Employee Performance Factors
Employee Performance Factors
JANUARY, 2023
ASSOSA, ETHIOPIA
ACKNOWLEDGMENT
Secondly,I have also a great appreciation and thanks for Mr. AMARE TESFAYE, for his
intensive advices in conducting this research proposal. His encouragement, guidance and critical
comments have greatly contributed to the research proposal.
Finally, I also appreciate my staff members who support me in materials i.e. papers, computers
and in the ideas. Something worth noting is that I have sacrificed the valuable time to complete
this research proposal. Once again, I would like to thank all those who helped in my research
proposal.
Page II
Table of Contents Pages
Acknowledgement……………………………………………………………………………..II
Table of Contents……………………………………………………………………………..III
List of Abbrevation and Acronyms…………………………………………………………...V
Abstract……………………………………………………………………………………......VI
CHAPTERONE………………………………………………………………………………...1
INTRODUCTION……………………………………………………………………………...1
1.1 Background………………………………………………………………………………..1
1.2 Statement of the Problem…………………………………………………………………2
1.3 Objectives of the Study……………………………………………………………………3
1.3.1 General Objective………………………………………………………………………..3
1.3.2 Specific Objective………………………………………………………………………..3
1.4 Research Questions………………………………………………………………………4
1.5 Significance of the study…………………………………………………………………..4
1.6Scope………………………………………………………………………………………5
7 Operational definitions……………………………………………………………………..5
1.8Limitations…………………………………………………………………………………..5
CHAPTER THREE………………………………………………………………………….....15
3. RESEARCH METHODOLOGY…………………………………………………………....15
3.1INTRODUCTION……………………………………………………………………….....15
Page III
3.4Target Population……………………………………………………………………….......15
3.7.1 Reliability…………………………………………………………………………………18
3.7.2 Validity…………………………………………………………………………………...18
3.8 Variables…………………………………………………………………………………....18
References………………………………………………………………………………….........22
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List of Abbrevation and Acronyms
ELT:Electrical Technology
Page V
ABSTRACT
This research study aims to assesswhich factors that affect employee’sPerformance at
Assosa Polytechnic College. Specifically, the study is to assess significant factors that
influence employees’ performance in Assosa polytechnic college.Theoretical and empirical
studies will be reviewed to assess the factors likely to affect employee’s Performance. The
study will adopt descriptive research survey;a sample size of 143 employees will be taken
for the research study, an entire population of 223. Data for the study will be collected
primarily through semi-structured questionnaire. The study will adopt descriptive statistics
analytical techniques to analyze the variables, using Statistical Program for Social
Sciences (SPSS) version 25. Statistical instrument to be used for the research analysis will
mainly be inferential statistics. The researcher will employ the survey strategy for the
study. This strategy is proposed because it allows the collection of a large amount of data
from a sizable population in an economical manner. The study will employ descriptive
statistics method for presenting and summarizing data. Findings would be reported in the
form of tables and figures and appropriate recommendations given.
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Factors Affecting Employee’s Performance
CHAPTER ONE
INTRODUCTION
Organizations are facing major competition from their competitors due to globalization; the
human resource managers are developing policies to ensure that the organizations remain
outstanding in the world market. Various organizations have set goals and objectives which
employees work toward achieving them. The management has therefore designed job
specifications and descriptions to ensure that there is clear accountability of each employee
towards their performance in their daily activities. Employee’s performance is driven from the
long-term goals of the firm as operationalized through annual, semi-annual, quarterly, monthly,
weekly and daily targets (Armstrong, 2009).
The concept of performance covers both what has been achieved and how it has been achieved
(Armstrong, 2009). The management has to compare the set goals in relation to the employee
output to measure the level of performance. Performance in the corporate is largely driven by
input of employees. Employee performance has therefore become a key concern of the
management. Combined efforts of various employees performance determines the level of an
organizations level of production hence development and growth of that organization. The
continuing prosperity of a firm is likely to be enhanced by employees who hold attitudes and
expectations that are closely aligned with organizations vision (Chew, 2005).
