effect. In such cases, the appraiser has a strong perception

of an employee’s performance in a particular area, which leads to the evaluator’s

perception regarding other areas of the employee’s performance being distorted. For

Page 30: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

30

example, if the appraiser perceives the employee as being motivated, this may lead to

the erroneous conclusion that the employee is also competent. Another common

weakness of appraisals is the ‘spill-over’ effect. Somewhat similar to the halo effect,

the ‘spill-over’ effect occurs when conclusions from a previous appraisal interfere

with the appraiser’s judgement regarding a current appraisal. Appraisers may also be

influenced in their decision by what is known as the central tendency effect.

According to this effect, the appraisers have a tendency to group all employees’

performance at the middle or average point on all performance dimensions of a rating

scale. This effect may be a result of the appraiser’s lack of motivation or lack of

desire to discriminate against employees, thus clustering them towards the midpoint

of the scale. This is obviously counterproductive, since basically everyone is

classified as ‘average’. Yet, since the true distribution of employees on the

performance scale is not known, it is not possible to account for the true causes of the

central distribution tendency, be it error, lack of motivation on the part of the

appraiser to discriminate between employees, or simply a restriction of range in the

employee’s performance.

Last, but not least, it is important to note the thoughts of Dr. W. Edwards Deming on

the issue of appraisals. He considered that ranking people was highly underproductive

for a company, basically describing it as a lose-lose situation, since by ranking

employees, the company limited high performance to a select few, disregarding the

majority of employees. This has effects on the organizational level, as well as on the

individual level, as some employees were highly demotivated by the practice.

Deming’s view is shared by a number of other total quality experts.

On the positive side, it is worth adding that many of these shortcomings may be

decreased or eliminated by simply providing training to persons in charge of

appraisals. According to research, appraisers who receive training in how to conduct

performance evaluations are more successful than untrained appraisers. Organizations

that are committed to the performance evaluation process should make sure that their

appraisers are properly equipped with the knowledge and skills to successfully apply

appraisals.

Page 31: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

31

However, that is not the only thing that organizations desiring to conduct successful

performance appraisals should do. The need for appropriate documentation of

appraisals cannot be stressed enough. Documenting the appraisal process means

keeping track of notes and files of specific actions during a review period. The

documentation can serve as a reminder at the time of a formal appraisal and also

guide the appraiser to an accurate judgement. During the communication phase of the

appraisal process, documentation can assist the evaluator in providing specific

examples to clarify points and help employees understand the reasons behind the

ratings. Transparency in the process helps the employees cope with the results and

better understand the process. Complete transparency is achieved when the

employees not only know how they were rated, but also why they received those

ratings. If the prior arguments have not been convincing enough, the fact that proper

documentation can make a complete difference in defending job evaluations and

decisions in a legal argument should do it. With this in mind, the next part will be

focused on describing the series of steps required in order to ensure that an appraisal

process is properly documented. First of all, both the evaluation and the

documentation aspect of it require fairness. An appraiser should document all

meaningful job behaviours, not only positive or negative ones. If documentation

appears heavily biased in either direction, for example, trying to build a case against

an employee, or, on the contrary, showing favouritism toward an employee, the

appraiser’s actions will be seen as prejudiced and he/she is liable to lose credibility.

Any employee file should include instances of good and bad behaviour, as is

normally expected.

The second measure that appraisers should take in order to obtain proper

documentation is to make sure that it contains facts, and not opinions. Objectivity is

difficult to achieve, since working in the same environment with the employees under

appraisal renders the evaluator inherently subjective, yet it is important to distinguish

between inferences of attitude or perceived motives and actual behaviours, and only

record actual examples of observable behaviours.

The third step concerns timeliness in recording actions and behaviours. It is of

essence to the integrity of the documentation to comply with this third step, since the

forgetful nature of people is already common knowledge. Not so widely known, but

Page 32: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

32

nonetheless true, is that memories physically recreate themselves in the brain as we

remember them, so they are different every time that we remember them (Bridge &

Paller, 2012). Performance evaluations are just one of the areas where this

involuntary process can have drastic consequences. Objectivity is threatened when

appraisers allow time to pass between the moment the action occurred and the

moment it is recorded, not only because the memory of the incident may change, but

also because several other actions could take place which can influence the appraiser.

This is in line with the requirement that appraisers strive for consistency in their

documentation. Basically, this means that the documentation should match the oral

comments and actions of appraisers.

Finally, for a proper documentation, the appraiser should focus on keeping

documentation on all subordinates, in a balanced manner. Only keeping performance

records for a few low-performers could be perceived, and rightfully so, as unfair

practice. Documentation should be balanced and thorough, and record all major

actions of all employees, regardless of personal preference and status.

With this, we have arrived to perhaps the most important aspect of the performance

evaluation: the performance interview. Offering feedback to employees is crucial for

their development, and should be conducted accordingly. The supervisor and the

employee should engage in an honest, two-way discussion regarding the employee’s

performance, and commonly agree on a set of goals for the future. The interview

process should be divided into three parts, especially when the people involved are

inexperienced with the process: preparation, communication and follow-up.

The preparation phase involves the appraiser setting a time, a place and an agenda for

the appraisal interview and notifying the employee with those details. Each party

involved should be awarded sufficient time in order to prepare for the interview – the

appraiser should have time to prepare the agenda for the meeting, and the employee

should be given enough time in order to complete a self-rating scale, if self-review is

part of the process, or set performance goals, if the appraisal features an MBO

approach. The appraiser’s responsibility is to gather the necessary data and to

complete evaluation forms. Ideally, the interview should take place in a private and

comfortable location, preferably a neutral site. The scheduling should be made so that

Page 33: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

33

both parties have sufficient time to discuss all relevant points without feeling rushed.

Armed with proper skills, the appraiser should focus on the delivery of feedback, and

should be careful about employee reactions, the appropriate way to handle them and

effectively coach for improved work performance.

The second part of the performance interview should be focused on communication.

It is the supervisor’s job, at this point, to make sure that the employee feels

comfortable with the discussion, starting with the purpose and agenda for the

meeting, and following the introduction with the information about job performance.

The interviewer should focus on clarity and transparency, matching the comments

regarding the employee’s work performance with specific examples. The

interviewer’s work revolves around the evaluation of the employee’s work

performance against objectives and standards that the employee has previously agreed

to. If self-review is included in the process, then the supervisor and the employee

should focus on clarifying the areas of discrepancy in ratings, if it be the case.

Hopefully, by this time, it has become clear to both parties involved that the interview

is not a battle between the employee and the supervisor, but a battle in which both

employee and supervisor work together in order to discern the causes for variations in

ratings or for below-standard results, and to come up with solutions to enhance

performance. It is recommended that both parties enter the discussion with a problem-

solving mind-set.

However, performance interviews are a delicate issue, and many things could go

wrong. The appraiser, for his part, must be skilled in offering feedback and

constructive criticism, showing empathy, listening, probing for information,

managing conflict and avoiding raising the defensiveness of the interviewee. The

appraiser must be chosen carefully. The position should be occupied by a person who

is skilled in interpersonal communication, who is at the same time nonthreatening,

sensitive, objective, firm, composed and helpful.

Once the performance ratings on all dimensions have been communicated clearly to

the employee, and discussion regarding them has reached a common point, the focus

may be shifted to development plans. Areas needing improvement need to be taken

systematically and discussed, one at a time. It is of crucial importance that the

Page 34: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

34

employee and the supervisor agree on the work objectives for the next period and

determine how each of them will contribute to meeting the established goals. The

interview should conclude with the supervisor reiterating briefly the main points of

the discussion, focusing on what agreements have been made, and what plans have

been made.

