The Impact of Effective Appraisal on Employees’ Productivity (A Case Study of Nigerian Bottling Company)

The Impact of Effective Appraisal on Employees’ Productivity (A Case Study of Nigerian Bottling Company)

Chapter One

OBJECTIVES OF THE STUDY

The aims of this study are;

Investigate the effectiveness of performance appraisal technique in an organization.
Examine the usefulness of performance appraisal programme
To examine the ways in which performance appraisal has impacted employees performance
To examine the relationship between performance appraisal and employees’ productivity
To help managers review past performance and improve current performance.

CHAPTER TWO

LITERATURE REVIEW

INTRODUCTION

This chapter provides an understanding of employees’ performance appraisal and its impact on productivity which covers skills development.

Effectiveness of performance appraisal has so far been studied in different contexts. However, exploring important areas like outcomes of effectiveness of performance appraisal and identification of factors that can make harm to the effectiveness of performance appraisal in organizations was needed. Therefore, the researchers set objectives of this paper to study the outcomes of effectiveness of performance appraisal and to find key detriments to effectiveness of performance appraisal in organization.

To throw more light on employees’ performance appraisal on productivity, the literature review will comprise the following.

EFFECTIVE EMPLOYEES PERFORMANCE APPRAISAL

It is a structural formal interview between subordinate and superior 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 to identifying the weakness and strength as well as opportunity for skills and development (Decenzo and Robbins, 1995: 358).

Performance refers to the degree of accomplishment of the task that makes an employee’s job. It reflects how well employee is fulfilling the requirement of the job.

Performance appraisal is “the process of observing and evaluating an employee’s performance, recording the assessment and providing feedback to the employees” (Daft and Marcic, 1998:368).

Performance appraisal is a structural formal interview between subordinate and superior 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 to identifying the weakness and strength as well as opportunity for skills and development (Decenzo and Robbins, 1995: 358).

Performance refers to the degree of accomplishment of the task that makes an employee’s job. It reflects how well employee is fulfilling the requirement of the job.

Performance appraisal is “the process of observing and evaluating an employee’s performance, recording the assessment and providing feedback to the employees” (Daft and Marcic, 1998).

Performance appraisal is “a formal assessment of how well employees are doing their job”. Thus employees’ performance should be evaluated regularly for many reasons. Some of these reasons are;

It may be necessary for validating selection devices or assessing the impact of training programs.
It is administrative- that is it aids in making decisions about pay raises, promotions and training.
To provide feedback to employees to help them improve their performance and plan future careers. (Griffin, 1999)

DISADVANTAGES TO EFFECTIVENESS OF PERFORMANCE APPRAISAL

Literature uncovered following aspects that can make harm to the effectiveness of performance appraisal: exemptions to the highly visible employees, conduct of performance appraisal to punish the

low performers, rewards on nonperformance, doubts in the mind of performers about appraisal’s after effects, organization’s politics that leads to disturb performance of targeted employee (Deluca, 1993);

use of fundamentally flawed appraisals, focus on encouraging individual, which automatically discourages teamwork/collaboration, inconsistencies in setting and applying appraisal criteria, focus on

extremes (exceptionally good or poor performance), appraisal’s focus on achievement of short-term goals, support to autocrat supervisors, subjectivity of appraisal results and creation of emotional anguish in employees (Segal, 2000); use of vague qualities and irrelevant measurement criteria, use of useless checklists for evaluation, monologues instead of dialogues in feedback sessions, reluctance of

appraisers to offer feedback, supervisor’s misguidance to appraiser (Nurse, 2005); inaccuracies at supervisor/organization’s end (Horvath & Andrews, 2007).

EMPLOYEES PERFORMANCE EVALUATION

Dramatic changes in the knowledge management area have converted the nature of performance evaluation system to an inevitable issue, so that the lack of appraisal system in organization considers as one of the symptoms of the organizational diseases.

Today, the performance evaluation is known as a strategic approach for integration of human resources activities together with policies of business and the organizations use advanced and complex methods for assessing the performance of their employees (Behri & Patron, 2008).

However, researches show that many organizations are not satisfied with their employees’ performance evaluation plans. They suggest that performance evaluation systems have not been successful in creating motivation and improvement of employees’ performance (Fletcher, 2001). Given the importance of performance evaluation, it is essential that organizations take action for more effectiveness of it. Periodical evaluation in a system and its components can increase its effectiveness. Such assessments are essential because, on the one hand, they specify the extent to which the related purposes of the appraisal and development have been realized and on the other hand, based on these assessments we can rectify the current performance assessment practices (Dolan & Schuler, 1997).

Regarding the significance of the issue, this study is trying to examine the employees’ performance evaluation process from the viewpoints of transportation bureau employees and determine the effect of employees’ performance appraisal procedures on their intrinsic motivation in this organization.