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Factors Affecting Employee’s Performance
Employees require motivation and other factors to enable them work effectively to achieve the
organizational goals. Every organization has been established with certain objectives to achieve.
These objectives can be achieved by utilizing the resources like human power, machines,
materials and money. All these resources are important but out of these the human power is the
most important one. Organizations depend on their employees to survive (Alo, 1999).
Employees are performing different jobs in an organization depending upon the nature of the
organization. They mainly perform tasks like production, storage, manufacturing, transportation,
marketing, purchasing, distribution, promotion of business, finance and accounting, human
resource, research and public relations. Therefore, all these activities are inter-related to achieve
the targets set by the organization.Even though scholars describe earlier about high quality
service and products.Organizational objective and human power are some of the factors that
influence employee’ performance.
According to Kiruja and Mukuru (2013) state thatthe overall successes of an organization in
achieving its strategic objectives rely heavily on the performance level of employees.
Employees’ performance is a function of ability and motivation.Where ability is comprised of
the skills, training and resources required for performing a task and motivation is described as an
inner force that drives individual to act towards something. Flippo (2001) mentions that
employee’s performance is the success of the organizational environment and this will the
motivationto higher productivity, quality, quantity, commitment and energy.
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Factors Affecting Employee’s Performance
Furthermore, Manzoor, (2001) affirms that, in order to achieve affluence, organizations need to
planunlike strategies so that they are able to contend with its competitors and more so to increase
the overall organization performance. A small number of organizations deem that employees and
human personnel are the main assets of any organization and which can lead them to success or
failure if not given attention. The employees are contented with it, they are motivated to fulfill
the tasks and achieving their respected goals and finally encouraged by their employers and no
organization can attain victory or develop in the long run. Employees’ performance has been
shown to have a significant effect on organizational performance (Collis and Montgomery,
1995).
Organizations need to understand the factors that affect employees ‘performance because such
insight will help them make decisions that will improved performance from the employees and to
an extension the overall performance of the organization.
This study try to assess which factors in Assosa polytechnic college deal with this major problem
that can affect the existence status of the college in a great deal related with employees’
performance.
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Factors Affecting Employee’s Performance
As stated below under the overview of the college, there is no enough research conducted on it
yet. Therefore the finding of this research proposal will provide a more reliable in-depth
understanding of the factors that affect employee’s performance at Assosa polytechnic college.
The study primarily benefits mostly managers of Assosa polytechnic college by pointing out
some of the problems seen in the college’s employees’ performance system.
Identifying some gaps that are challenging the loyalty and commitment of the employees for
the college
It also helps the college to re-assess the existing practice with a view of maximizing its
strength and minimizing its weakness.
This study will have its own share in assisting the researcher to contribute the growth of
different organizations in Ethiopia, the study identifies problems related to the subject
matter and provide information to the concerned bodies like collegeDeans, college
administrative, policy makers, Education planners, and private investors to take appropriate
decisions.
This study will extend its significance to the society and plays a great role in promoting the
development oforganization and contributes to the general economy indirectly by improving
employees’ performance in the service or education sectors.
Future scholars can use as a reference.
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Factors Affecting Employee’s Performance
Organization: Refers to a social arrangement which pursues collective goals, controls its own
performances and has boundary separating it from its environment (Harrison, 2005).
Employees’ Performance: behaviors which are relevant to organizational goals and executed by
individual employees
Productivity: the ratio of effectiveness (output) to the cost of achieving that level of
effectiveness (input).
The researcher will face some situation that limits the study to be done properly. Assess factors
affecting employee’s performance in larger scale requires ample of time and budget. Since time
and budget are the main constraints, the researcher is selecting only the four main factors that
affect employees’ performance among others.The other limitation is the researcher being an
employee of the college where the research will be undertaking, so lack of willingness of
respondents and lack of sufficient data since this study is mostly depend on primary source like
questionnaire so that the respondents may not give accurate information.Consequently, the
conclusion may not be the same as other institutions or colleges.