The last and final phase of the performance interview is the follow-up phase. During

this phase, the appraiser should record all relevant information regarding the case as

soon as possible after the interview. The post-interview documentation should feature

an objective account of the information exchanged, as well as the personal reactions

and impressions of the interview climate and tone. In order to avoid future arguments

and misunderstandings, both parties should keep a written agreement of the

understandings that have been reached, the planned actions, and the commitments

that have been made.

And, because no discussion regarding performance appraisals can be complete

without at least a mention of informal appraisals, they will be briefly presented here.

Even though the formal appraisal process is a crucial aspect of all organization, it is

the author’s opinion that it should exist as part of a larger appraisal system.

Organizations truly committed to performance evaluations probably know that it is

not sufficient to give performance feedback only at periodic time intervals, once or

twice per year. In an ideal setting, the daily routine of the supervisor and of the

employees should feature informal discussions of job goals and performance results.

The discussions may be initiated by either part, and, as time would tell, the

supervisor-employee relationship will have only to gain from this type of constructive

exchange.

In the case of this particular study, the performance of the employees will be assessed

based on supervisory ratings, as well as on sales data. The evaluation method will be

a type of graphic rating scale, with scales ranging from 1 to 5, in which 1 represents

“poor performance, utter lack of interest on the part of the employee” and 5 stands for

“excellent performance”. The questionnaire will focus on the following performance

dimensions: the quantitative outcome of the employee’s performance, the quality of

his/her work, the orientation towards the client, the relationships with his superiors

Page 35: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

35

and with his colleagues, adaptability and flexibility, initiative and improvements

suggested and respecting deadlines. The questionnaire will be completed by the

supervisor of the employees, which is in this case the general director of the company

in which the research will be conducted.

2.2. FACTORS THAT INFLUENCE JOB PERFORMANCE

This section of the thesis will feature evidence for this perspective by reviewing

studies, mainly from personality literature, which provides evidence for the

reciprocity of personality and professional performance in the field of real estate.

Most of the existing research has aimed to investigate the potential relationship

between personality traits and overall job performance, with some studies being

focused on the longitudinal aspects of personality across working life (Woods et al.,

2013).

There is a multitude of factors that predict job performance, that range from

predictors of personal nature, such as intelligence, conscientiousness, age (in

connection to learning ability), of social nature, such as the provision of clear and

complex goals, a long term vision to which a company is truly committed to, and

interdisciplinarity in teams, and finally of structural nature, which includes factors

such as motivating salaries and wages, including discussions regarding salaries, as

well as payment according to individual performance (Ticu, 2004).

Our society is very focused on performance, so studies that aim to analyze the link

between personality traits and job performance abound. Most of the studies on the

reciprocity of personality and performance are built on western populations, with few

of them, most notably Salgado’s work (2007), being focused on the European

community. Given that most research seems to suggest that personality traits as

predictor variables can be generalized across all occupations and work tasks (Barrick

& Mount, 1991), the pursuit of knowledge regarding this relationship in specific

occupations and jobs seems particularly enticing. Of particular interest to the author is

the field of real estate, an industry with many particularities worldwide. Perhaps the

complexity of the job of a real estate consultant will show that some personality traits

are more likely than others to lead to a better performance. The value of identifying

Page 36: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

36

which, if any, personality traits correspond to performance would lead to companies

being able to distinguish a top performer from a poor performer early in the

recruitment process.

A favourite tool among researchers has been the Five-Factor model of personality,

developed for the purpose of studying the dimensions of personality. The tool has had

consistent results in a wide range of participants of various ages and cultures. The

model consists of the following dimensions: Openness to experience,

Conscientiousness, Extraversion, Agreeableness, and Emotional Stability (Digman,

1990). Each of the factors is composed of groups of narrow inter-correlated traits,

often referred to as facets or sub-dimensions (Klang, 2013).

Openness to Experience refers to individuals that possess the following

characteristics: creativity, imagination, as well as curiosity to experience new things

(Costa & McCrae, 1992). Individuals who score low on this trait seem to lack

autonomy and strong personal beliefs. People who score high on this trait, on the

other hand, often take a different course of action than other individuals and are less

likely to allow others to lead them. Especially interesting for this trait is the way it

relates to the emotional process of the individual. It seems that high scorers

experience deeper emotional states, meaning that their emotions of both happiness

and unhappiness have a greater depth than that of low scorers. The facets of Openness

to Experience, as described by Costa and McCrae (1992), include Fantasy,

Aesthetics, Feelings, Actions, Ideas, and Values.

Precedent studies and meta-analyses are not conclusive regarding the ability of this

trait to predict performance. Barrick et al. (2001) did not find any meaningful

relationship between Openness to Experience and general job performance. However,

another research done by Barrick and Mount (1991) seems to indicate that Openness

was a predictor of training proficiency. Another perspective is that of Salgado (1997),

who claims that the trait is a valid predictor for performance in police and skilled

labour. There are grounds to believe that real estate consultants who score high on

this trait will be better performers in comparison with other workers with low scores.

Hypothesis 1:

Page 37: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

37

Openness to Experience will correlate positively with supervisory ratings of job

performance.

Conscientiousness is representative of individuals who exhibit good planning and

organizational skills, who work strategically towards goals and carry out tasks in their

entirety. This trait is also associated with diligence, self-discipline, punctuality and

general competence, as described by (Costa & McCrae, 1992). Individuals who score

low on conscientiousness are often nonconformists, have a tendency to engage in

actions without pretense of their use or finality and are likely to fail to meet deadlines.

Low scorers are not necessarily immoral or amoral people; however, they do not

display the same thoroughness in applying their moral beliefs as their counterparts.

High scorers are achievement oriented individuals, respectful of rules and norms, tidy

and organized, and trustworthy. They plan each of their actions and strive to obtain

the best outcome, every time. On the negative side, high levels of conscientiousness

may lead to annoying fastidiousness, compulsive neatness or even workaholic

behaviour, which has proven to be health endangering in some cases. This broad

dimension of personality contains the following facets: Competence, Order,

Dutifulness, Achievement-striving, Self-discipline, and Deliberation (Costa &

McCrae, 1992).

The majority of precedent studies are in agreement on the validity of

conscientiousness as a performance predictor. In their large scale meta-analysis,

Mount and Barrick (1991) investigated the potential relationship between the Five-

Factor Model and job performance across five different occupations. As

hypothesized, the results of the research indicated an association between a trait of the

FFM and job performance across all occupations. Thus, the findings indicated that

conscientiousness correlated positively with job performance in all 5 occupational

groups (namely professionals, police, managers, sales, and skilled/semi-skilled).

Perhaps unsurprisingly, individuals who are characterized by dependability,

persistence and achievement orientation tend to become top performers, regardless of

the job profile. The majority of research findings fall in line with those of Mount and

Barrick’s meta-analysis (1991), supporting the notion that Conscientiousness is the

personality trait that displays the strongest correlation with overall job performance,

across different occupations, out of all the “Big Five” personality dimensions (Barrick

Page 38: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

38

et al., 2001; Hurtz & Donovan, 2000; Mount & Barrick, 1995; Ones & Viswesvaran,

1996; Salgado, 1997; Vinchur et al., 1998, Ticu, 2004). Furthermore, Vinchur et al

(1998) found that one particular facet of the dimension correlated even more strongly

with job performance than the broader factor. Achievement striving was found to

have a correlation coefficient of 0.25, compared to Conscientiousness, which had a

correlation of 0.22. Achievement striving describes individuals who work diligently

towards their goals.

As the employees who participate in the research phase of this study have a set of

monthly targets to attain, it makes sense to attempt to confirm the connection between

the main dimension Conscientiousness and job performance in this particular context.

Under these circumstances, it is expected that the following hypothesis will prove to

be true:

Hypothesis 2:

Conscientiousness will correlate positively with supervisory ratings of job

performance.

