THE IMPACT OF PERFORMANCE APPRAISAL
ON ORGANIZATIONAL PRODUCTIVITY: A CASE STUDY OF ZENITH BANK PLC ABUJA REGIONAL HEADQUARTERS
ABTSRACT
Work performance are appraised and validated
periodically. Organizational performance when and its resultant efficiency and
effectiveness can only be achieved when individuals are continuously appraised and
evaluated. The inability of organization to install an effective
performance appraisal; strategy has hindered the from achieving competitive
advantage which they require
more now than ever
before. The fundamental aim of performance appraisal is to assist
workers to discover their weakness and strengths, which therefore assist employers
to make some crucial decisions on how to distribute organizational resources
and effort, based on the benefit each
employer requires. The objective of this study is to investigate the impact of
performance evaluation on organizational productivity, data used were sourced
both from primary and secondary
sources. Questionnaires were distributed to a selected staffs Zenith Bank Plc
Abuja Regional Headquarters, who were interviewed questionnaire administered to ensure objectivity and reliability of data
obtained. Secondary data were collected by consulting existing materials, such
as reports and publications, textbooks and the internet. The data Chi-square statistical tool was employed during the course of
this research, a few findings
were made which revealed that the
workers need to be motivated, pursuant to achieving organizational
goals. It is concluded that performance
appraisal helps in identifying the strengths and weakness of employees by way
of recognizing and rewarding hard work and efficiency or punishing for poor
performance. The study recommend that organizational performance criteria
should be done accurately to improve productivity where corrective measures are
necessary and are taken.
TABLE OF CONTENTS
Title
Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgements v
Abstract vi
Table
of Contents viii
CHAPTER ONE: REVIEW OF RELATED LITERATURE
1.1
Background of the Study …………………………………………… 1
1.2
Statement of the Problem …………………………………………… 5
1.3
Research Questions ………………………………………………… 5
1.4
Objectives of the Study ………………………………………… 6
1.5
Research Hypothesis
………………………………………………. 6
1.6
Significance of the Study ………………………………….…….. 6
1.7
Scope and Limitations of the Study……………………………….. 7
1.8 Definition of Terms ………………………………………………. 7
CHAPTER
TWO: LITERATURE REVIEW
2.1
Introduction………………………………………………………. 9
2.2.1
Job Description and Specification ………………………… 10
2.2.2
Performance Evaluation ………………………… …………… 10
2.2.3
Performance Evaluation in A Management Context …………
12
2.2.4
Performance Management Process …………………………… 14
2.2.5
Objectives of Performance Evaluation ………………………… 19
2.2.6
Effects of Performance Evaluation …………………………… 22
2.2.7
Procedures for Evaluating Performance Appraisal …………… 24
2.2.8
Methods of Performance Evaluation …………………… …….. 26
2.2.9
Types of Appraisals ………………………… …………………. . 27
2.2.10
Methods of Performance Evaluation in Special Situation ……… 28
2.2.11
Performance Review/Outcomes ……………………………….. 29
29.2.2.12
Benefits of Performance Evaluation
………………………… 30
2.2.13
Detriments to Effective Performance Evaluation …………… 31
2.3.
Empirical Literature on Performance Appraisal………………… 31
2.3.1
Performance Appraisal and Staff Development
…………… 35
2.3.2
Performance Appraisal and Organizational Productivity……… 39
2.4
Theoretical Framework…………………………………………. 42
2.4.1
Theory of Staff Development ……………………………….. 42
2.4.2
Theory of Organizational Productivity ………………………… 43
2.5 Summary ………………………… …………………………. 47
CHAPTER THREE: RESEARCH METHODOLOGY
3.6.3
Introduction…………………………………………………………… 48
3.2
Research Design ………………………………………………………
48
3.3 Method of Data Collection………………………………………….
48
3.4 Population and Sampling
Technique………………………………… 49
3.5 Method of Data
Analysis……………………………………………. 49
3.6 Justification of the Technique …………………………………………. 59
3.7 Summary………………………………………………………………. 50
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS.
