The Effectiveness of Position Analysis Questionnaires (PAQ ..., Lecture notes of Research Methodology

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The Effectiveness of Position Analysis Questionnaires (PAQ) in Performance Appraisal Systems

By: Talatu Muhammad Barwa

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• Introduction Table of Contents
  • Research Question 2Aims and Objectives
  • Purpose of the study
• Literature Review............................................................................................................................ 4Position Analysis Questionnaire (PAQ) - The Evolution of Position Analysis Questionnaires 5Strengths and Limitations.................................................................................................
  • Performance AppraisalsNeed for Performance Appraisals
• Methodology 9Performance Appraisal Methods
  • Research Design
  • SamplingQuestionnaire
  • Limitations of Research Methodology 14Ethical Considerations
• Findings......................................................................................................................................... 17Validity and Reliability
  • Questionnaire Results
    • PositionJob Analysis Methods
    • PAQ Relevancy 18PAQ Uses
    • Performance Appraisal Time-scale 19Performance Appraisal Methods
    • PAQ Elements
    • Cross-Referencing PAQ with Performance Benchmarks 20PAQ for Compensation Management
    • PAQ and Training Programs 21PAQ Invalidity
• Discussion 23Exploratory Findings
  • Questionnaire Evaluation
• Conclusion 27Summary
• References

• Assess the reasons why PAQ may be ineffective in performance appraisal of employees, focusing on the weaknesses of job analysis methods

Purpose of the study The purpose of this study is to gather insights and offer arguments that assess the use of PAQs in performance appraisal systems of organizations. Identifying the role of position analysis questionnaires in contemporary human resource functions will allow greater understanding of its contribution to appraisal of employee performance. Furthermore, addressing the prevailing of preferences and practices of organizational appraising systems will allow us to highlight if personnel management functions entail the use of job analysis methods in managing employee performance.

Literature Review Position Analysis Questionnaire (PAQ) The position analysis questionnaire is the most widely applied job analysis instrument, adapting a worker-oriented approach to gathering and analyzing job information. The purpose of the PAQ is to identify general job characteristics, and is primarily employed by human resource and personnel functions of organizations (Aamodt, 2012, pp. 56-58). The PAQ is not used by human resource functions for operational purposes, such as work design or training programs, due to its generalized perspective on job analysis. However, the prime applications of PAQ extend towards recruitment and selection, job grading, and career development. As organizations engage with vast amounts of applicants for job openings or position replacements, the PAQ allows capturing of the candidate’s job skill level and job characteristics (Schuler, Farr, & Smith, 2013, pp. 78-80). This information allows matching of required elements with the employment opportunity, and so validly predicts to some extent the suitability of applicants. The PAQ is also used for job grading purposes, referring to the practice of undertaking comparisons between applicant and employees (Noyes, 2001, p. 159). Thus, PAQ results can aid in setting standards, useful in benchmarking the skills and knowledge of candidates. PAQ’s application to career development purposes entails the analysing of job characteristics to evaluate future potential and relatedness to senior level positions (Guion, & Highhouse, 2006, pp. 41-45). As PAQ is designed to generalize analysis of job positions, its applicability cannot extend towards technical or industrial professions. The lack of context in results limits the practicality to human resource and personnel functions. This limit, however, entails ease of use for organizations worldwide. Thus, the validity of PAQ rises as diverse organizational entities can generalize in their personal manner (Hurst, 2008, p.n.d).

PAQ method to job analysis as it is inexpensive and relatively takes little time to conduct. Furthermore, through computer analysis, the method can be compared with thousands of other positions. This practice improves its reliability, through incorporating diverse analysis methods. The lack of complexity in questions and required competency allows the PAQ to be used in jobs ranging from automobile repairmen to restaurant waiters (Schuler, Farr, & Smith, 2013, pp. 78- 80). PAQ methods rose to fame due to its accessibility and easiness for human resource functions, and now is a crucial part for the selection process. Although the PAQ method has received considerable support from the job analysis community, its major strengths are also perceived at its key weaknesses. As the PAQ questions and directions are designed at a graduate level, applicants possessing an educational background less than the equivalent of a college graduate level will pose invalid results (Hurst, 2008, p.n.d). This is the reason why it is recommended that trained analysts carry out tests rather than incompetent applicants. Another drawback of the PAQ is its limit to six dimensions, representing lack of sensitivity and applicability to divergent job profiles. Another key point is to realize the required resources part of conducting PAQs, entailing a major drain on analyst’s time and capabilities (Hurst, 2008, p.n.d). Lastly, with any sort of questionnaire, there is a high chance of response bias. This cannot be directly tackled with, and so may alter the true outcome of PAQ methods.