Extraversion, according to Costa & McCrae, refers to the energy directed outwards

into the social world by an individual. As part of this trait, interpersonal interactions,

activity level, need for stimulation and capacity for joy are nuanced by two factors,

namely intensity and quantity. In other words, extroverted individuals are more likely

to be more sociable, energetic, talkative, outgoing, assertive and facially and

gesturally expressive (McCrae & John, 1991). Individuals who score low on

Extraversion can be described as showing traits of shyness, inhibition, introversion, as

well as a tendency for withdrawal and isolation in social situations, often preferring to

spend time on their own or in smaller groups. The six facets included in this

dimension of personality are Warmth, Gregariousness, Assertiveness, Activity,

Excitement seeking, and Positive emotion (Costa & McCrae, 1992).

In line with the above description of Extraversion, the findings of Barrick & Mount

(1991) are representative for the reasoning that extroverted individuals are more

likely to perform better in occupations that demand a higher level of interaction and

socialization. The research of Barrick & Mount (1991) also suggests that Extraversion

Page 39: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

39

is not only a valid predictor of overall job performance, but of sales performance

specifically as well. These findings have been replicated and confirmed by several

studies. Klang (2013) has conducted a study on a group of telesales workers, arriving

to the conclusion that Extraversion had a significant correlation to job performance

(r=0.33). Furthermore, the results of Klang’s study indicated a positive correlation

between the sub dimension Assertiveness and supervisory ratings of job performance,

with a coefficient of 0.33. Other research has showed that extroverted individuals are

more likely to perform better at supervisory, police and sales related occupations

(Salgado, 1997). Similarly, the results of one meta-analysis conducted by Vinchur et

al. (1998) indicated Extraversion to be a strong predictor of supervisory ratings of

sales performance as well as objective data of sales performance (sales volume).

However, it should be taken into consideration that, according to Barrick et al.

(2001), there is no significant relationship between Extraversion and overall job

performance, although the same research does find a link between managerial

performance and Extraversion (r=0.21). In the light of this information, it seems that

although there appears to be a positive relationship between Extraversion and job

performance, the relationship surfaces only in the context of certain occupations

(Barrick & Mount, 1991; Salgado, 1997). Therefore, it is reasonable to expect that in

the field of real estate consultancy, higher performance will be attained by individuals

who score high on Extraversion, as opposed to low scorers, since the work requires a

high level of interaction with customers. Therefore, the following hypothesis will be

put under testing:

Hypothesis 3:

Extroversion will correlate positively with supervisory ratings of job performance.

Agreeableness involves characteristics such as altruism, nurturance, care and

emotional support (Digman, 1990). Individuals who score high for this dimension are

more appreciative, forgiving, generous, kind, sympathetic and trusting. At the

opposite end of the spectrum are characteristics such as hostility, indifference to

others, self-centredness, spitefulness and jealousy, which are representative for

individuals with low scores on Agreeableness (Digman, 1990). Individuals low on

Agreeableness are also said to lack the desire to cooperate with others. This

Page 40: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

40

dimension includes the following six facets: Trust, Straightforwardness, Altruism,

Compliance, Modesty, and Tender Mindedness (Costa & McCrae, 1992). While past

research has not had conclusive findings indicating a solid correlation between

Agreeableness and overall job performance (Barrick & Mount, 1991, Klang, 2013), a

relationship has been established between this dimension and team work (r=0.34)

(Barrick et al., 2001). Moreover, previous research suggests that Agreeableness can

predict success in specific occupations, similarly to Extraversion, although the

occupations are very likely to differ in nature. In other words, Agreeableness may still

prove to be a valid predictor of job performance, depending on the type of

occupation. Bearing this is mind, it is still unlikely to notice a positive correlation

between this dimension and job performance in the context of real estate sales work,

since it is most often focused on individualistic competition. A certain degree of

egocentricity is expected to link to a better performance, and in consequence, the

following hypothesis is tested:

Hypothesis 4:

Agreeableness will correlate negatively with supervisory ratings of job performance.

Emotional Stability describes individuals who are secure and calm, and in

consequence, more likely to control their impulses and better at coping with stressful

situations. According to Rothmann & Coetzer (2003), Emotional stability is

considered to be a stable predictor of job performance. The findings of Barrick et al.

(2001) support the conclusions of Rothman & Coetzer’s research, further establishing

Emotional Stability as a valid predictor of performance across occupations and work

tasks. On the opposite side of the spectrum is Neuroticism, which describes

individuals who have a tendency to be shy, angry, insecure, depressed, vulnerable and

anxious. According to Zonderman et al. (1989), high scorers on Neuroticism are more

prone to developing psychiatric disorders. The six facets of Neuroticism are Anxiety,

Angry Hostility, Depression, Self-consciousness, Impulsiveness, and Vulnerability

(Costa & McCrae, 1992). The present study is expected to replicate the results of

Klang’s study of telesales workers, which found that Neuroticism had a negative

correlation with job performance. Neuroticism corresponds to low Emotional

Stability. Taking into account the competitive nature of sales and the ferocity of the

real estate industry, it seems reasonable to believe that individuals scoring high for

Page 41: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

41

the Emotional Stability will perform better than sales workers who are less

emotionally stable and show higher levels of vulnerability. Therefore, the following

hypothesis is generated:

Hypothesis 5:

Emotional stability will correlate positively with supervisory ratings of job

performance.

As briefly mentioned in the introduction, the Five-Factor Personality Inventory will

be used for the purpose of analysing the psychological traits of the participants. The

FFPI was developed by A.A.J. Hendriks, W.K.B. Hofstee and B. de Raad. The

questionnaire is comprised of 100 questions, each belonging to one of 5 scales. Each

of the scales corresponds to one of the personality dimensions described above. The

original test manual includes neither the definitions, nor the interpretations of the

factors evaluated by the FFPI, so most of the definitions belong to other researchers

in this field. The FFPI features a 1-5 answer scale, ranging from Strong

Disagreement, Disagreement, Neutrality, Agreement, and Strong Agreement.

The subjects involved in the study will complete the questionnaire in an auto-

evaluation fashion. The scores for each of dimensions are afterwards computed by

summing up each quota for the items corresponding to that particular dimension,

which are in turn computed with the help of a set of linear regression equations.

While the first studies made on personality and performance, pertaining to the 1900-

1980 period, found no correlation between the two, after the 1980s, the direction of

research took a different turn, leading to very different results. There was an initial

lack of agreement as to what traits truly indicated performance, with Barrick &

Mount’s findings (1991) indicating conscientiousness as the only trait having a non-

zero correlation with performance across different occupational groups. Tett,

Rothstein and Jackson (1991), on the other hand, concluded that only emotional

stability showed non-zero correlations with performance. They also found that

agreeableness and openness to experience displayed higher correlations with

performance than did conscientiousness. According to more recent studies made by

Salgado (1997) and Anderson and Viswesvaran (1998), emotional stability and

Page 42: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

42

conscientiousness are the two traits that show non-zero correlations with job

performance. The cause of this variance in results is considered to be the second-

order sampling error, a term dubbed by Hunter and Schmidt (1990) in order to refer to

the biasing of meta-analytic means and standard deviation estimates caused by the

usage of small samples and a limited number of studies.

While variance in results continues to be a problem, most researchers have reached a

consensus regarding the correlation of two traits of the FFM – conscientiousness and

emotional stability – with job performance in virtually all jobs (Anderson and

Viswesvaran 1998; Barrick and Mount 1991; Salgado 1997; Tett et al. 1991). Of the

two, conscientiousness appears to be the one with the strongest correlation towards

job performance. It has also been established that conscientiousness and emotional

stability can influence success in teamwork (Hough 1992; Mount, Barrick and

Stewart 1998). However, since the real estate field is a more competitive area and

involves only a minimum degree of teamwork, it is unsure whether the two will

display a stronger correlation than other traits or combination of traits. Barrick &

Mount’s research (1991) has also indicated that employees who are more

conscientious are more likely to benefit from training.

