AN EVALUATION OF THE EFFECT OF PERFORMANCE APPRAISAL ON ORGANISATION’S PRODUCTIVENESS

ABSTRACT

While the concept of performance appraisal is not new, the study of employee perception of the concept is still going on. The way employees perceives performances appraisal affects the importance that is attached to it. Many managers see the performance appraisal process as an administrative rite that consumes a lot of time, while producing little more than frustration, confrontation, and piles of paperwork.

This research work provides an assessment of the impact of performance appraisal on production and productivity taking a case study of First Bite Limited. The purpose of this research work is to help change the perception of employees from seeing performance appraisal as management confrontation activity targeted as generating frustration among employees but to see performance appraisal as tool to be applied for the attainment of organizational goals. Respondents were selected from the staff of Tantalizer outlets of FirstBite Nigeria Limited in the Ikeja environs of Lagos.

TABLE OF CONTENTS

CHAPTER ONE

Introduction

1.0    Background of the Study

1.1     Profile of First Bite Ltd

1.2     Statement of the Problem

1.3     Significance of the Study

1.4     Research Hypothesis

1.5     Research Questions

1.6     Method of Data Collections

1.6.1  Population and Sample Selection

1.6.2  Sample

1.6.3  Data Collection Instrument

1.6.4  Validation of the Instrument

1.6.5  Reliability of the Instrument

1.7     Method of Data Analysis

1.8     Scope and Limitation of the Study

1.9     Brief History of First Bite Nigeria Ltd

References

CHAPTER TWO

Literature Review

2.1     Introduction

2.2     Productivity Principles

2.2.1  Labour productivity and multi-factor productivity

2.2.2  Productivity and National Growth

2.2.3  Sources of productivity growth

2.3     Historical Perspectives of Performance Appraisal

2.3.1  The Need for suitable Performance Appraisal

2.4     Performance Appraisal Framework

2.4.1  Performance Appraisal Methods

2.4.1.1  Absolute Standards

2.4.1.2   Relative Standards

2.4.1.3  Objectives Approach

2.4.2  The 360 Degree feedback Appraisal

2.4.4  The Comparison of Performance Appraisal Methods

2.4.5  Potential Rating Scale Appraisal Errors/Problems

2.5     Determinants of Job Performance

References

CHAPTER THREE

Research Methodology

3.1     Introduction

3.2     Research Design

3.3     Population

3.4     Sampling and sampling technique

3.5     Data Collection Instruments

3.6     Validity of the Instrument

3.7     Reliability of the Instrument

3.8     Hypothesis Testing

3.9     Decision Rule

References

CHAPTER FOUR

Data Interpretation, Analysis and Discussion of Findings

4.1     Introduction

4.2     Presentation and Analysis of Data

4.3     Chi Square Test

CHAPTER FIVE

Summary, Conclusion and Recommendations

5.0     Introduction

5.1     Summary

5.2     Conclusions

5.3     Recommendations

BIBLIOGRAPHY

Appendix 1: Questionnaire

CHAPTER ONE

INTRODUCTION

1.0    Background of the Study

Production, in economics, is the act supplying a desired output. The act may or may not include factors of production other than labour. Any effort directed toward the realization of a desired product or service is a “productive” effort and the performance of such act is production; Saari, S. (2006).

According to Berglass, Anthony (2008), productivity is a measure of output from a production process, per unit of input. For example, labour productivity may be conceived of as a metric of the technical or engineering efficiency of production. As such, the emphasis is on quantitative metrics of input, and sometime output. Sumanth, D. (1979) maintains that productivity is distinct from metrics of allocative efficiency, which take into account the monetary value (price) of what is produced and the cost of inputs used, ad also distinct from metrics of profitability, which address the difference between the revenues obtained from output and the expense associated with consumption of inputs.

A performance appraisal, otherwise called employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typical by the corresponding manager or supervisor; Kendirick, J.W. (1984). According to Ayaz Khan (2001), performance appraisal is the periodic evaluation of an employee’s performance measured against the job’s stated or presumed ‘ requirements.

Martey, (2002) sees performance appraisal as analysis of an employee’s recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee’s performance in a job based on consideration other than productivity alone. A performance appraisal is a part of guiding and managing career development.  It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. The term “performance appraisal” applies to judgment on individual job performance. Individual job performance on the other hand is a multidimensional idea consisting of many facts; which range from an employee’s output (job result) to employee mode of accomplishing his or her task (job behavior), and the employee’ attitude towards his or her job (personal traits).

A common approach to assessing performance is use numerical or scalar rating system whereby managers are asked to score an individual against a number of objective/attributes.  In some companies, employees

1.2    Statement of the Problem

While the concept of performance appraisal is not new, the study of employee perception of the concept is still going on. Wallace & Szilagyi (1982).  Mullins (1996) defines perception as “the mental function of giving significance to stimuli. People see things in different ways bringing about different reactions to the same issue. The way employees perceive performance appraisal affects the importance that is attached to it. Freeman, J. (2002) asserted that many managers see the performance appraisal process as an administrative rite that consumes a lot of time, while producing little more than frustration, confrontation, and piles of paperwork.

This reaction is totally understandable if the company is relying on a performance appraisal system that has fallen woefully out of date. Grifell- Tatje, E and Marques – Gou, P. (2008) posited that the performance appraisal process can play a remarkably powerful role in building employees, as well as their performance and productivity – when it’s done right.

1.3    Significance of the Study

The Significance of the study is mostly two-prong and they are as follows:

1. The study will help change the perception of employees from seeing performance appraisal as management confrontation activity targeted as generating frustration among employees.

2. The study will also help managers to see performance appraisal as a tool to be applied for the attainment of organizational goal instead of managers see the performance appraisal process as’ an administrative rite that consumes a lot of time just adding to the workload, producing little or not results but more piles of paperwork.

1.4    Research Questions

The questions that will be asked In the course of this research are the following:

1.  Is performance appraisal seen by staff as a management tool used in favouring a few people on the job

2. Is performance appraisal seen by staff as a management tool for improving performance?

3. Is there significant relationship between training and productivity?

4.  Are employee departments better equipped t organize productivity-oriented performance appraisals than the personnel department?

5.  Do employee departments lack the necessary administrative skills for conducting productivity oriented performance appraisal on their star?

6. Is there significant relationship between performance appraisal and productivity.

7. Does appraisal of performance provide opportunity for training?

1.5    Research Hypothesis

The hypothesis that will be tested this study are the following:

Hypothesis 1

Null Hypothesis, H0:  There is no significant relationship between training and productivity.

Alternative Hypothesis, H1:  There is significance relationship between training and productivity.

Hypothesis 2

Null Hypothesis, H0: Employee departments are better equipped to organize productivity-oriented performance appraisals than personnel department.

Alternative Hypotheses, Hi: Employee departments are no better equipped to organize productivity-oriented performance appraisals than personnel department.

Hypothesis 3

Null Hypothesis, H0: Employee departments lack the necessary administrative skills for conducting productivity-oriented performance appraisal on department staff.

Alternative Hypothesis, H1: Employee departments have the necessary administrative skills for conducting productivity-oriented performance appraisal on department staff.

Hypothesis 4

Null Hypothesis, H0: There is no significant relationship between performance appraisal and productivity.

Alternative Hypothesis, H1: There is significant relationship between performance appraisal and productivity.

Hypothesis 5

Null Hypothesis, H0: The appraisal of performance’ provides opportunity for training.

Alternative Hypothesis, H1: The appraisal of performance does not provide opportunity for training.