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Factors Affecting Employee’s Performance
CHAPTER TWO
2.0LITERATURE REVIEW
This chapter will present a review of relevant theoretical and empirical literature onthe
factorswhich influence employees’ performance.
Performance is a major multi-dimensional construct aimed to achieve results and has a strong
link to strategic goals of an organization (Mwita, 2000). Employee’ performance can also be
defined as the activities related to job and how well those activities were executed by the
employees. The behavior of employees’performance is also related to the objective of the
organization which isincreasingits reputation.
For every organization, the most important element is the employee’s performance because the
success or failure of an organization is depends on the performance of employees. Many
business personnel, directors, the employees’ performance of each staff member on an annual or
quarterly basis in order to help them to identify suggested areas for improvement. The firm that
gets the advantage over other competitors through their talented employees’ performance in the
market world. The performance of employee’s on different jobs in close coordination is needed
for the success of the organization.
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Factors Affecting Employee’s Performance
theemployee’s use their specific skills and knowledge to support the organization’s core
technical processes.
There are two types of task performance. Activities transform raw materials into the goods and
services that are the organization’s products, such as operating a production machine in
manufacturing plant and selling merchandise in a retail store are one of the task performances.
The second type of task performance is activities that service and maintain the technical core by
replenishing its supply of raw materials or distributing its finished products (Kahya, 2009).
On the other hand, according to Werner, (2000, Pp.3-24). State thatcontextual the performance
also called as citizenship performance.It is defined as the effort of employee which is not
directly related to the main task function but, still important (Werner, 2000). This is because the
employees are the one who shape the organization, social, and psychological context that serves
as the critical catalyst for tasks, activities and processes. There are two type concepts of
contextual performance. The first one is behavior which primarily aimsto smooth the function
of the organization. The second is behavior one that aims to change and improve work
procedures and organization processes.
Organization’s need to ensure effective employeesand this need can be satisfied by the
organization and should be encouraged to continue. Besides that, the abilities and skills are
tending to predict task performance while personality and related factors are tending to predict
contextual performance (Werner, 2000).
An effective employee uses his or her specific knowledge and skill for doing task in a right way.
Employeesperform different tasks in the organization, mainly in production, manufacturing,
marketing, financing, storing, transporting and public relation. All these activities performed by
the employees are inter-related to the goal of organization.Having effective employees’
performance in theorganization lead to increasing the productionsales and profit.
The importance of employees’ performance must be understood by the management and taking
steps to develop and motivate employees to perform well.
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Factors Affecting Employee’s Performance
It is unquestionable that proper motivation can cause employees to perform well and hence
increase productivity or service delivery. Research conducted by William James of Harvard
University is cited and states “employees could maintain their jobs by working at 20 to 30
percent of their ability employees work at 80 to 90 percent of their ability if highly motivated.
So motivation is a key determinant of employee’s level of performance and organizational
profitability (Sexton Adams & Adelaide Griffin,, 1987).
In today’s industrial life it would be unrealistic not to recognize the significance of motivation
in getting the work done. All managers and supervisors have to be concerned with it and have to
consider ways and means to motivate employees to achieve organizational effectiveness. Poor
motivated employees may show tendency to come late, show no concern with production, may
have a high rate of absenteeism and when present create interpersonal problems self and other
employees (Mirza, 1988).
Training has a distinctive role in the achievement of organizational goal by incorporating the
interests of theorganization and workforce. Training and development has been acknowledged
to be a very important factor of organizational performance as well as employees’ performance.
It is not an end goal rather training is characterized as a means to an end; the end is being
productive and efficient organization.Populated by informed workers who see themselves as
significant stakeholders in their organizationssuccess(Barney,1991).Training and development
are basically directed to employees to have a better employees’ performance at work, but its
ultimate goal goes to the organization, because the end user of its benefits is the organization
itself (Rajaet al. 2011).