In 2001, Barrick et al. conducted a research based on all prior meta-analyses focused

on the correlation between personality traits and job performance. Among other

conclusions in line with the ones stated above, it was found that the other three FFM

traits are also considered to be good predictors of performance, but only in certain

occupational fields or for specific criteria. Extraversion, for example, is a valid

predictor of job performance in occupations in which interactions with others

constitute a significant portion of the job (Barrick and Mount 1991; Mount et al.

1998). Into the aforementioned category of occupations fall Management and Sales

jobs, including real estate sales jobs, where individuals with a higher level of

sociability, gregariousness, assertiveness, energy and ambition are more likely to

encounter success. Extraversion also plays a significant role when it comes to the

effectiveness of teamwork. Some meta-analytic research also points to the conclusion

that extraversion is associated with greater learning proficiency. The explanation for

this would be that more extraverted trainees are more active during training and ask

Page 43: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

43

more questions, which enables more efficient learning. According to the same study,

openness to experience was also found to be a valid indicator of training performance.

There is a strong positive correlation between intelligence and performance, which

increases along with the complexity of the job. For example, the correlation between

intelligence and performance the coefficient is 0.23 for simple jobs, 0.40 for

intermediary jobs and 0.59 for managerial positions (Ticu, 2004).

While there has been much progress made in the last 50 years in the area of research

concerning performance and personality, with much of the consensus reached by

researchers being based on the Five-Factor model, it is time to look for other

measures and instruments for the study of the abovementioned relationship, as there

is unlikely for anything new to be discovered by pursuing the same direction of

research (Barrick et al. 2001). Although meta-analyses have found positive

correlations of certain traits with job performance, the correlation index is mediocre

at best, rarely exceeding 0.30. In the light of this information, researchers recommend

focusing on exploring the relationship between certain facets of traits and

performance, on one hand, or direct focus towards finding a global measure of

personality, on the other hand, such as the Global Personality Inventory (GPI)

(Barrick et al. 2001).

Page 44: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

44

3. METHODOLOGY AND RESULTS OF THE RESEARCH

3.1. OBJECTIVES AND RESEARCH HYPOTHESES

First of all, the research segment of this thesis is expected to confirm the results of

previous research on the relationship between personality and job performance. Given

the competitiveness of the present economy, and the growing awareness around the

fact that organizational success is strongly intertwined with employee success, there is

reason to believe that offering a potential way to improve the match between a

candidate, a job and an organization right from the selection phase may be the key to

a prosperous employer-employee relationship, and perhaps even a competitive

advantage. It is in the spirit of this belief that the following hypotheses were set, in

accordance with previous research and assumptions regarding traits that would

correlate with performance, in the real estate business domain.

For the sake of brevity, the established hypotheses will briefly be reiterated, along

with the motivation for choosing each of them.

Hypothesis 1:

Openness to Experience will correlate positively with supervisory ratings of job

performance.

As previous studies have found, the trait Openness to Experience can be positively

correlated to intelligence, more specifically, to the type of intelligence that permits

and individual to use his/her knowledge, skills and experience in problem solving,

called crystallized intelligence (Moutafi et al, 2006). Since intelligence was found to

have one of the strongest correlations to work performance, it seemed only natural to

launch the above hypothesis. However, that is not the only reason why it was chosen

to be studied. Given the rather unpredictable nature of the job, requiring an individual

Page 45: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

45

to continually adapt to different situations, makes a person that is high on Openness to

Experience to encounter more success than someone who is not as eager to adapt to

unfamiliar situations and engage in self-examination.

Hypothesis 2:

Conscientiousness will correlate positively with supervisory ratings of job

performance.

Conscientiousness was found to have the strongest correlation to job performance,

across all occupations. Therefore, it was only natural to subject the above hypothesis

to testing and discover whether the correlation is still valid for the particular

environment under research.

Hypothesis 3:

Extroversion will correlate positively with supervisory ratings of job performance.

On the basis of previous research, the above hypothesis is subjected to testing. Given

the social nature of the work performed by real estate agents, it is expected that this

trait will influence the performance of employees to a significant degree.

Hypothesis 4:

Agreeableness will correlate negatively with supervisory ratings of job performance.

Since, at least for the present, the real estate sales environment features more

individualistic competition than team work and cooperation, it is assumed that

individuals who score high on agreeableness will not be responsible for high

performance.

Hypothesis 5:

Emotional stability will correlate positively with supervisory ratings of job

performance.

Page 46: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

46

The last hypothesis is tested in this situation under the expectation that it will confirm

previous studies, whose findings indicated that Emotional Stability was a valid

predictor of job performance across all occupations, as well as teamwork.

However, it was not only with these hypotheses in mind that this study was

conducted. Instead, the more profound meaning of this is to bring to the attention of

management the importance of properly aligning an individual to his/her job, of

achieving a match between work and personality, for the gain of both parties

involved. Striving to achieve this alignment should start right from the selection

phase of the process.

As the correlation relied on conducting performance appraisals on employees, it is

hoped that the study will serve to further the idea that performance appraisals need

not be only an administrative task, conducted for purposes of promotion and raises,

but a tool to spur and sustain the development and subsequently enhance the

performance of employees.

Moreover, this study was initiated in the hopes that it would bring further awareness

on the HR practices other than Performance Appraisal, which could bring a positive

impact on the organization and employees’ development. The aftermath of the study

is not expected nor supposed to transform the company in which it was applied on a

structural level. Instead, the most treasured and desired effect would be to merely

transmit the spirit of HRM, not as a rigid, administrative system, but as a way of

thought and action.

3.2. SAMPLE OF THE STUDY

The research part of the study was focused around the employees of a Real Estate

company from Cluj-Napoca. The sample is composed of 21 individuals (4 females, 17

males).

The majority of the individuals work as real estate agents, of which only two hold

management positions. Most of the employees had higher education degrees, with less

than a third of them having high-school as the last educational unit graduated.

Page 47: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

47

Figure 1 - The distribution of sample according to age

The average age of the subjects was 30.67 years, with the majority of the employees

being under 30. The average for females (28.5) was lower than that of males (31.18).

Figure 2 - The distribution of employees according to seniority

The average seniority in the organization was 3.41 years (3 years and 5 months). The

data reflected that a number of 5 employees had longer than 5 years seniority in the

company, with the majority being under 4 years.

Page 48: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

48

3.3. RESEARCH INSTRUMENTS AND METHODOLOGY

3.3.1. PERFORMANCE APPRAISAL QUESTIONNAIRE

The performance appraisal of the employees constituting the sample was conducted

according to a questionnaire filled in by the supervisor of the employees. The

questionnaire required the supervisor to rate each of the employees according to a 1 to

5 rating scale, which were represented as follows:

1 = inadequate results, complete lack of interest

2 = results that are below expectations

3 = results that meet expectations

4 = results that exceed expectations

5 = exceptional results

The subjects were rated according to a set of 6 criteria, based on their performance on

each of the criteria in the last 6-12 months. The criteria used are the following:

Target achievement (quantitative)

Quality of work and tasks performed

Customer orientation

Relationship with supervisors

Relationship with peers

Adaptability, flexibility

Initiative, improvement propositions

Meeting deadlines

The performance appraisal questionnaire was less detailed than the one used generally

by the company, which is conducted on a yearly basis.

3.3.2. PERSONALITY QUESTIONNAIRE

Page 49: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

49

For the purpose of identifying the personality traits of the sample subjects, the Five-

Factor Personality Inventory (FFPI) was used. The inventory evaluates the five main

traits of the Big Five model, namely Extroversion, Agreeableness, Conscientiousness,

Emotional Stability and Openness to Experience. The FFPI may be applied in two

manners: either by self-evaluation, which was how it was used for the purpose of the

present study, or by evaluation of a subject by another individual who is familiar with

the subject. The FFPI may be used for personality diagnosis, in an educational or

clinical setting.

