The Impact of Effective Performance Appraisal on Employee Productivity

The Impact of Effective Performance Appraisal on Employee Productivity

Abstract of The Impact of Effective Performance Appraisal on Employee Productivity

This study investigated the Impact of Effective Performance Appraisal on Employee Productivity as practiced in MTN Nigeria PIc. and to examine whether accurate bases of instrument are used in the process of appraising employees with aim to discover whether effective performance appraisal is tied or has positive relationship with productivity.

Descriptive research design survey used to carry out the conduct of the research, sample random technique was used to select the respondents for the interview, with the sample size of (80) eighty respondents. Simple percentages and Chi­-square was employed to analysis the collected day from the respondents.

The researcher was able to find out that:

§  Performance appraisal do exist in the company under study

§  Closed system of yearly performance appraisal

§  Performance appraisal positively affect the attitude of employee toward work but may not necessarily increase productivity

§  That employee performance appraisal does not necessarily lead to organizational productivity.

Chapter One of The Impact of Effective Performance Appraisal on Employee Productivity

INTRODUCTION

BACKGROUND OF THE STUDY

The objective of every organization apart from providing goods and services and making profit within the environment that they operate is to also have an efficient and effective manpower or human resources. It is a well developed, efficient and effective manpower that will help in achieving its objectives. The survival of most organization depends on its ability to take stock of its manpower with regards to its present performance, likes, dislikes, strength, failure, expectations of every individual or employee and also his her potential for growth.

According to Obisi (1996), in today’s ever competitive economy characterized by risk-taking, organizations, must survive, and the key to such survival is a revitalized human resources. Neither billions of Naira nor the state of the art technology and machines can do the miracle if human resource is neglected and forgotten. Employees who have what it takes, he continued: skills, talents, capabilities, experience, qualification, and genuine work culture, who are problem solvers, are not readily available. It is necessary, that organizations nurture, nourish, and develop its human resources through performance appraisal, performance counseling, potential appraisal and performance review.

According to Koontz et al (1982), knowing how well an employee performs is really the only way to ensure that those occupying the managerial positions are actually managing effectively. For, if an organization is to reach its goals effectively and efficiently, ways of management performance must be found and implanted. Thus, they opined that organizations need to adopt the best method of preference decisions about employees so as to get the maximum benefit from their use that will eventually lead to their achieving their objectives.

Furthermore, Pigors and Myers (1982) advised that systematic performance appraisal should be adopted as a means of helping supervisors to, evaluate the work of each employee. The appraisals, they opined, should be most frequently used as a basis for selecting candidates for promotion to jobs and for making “merit” increases in salaries. They also believe that appraisals are useful as a check on the success of recruitment, selection, placement, and training procedures and generally for employee productivity.

Thus, it is this influence of performance appraisal on the overall employee productivity with emphasis on MTN Nigeria Communications PIc that the present researcher wishes to undertake.

STATEMENT OF PROBLEM

The performance appraisal system has long been practiced in the company, and has been used as an integral part of managing. It is of course, important to management development because if an employee’s strengths and weaknesses are not known, it is only accidental if development efforts were aimed in the right direction.

Thus, the major problems which this research study will seek to resolve are in the following forms.

Firstly, in the recent past most of the employees highly rated have been found to practically perform even disillusionment with respect to employee appraisal, and this has raised doubt on the bases of measuring and evaluation.

Secondly, arising from the above are reported incidences of halo-effect appraisals as supervisors tend to appraise employees on the basis of love or hate. This has not augured well for the company as it discovers to its chagrin the negative impact of this on employee productivity.

Lastly, employees’ performances have been found to be evaluated inaccurately or against standards that are inapplicable, inadequate or subjective.

OBJECTIVES OF THE STUDY

The objectives are follows:

a.   Examine the performance appraisal system as practiced in MTN Nigeria Plc.

b.   Examine whether accurate bases of measurement or evaluations are used in the appraisal of employees.

c.   Examine the impact of performance appraisal on employee productivity.

d.   Examine the effect of employee performance appraisal on organizations profitability

e.   Investigate whether effective performance appraisals are usually tied into the reward system.

RESEARCH QUESTIONS

The following research questions will be answered in the course of the study:

a.       Does performance appraisal system actually exist in the company

b.       Will effective performance appraisal change the work attitude, skill, and knowledge of the employee?

c.       Are performance appraisals of the company usually tied to reward system?

d.       Will effective performance appraisal improve employee productivity?

e.       Will performance appraisal lead to employee and organizational development?

f.          Does the promotion or demotion of most employees depend on performance appraisal administered?