The Effect of Performance Appraisal on Employees’ Productivity in the Public Sector
CHAPTER ONE
Objectives of Study
The main objective of the research is to examine the effect of performance appraisal on employees’ productivity in the public sector. Other salient objectives include;
- To assess the significant relationship between performance appraisal and employees’ productivity in Nigeria Customs Service
- To evaluate the factor inhibiting the use of performance appraisal of employees in Nigeria Customs Service.
- To know whether the -favoritism is responsible for ineffectiveness in the Nigeria Customs Service
- To make appropriate suggestions on how the use of performance appraisal system could enhance employees’ productivity in the Public Sector
CHAPTER TWO
LITERATURE REVIEW
Introduction
Performance appraisal process have come to the fore in recent years as means of providing more integrated and continuous approach to the management of performance. Performance appraisal is based on the principles of management by agreement or contract rather than management by command. It emphasizes development and the initiation of self-managed learning plans. It can, in fact, play a major role in providing for an integrated and coherent range of human resource management process that are mutually supportive and as a whole improving organizational effectiveness (Armstrong, 2009).
The Concept of Performance Appraisal
Within all organizations, the utility of labour for the accomplishment of organizational goals is emphasized. Indeed, aside manpower, there are a number of resources that contribute towards the success of any organization, such as machine, information, idea and material etc.
While these resources are important, the human factors are the most significant because it is the people who have to coordinate and use other resources (Chandan, 2004). Thus in organizations, it is vital to agencies effectiveness and efficiency. However, the way and manners in which we react to work vary from one person to the other. Some people no matter what you do to them, they will never improve (Fatile et al, 2012)
Performance appraisal is a term used for a variety of techniques by superiors, pears, subordinates and the individual employees themselves to rate, rank or describe the employee’s work effectiveness (Fatile, 2010). Performance appraisal is also defined as “a structural formal interview between subordinate and supervisor, that usually takes the form of periodic interview (annually or semi-annually), in which the work performance of the subordinate is examined and discussed, with the view of identifying the weaknesses as strengths as well as opportunities for improvement and development” (DEcEzo and Robbins, 1995). Performance appraisal is also known by other names such as employee performance rating, progress evaluation, performance review, and merit rating.
It is sometimes assumed that performance appraisal is the same thing with performance management. However, there are significant differences. Performance appraisal can be defined as the formal assessment and rating of individuals by their managers at or after a review meeting. It has been discredited because too often it has been operated as a top-down and largely bureaucratic system owned by the HR departments rather than by line managers (Armstrong, 2009). Also as Armstrong and Murlis (2006) asserted, performance appraisal too often degenerated into ‘a dishonest annual ritual’. In contrast, performance management is a continuous and much wider, more comprehensive and more natural process of management that clarifies mutual expectations, emphasizes the support role of managers who are expected to act as coaches rather than judges and focuses on the future.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
The application of a proper and well organized scientific research procedure and methodology to large extent determines the success of any research undertaking. For the purpose of this study, this chapter chronicles detailed research procedures and methods adopted by the researcher to produce the needed data with which to take pertinent statistical decisions. The importance of this is that it explains in detail the procedures in arriving at the inference of the study as well as to enable other researchers/readers to know the procedures and methods followed in arriving at the research findings.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
Introduction
This chapter is centered on the presentation, analysis and interpretation of data gathered. The analysis of the data was based on the data collected from the respondents to the questionnaire, which helped to unravel the impact of performance appraisal on employees’ productivity in organisations.
The questionnaire forms, which consisted of twenty-six questions, were administered on different levels of staff both the top management, senior officers and junior staff respectively. Eighty (80) copies of the questionnaire were distributed, seventy-six (76) respondents returned their forms representing 95percent responses, out of which (74) was valid for use. The inferential statistics of chi-square was used to test the stated hypothesis of the study. The chi-square is a non parametric test of significance. It is used in comparing actually observed frequency with the frequency expected. The findings are presented in the tables for easy comprehension, explanation and decision-making.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Introduction
This study was carried out to ascertain the extent to which effective performance appraisal system are employed in the appraisal of employee ; this to determine the impact it has made on administrative efficiency and effectiveness of organization. The study focused on the staff of Nigeria Custom Service Zonal located in Enugu, Nigeria.