The questionnaire was calibrated on a non-clinical population, comprised of

individuals ranging from 14 to 65 years old. It may be administered individually or

collectively. There is no time limit imposed to the subjects taking the inventory.

According to observations recorded during the administration of the FFPI for this

study, the time necessary for completion was approximatively 10 minutes.

The FFPI comprises of 100 items, grouped on 5 scales. Subsequently, each scale

consists of 20 items and is named after one of the main Big Five factors. While each

of the factors was designed so as to be independent from the others, there was a

positive correlation observed between openness to experience and extraversion (Aluja

et al., 2001).

In the absence of a formal definition made by the author of the FFPI (Hendriks,

1997), the interpretation of the factors was obtained according through factorial

analysis of the inventory answers offered by 115 students. As such, the interpretations

obtained in this manner for small and large scores for each of the factors are presented

below.

For Extraversion, a large score indicates an individual who feels comfortable in

society, who actively participates to social life and fun, who enjoys conversation and

has no difficulty in making friends and forming relationships. Small scores are

representative of quiet people, who have a tendency to isolate themselves from human

contact.

Page 50: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

50

Those who obtain high scores on Agreeableness are likely to display interest for the

people in their environment and respect for their opinions and rights. High scorers are

known to try to maintain positive relationships with other people. In contrast, those

who have lower scores on this factor are more likely to be self-centred, to try to attract

attention to one’s self. Furthermore, the low scorer on Agreeableness is focused on

displaying and enforcing personal opinions on others, as well as more likely to disturb

people in their surrounding environment.

Regarding Conscientiousness, most people who score high on this factor are rule-

abiders, highly orderly people, who make a point of planning their actions and display

a strong desire to achieve the best possible outcomes, every time. Such individuals are

also more likely to be trustworthy. At the opposite scale are the low scorers, who are

generally non-conformists, likely to initiate activities without forethought. Also,

individuals who score low on conscientiousness are more likely to exceed deadlines.

The interpretation for high scores on Emotional stability points towards individuals

focused on positive thought and optimism, who have trust in themselves and their

abilities. These individuals are also better at controlling their emotions. Low scores

for this factor point to an inability to cope with stressful situations, perpetual

uneasiness and anxiety.

For Openness to Experience, those who obtain high scores on this trait are

characterized by a tendency to adopt different courses of actions than other people

and who are also less likely to adopt a follower position. A high degree of Openness

to Experience also points out to a high degree of creativity. In contrast, low scores on

Openness to Experience indicate a person that lacks personal opinions, accepts the

opinions and decisions of others and can be easily handled.

3.4. COLLECTION OF THE DATA

The research phase began in the 5th of May. The first step was the preparation of the

FFPI questionnaire sheets and delivering them to the subjects. The inventory was

administered in a face-to-face meeting to each of the subjects. Prior to handing out the

inventory, the purpose of the process was explained to the participants. The

Page 51: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

51

completion time ranged from 7 to 20 minutes, averaging around 10 minutes. The

author, who was responsible for administering the tests, addressed the questions of the

respondents, whenever there were any uncertainties. All personality inventories were

administered and collected by the 13th

of May.

The second part of the research part, the performance evaluations, started on the 15th

of May and was completed in three days. The supervisor of the employees was given

the performance evaluation questionnaire, which he completed in due time. The

Performance Appraisal ratings were also supplemented by a hierarchy featuring the

subjects who had the highest amount of sales during the last two years.

In the final part of this phase, the results of the personality tests were introduced into a

Cognitrom rating programme. This started in the 19th and was finished by the end of

the same week, along with the centralisation of data into a single file. The data was

then sent forward to Conf. univ. Dr. Monica Aniela Zaharie for further analysis.

3.5. RESEARCH RESULTS

3.5.1. PERSONALITY TESTING RESULTS

After the personality test results were rated and interpreted, it was revealed that, as

expected, most of the subjects fell in the range of the normal population (40T to 60T),

rarely exceeding the upper or lower limits. It was interesting to look at the results

from the gender perspective as well, and notice the differences between the results of

the male and female groups.

The average of the subjects for the Extraversion main factor was 51.90. Only three of

the subjects exceeded the population average for this trait, while two were below the

average. The data for males and females, respectively, revealed a slight difference

between the two, with males (52.06) having, on average, higher scores than females

(51.25). These findings disapprove the results of Schmitt et al. (2008), who found no

significant difference for the Big Five factor Extraversion scores of men and women

from Romania.

Page 52: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

52

Figure 3 - Distribution of subjects according to scores on Extroversion

The average for the Agreeableness factor is 51.62. While in the case of this scale,

there were also two subjects that fell below the lower limit of population average,

there were also significantly more subjects having scores above the upper limit. The

average for females was 47.50, while the one for males was 52.59. The significantly

larger difference between the two averages comes into contradiction with previous

research, which established merely a negligible difference between men and women

Agreeableness scores (Schmitt et al., 2008). The low sample of females in this study

may account for the divergence with the results of other studies.

Figure 4 - Distribution of subjects according to scores on Agreeableness

Page 53: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

53

As for Conscientiousness, the data indicated an average of 49.33. By comparing male

and female data averages, it was revealed that females obtained higher scores on

Conscientiousness, which is in line with the findings of Schmitt et al (2008), on the

gender divergence of Big Five personality traits across cultures. It was for this trait, as

well as Openness to Experience, that the lowest averages were registered. It may be

added that Conscientiousness is among the few traits in the case of which none of the

subjects exceeded the upper limit of the population average.

Figure 5 - Distribution of subjects according to scores on Conscientiousness

Emotional stability seemed to be the most prevalent trait for the entire sample, with

none of the subjects falling below the lower limit of the population average. The

average for this factor was the highest out of all the Big five factors (55.81). A third

of the subjects were above the population average, according to their results. As for

the gender differences, it was revealed that males had a higher average (57.06) than

females (50.50). Lower emotional stability for females was also recorded by Schmitt

et al. (2008) in the case of 49 countries, including Romania. Neuroticism (the opposite

of Emotional stability) was the only Big Five factor to reveal a moderate to large

difference in gender results.

Page 54: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

54

Figure 6 - Distribution of subjects according to scores on Emotional Stability

As for what regards the last trait, Openness to Experience, the data indicates an

average of 49.33. The averages for males and females for this factor have indicated a

significant difference between the genders. While the average for females was rather

low (44.00), males obtained an average of 50.59. Of the entire sample, only one

individual exceeded the population average.

Figure 7 - Distribution of subjects according to scores on Openness to Experience

Page 55: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

55

3.5.2. PERFORMANCE APPRAISAL RESULTS

Figure 8 - Averages of performance appraisal criteria across the sample

A central tendency effect can be observed for most of the performance criteria

assessed. With the rating scale ranging from 1 to 5, this means that most of the ratings

were clustered around 3. None of the employees received minimum ratings (1) on any

of the criteria. Still, only a small part of them received maximum ratings for one or

more of the criteria assessed. Generally, females obtained slightly higher ratings, on

average, than did the male subjects, although the difference is not large enough to be

statistically significant.

As such, in the case of Target achievement, the data indicated an average of 3.29.

Only 14 percent of subjects received the maximum rating for Target achievement. On

average, males received better ratings than females on this criterion.

Regarding the Quality of work criterion, a slightly higher average can be seen, in

comparison with the previous criterion. The situation is reversed in regard to the

gender averages, with females obtaining higher ratings than males.

Page 56: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

56

In the case of Customer orientation, the average is 3.29. It is interesting to note that

females were rated significantly lower than men on this criterion. An estimated 10%

of subjects were assigned the maximum rating for customer orientation.

