Impact Of Performance Appraisal On Staff Productivity
(A Case Study Of Abc Transport Company Owerri)
The impact of performance appraisal on staff productivity is profound and multifaceted, influencing various aspects of organizational effectiveness. Performance appraisal serves as a strategic tool for evaluating employees’ job performance, providing constructive feedback, identifying strengths and areas for improvement, and aligning individual goals with organizational objectives. By recognizing and rewarding high performers, performance appraisal systems incentivize employees to strive for excellence, fostering a culture of accountability and continuous improvement within the workforce. Moreover, effective performance appraisals facilitate communication between managers and employees, clarifying expectations and promoting transparency, which can enhance job satisfaction and employee engagement. Consequently, a well-executed performance appraisal process not only boosts individual motivation and morale but also contributes to overall team productivity and organizational success, thereby reinforcing the importance of implementing robust performance management practices in modern workplaces.
The study is designed to investigate the impact of performance appraisal on staff productivity, for an organization to survive in any business, the performance of its employees and the entire organization has to be controlled and appraised periodically.
However, this study was necessitated by the need to investigate by the performance appraisal techniques employed by ACB Company Owerri as the case study, it was discovered that the techniques used by this company are:
1. Ranking and
2. Forced distribution.
It is necessary to appraise the performance of the workers objectively because without this appraisal, it can affect the productive level of companies greatly.
Title page
Appreciation
Dedication
Abstract
Table of content
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Significant of the study
1.5 Research question
1.6 Statement of the study
1.7 Limitations of the study
1.8 Definition of terms
CHAPTER TWO
2.0 Review of related literature
2.1 Introduction
2.2 Principles of performance appraisal
2.3 Concepts of performance appraisal
2.4 Objectives of the appraisal
2.5 Appraisal process
2.6 What distorts performance appraisal
2.7 Responsibility for staff productivity in relation to performance
2.8 Implication of performance appraisal and productivity in management
2.9 Methods of appraisal
CHAPTER THREE
3.0 Research design and methodology
3.1 Introduction
3.2 Research design
3.3 Source/methods of data collection
3.3.1 The primary data
3.3.2 Secondary data
3.4 Population and sample size
3.5 Sample technique
3.6 Validity and reliability of measuring instrument
3.7 Methods of data collection
CHAPTER FOUR
4.0 Presentation and analysis of data
4.1 Introduction
4.2 Presentation of Data
4.3 Analysis of Data
4.4 Test of Hypothesis
4.5 Interpretation of Result(s)
CHAPTER FIVE
5.0 Summary, conclusion and recommendation
5.1 Introduction
5.2 Summary of Findings
5.3 Conclusion
5.4 Recommendations
Bibliography
Appendix
Questionnaire.
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In the education of the conditions necessary for growth and survival of any organization, the role of performance appraisal is a strategic factor that cannot be over emphasized it is believed that both the individual and the organization need to know how well their performances is contributing to the accomplishment of the job plan to the starting plan and ultimately the overall strategic grand plan of the organization. In addition, the individual employee requires feed back related to his or her own goals development as well as that related management expectation. Performance appraisal is also a developmental process. Since it seeks to identify the strengths and weakness of the employee as a guide to his further development. It is usually made in prescribed manners at specific intervals such as quarterly, biannually or assesses his or her job performances and where necessary, gives his guidelines and advice for improving efficiency and effectiveness.
Also, the researcher discovered that no good communication of performance appraisal result to the employer.
Lack of communication or inadequate communication; the information kept by ABC transport on their staff performance appraisal is very poor and most of the data are out dated and of little or no recusant to drawing conclusion on their methods of performance appraisal. An effective performance appraisal review serves these general purposes. In other words, the essence of performance appraisal is to give information for promotional emotive, pay increase, training and development and discharge of employee.
Secondly, it provided employee with constructive feedback on how they by their managers, thus leading to increased productivity.
Flipo (1980-2004) identified the following:
Three appraisals as follows:
1. A casual and unsystematic approach.
2. the traditional and higher systematic measurement of;
(a) Employee characteristics
(b) Employee contribution
(c) Both
3. Mutual goal setting through management by objective programme (MBO) that effective performance appraisal system have the potential to provide opportunity for managers and employees to communicate and agree upon what is expected to each and plan to performance based on the overall objectives of the organization. Legal implication often dictates the need for jobs to be defined explicitly for objectives to be set and agreed upon by manager and employee and performance to be based on criteria that include more than just judgment of the managers to be able to relate to the individual as possible.
1.2 STATEMENT OF THE PROBLEM
The primary aim of every establishment including ABC Transport id the maximization of profit, which could easily be attained through staff productivity. ABC transport management does not have adequate appraisal system which leads to promotion, pay increase, training and development. Thus affects employee’s performance adversely leading to low moral and low productivity.
1.3 OBJECTIVE OF THE STUDY
The objective of writing this project is to investigate how performance appraisals on staff productivity in ABC transport organizations in general.
This study will among other things:
(a) To identify and examine various performance appraisal techniques used by organization and the impact on productivity.
(b) To examine some common performance appraisal problems of the organization and how it could be solved.
(c) To evaluate if performance appraisal leads to promotion, training and development.
1.4 SIGNIFICANCE OF THE STUDY
It is the belief of the researcher that at the end of this study, by discovering the techniques which appraised staff and encourage them towards achievement and greater productivity, the organization will have its goals fully realized.
1. The study is important to mangers and management of organization as it reveals a means of improving the entire work situation of the organization and all that would enhance the realization of organization goals.
2. However, the product of this study stands as a reference source or guild to scholars and future researchers who may be interested in performance appraisal as a result of the subject of interest to enhance the productivity of staff.
