Performance appraisal as a management tool for increasing productivity
(A Case Study Of Selected Firms In Aba, Abia State)
Performance appraisal is a critical management tool designed to evaluate and enhance employee performance within an organization. By systematically assessing an individual’s job-related strengths and weaknesses, organizations can identify areas for improvement and provide constructive feedback. This process involves setting clear goals, measuring achievements, and offering support for professional development. Effectively implemented performance appraisals contribute to heightened employee motivation and engagement, fostering a positive work environment. The integration of performance appraisal in management practices not only enhances individual performance but also plays a key role in aligning employee efforts with organizational objectives. It serves as a mechanism for recognizing and rewarding high-performing employees, promoting a culture of continuous improvement. As organizations strive for increased productivity, utilizing performance appraisal as a strategic tool becomes imperative in nurturing a dynamic and responsive workforce. How can organizations optimize the performance appraisal process to ensure it becomes a catalyst for productivity growth and employee development?
Performance appraisal is an important control tool than can assist an organization to achieve increased productivity control has been an important management function that keeps an organization on the right direction.
Thus this study was necessitated by the need to investigate the performance appraisal techniques employed by the firms under study that is Alpons West Africa Plastics Company Limits Ano Zandob Nigeria Ltd. As well as the effectiveness of these techniques. This survey has been carried out and these techniques aid by the firms and discovered to be ranking and forced descriptive.
However, employees at time react negatively towards the appraisal process, this is due to motivational and rational factors that some times affect performance appraisal.
On the basis of the findings, the researcher has prescribed continuous use of performance appraisal as appropriate techniques, motivate of employees and orientations of supervisors on the appraisal process.
In the research work, the first chapter deals with the introductory aspect of the work. The chapter two is all about the review of the related literature, the chapter three is about the research methodology, the chapter four treated the presentation and analysis of data while the chapter five which is the final chapter this research work deals with the summary of findings, conclusion and recommendation.
Title page
Approval page
Dedication
Acknowledgement
Table of content
Chapter One
1.0 Introduction
1.1 background of the study
1.2 Statement of problems
1.3 Objectives of the study
1.4 purpose of the study
1.5 Significance of the study
1.6 The Scope of the study
1.7 The Limitation of the study
1.8 Definition of terms
Chapter Two
2.0 Literatures Review
2.1 Principles guiding performance appraisal
2.2 Concept of performance appraisal
2.3 Objectives of performance appraisal
2.4 Appraisal process
2.5 Types of performance appraisal system/classification
Chapter Three
3.0 Research design and methodology
3.1 Introduction
3.2 Research design method
3.3 Sources of data
3.4 Population of the study and sampling size determination
3.5 Sample techniques procedure
3.6 Validity and reliability of measuring instrument
3.7 Data analysis techniques
Chapter four
4.0 Presentation and analysis interpretation of data
4.1 Introduction
4.2 Analysis and interpretation of responses to research questions.
Chapter Five
5.0 Summary, conclusion and recommendation
5.1 Introduction
5.2 Summary
5.3 Conclusions
5.4 Recommendation
Bibliographic
Appendix
INTRODUCTION
1.1 BACKGROUND OF STUDY
In organization, supervisors must from time to time evaluate the contributions and the abilities of their subordinates, they have to take decision relating to fair treatment, placement, transfers, promotion of their subordinates as well as those bordering on individual development. These personal responsibilities and activities should not based on a spur of the moment decisions, but rather on carefully and lucid judgment made by the supervisor in agreement with all affected and arrived of periodically in a systematic manners.
According of Ohadimma and Uwaoma (2000.73) performance appraisal can be seen as the systematic evaluation of an individual with respect to his performance on the job and his potentials for development. It is this judgmental process of evaluation the performance of another in this contest explains when an individual found up-grades and promotable while the others are not.
Nwachukwu (1985:473) stated that the essence of performance appraisal is to help the management take national decision in such things as promotion, transfer, pay increase, training and development, dismissal, termination and retirement on the employee concerned.