None of the subjects received the maximum rating for Relationship with supervisors,

and only 10 percent were rated ‘5’ on the Relationship with peers criterion. The

averages for these criteria were 3.62 and 3.38, respectively. On both of these criteria,

females received higher ratings than males, which contradicts expectations, as females

were found to have significantly lower scores on Agreeableness than males.

While the minimum rating that subjects received on Adaptability was 3, there were

also no individuals to be rated higher than 4. The data pointed to an average of 3.33

for this criterion. For Adaptability and Initiative, the differences in ratings between

gender averages were negligible. It is interesting to note, regarding Initiative, that the

data indicated the lowest average out of all the criteria: 3.00. According to discussions

with the General Manager, it seems as though, while there are efforts to engage the

employees in constructive discussions regarding possible improvements and ideas,

only a small segment of the employee responded to the opportunity to put forward

their ideas and propositions.

Finally, the average for the Meeting deadlines criterion was 3.38. Given the average

on Conscientiousness for the entire sample, it was expected that the ratings for this

criterion would be lower. Still, the significantly higher scores on Conscientiousness

for females may be behind the fact that they received higher ratings than males on this

criterion.

3.5.3. CORRELATIONS BETWEEN FFPI FACTORS AND PERFORMANCE

APPRAISAL CRITERIA

The analysis on the results obtained lead to some hypothesis being met, while most

were rejected. There was also one surprising and unexpected correlation, which will

be developed further below. Even more surprising was the utter lack of correlations

between sales data and personality traits.

Page 57: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

57

As mentioned, the only hypothesis to be met was the first one. As expected, Openness

to experience correlated positively with performance, according to the criterion

“Customer orientation”. A correlation of r=0.667 was established between the two

variables. These findings neither confirm nor infirm the results of previous studies

and meta-analyses, which were inconclusive as to the ability of the Big Five factor

Openness to experience to predict job performance. Whether the relationship between

performance and this Big Five factor is of causational nature remains to be seen. The

possibility that the correlation may be the result of the connection between Openness

to experience and intelligence must be kept open until proven otherwise (Moutafi et

al, 2006).

The second and most unexpected correlation identified was between Openness to

experience and Meeting deadlines (r=-0.429). The data analysis indicated a negative

correlation of average intensity. While there were few previous studies to find a

positive connection between Openness to experience and job performance (Salgado,

1997), there were none to point out a negative correlation for this factor.

In contrast to the findings of most previous research, the hypothesis that there would

be a relationship between Conscientiousness and job performance was not confirmed.

The findings are as baffling as could be, since highly conscientious individuals did not

appear to be the most performant, neither according to supervisory ratings nor to sales

data.

Contrary to initial expectations, there were no positive correlations found between

Extroversion and job performance or Emotional stability between and job

performance, nor any negative correlations between Agreeableness and job

performance. Thus, the hypotheses 3, 4 and 5 were infirmed.

3.5.4. OTHER CORRELATIONS

There have been a number of other correlations observed, mainly among personality

traits, among performance appraisal criteria, and between other characteristics of the

sample and performance appraisal criteria. The will be presented below.

Page 58: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

58

While, as mentioned earlier, the Big Five factors were supposed to be independent

from each other, in the case of this particular study, some inter-trait correlations were

found:

Positive correlation between Extraversion and Emotional stability (r=0.521)

Positive correlation between Agreeableness and Emotional stability (r=0.522)

Positive correlation between Openness to experience and Emotional stability

(r=0.598)

The greatest number of correlation was found between performance criteria. They are

as follows:

Positive correlation between Target achievement and Quality of work

(r=0.720)

Positive correlation between Target achievement and Customer orientation

(r=0.457)

Positive correlation between Target achievement and Initiative (r=0.443)

Positive correlation between Customer orientation and Quality of work

(r=0.525)

Positive correlation between Initiative and Quality of work (r=0.676)

Positive correlation between Initiative and Customer orientation (r=0.481)

Positive correlation between Relationship with supervisors and Relationship

with peers (r=0.537)

Positive correlation between Relationship with supervisors and Adaptability

(r=0.476)

Finally, there were several other correlations identified on the basis of Seniority in

organization and performance criteria, and Age and performance criteria, respectively.

These are:

Positive correlation between Seniority in organization and Target achievement

(r=0.684)

Positive correlation between Seniority in organization and Quality of work

(r=0.742)

Positive correlation between Seniority in organization and Adaptability

(r=0.660)

Page 59: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

59

Positive correlation between Age and Adaptability (r=0.588)

Positive correlation between Age and Meeting deadlines (r=0.900)

The first three correlations, based on the variable Seniority in organization, are

assumed to be a result of a process akin to natural selection. According to available

information, the employees who were low performers were, in time, replaced by those

with higher performance.

Page 60: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

60

4. CONCLUSIONS, FALLACIES AND FUTURE RESEARCH

DIRECTIONS

Drawing on the final results of the research, it is clear that most of the findings do not

confirm the majority of research existent on the subject of performance-personality

correlation. Perhaps most surprising of all was the absence of a connection between

Conscientiousness and performance, or Emotional Stability and performance, which

were previously found to be valid predictors of performance in all occupations. One

possible explanation is that there are other factors at play, which influence the

outcome of an individual’s work, surpassing the contribution of personality to

performance.

Another possible reason behind the absence of any valid correlations is the small size

of the sample used in the study. While the instruments used were calibrated on a

significant population and were deemed valid, the results of the present study lack

certainty as there were insufficient subjects in order to obtain statistically relevant

results.

Moreover, since the personality inventory was not used in a clinical or educational

setting, but in a work environment, it is more likely that the subjects were influenced

by what is known as social desirability effect. In essence, this means that the subjects

felt that the stakes were higher, and as a result, they felt more pressure to offer

answers that they deemed more desirable in that context. While social desirability is

considered to be an issue across all circumstances, it is assumed that it has a more

profound effect when personality testing is used for hiring or in a professional

context.

While the performance appraisals were not a novelty for the company in which the

empirical study was conducted, the evaluations contributed to raising awareness

regarding the varied uses of the performance appraisal techniques. It is hoped that in

Page 61: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

61

the wake of this empirical study, the company will feature more performance

appraisals conducted for the purpose of employee development.

Lastly, one of the unforeseen effects of the presents study is also among the most

important. In communicating with the company over the course of conducting the

empirical study, information, opinions and practices regarding selection, among other

Human Resource Management practices were exchanged, which led to an increased

awareness regarding the entire process. As a result, there is increased focus on

employee satisfaction. Also, a formalized procedure for exit interviews has been

proposed. While the management of the company was aware of the value of human

resources, what was lacking was the knowledge regarding appropriate practices,

which is where this study has had the most significant impact.

Changing the focus onto the wider view of the situation in Romania regarding the

research around the correlation between personality traits and performance, it must be

underlined that there is insufficient data regarding the subject. While this empirical

study fails to satisfy the criterion of sufficient sample size, it may represent a basis for

the construction of other studies. While in countries where there is a developed

theoretical basis for the personality-performance relationship, there can be a shift

towards the study of individual facets of Big Five factors, in Romania, the study of

this relationship is far from being sufficiently explored.