The success or failure of any organization or business basically depends on the performance of
its employees. No wonder they are termed as valuable, non-imitable and rare resource of a firm
(Soud, 2014). Organizations are willingly investing in training programs to develop their
employee’s skill and knowledge. Effectively training for employeesare considered as significant
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Factors Affecting Employee’s Performance
when it comes to improvement employees’ performance, since it enhances employee’s level and
competency of the firm and it provides support when it comes to filling the gap between what
exactly is performed and what things are required to have a better performance.That is a gap
between the performance that is desired and the actual performance of employee. Therefore,
training becomes an important requirement in the organizational as well asemployees’
performance.
One of the very important responsibilities of a supervisor or manager is to help your staff with
their professional and career development. You can do this by providing opportunities
resources, and tools,that develop their knowledge, abilities and skills to be successful in their
job and career. The manager can provide on-job training and coaching, giving them
performance goals and feedback, asking about and supporting their development goals and
helping them write an individual development plan. Consequently an organization that provides
such opportunities for employeesto learn new skills and cross train with others directly or
indirectly increases on the performance of itsemployees (Raja et.al 2011).
The process of employee development plays a vital role in developing or let losing their
employees through training and organizational development with the purpose of increasing their
performance. The basic purpose of employee’s development is to achieve those units which are
human made with the intention of achieving human potential with the purpose of attaining
organizational objectives, and these skilled employees are advocated of groups, organizational
credibility and work procedure.(Hassan, 2007).
Employee development is the most crucial Human Resource Management function in the
organization and it refers to developing employees and organization’s abilities as a whole
(Elena, 2000). Therefore, there is a direct association between development of employees and
their performance. When employees become more developed, they tend to be more contented
with their job, more dedicated with their job and hence performance would eventually become
higher. Thus, organizational success will be achieved when the performance of employee
increases.(Chamathes, 2006).
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2.3.2.1 Coaching
Coaching is one of the most important activities when it comes to developing of employees. In
coaching, employees are treated as individual partner in attaining both individual and
organizational goals. Hence, coaching can be used by employees to solve problems (Agarwal&
Magni 2006).When problems get resolved, it would lead to enhancement in performance of the
organization since employees would be in a position to attain goals of the organization (Hameed
&Waheed 2011).
Employee Employees’
Training performance
Employees
Development i.e.,
coaching
According to (Soud, 2014).Good remuneration has been found over the years to be one of the
policies of the organization that can adopt to increase their workers performance and thereby
increase the organizations productivity. Also, with the present global economic trend, most
employers of labor have realized the fact that for their organizations to compete favorably, the
performance of their employee’s goes a long way in determining the success of the organization
(Muogobo, 2013).
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Factors Affecting Employee’s Performance
Indirect compensation is when anemployee receives the tangible value of the rewards without
receiving the actual cash. Suchashealth insurance, Vacation pay, or retirement pension (cafeteria
service, transportation and house allowance).
2.4.1 Salary
Salary becomes the most obvious motivational factor (Soud, 2014). Employees compete
constantly for positions which offer quick and easily accessible rewards. At times, employees
sacrifice other motivational factors to attain job satisfaction. That is why employees change
their job frequently whenever they get better payment.(Panwar &Gupta 2012). Muogobo
(2013)states that, good remuneration or rather salaries that is paid at the right time has been
found over the years to be one of the policies the organization can adopt to increase their
workers performance and thereby increase the organization’s productivity.
Salary is also considered a vital determinant factor for performance increment of employees and
has also been seen to influence the decision of employees in regards to leaving or staying in the
organization (Kline & Hsieh2007). Moreover, there is an effective relationship between
performance improvement of employees and payments based on performance. So every
employee tries to put more effort in order to produce more units to earn more in the long run.