The role performance appraisal plays is very crucial because it help in the growth and survival of an organization, need to know how actually performance appraisal is contributing to the accomplishment of job plans, the staffing plan and ultimately the overall strategic plan of the organization.
Performance appraisal is also a development process since “It seeks to identify the strengths and weakness of the employee as a guide to his further development”. Appraisal in this contest does not act as a “Judge” who convicts the weakness of the employee and suggests way of strength him through training and developments.
The undying philosophical understanding according to Tamunome (2002:99) is that for any individual being asset the performance is fathy in him with the group goal. Individual goals must work into group goal to make relevance, so the whole essence of performance is to see how the individual goals are matching the group goals.
In recent times, it has been renamed performance appraisal. Generally to appraisal is to judge the worth, quality of condition of something or to find our its value. Therefore, to appraise performance is it’s asses and determine the quality of contributions and the possible worth of individuals potentials.
However, appraisal of employee or subordinate in most business organization can be ineffective without all concerned with the exercise seeking to eliminate hindrance which could cause or even lead to decrease productivity, been the facts that then disappointing approach adopted by most managers of business organization has really rendered the evolution process sometimes unimportant.
1.2 STATEMENT OF PROBLEMS
Certain conditions of factors can make the appraisal exercise ineffective. Generally, evidence of ineffectiveness in this regards is seen in the attitude of line managers towards the evaluation process. These includes the lack of complete knowledge of employee behaviour by managers or supervisors, the element of business on the part of the management addition to the traditional rating system that has become their custom that their employee must be rated that way. Also, the high rate of bribery and corruption nepotism, god fatherism etc. proper performance evaluation may not be realized in order to increase productivity.
Since this study seeks to examine performance appraisal as management tool for increasing productivity in selected firms in Aba, Abia state I therefore attempt to identify various employee appraising techniques. Some common appraisal problems and how proper performance appraisal can enhance increase productivity in selected firms.
1.3 RESEARCH QUESTIONS
The following research questions will help achieve the objectives of this study.
1. To what extent does management use performance appraisal running ALPONS and ZANDOB
2. Does performance appraisal have any affect on productivity.
3. Does it affect productivity positively or negatively.
4. To what extent does performance appraisal affect the firms understudy i.e that is their productivity.
5. Will the management of these firms be able to tell the performance appraisal techniques used.
6. Will the management that is the officers and other employees of ALPONS and ZANDOB be prepared to tell how long they have been working in the company.
7. Can the management of ZANDOB and ALPONS be able to tell how often they evaluate performance of it employees?
1.4 PURPOSE OF THE STUDY
The purpose of writing this project is to investigate on how performance appraisal can enhance increased productivity in ALPONS and ZANDOB industries.
In the study the researcher tries to find out the
1. Find out the various performance appraisal techniques used.
2. Examine the implication of these used on performance and productivity.
3. To identity some common appraisal of employee and how proper appraisal can enhance increased productivity.
4. Make some useful recommendation to the management
1.5 SIGNIFICANCE OF THE STUDY
The study is of vital importance of organization effectiveness, hence the result of effective performance appraisal plans and programme to the organization in its goal attainment. The study could also be valued as a source of reference to student of business administration who might carry out similar or further research in this area.
1.6 SCOPE OF THE STUDY
The study has been limited to ALPONS and ZANDOB industries limited Aba, Abia, state.
Furthermore, unequal number of employee and employees were selected, top management from the above organizations will be sample.
Although there are thing to investigate on. The researcher limited his work under the following types.
The improper administration of performance appraisal as a management tool for increasing productivity among service organization, employee appraisal techniques and appraisal problems.
1.7 DELIMITATION OF THE STUDY
This work has many delimitations. In respect of the poor attention I receive while carrying on this research from both the employees and the employees. Many of the workers were not willing to answer questions while I was carrying out oral interview to know of performance appraisal can increase their productivity.