The questionnaire which highlighted the key areas of concern were administered, collated, and analyzed using the simple percentage and chi-square analysis and the respondents expressed different views or opinions. Opinions were formed from these responses about the relevance and impact of the performance appraisal in enhancing administrative efficiency and productivity and suggestions on ways to improve on employee performance review in the organization were made.
Summary of the Findings
The relevance of performance appraisal and human motivation to the understanding of workers performance and productivity cannot be overemphasized. However, it is important to note that theories of performance are seldom conclusive with regards to the production of what factors actually ignite employees towards productivity.
The need to trained and retrain organization staff so as to have good knowledge of what is expected of them and what management plan to achieve cannot be over emphasized. No matter how good a performance appraisal method may be, if it is not properly implemented, the end result will not measure up to set standard; hence it will end up a fruitless effort. More emphasis should be placed on proper training and reorientation of workers and those who fail to perform should be sanctioned.
In a nut-shell, productivity is the objectives of all organization. What we do know is that a multiplicity of factors is involved in performance and productivity improvement, and many of these factors are interdependent. It responds to many factors as x-rayed in our literature review; how the leader in the organization use these variables determine the level of employee performance and productivity. Knowledge of them and how to use them by leaders are therefore conditions precedent to better employee performance and productivity enhancement.
Conclusion
It was concluded from the findings of this study that is faced with performance appraisal problems which have affected their service delivery. The study established the problems affecting performance appraisal in as lack of managerial skills, emphases on connections and informal contacts, inadequate and insincere performance appraisal, inadequate training and development.
These problems have created difficulties for the bank to perform and deliver as a regulatory financial institution. As a result of these problems in the system, the study also observed that workers are not induced to compete for excellence and greater performance. The study also revealed that designs performance appraisal system but with relatively low level of utilization at the lowest grade levels which has affected position classification and identification of defined duties and responsibilities in the system. It was finally concluded that as a result of lack of effective performance appraisal system in , the system is perceived to comprise of lazy, lousy, ineffective and inefficient people, resulting to low employee performance and productivity in the organization.
Recommendations
Based on the study’s findings and conclusions, we recommend that more emphases should be placed on training, retraining and development of staff. This is because training is an antidote for better employee performance and productivity. There should be regular and effective institutionalized training in performance appraisal and implementation for executive and administrative managers. There should be a correlation between training and training needs when designing training programs.
Nigeria Custom Service should design and implement remuneration, incentives and welfare schemes that are inconsonance with the private sector and in realities with the cost of living index or standard. Also, individual and corporate objectives should be integrated to achieve better employee performance and high productivity in the organization. This is based on the fact that while other resources are important to the success of any organization, the human elements are the most significant because it is the people who have to coordinate and use other resources to achieve organisational objectives.
That emphases placed on all kinds of subjective and informal contacts in recruitment exercise should be discouraged. Reliable and valid selection instruments should be devised. The aim is to attract and recruit as many qualified applicants as possible.
The need to re-assert meritocracy in reward and reward management, as well as the need to improve accountability in the organization cannot be over emphasized, as higher pay alone will not automatically lead to higher performance and productivity. The enforcement should start from the top level down to lower cadre; there should be a level of accountability from those who manage the organization.
Finally, there should also be a human capital audit, organizational and physical performance audit and audit reports should be submitted to management periodically. The immediate priority, therefore, is the need to re-examine the validity and reliability of performance management and appraisal instruments in use in the bank. Above all, the recommendations must be sustained overtime and must be inculcated as a way of life in the study area in particular and the various Ministries, Departments and Agencies (MDAs) in general for sustained performance management and appraisal.
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