Payments based on performance motivate employees to be more creative when it comes to effort
generation. Due to payments based on performance, employees who are capable tend to earn
more than workers who are simply doordinary(Lazear, 1999).
2.4.2Employee Benefits
Employee benefits are the membership-based and nonfinancial rewards offered to attract and
keep employees (Decenzo & Robbins 2002). According to Armstrong (2009)employee benefits
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Factors Affecting Employee’s Performance
are elements of remuneration given in addition to the various forms of cash pay. As the hygiene
factor will affects employees‟ work-motivation in turn affects organizations‟ productivity (Hong
et.al 1995)
Employees’
Remuneration like:
performance
Salary and other
employees’ benefits
A leader is one whose behavior guides people towards their goal and achievement. Leadership
influences managers, employees of the organization and organizational performance with goal
and achievement. (Stogdilly, 1974). Different styles of the leader play a vital role towards
enhancing employee’s performance in order to achieve their goals. (Wang et.al 2009). The tasks
of leaders are characterized by sharing of information, participation, consultation, delegation and
joint decision making focused on employees’ orientation and consideration”. (Vicchio &
Appelbaum, 1995). An employee’s autonomy and self-responsibility could be reduced by close
control from their leader. If an employee’s feel to be competent and willing to work but the
managerial behaviors that can restrict him/her freedom, by observing him/her all the time or keep
on checking him/her work performance could draw out psychological problems that could affect
the performance of the employee’s. And such reaction could bring poor job attitudes, minimum
level of efforts by the employee or both (Brehm, 1972).
The success of organizational change and employees’ performance depends mainly on leadership
commitment and roles. The key to the success in leadership depends on vision rather than
analysis, on learning rather than on knowing because a leader has a strong communication of the
vision and this is more important in today’s leaders. (Wesley, 1996). A leader has the ability to
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Factors Affecting Employee’s Performance
influence their employees so that they can work efficiently and get the things done in order to
achieve organizational goals. (Wang et.al 2005).
The performance of the organization will increase if employee’s share their ideas and values with
each other. A leader is one who can give rewards to his employee’s, motivate their employee’s
towards the achievement of the tasks and giving incentives; give moral support so that
employee’s put more effort to their work. (Webb, 2007).
In this kind of leadership, the leader of the organization takes all decisions him or her without
consulting his or her subordinates. Full authority of the organization is held byhim or her alone.
He or she loves power and never delegates authority to others. The subordinates have to follow
his or her directions without any question. The leader uses threats and punishments to get work
from the subordinates.(Wesley, 1996)
In this type of leadership, the subordinates are consulted and their feedbacks are taken into
decision making process. Decisions are taken after group discussions. Therefore, the authority is
decentralized. The participative leader emphasisthe importance of both work and people. He
provides freedom of thinking and expression.(Wesley, 1996)
In this type, complete freedom is given to the subordinates so that they plan, motivate, control
and otherwise be responsible for their own actions. Leader does not take part in decision making
process. The authority is completely decentralized.(Wesley, 1996)
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Factors Affecting Employee’s Performance
Motivation
Remuneration
Leadership style
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Factors Affecting Employee’s Performance
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION
This chapter presents the research methodology that is adopted and followed by the researcher in
the process of conducting the study. Therefore, it focuses on the following: research design,
study area, target population, sampling technique, and sample size, data collection instrument or
tools, reliability and validity, variables, data analysis methods and ethical consideration.
Descriptive survey type of research approach will be used in this research since descriptive study
is concerned with finding out who, what, where, when or how much? By making descriptions of
phenomena or characteristics associated with the subject. Hence, this study is particularly
concerned with finding out factors that influence employee’s performance in Assosa polytechnic
college; it is appropriate to use this kind of research design.
Assosa polytechnic college is one of government owned TVET College. It is located the way to
the Grand Ethiopian Renaissance Dam near to Assosa University. It is also around 3.5 km away
from the town. It was established in 2002. It plays a great role in Benishangul Gumuz Region.