3. Above all, the study would as well improve the researcher’s knowledge about enhancing the productivity of the staff through adequate appraisal techniques as this would give her avenue to contribute to the problem under study.
1.5 RESEARCH QUESTION
The following research questions will help in achieving the objectives of the study;
(a) What is the relationship between performance appraisal and employees productivity?
(b) What are the techniques used in performance appraisal?
(c) How effective are techniques in ensuring increased productivity?
(d) What are the problems of performance appraisal?
1.6 STATEMENT OF HYPOTHESIS
The following hypothesis will form the basis for the study.
1. Ho: There is no significant relationship between performance appraisal and staff productivity.
Hi: There is significant relationship between performance appraisal and staff productivity.
2. Ho: well designed performance appraisal does not have significant relationship with increase in employee morale.
Hi: well designed performance appraisal has significant relationship with increase in employee morale.
1.7 SCOPE OF THE STUDY
The scope of the work covers all the sectors of the economy or the impact of performance appraisal on staff productivity but to ensure adequate research, the work is focused mainly on the private sector of the economy using ABC transport as a case study in Owerri.
Nevertheless, the findings of the research can be generalized to both private and public sector of the economy in the country and also the world as a whole.
1.8 LIMITATION OF THE STUDY
In an attempt to carryout a meaningful researcher, certain factors seems to affect the researcher’s efforts and among these factors are:
1. TIME CONSTRAINTS: The time given for this research work is too short to generate enough data that would help in testing the hypothesis.
2. LACK OF FUND: These factors really affect the research process as I couldn’t travel to other organizations to discover similar experience and draw a conclusion analysis.
3. INADEQUATE SOURCE OF INFORMATION: The information kept by the ABC transport on their staff performance appraisal is very poor and must of the data are out dated and of little or no recusant to drawing performance appraisal.
1.9 DEFINITION OF TERMS
Definition of terms serves as the dictionary of this research. The terms are defined to enable the reader understand the research more clearly.
PERFORMANCE APPRAISAL: It can be seen as a systematic evaluation of an individual with respect to his performance on the job and his potentials for development.
MANAGER: A person who undertakes the activities of planning, organizing materials, machines and money in such a manner that leads to effective and efficient achievements of organizational goal(s).
PRODUCTIVITY: Productivity is the quality or volume of products of services an organization provides.
EFFICIENCY: This is the ratio of actual output to input.
PLAN: This is described as any detailed set of actions formulated in advance on how to achieve organizational goals.
MANAGEMENT BY OBJECTIVE (MBO): This is a process whereby superior manager and subordinate manger of an organization jointly identify its common goals, define each individual’s major responsibility in terms of he results expected of him and use these measures as a guild for operating the unit and assessing the contribution of each of its members.
STAFF: This is the group of workers who carry on a job or do the work of an organization.
TRAINING: This is an organized procedure by which people gain knowledge and or skill for doing a particular job.
DEVELOPMENT: This is the progress a person actually makes; it may include conceptual or intellectual growth with practical performance.
Impact Of Performance Appraisal On Staff Productivity:
Performance appraisal can have a significant impact on staff productivity within an organization. When implemented effectively, performance appraisal systems can motivate employees, improve their skills, and align their efforts with organizational goals. However, if not executed properly, they can have negative consequences. Here are some of the key ways performance appraisal can impact staff productivity:
Motivation: Performance appraisals provide employees with feedback on their work, which can be a powerful motivator. Positive feedback can boost morale and encourage employees to continue performing at their best. Conversely, constructive criticism can help employees identify areas for improvement and motivate them to enhance their skills.
Goal Alignment: Performance appraisals can help ensure that employees’ goals and objectives are aligned with the organization’s strategic goals. When employees see how their work contributes to the larger mission of the company, they are more likely to be engaged and productive.
Skill Development: Appraisals often identify areas where employees need additional training or development. Providing opportunities for skill enhancement can lead to increased productivity as employees become more proficient in their roles.
Recognition and Rewards: Performance appraisals can be used as a basis for recognizing and rewarding high-performing employees. This recognition can take the form of pay raises, promotions, bonuses, or other incentives. Such rewards can boost morale and motivate employees to continue performing at a high level.
Feedback Loop: Regular performance appraisals create a feedback loop between employees and their supervisors. This ongoing communication allows employees to receive guidance and support, helping them overcome challenges and improve their performance.
Identification of Issues: Performance appraisals can uncover problems or issues that are hindering an employee’s productivity. Addressing these issues through coaching, training, or changes in job responsibilities can lead to improved performance.
Fairness and Equity: When performance appraisals are conducted fairly and consistently, employees perceive the process as equitable. This can increase trust and job satisfaction, which in turn can boost productivity.
However, it’s important to note that performance appraisals can also have negative impacts on staff productivity if they are poorly executed:
Demotivation: If performance appraisals are conducted unfairly or if employees perceive bias, it can lead to demotivation and decreased productivity.
Stress and Anxiety: Employees may experience stress and anxiety leading up to performance appraisal meetings, especially if the process is tied to high-stakes decisions like promotions or layoffs.
Inaccurate Assessment: If performance appraisals are based on incomplete or inaccurate information, they may not accurately reflect an employee’s contributions or areas needing improvement, which can result in misaligned efforts.
Lack of Feedback: Irregular or poorly conducted appraisals may deprive employees of valuable feedback and growth opportunities, hindering their ability to improve their performance.
In conclusion, performance appraisal can have a significant impact on staff productivity when carried out effectively and fairly. It can motivate employees, align their efforts with organizational goals, and facilitate skill development. However, it is crucial for organizations to design and implement appraisal systems carefully to avoid potential pitfalls that can negatively affect productivity and employee morale. Regular training for managers and a commitment to continuous improvement in the appraisal process are essential for achieving positive outcomes.