Page 62: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

62

LIST OF REFERENCES

Aluja, Anton, Garc a, Óscar, Garc a, Luis F., (2002), A comparative study of Zuckerman's three

structural models for personality through the NEO-PI-R, ZKPQ-III-R, EPQ-RS and Goldberg's 50-

bipolar adjectives, Personality and Individual Differences, Vol. 33 (5), 713–725

Anderson, G., & Viswesvaran, C., (1998), An update of the validity of personality scales in personal

selection: A meta-analysis of studies published after 1992, Paper presented at the 13th Annual

Conference of the Society of Industrial and Organizational Psychology, Dallas

Barrick, M. R. and Mount, M. K., (1991), The Big Five personality dimensions and job performance:

A meta-analysis. Personnel Psychology, Vol. 44(1), 1–26

Barrick, M. R., Mount, M. K. and Judge, T. A., (2001), Personality and Performance at the Beginning

of the New Millennium: What Do We Know and Where Do We Go Next?, International Journal of

Selection and Assessment, Vol. 9, no. 1-2, 9–30

Bejat, Marian, (1972), Geneza psihologiei ca stiinta experimentala in Romania, Didactica si

Pedagogica Publishing House, Bucharest

Bridge, Donna J., & Paller, Ken A., (2012), Neural Correlates of Reactivation and Retrieval-Induced

Distortion, The Journal of Neuroscience, 32(35): 12144-12151

Costa, P. T., & McCrae, R. R., (1992), Revised NEO Personality Inventory (NEO-PI-R) and NEO

Five-Factor Inventory (NEO-FFI) professional manual, Psychological Assessment Resources

Publishing House, Odessa, FL

Digman, J. M., (1990), Personality Structure: Emergence of the Five-Factor Model, Annual Review of

Psychology, Vol. 41, 417-440

Grigore, Ana-Maria, (2008), Cercetări privind managementul resurselor umane în întreprinderile mici

şi mijlocii, Oeconomica, Vol. II, 89-112

Hendriks, A.A.J. (1997). The Construction of the Five-Factor Personality Inventory (FFPI), Doctoral

Thesis, Rijksuniversiteit Groningen

Hough, L. M., (1992), The “Big Five” personality variables—Construct confusion: Description versus

prediction, Human Performance, Vol. 5(1/2), 139–155

Hunter, John E., & Schmidt, Frank L., (1990), Methods of Meta-Analysis: Correcting Error and Bias in

Research Findings, Journal of the American Statistical Association, Vol. 86, no. 413, 242-244

Hurtz, Gregory M., & Donovan, John J., (2000), Personality and job performance: The Big Five

revisited, Journal of Applied Psychology, Vol 85(6), 869-879

Jurcău, N., & Drugaş, M. (2008), File din istoria psihologiei muncii din România. Psihologia

Resurselor Umane, vol. VI, no. 2, 128-134

Kiss, Julien-Ferencz, (2012), The evolution of Romanian Psychological Bibliography between 1938

and 2008, History & Philosophy of Psychology, Vol. 14(1), 53–59

Page 63: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

63

Klang, Andreas, (2013), The Relationship between Personality and Job Performance in Sales: A

Replication of Past Research and an Extension to a Swedish Context, Psykologiska institution,

Stockholm

Marinaş, Virgil Cristian, & Puia, Ştefania Ramona, (2009), Human Resource Management in

Romania, The Bucharest Academy of Economic Studies, Faculty of Management

McCrae, R.R., & John O.P., (1992), An introduction to the five-factor model and its applications,

Journal of Personality, Vol. 60(2), 175-215

Mount, M. K., & Barrick, M. R., (1995), The Big Five personality dimensions: Implications for

research and practice in human resources management, Research in personnel and human resources

management, Vol. 13, 153-200

Mount, M.K., Barrick, M. R., & Stwart, G.L., (1998) Five-Factor Model of Personality and

Performance in Jobs Involving Interpersonal Interactions, Human Performance, Vol. 11(2/3), 145-165

Moutafi, J., Furnham, A., & Tsaousis, I., (2006), Is the relationship between intelligence and trait

Neuroticism mediated by test anxiety?, Personality and Individual Differences, Vol. 40, 587-597

Ones, D. S. & Viswesvaran, C., (1996), Bandwidth–fidelity dilemma in personality measurement for

personnel selection, Journal of Organizational Behavior, Volume 17, no. 6, 609–626

Pitariu, H., (1978), Psihologie industrială, Babes-Bolyai University, Cluj-Napoca, Faculty of History

and Philosophy

Rosca, Alexandru, (1976), Psihologie generala, Didactica si Pedagogica Publishing House, Bucharest

Rothman, S., & Coetzer, E.P., (2003), The big personality dimensions and job performance, SA

Journal of Industrial Psychology, Vol. 29 (1), 68-74

Russu, Corneliu, (2014), Aspects of Labor Market and Human Resources in Romania, Economic

Insights – Trends and Challenges, Vol.III (LXVI), no. 3, 39-48

Salgado, Jesús F., (1997), The five factor model of personality and job performance in the European

Community, Journal of Applied Psychology, Vol 82(1), Feb 1997, 30-43

Schmitt, David P., Realo, A, Voracek, M., & Allik, J., (2008), Why can't a man be more like a woman?

Sex differences in big five personality traits across 55 cultures, Journal of Personality and Social

Psychology, Vol. 94 (1), 168–182

Tett, R. P., Jackson, D. N. And Rothstein, M. (1991), Personality Measures As Predictors of Job

Performance: A Meta-Analytic Review, Personnel Psychology, Vol. 44, 703–742

Ticu, Constantin, (2004), Evaluarea psihologica a personalului, Polirom Publishing House, Iasi

Vinchur, Andrew J., Schippmann, Jeffery S., Switzer III, Fred S., Roth, Philip L., (1998), A Meta-

Analytic Review of Predictors of Job Performance for Salespeople, Journal of Applied Psychology,

Vol. 83, no. 4, 586-597

Woods, S. A., Lievens, F., De Fruyt, F. and Wille, B., (2013), Personality across working life: The

longitudinal and reciprocal influences of personality on work, Journal of Organizational Behavior,

Vol. 34, no. S1, S7–S25

Zonderman, A.B., Costa P.T. Jr., McCrae, R.R., (1989), Depression as a Risk for Cancer Morbidity

and Mortality in a Nationally Representative Sample. The Journal of the American Medical

Association, Vol. 262(9), 1191-1195

Page 64: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

64

***Official Statistics of Finland (OSF): CVTS, Continuing vocational training survey [e-publication]

***Romanian HR Profile 2006 [e-publication]

***Romanian HR Profile 2007 [e-publication]

***Romanian HR Profile 2008 [e-publication]

***Romanian Human Resources Outlook, 2010 [e-publication]

***Romanian Human Resources Outlook, 2011 [e-publication]

***Romanian Human Resources Outlook, 2012 [e-publication]

***Romanian Human Resources Outlook, 2013 [e-publication]

Page 65: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

65

APPENDIX

FFPi Personality inventory

Vă rugăm să vă caracterizaţi cu ajutorul următoarelor afirmaţii, acordând un punctaj

de la 1 la 5 pentru fiecare afirmaţie.

1 = mi se potriveşte foarte puţin;

2 = mi se potriveşte puţin;

3 = mi se potriveşte cam pe jumătate;

4 = mi se potriveşte mult;

5 = mi se potriveşte foarte mult.