Thus, the data for this study will be collected from the employees of Assosa polytechnic college
(APTC). The criteria for selecting this college are geographical location, public owned college
and have long experience in teaching and learning process and currently we are working there.
3.4 Target populations
The target population shall comprise of all the 223 employees in Assosa Polytechnic College
who are working in different department or position of the college.
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Factors Affecting Employee’s Performance
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Factors Affecting Employee’s Performance
The researcher will be use simple random sampling technique to select the participants from the
study populations. Among the total population of 223 employees in the college, select143 ofthe
employees who are working in different position are taking as a sample using available random
sampling. By using Solvin’s Formula
1+ (Ne2) 1+ (223×0.05×0.05)1.5575
n = Sample size
N = population
3.5.1Questionnaire
The primary data collection instrument will be utilized in this study to collect the appropriate
data. Questionnaire and open-ended interview data gathering methods are using to collect the
necessary data for the study. The questionnaire is designing for employees who work in different
position at Assosa polytechnic college and the open-ended interview is conducting to the human
resource department head and College Deans rather than the whole employees since it consumed
much time. The purpose of designing the open-ended interview is for getting necessary
information that is not answering by the employees and to cross-check. Responses will be
measured by using Likert scale rating. The questioners will be prepared in English and translated
in to Amharic for the clarity and eliminate any bias to the respondents with the help of language
professionals.
Pre-test will also be conducted before the main survey so participants will be 14 employees or
10% from selected sample size inAssosa Polytechnic College (APTC).
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3.7.1 Reliability
The reliability and internal consistency will be measure by using Alpha coefficient. Cronbach‟s
Alpha is a reliability coefficient that indicates how well items in a set are correlated to one
another. It measures the inter correlations among test items means significant factors with
employee’s performance.
The questionnaire will be given to other experts to seek their opinion about the adequacy and
representativeness of the instrument to ensure it covers all the variables which need to be
measured.
3.7.2 Validity
To assess the clarity of the questionnaire pilot test will be conducted so that those items found to
be redundant and misunderstood will be either discarded or modified to improve the quality of
the research instrument, thus increasing its validity. Some questionnaires will administer to
fourteen employees in the college.
3.8 variables
This study will try to examine relationshipbetween the two variables. The independent variable
for this study is Motivation, Training and Development, Remunerations and Leadership Style.
On the contrary, the dependent variable is employee’s performance.
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After collecting the data, the researcherwill be applied quantitative and qualitative methods of
data analysis. Particularly with the quantitative data will be collected via the questionnaire, a
descriptive Statistical analysis method such as frequency tables and inferential statistics are using
to analyze the data. Whereas data obtained through the open-ended interview are analyzing
qualitatively. Both qualitative and quantitative data will be collect and edit the data then coded
after editing and the information is entered in the Statistical Package for Social sciences (SPSS)
version 25 will be used to analyze the data. From those, appropriate conclusions and
recommendations will be made from the findings of the research.
4.0 Ethical Considerations
In this research study, issues relating to the ethical conduct of research such as informed consent,
confidentiality, privacy and anonymity will be upheld. Participants and respondents will be given
full information on the purpose and objectives of the study in order for them to make informed
decisions. Moreover, all information concerning the identity and personality of respondents will
be treated with utmost confidentiality. Additionally, all information gathered will be used for the
sole purpose of this research study.
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Activities
Time allotted for each activity
2: Data collection
Sampling subjects of the study
Pilot test
Distribution of questioner
Writing chapters 1 and 2
3: Data organization and analysis
Tabulating the data
Analyzing and interpreting the data
4: Finalizing the research report
conclusion and Recommendation
Writing chapters 3,4, and 5 of the research report
Organizing the first draft of the report
Submitting the first draft
Correcting comments
Submitting the final copy
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Factors Affecting Employee’s Performance
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