Performance Appraisals Performance appraisal is the practice of reviewing and discussing an employee’s work performance, in relation to assigned and delegated duties and responsibilities. The appraisal practice relies on results obtained through reviewing job performance, not the worker’s personal

attributes (Goel, 2012, pp. 14-36). The primary rationale for conducting performance appraisals is performance management, which aims to appraise results both effectively and objectively. The term performance appraisal cannot be generalized, due to its reliance on job context and variable definition of best performance. Performance appraisals are formal in nature, systematically structured to measure and evaluate job related behaviour and performance outcomes (Attroney, 2007, pp. 2-20). The objective is to discover underlying reasons for job performance, and develop effective measures that direct future performance towards employee, organizational and societal benefits. Performance appraisal’s relationship with job analysis derives from setting of performance objectives, and thus the assessment of achieving these objectives (Aggarwal, & Thakkur, 2013, pp. 617-620). Without the practice of job analysis, it will be impossible to conduct performance appraisals.

Need for Performance Appraisals Edwin Flippo defines performance appraisal as a systematic, periodic and impartial rating of an employee’s excellence, in relation to an employees’ existing job or potential for better employment opportunities (Goel, 2012, pp. 14-36). The need for undertaking appraisals can be highlighted through the uses of results gathered from appraisal methods. These applications comprise of setting performance objectives, assessing past performance, assess training and development needs, assist in career planning decisions, and establish communication channels. Performance appraisal forms part of the employee engagement process, as it represents the organization’s interest to assess and plan an employee’s work related performance (Attroney, 2007, pp. 2-20).

Methodology This section focuses on the research methods undertaken to gather all relevant and required data regarding our research topic. The aim is to identify all instruments and approaches employed, whilst analytically reviewing the need and applicability of each method. Through provision of rationales for chosen research instruments, we will highlight the strengths and potential limitations of research methods in relation to our research topic. We will define the ways in which information is gathered and interpreted for the purpose of this study. Methodology is viewed as a philosophical framework employed to collect and interpret data (Saunders, Lewis, & Thornhill, 2011, pp. 480-550). Research methodology depends on the purpose of the study to evaluate the best alternatives available for collecting and interpreting data. It is vital to understand that each research method poses a sole attempt to investigate the research problem at hand.

Research Design The research design follows an exploratory research approach, employing primary and secondary data to prove effectiveness of PAQs in performance appraisal systems. Our primary research will rely on findings from a questionnaire, filled out by HR managers of organizations that frequently conduct job analysis and performance appraisals. The questionnaire will be designed to assess the validity and relevancy of PAQs in performance management practices, whilst assessing the trend of organizations that employ PAQs in their job analysis methods. Due to the deductive nature of our research, we will also carry out secondary research to explore the prevailing nature of PAQ in HR assessment functions. This part of our research will build on the literature review, aiding in analysis of stimulating examples to assess the

effectiveness of PAQs in performance appraisal of employees. Through observing relevant findings from contemporary journal articles and published books, we will uncover organizational preferences of PAQs in recent business context. The research undertaken will mostly rely on collection and analysis of qualitative data, focusing on rich descriptive information to investigate the research topic (Kothari, 2011, pp. 31- 55). Deploying qualitative data will aid in interpreting assumptions held by contemporary organizations, whilst allowing for a research focus on secondary data available in journal and book publications. The questionnaire will be designed to entice opinionated responses from HR managers, whilst assessing quantitative aspects of PAQ usage. Furthermore, the analysis of secondary data will need a qualitative focus, in order to interpret descriptive trends of prevailing job analysis methods.

Sampling Our research deploys convenience sampling tactics to identify organizational subjects, allowing higher accessibility and proximity as a researcher (Kothari, 2011, pp. 31-55). This non- probability sampling allows greater reach towards HR departments of organizations, and permits effective generalization of results. Our sample size will range from 100-150 organizations, and will deliver questionnaires through postal services and walk-in delivery. The sample type is based on organizations with large workforces as it entails a higher probability of job analysis and performance appraisal systems.