Introduction
………………………………………………………………
.. 51
4.1
Data Presentation …………………………………………………. 51
4.1.1
Respondents Response by Sex ………………………………………… 51
4.1.2
Respondents Response by Age Distribution ……………………………… 52
4.1.3
Respondents Response by Marital Status …………………………………. 53
4.1.4
Respondents Response by Educational Qualification ………… ……… 53
4.1.5
Respondents Response by Cadre/ Level in the Bank…………………… 53
4.1.6
Respondents Response by Length of Service …………………………… 53
4.2 Data
Analysis …………………………………………………………………. 54
4.2.1 Performance
appraisal has significant impact
on
organizational productivity……………………………………………… 54
4.2.2 Is
performance appraisal and evolution necessary for staff career and
Organization
growth?........................................................................... 54
4.2.3
Are the bank’s employees carried along in the performance appraisal
Process?..................................................................................................... 55
4.3
Testing of Hypothesis ………………………………… …… 55
4.4
Discussion of Finding ………………………………………… 55
4.5
Summary…………………………………………………… 60
CHAPTERFIVE:
SUMMARY,CONCLUSION
AND RECOMMENDATIONS
5.1 Summary…………………………………………………… ……. 61
5.2 Conclusion……………………………………………………….. 62
625.3 Recommendations. ……………………………………………………
62
5.4
Suggestions for Further Studies …………………………………
63
Biography
Appendix
I
Appendix II
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Organizational
performance and its resultant efficiency and effectiveness can only be achieved
when individuals are continuously appraised and evaluated. The inability of
organization to install an effective performance appraisal strategy has
hindered them, from achieving competitive advantage which they require more
than ever before. Appraisal processes are not systematic and regular and often
characterized by personal influences occasioned by organizations preoccupation
to use confidential appraisal system which hinders objectivity and fairness.
In every well organized business
outfit, work force performance, is appraisal and validated periodically. It is
a process of comparing expected performances, with actual performance. The
overall goal of performance management is to ensure that the organization and
all of its subsystems (processes, departments, teams, employees, etc.) are
working together in a way that efficiently contributes to achievement of the
organization’s goals. This reminds us that being busy is not the same as
producing results. Good performance redirects efforts away from busyness
towards effectiveness.
Thus, all over the place employees
have always been reckoned the most valuable and important resource of the
business. It is on employee that the
Success
or failure of any organization anchors. When they perform their duties well,
the result is success but when they perform badly, its result to failure. It
important that jobs well coordinated with one another, and that the right
calibers of people occupy the right position and are given adequate training,
as well as paid commensurate remuneration.
We
quickly note here that these do not single handedly assure efficiency, good job
descriptions and job specifications are excellent helpful tools in achieving tasks
but do not on their own guaranteed best possible selection and assignment of
employees to jobs and responsibilities, nor assure that they are trained and
paid properly. Rather good job descriptions, clearly stipulated and formulated
job specifications would enhance selection, training and remuneration
decisions.
Performance
appraisal cannot be meaningful without an insight to what is happening within
the frame work of the job analysis. Then we ask, what is job analysis Job
analysis therefore simply means the evaluation of the attributes of a job that
make it possible to achieve its desirable performance.
According
to Ajuogu (1995), Job analysis is an examination of the facts concerning the
content, duties, responsibilities and process in each job, and the type of
workers and personnel needed to do job. In furtherance, Fagbohunge and Longe (1994)
have said that it is the systematic study of the duties, responsibilities,
requirement, and skills, of a job. It includes identifying the relevant aspects
of a job with respect to its duties, responsibilities, techniques, procedures,
and instruments, as well as general working condition. It involves job
descriptions and job specifications. Normally, it is only when we ascertain a
job that we can determine the type of persons or staff to do it, how to train
such staff, as well as appraise his/her performance and/or remunerate him
commensurably for achieving or completing it. The information got from the
processes of job analysis both forms the basis for designing and administering
job description and job specification on one hand and performance evaluation on
the other hand.
Understanding the
definition of performance appraisal would enable us lay a solid foundation to
capture what the concept of performance appraisal is all about.alo (1999)
defines performance appraisal as a process involving deliberate stock taking of
the success, which an individual or organization has achieved in performing
assigned tasks or meeting set goals over a period of time. It therefore shows
that performance appraisal practices should be deliberate and not by accident.
