How Performance Appraisal Can Contribute to Employee Development: A Qualitative Study of Statoil’s EvenStronger Values Survey

Abstract

I have in this study analyzed how leaders in Statoil perceive the organization’s performance appraisal system, The EvenStronger Values Survey (ESV). This study aims to uncover the perceived usefulness of ESV by determining factors affecting the effectiveness of ESV for employee development. The findings are based on a qualitative, empirical investigation. Data collection is based on semi-structured interviews of 12 leaders in Statoil. Inductive thematic analysis was carried out. The final problem of discussion and decision of theoretical framework are based on this empirical investigation. Results showed that different factors affected how effective ESV was perceived to be. The content in the survey that concerns the subject matter in ESV has to be valid and relevant for the appraisee. The feedback also needs sufficient quality that is affected by how many one has to appraise, whether the feedback is provided by qualitative comments and the perceived importance of ESV. Another factor found to affect effectiveness is how the feedback is utilized, which will depend on personal characteristics and how leaders are following up their employees after the feedback is provided. How the survey is carried out by the appraiser is found to be affected by the intended use of ESV, the interpersonal relationship and the culture in the organization. Conclusively, discussion of results against previous research indicates that these impacting factors need to be present in order for ESV to be effective and contribute to employee development. As it is today, ESV has not reached its full potential to be effective.