LACK OF FINANCE AD TIME
These also contributed to the limitation of this work because of the little time given to us students to carry out this research work. Also the cost of transportation from owerri to Aba three times in a week to get information contributed a lot.
ADMINISTRATIVE RED TAPETISM
This was a major limitation while I was carrying out this research. Some of these firms the process one has to undergo before getting any information is long thereby limiting the research. In some firms before you will be allowed to see the personal manager it will take up to two weeks and above.
1.8 DEFINITION OF TERMS
Performance Appraisal: It is a process of or series of formalize discussion with an employee about performance over a specific or specified period of time (Luthens 1929, p.234).
Manager: A person with the task of panning, organizing, directing, co-ordinating, staffing, and controlling of organizational resources to attain the objectives of an organization.
Productivity: This is the quantity or value of the major product or sourced that an organization produces (Decenzo and Robbins 1989 p.9).
Effectiveness: This is concerned with the art of getting the right done, in the right way for the right purpose.
Efficiency: This is concerned with achieving objectives or producing products at the cheapest cost in other to assist organization achieve its main objectives.
Plan: According to Longman dictionary to contemporary English, plan is a carefully considered arrangement for carrying out some future activity.
Organization: This is the combination of people, or individual effort working together in pursuit of certain common purpose called organizational goals.
Performance appraisal is a valuable management tool for increasing productivity in an organization. It involves the systematic evaluation of an employee’s job performance, skills, and contributions to the company. When done effectively, performance appraisal can have several positive impacts on productivity:
- Setting Clear Expectations: Performance appraisals provide an opportunity for managers to clarify job expectations and performance standards with employees. When employees understand what is expected of them, they are more likely to focus on relevant tasks and goals, which can lead to increased productivity.
- Feedback and Improvement: Regular performance feedback allows employees to understand their strengths and weaknesses. This feedback can be used as a basis for creating development plans and providing training to help employees improve their skills and competencies. As employees grow and develop, they become more productive in their roles.
- Motivation: Knowing that their performance will be evaluated can motivate employees to perform at their best. Many employees are driven by the desire to receive positive feedback and recognition for their efforts, which can lead to increased productivity.
- Identifying and Addressing Performance Issues: Performance appraisals also help in identifying underperforming employees or areas where performance is lacking. By addressing these issues promptly, managers can take corrective actions, such as providing additional training, coaching, or reassigning tasks, to improve productivity.
- Goal Alignment: Performance appraisals provide an opportunity to align individual goals with the organization’s objectives. When employees see a direct connection between their work and the company’s success, they are more likely to focus their efforts on tasks that contribute to overall productivity.
- Reward and Recognition: Performance appraisals often lead to rewards and recognition for high-performing employees. Whether through salary increases, bonuses, promotions, or other forms of recognition, these incentives can further motivate employees to excel and contribute to increased productivity.
- Retention of Top Talent: Employees who receive regular feedback and feel that their contributions are valued are more likely to stay with the organization. High retention rates reduce the costs associated with recruiting and training new employees, ensuring continuity in productivity.
- Communication and Employee Engagement: The performance appraisal process fosters open communication between employees and managers. This dialogue allows employees to share their concerns, ideas, and feedback, which can lead to improved job satisfaction and engagement—factors that contribute to higher productivity.
To maximize the benefits of performance appraisal for increasing productivity, it’s essential that the process is fair, transparent, and consistent across the organization. Managers should receive training on how to conduct effective performance appraisals, and employees should be encouraged to actively participate in the process by setting their own goals and providing self-assessments. Additionally, performance appraisals should be linked to the overall strategic goals of the organization to ensure alignment between individual and organizational performance.
In summary, performance appraisal is a multifaceted management tool that, when implemented correctly, can lead to increased productivity by setting expectations, providing feedback, motivating employees, addressing issues, aligning goals, and fostering communication and engagement.