CHAPTER THREE

RESEARCH METHODOLOGY

INTRODUCTION

This chapter deals with the methods the researchers used in gathering and analyzing data collected. Therefore, techniques or methods which will be convenient to use were employed under specific situations to give an accurate, valid, logical and satisfactory analyses of the data. This chapter includes the following;

Area of Study
Sampling Size and Techniques Used
Types of Data
Techniques or Methods of Data Collection
Order or Tools of Data Presentation

AREA OF STUDY

The researchers chose the Nigerian Bottling Company Plc as the area of study. This enabled the researchers to seek relevant information to be able to come out with relevant findings, conclusions and recommendations.

POPULATION OF THE STUDY

The population of this research work consists of 500 workers of Nigerian Bottling Company Plc.

CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

INTRODUCTION

This chapter aims at presenting the data gathered from the questionnaires administered for the people and personal contacts in relation to the various objectives advanced in the various parts of the study. The data collected on the study is clearly presented and analyzed. The researchers based their presentation on the major activities used in the questionnaires.

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

INTRODUCTION

This chapter deals with summary of the findings, conclusions drawn on the study and recommendations to the problems of the research topic “the impact of employees’ performance appraisal on productivity”.

SUMMARY

In every business organization including Nigerian Bottling Company, the performance of the employees is important in achieving organizational goals.

Performance appraisal is one of the basic tools that make workers to be very effective and active at work. A critical look out on this may bring about the need for motivation, allowances, development, training and good human relationship in an organization.

Rapid change and developments as well as increasing communications and dramatic developments in knowledge management, have made the existence of effective organizational performance evaluation system for the organizations inevitable.
Various models have been provided by the management experts for the performance evaluation so that organizations use them according to their type of organization, mission, structure and manpower. One function of performance appraisal systems is to arouse motivation in the employees, which is addressed in this study.
The present study is a descriptive-survey study. The objective of this study is to investigate the impact of employees’ performance appraisal on productivity using Nigerian Bottling Company, Benin City as a case study.
Performance appraisal is 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. The output of every organization depends on how well and how much the performance of the employee is appraised and evaluated.
In the findings of the study, it was realized that more male staff are employed in the organization than the female staff. This is according to the sample size chosen.
It was also found out that performance appraisal influences performance positively. However, the researchers realized that performance appraisal is mostly undertaken on annual basis at the workplace.

CONCLUSION

It is now appropriate to draw out the main conclusions of the study.

From the study, findings and analysis showed that favouritism has not got much influence in appraising performance.

Again, it was also realized that the company uses rating scale, descriptive system and management by objective system methods of appraisal to evaluate employees. From the analysis, it was realized that management by objective is the mostly used method. Hence, it showed that appraisal is an ongoing process in the company.

Another finding also revealed that 50% of the respondents received feedback information while the rest 50% do not.

Finally, we realized from the research that performance appraisal has got much influence on job performance. In other words, it was realized that appraisal has got a positive influence on performance.

RECOMMENDATIONS

The following suggestions are made available to appraisers or supervisors by the researchers as per the topic researched;

To be able to obtain a reliable appraisal of the employee, supervisors should make it a point of making periodic notes on each of the persons to be appraised. This is because, if one waits till the end of the period to do the appraisal, the tendency will be to forget some rather important positive or negative behaviour the appraisee showed in the course of the period.

Performance feedback information should be made available to the employees so as to correct their negative attitudes towards performance.

Favouritism at workplace should be reduced to its barest minimum and if possible, it should be made away with completely so as to erase the erroneous impressions and perceptions about performance appraisal.
Employees’ performance should be appraised regularly in order to improve productivity. Thus, once a month is just about enough.

Bad performing employees should change their attitude towards work after appraisal in order to improve productivity. This can be done by the employee being aware that their performance determines their promotion, incentives, and allowances.

REFERENCES

Azila- Gbettor E.M. (2008) Research Methods for HND Accountancy Students: Dickwin Printing Press, Ho.
Behrey,M. H. & Parton, R.A.(2008). Performance appraisal – cultural fit and organizational outcomes within the U.A.E., Journal of American Academy of Business, 13(1), 166-76. Bue W.L. and Byars L.L. (2005, 11th edn) Management: Skills and Application: McGraw-Hill/ Irwin Inc.
Campbell, J. P. (1990). Modeling the performance prediction problem in industrial and organizational psychology. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of Industrial and Organizational Psychology. Palo Alto, CA: Consulting Psychologists Press, Inc.
Daft, R. L. and Marcic, D. (1998, 2nd edn) Understanding Management.
DEcENZO A.D. and Robbins P.S. (1995) Introduction to Human Resource Management.
Dunnette, M.D. & Fleishman, E.A. (eds). 1982. Human performance and productivity. Human capability assessment. New Jersey: Lawrence Erlbaum Associates, Publishers.
Farmer, S. A. (2004). A Performance Measurement Framework for internal audit. MSc Thesis, University of Central England Business School, UK.
Fletcher,C. (2001). Performance appraisal and management: the developing research agenda Journal of Occupational and Organizational Psychology. 74(8),473-87.
Griffin, W. R. (1999, 6th edn) Management: Houghton Miffling Company.
Human Resource Management, Retrieved July 31, 2007 from Taylor & Francis Journals Database.

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