1. Caut prilejuri de a povesti cu alţii. 1 2 3 4 5

2. Îi reped pe ceilalţi. 1 2 3 4 5

3. Lucrez fără să-mi fac un plan de acţiune. 1 2 3 4 5

4. Mă simt disperat. 1 2 3 4 5

5. Accept ordinele fără să le judec. 1 2 3 4 5

6. Mă pricep să înviorez o petrecere. 1 2 3 4 5

7. Îi ajut pe ceilalţi. 1 2 3 4 5

8. Îmi place ordinea şi regularitatea. 1 2 3 4 5

9. Mă gândesc că ceea ce fac se va termina cu bine. 1 2 3 4 5

10. Repet ceea ce spun alţii. 1 2 3 4 5

11. Rămân pe planul al doilea. 1 2 3 4 5

12. Ascult cu răbdare ceea ce povestesc ceilalţi. 1 2 3 4 5

13. Îmi place să am un program de viaţă fix. 1 2 3 4 5

14. Îmi fac probleme pentru lucruri mărunte. 1 2 3 4 5

15. Iau hotărâri în privinţa mea fără a le cere altora părerea. 1 2 3 4 5

16. Mă simt stingherit în prezenţa altora. 1 2 3 4 5

17. Sunt atent să nu îi deranjez pe ceilalţi. 1 2 3 4 5

18. Îmi las lucrurile vraişte. 1 2 3 4 5

19. Văd partea bună a lucrurilor. 1 2 3 4 5

20. Conduc acţiuni. 1 2 3 4 5

21. Vorbesc pe ton scăzut. 1 2 3 4 5

22. Respect drepturile celorlalţi. 1 2 3 4 5

23. Fac lucruri cu care ceilalţi nu şi-ar pierde vremea. 1 2 3 4 5

24. Mă tem că acţionez greşit. 1 2 3 4 5

25. Sunt în stare să cred orice. 1 2 3 4 5

26. Mă distrez de minune. 1 2 3 4 5

27. Îi accept pe ceilalţi aşa cum sunt. 1 2 3 4 5

28. Încep să lucrez fără să ştiu la ce va folosi ceea ce fac. 1 2 3 4 5

29. Îmi ascund emoţiile. 1 2 3 4 5

30. Mă las influenţat de părerile celorlalţi. 1 2 3 4 5

31. Evit compania celorlalţi. 1 2 3 4 5

32. Mă gândesc în primul rând la mine însumi. 1 2 3 4 5

33. Fac lucrurile în ultima clipă. 1 2 3 4 5

Page 66: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

66

34. Văd viitorul în culori întunecate. 1 2 3 4 5

35. Îmi asum riscuri. 1 2 3 4 5

36. Îmi plac petrecerile. 1 2 3 4 5

37. Încerc să-i mulţumesc pe toţi. 1 2 3 4 5

38. Îmi termin munca la timp. 1 2 3 4 5

39. Mă tem că se va întâmpla ce e mai rău. 1 2 3 4 5

40. Îi las pe alţii să hotărască. 1 2 3 4 5

41. Îmi place să discut. 1 2 3 4 5

42. Provoc certuri. 1 2 3 4 5

43. Mă comport corect. 1 2 3 4 5

44. Trec cu uşurinţă peste eşecurile proprii. 1 2 3 4 5

45. Privesc lucrurile din diferite puncte de vedere. 1 2 3 4 5

46. Cunosc puţine persoane. 1 2 3 4 5

47. Ţin seama de sentimentele altora. 1 2 3 4 5

48. Respect regulile. 1 2 3 4 5

49. Fac faţă cu bine situaţiilor stresante. 1 2 3 4 5

50. Propun acţiuni. 1 2 3 4 5

51. Creez bună dispoziţie. 1 2 3 4 5

52. Mă folosesc de alţii pentru scopurile proprii. 1 2 3 4 5

53. Mă angajez în acţiuni riscante. 1 2 3 4 5

54. Îmi dau lacrimile. 1 2 3 4 5

55. Fac aşa cum vor alţii. 1 2 3 4 5

56. Mă ţin deoparte de alţii. 1 2 3 4 5

57. Împărtăşesc bucuria şi tristeţea altora. 1 2 3 4 5

58. Vreau ca totul să meargă perfect. 1 2 3 4 5

59. Găsesc motive de bucurie. 1 2 3 4 5

60. Sunt uşor de supus. 1 2 3 4 5

61. Intru în vorbă cu alţii. 1 2 3 4 5

62. Povestesc despre situaţii în care le-am fost superior

celorlalţi.

1 2 3 4 5

63. Îmi las munca neterminată. 1 2 3 4 5

64. Îmi las la o parte grijile. 1 2 3 4 5

65. Înainte de a acţiona aştept să văd ce fac ceilalţi. 1 2 3 4 5

66. Îi ţin pe alţii la distanţă. 1 2 3 4 5

67. Îmi place să fac ceva pentru alţii. 1 2 3 4 5

68. Fac lucrurile aşa cum scrie la carte. 1 2 3 4 5

69. Îmi stăpânesc nervii. 1 2 3 4 5

70. Acţionez la fel ca majoritatea celor din jur. 1 2 3 4 5

71. Prefer să fiu singur. 1 2 3 4 5

72. Râd de părerile celorlalţi. 1 2 3 4 5

73. Muncesc cu râvnă. 1 2 3 4 5

74. Am încredere în forţele mele. 1 2 3 4 5

75. Reacţionez rapid. 1 2 3 4 5

76. În societate mă simt în largul meu. 1 2 3 4 5

77. Mă amestec în treburile altora. 1 2 3 4 5

78. Îmi abandonez cu uşurinţă munca. 1 2 3 4 5

79. Intru în panică. 1 2 3 4 5

Page 67: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

67

80. Mă simt atras de sarcinile grele. 1 2 3 4 5

81. Visez cu ochii deschişi. 1 2 3 4 5

82. Îi împiedic pe alţii să îşi spună părerea. 1 2 3 4 5

83. Îmi respect promisiunile. 1 2 3 4 5

84. Sunt nemulţumit. 1 2 3 4 5

85. Îmi fixez scopuri clare. 1 2 3 4 5

86. În prezenţa străinilor mă închid în mine. 1 2 3 4 5

87. Respect părerile altora. 1 2 3 4 5

88. Îmi pregătesc bine acţiunile. 1 2 3 4 5

89. Îmi ies din fire. 1 2 3 4 5

90. Sunt uşor de păcălit. 1 2 3 4 5

91. Îmi fac uşor prieteni. 1 2 3 4 5

92. Îmi impun părerile proprii. 1 2 3 4 5

93. Fac doar ceea ce-mi place. 1 2 3 4 5

94. Mă frământ pentru diverse lucruri. 1 2 3 4 5

95. Sunt plin de idei. 1 2 3 4 5

96. Îmi arăt bucuria. 1 2 3 4 5

97. Vorbesc doar despre mine. 1 2 3 4 5

98. Îmi neglijez îndatoririle. 1 2 3 4 5

99. Îmi păstrez sângele rece. 1 2 3 4 5

100. Găsesc soluţii originale. 1 2 3 4 5

Sex: M__; F__

Vârsta: ___ani

Postul ocupat:_____

Vă mulţumim!

Page 68: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

68

Performance evaluation questionnaire

Chestionar de evaluare a performantelor angajatilor

Va rugam sa caracterizati performantele individuale din ultimele 6-12 luni ale

angajatilor din lista de mai jos, acordand un punctaj de la 1 la 5, dupa cum urmeaza:

1 = rezultatele necorespunzatoare, lipsa totala de interes

2 = rezultate sub asteptari

3 = rezultatele corespund asteptarilor

4 = rezultatele depasesc asteptarile

5 = rezultate exceptionale

Informatiile furnizate sunt confidentiale si vor fi utilizate pentru realizarea unui studiu

de caz ce urmareste legatura dintre personalitate si performanta.

Multumesc!

Pozitia ocupata de angajatul evaluat: __________________________________

Departamentul/echipa:_________________________________________________

Vechimea in firma:____________________________________________________

Norma parțială …… întreagă ……

Vârstă ….. Ultima școală absolvită Liceu…. Licență .... Masterat ….

Sexul: M F

Nume angajat

Criteriu de evaluare Punctaj

acordat de la

1 la 5

Realizarea cantitativa a targetului

Calitatea muncii/sarcinilor realizate

Orientare catre client

Relatia cu superiorii

Relatia cu colegii

Adaptabilitate, flexibilitate

Initiativa, imbunatatirile aduse

Page 69: BABEŞ-BOLYAI UNIVERSITY FACULTY OF · PDF fileFACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CLUJ-NAPOCA Bachelor’s thesis Scientific Coordinator Conf.univ.dr. Monica Aniela Zaharie

69

Respectarea termenelor