It calls for serious approach to knowing how the individual is doing in
performing his or her tasks.
A
sound appraisal system must be fair and acceptable to all parties and based on
guidelines already established by the management on what is expected, regarding
all processes employees follow, in pursuant to achieving organizational
objectives. Normally, when goals are set for employees and the entire
organization, the necessary resources are provided. So, evaluations are based
on opportunities and resources available to perform the assigned task as
defined by management. Appraisal is therefore, a process which involves judging
the worth quality and/or condition of a situation/activity or object and
assessing its value. Thus, effective human resources management is important
for an organization to establish a good and proper performance appraisal
system, which forms the anchor for purposeful stocktaking and further
development of the workforce.
We require a systematic
consideration and appraisal of professional opinion when considering which
doctor/surgeon to hire for a major operation. Such opinion will review and
consider information regarding the professionalism and quality of the
reputation of such surgeons including skills, knowledge, patience, care etc. this
requires a systematic evaluation of relevant and essential factors in order to
make a rational judgment. The process of appraising an employee’s worth must be
systematic, in order that the appraiser arrives at a rational judgment, without
depending on his personal whims and caprices.
The objectives of both employees
and the organization should not conflict, but must obey the management
principles which states that personals goals must be subsumed into
organizational goals. When this happens, then employees’ performance can be
fairly evaluated. Managers have the responsibility to appraising the performance
of their subordinates with the aim of assessing their characters, attitudes and
potentials, as well as performances on the job. This function has often been referred
to as performances on the job. This function has often been referred to as
performances “Appraisal” “rating” or “evaluation” no matter the name, the
purpose of this activity is to evaluate the employee’s strength and weakness,
focusing on their needs for improvement and further development. The aim of
employee appraisal is to obtain information for promotion, demotion and
transfer, pay, increase, training and development and disengagement. for the
employee, appraisal gives him feedback on how management perceives his
performance and this is expected to be fair enough, but if he is unjustly
poorly evaluated, it could affect his morale, and result in job dissatisfaction,
absenteeism and tardiness and at last his overall productivity, honestly and
fair play.
The purpose of an organization is
to achieve its defined objectives and in other to achieve these, resources such
as human, materials, machine and capital are important. Among all these, the
human factor mostly influences the destiny of any business. Therefore, staff
must be equipped, motivated, and their contributions assessed, appraised,
controlled, evaluated and directed towards achieving organizational goals.
Human beings are different in many ways, so their characters are quite
naturally complex and their behaviour unpredictable. For this reason, a
systematic approach to evaluate their performances is necessary, as a guide to
realizing their corporate objectives.
Many superiors shy away from
evaluating employees they supervise especially, on their areas of weakness.
Notwithstanding, employee informally evaluate one another, including their
superiors. When the official evaluation is released, employees compare opinions
they hold with the formal evaluation result from their superiors. A supervisor
is said to be fair and unfair based on, employees’ pre-conceived opinion of
themselves and others. Quite regrettably some organizations still ignore the
importance of performance evaluation, whereas some others recognize it, but
appraise their staff just for a simple reason that it is a management process
and fail to implement the assessment outcomes due to lack of funds to back it
up or even with the purposeful intent to deny employees their rights.
There are basically three types of appraisal.
These include confidential or secret appraisal, open appraisal and we also have
semi open and semi secret.
Confidential appraisal means that
an individual is not involved in the appraisal exercise as the appraisal
outcome is not at all communicated to the person being appraised. In essence,
the person’s strengths and weaknesses are not communicated to him or her.
1.2
Statement
of The Problem
Appraisal of employees’
performance by their superiors in most cases is inadequate. The manager may be
biased towards a particularly individual or employee and some managers see the
appraisal period as a time to equal scores on past event or misunderstanding
between them. Such managers carry their grudges into their appraisal of the
individuals.