• What is the main use of PAQ results in your organization o Recruitment and selection o Job grading o Career development o Calculating Pay rates
• How often does your organization appraise the performance of its employees o Annually o Semi-annually o Quarterly
• What performance appraisal methods does you organization employ o Rating scales o Checklists o Management by Objectives o 360 Feedback
• Do any of these methods employ findings from previously conducted PAQs o Yes o No
• If you answered yes, please indicate how PAQ results have aided in designing performance appraisal methods (max 100 characters)

• Mention which elements of PAQs are most relevant to performance appraisal systems in your organization o Information Input o Mental processes o Work output o Relationship with others o Job context o Other job characteristics
• Has your organization ever cross-referenced PAQ elements with performance-based benchmarks to assess individual performance o Yes o No o Not recently
• Does your organization use the PAQ for compensation management (calculating pay rates ) o Yes o No o Not Recently
• Are training programs in your organizations designed to cater for lack of skills and knowledge discovered in analysis of PAQ results o Yes

Furthermore, as the secondary data available was initially published for diverse purposes, its validity can be of concern. Our research will also face challenges of interpreting questionnaire responses due to the existence of open-ended questions. Thus, the questionnaire offers multiple types of questions to cater for competency level of respondents.

Ethical Considerations There are a few ethical concerns that the research methodology needs to take in account. The first consideration deals with the voluntary participation of employees, focusing on the need of high response rates for research purposes (Labaree, 2013, p.n.d). For our research, this implies that researchers need to contact multiple HR managers to ensure a voluntary participation of respondents. This consideration is widely known as informed consent, and is the first part of developing an ethical relationship with respondents. Another ethical consideration is of confidentially, focusing on protection of respondent’s identity when applying and interpreting research findings (Labaree, 2013, p.n.d). The research also needs to consider if the response of HR managers may cause potential harm to the respondents job or individual status. When conducting research through questionnaires, HR managers will also need to be aware of the original purpose of the study, addressing the respondent’s awareness of research problem at hand.

Validity and Reliability The principles of validity and reliability are fundamental cornerstones of researcher methodology. The concept of validity incorporates the entire experimental concept, and determines whether the findings of research conducted meet all of the specific requirements of

the scientific research method (Saunders, Lewis, & Thornhill, 2011, pp. 480-550). The validity of research instruments is therefore established through catering for all of the needs of the research problem or topic. On the other hand, reliability refers to the consistency and repeatability of findings derived through research methods. Thus, our research will only prove reliable if other researchers derive on the same findings and conclusion as we do. The validity and reliability of research findings is vital for developing an accurate hypothesis, and providing basis for further research. For the purpose of our research, we need to enforce content validity and instrument reliability.

Job Analysis Methods The second question addresses the methods that the organization employs/has employed in the past. The responses show how more than half of the responding organizations have deployed all methods, and so pose valid in search for PAQ effectiveness. Methods Observation 4 Interviews 25 Position Analysis Questionnaire 11 Checklists 6 All of the above 52

PAQ Relevancy The third question relates to the perceived relevancy of PAQ as a job analysis instrument, covering the HR manager’s view on PAQ effectiveness in general. PAQ Relevancy Highly Relevant 20 Relevant 49 Not Relevant 29

PAQ Uses The third question addresses the organization’s application of PAQ in HR functions. This question is vital to our argument as it clearly categorises how organizations view PAQ effectiveness. Recruitment and Selection 20 Job Grading Career Development (^1122) Calculating Pay Rates 45

Performance Appraisal Time-scale This question was general in nature, and designed to assess the priority organizations give to assessing and reviewing employee’s performance. The results aid in interpreting how organizations view their workforce, and the importance they place on performance management. Time-Scale Annually 20 Semi-annually 27 Quarterly 51

Performance Appraisal Methods This question asks the respondent about the performance appraisal methods employed by their organization. The question is designed to uncover if methods employed can apply PAQ results in reviewing and assessment of employee performance. Rating Scales 25 Checklists 18 Management by Objectives 360 Feedback 1540

The next question asked respondents if any of the methods they have indicated use information from previously conducted PAQs. The responses suggest that only 28 HR managers applied data from PAQs towards performance management systems. Thus, this means that 71 percent of respondents don’t believe that PAQ is an effective measure in performance appraisal of employees. To the 28 respondents that do apply PAQ results in performance appraisal measures, the next question requested them to indicate how they apply the data. Almost all the responses suggested that they use it to determine how the employees have developed since they gave the