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THE EFFECT OF PERFORMANCE APPRAISAL ON THE EMPLOYEES PRODUCTIVITY IN BUSINESS ORGANISATION
1.1 BACKGROUND OF PROBLEM
Every organisation whether profit oriented or not, has a set objectives which all the employees and the employer must strive to achieve to ensure the success and continuity of the organisation. However, the effect of their individual efforts to this end may not be equal and may be direct or not. But if any of them lies behind and become ineffective the entire organisation will be severely affected.
This situation calls for the need to have a set standard at each level of the Organizational structure to check and appraise the performance of these employees by their successive superiors. This objective standard will be in relation to the level of the employees in the organisation structure as the expectation from each employees depend o his position in the level of the organisation structure.
Taylor. (2000), urged for the establishment of performance standard. This was aimed at determine the employees productivity as their performance could be measured. According to him, he that could perform up to the established standard will be given bonus. On the other hand, employees that could not meet up the set standard will be encouraged and subjected to training to improve and when they failed to improve, he will be penalized by demotion or will be laid off.
As stated earlier, every organisation has an objective to achieve. This is made possible by the collective effort of the entire employee in the organisation. But employees will make little or not effort of all the employees in the organisation. But employees will make little or not effort towards achieving that goal unless every bit of their effort will be taken not of, and that they are praised and regarded for their outstanding performance.
It is through the instrument of performance appraisal that these requirement of the employees could be met they would do their best in expectation of a greater reward.
By defining, performance appraisal in the analysis and evaluation of individual workers performance and productivity based on the objectives set.
According to Willaim, (1999) defines it as a personnel activity by means of which the enterprise determines the extent to which the employee is performing the job effectively. Appraisal system are ultimately system that have direct linkages with all forms of organizational set up that aims at determining and improving the employees effectiveness and rewards made accordingly. Failure to administered reward in consistence with performance will undoubtedly cause some set back in an organizational productivity.
This is the cause when the most efficient employee is not rewarded accordingly. Many appraisal systems have been criticized for not being suitably designed to yield the positive result that could be a true guide for compensating the efficient employees.
Maintenance is another problem associated with performance appraisal. A good appraisal system has to be maintained to yield the desired result. A person who desired a good yield of plan does not only plan and forget the plan, he tends, feeds and watches it grow and mature before harvest.
This is the same thing with performance appraisal. When a system, is adopted in any organisation, it has to be strictly adhered to or implemented to come out with the true result from it. The exercise always starts from the lowest level of organisation where the subordinates are evaluated by their immediate superiors. The performance against each set objective should be assessed and perhaps graded. Establishing an objective therefore is an element in carrying out the appraisal exercise regardless or what method adopted the primary objective are the same. It aims at developing the employees so that that the best could be obtained from them for the benefit of the entire organisation.
1.2 STATEMENT OF THE PROBLEM
Performance appraisal as generally believed is aimed at improving and developing the performance of the employee who are appraised. This in turn is based on the presumption that the effective employees are regarded after appraisal based on the result of the appraisal.
This is done by either promoting or increasing salaries. The effective employees also based on the result are given appropriate training for their development and where they failed they are penalized. All these when done judiciously and properly will go a long way in motivating the employee to work harder and productivity increased.
However, the problem is that the possibility of properly and judiciously carrying out the appraisal exercise is questionable. The truthfulness of most results of the performance appraisal are highly doubted. Also the suitability of some appraisal methods are objected by the employees. In fact, these problems have accumulated to affect and influence the effect that the exercise would be having on the employees. The employees rather that remains indifferent with disregard for the result if the exercise due to their impression that essence has been defeated. This stems from their suspicion of the evaluation of the employee being treated with bias and subjective mind in the performance of their duty.
The Effect of Performance appraisal on an organisation It improves competence and expertise in the employees as each employee strives to improve on higher performance through engaging in studies and practice of job assignments. It improves and enhance company Organizational objective.
It enhance the competitive position of the organisation as improvement in competence and expertise leads to high quality of policy decision, operational effectiveness and quality competitive products and service.
1.3 PURPOSE OF THE STUDY
This study aims at achieving the following as its objective or purpose
(a) To identify the nature of appraisal adopted by the
(b) To identify some of the problem militating against the
positive effects of performance appraisal.
(c) To trace the cause of these problems with a view of
suggesting a workable solutions to ameliorate them.
(d) To suggest remedies to the problem a model for
management use in motivating the employees in business
1.4 SCOPE OF THE STUDY
In order not to make the study unmanageable, the researcher tried
to limit the scope of study to one organisation in Asaba metropolis.
(Union Bank Ple Nnebisi Road, Asaba).
1.5 LIMITATION OF STUDY
Certain factors have tended to militate against the study and may have influence the result of the study, which are worthy to be mentioned here.
They include shortness of time for the completion which is one of the limiting factors. Limited financial resources also constrained me to study with only one business organisation in Asaba metropolis. Inadequate cooperation by some management personnel in the organisation the researcher carried out his investigation. Also the workers were afraid most of the time expresses their views on how their performance appraisal should be improved to the researcher in order to keep their employment.
1.6 DEFINITION OF TERMS
PERFORMANCE: This is the degree of accomplishment of the task that makes up an individual job. It reflects how well a person is fulfilling the requirement of a job.
APPRAISAL: Compliance tends to influence behaviour under the condition of surveillance. Organisation have objective stated that
they strive to achieve. This objective makes management to systematically evaluate the sub unit of their organisation.
PERFORMANCE APPRAISAL: This process that involves determining and communication to the employees how they are performing the job and ideally, establishing a plan for improvement.
NEGATJVE APPRAISAL: Employees are negatively appraised when the result of their evaluation is not favourable.