While there have been
several empirical studies on the impact of performance evaluation on
organizational performance or productivity concentrating on non profit
organizations perspectives by looking at profit, structure improvement, market
shares and returns. However, little attention has been paid to responsibility
for departmental appraisal, comprising employees efficiency, effects on
performance of organizational success, and chances of performance appraisal on
organizational development.
Furthermore, most of
the researches conducted are based in the non profit making organizations
within Nigeria which is misleading. in view of this, the study would fill a
knowledge gap by using profit oriented organization data to investigate the
impact of performance evaluation on organizational productivity using Zenith
Bank Nigeria Plc as a case study.
1.3
Research
Questions
This study addresses
the following research questions
i..What is the impact of performance
appraisal on staff development?
ii. To what extent does performance
appraisal enhance organizational productivity?
iii. What is the relationship between
performance appraisal and staff training?
iv. What is the relationship between
performance appraisals on staff productivity?
1.4
Objectives of the Study
The main objectives of this study are to examine
the impact of performance appraisal
on organizational productivity. The specific objectives are:
1. To
examine the relationship between staff appraisal and productivity.
2. Identifying
training needs, improving present performance of employees, improving
potentials, improving potentials, improving communication, improving motivation
and aids in pay determination.
3. To
analyze the influence of effective appraisal method on staff productivity.
4. To
determine how performance appraisal serve as a roadmap for attaining
organizational development by corporate organizations.
1.5 Research Hypothesis
The following assumptions were
adopted for the purpose of achieving the objectives of this study;
Ho1: Performance appraisal
has no significant impact on organizational
productivity
Ho2:
Performance appraisal has significant
impact on organizational productivity.
Ho1:
Performance appraisal has no
significant impact on staff training .
Ho2:
Performance appraisal has significant
impact on staff training.
1.6 Significance of Study
Naturally,
all goal-oriented organizations have effective performance appraisal system that serve as the basis
for a purposeful and rational assessment of her human resources, as well as
determine the value of tasks in the organization.
Performance
appraisal is packaged as a foundation for measuring employee’s progress, in
relation to set goals, attitude of management and supervision of personal
towards achieving corporate goals. This is important to revealing how staff
appraisal exercise is carried out in Zenith Bank Plc Nigeria, its role on staff
organizational development and productivity.
1.7 Scope and Limitations of the
Study
The
researcher certainly had obvious constraints and could not have control over
every situation surrounding the study. Some were controllable; others were
manageable, where as some were absolutely beyond her scope. Thus in the course
of this study, some challenges were encountered and these in no small measure
constraint the study. Also, respondents were hardly available and prepared to
respond to the questionnaires and interviews, however adequate information /
data were gathered. The scope of the study means the depth and breadth of the
research work, its covers all the topics outlined in the table of content.
Notwithstanding its broadness, the limits to which the study determined to
cover, depends on the size of sample available to the researcher. However, some
members of the management and staff of the Zenith Bank Plc Nigeria were chosen to constitute our sample
for better and objective evaluation of the parameters of this research. The
staffs chosen were mainly the senior and junior staffs which comprises of
permanent staff and contract staff. Data gathered from questionnaire and
personnel discussion formed the basis of analysis and conclusion(s). Nigeria.
Its information, implementation and its effectiveness towards the achievement
of the organizational goals and objectives. The scopes cover the areas of
performance evaluation option used by Zenith Bank Plc
1.8 Definition of Terms
Appraisal: Means the act of evaluating the
performance of an employee
based
on his past performance on the job, thereby discovering his potentials for
development.
Appraise: The
subordinate whose performance is being rated.
Appraiser:
This
refers to the superior officer who appraises the subordinate’s
performances over a given period.
Evaluation:
This
consists of objectives assessment of a project,
Programmes
policy at all stages. i.e. planning, implementation and measurement of outcome.
Human
Resources: Refers to the human capital or number of workers
that
make
up the workforce of an organization.
Organization:
An
organization is the harmonization of the activities of groups
of people for the achievement of
pre-objectives through division of labour or
hierarchy of authority.
Performance:
The
outcome of actions or the action that produce the outcome in
a job process.
Performance
Evaluation: This is the process of systematically evaluating
an
employee’s
productive ability over a given period.
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