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THE ROLE OF PERFORMANCE APPRAISAL IN HUMAN RESOURCES MANAGEMENT: A CASE STUDY OF UNITED BANK FOR AFRICA (UBA) AWKA
Due to the important role played by human resources in the achievement of organizational objectives and also the insufficiency and lack of effectiveness in achieving goals, the researcher interest prompted the need to investigate into the role of performance appraisal in human resources management in the united Bank for Africa. The study covers management staff, supervisor, clerks, messenger. The researcher also made use of various authors knowledge with those whose initiative relates to the problem under study which includes textbooks and journals for the literature review.
Questionnaires were provided with various questions which covered the two hypothesis that were provided in the research work, the percentage formula was used in analyzing the data obtained.
1.0 BACKGROUND OF STUDY/OVERVIEW
In every organization effective use of human resources require a complete knowledge of employees’ capabilities and effective record system. To achieve this objective, it has become necessary to regularly take stock of the experience and exposure levels of employment. This could be done with the aid of performance appraisal. Performance appraisal could be defined as the process of measuring necessary level performance of organization members. It is one of the delicate issues in human resources management because an employee overall success in an organization depends largely on the outcome of performance appraisal. It is pertinent to state that some bosses take advantage of this to undermine the prospect of employees they line. Thus a proven performance appraisal system linking organization and employees goals is of paramount important because it can serve development tool to counsel and motivate employees.
Furthermore, it could as well assist employees to understand what is expected of them in a job and where they fit into an organization. The fact is that the scarcely few employees who would not like to know what exactly their manager thinks of their performance makes performance appraisal a controversial subject. In small organization with few employees, the level of interaction between the manger and the employees is close that employees generally know how their boss thinks of them.
However, in large organization such as “UNITED BANK FOR AFRICA”, the degree of interaction is remote. Many employees find it difficult to precisely know what their manager thinks of them. In contemporary atmosphere of world wide recession and especially in Nigeria, of down right economic growth characterize by massive unemployment and increasing number of employee redundancy, this organization (including united bank for Africa PLC) which are holding their own are likely to be much more interested in maximizing the effective use of existing personnel than having new staff. It follows therefore, that if performance appraisal is properly utilized. It could go a long in assisting in the management of the bank in human resource planning and development.
1.2 STATEMENT OF THE PROBLEM
Most organization are quite interested in determining the quality and level of performance of their employee in assessing the potentials they demonstrate for future development, and in identifying areas of weakness that may require assistance and training. The process of appraising the performance of employees is made difficult by the fact that criteria of effective and ineffective performance and frequently difficult to define, the areas of performance for which an individual is responsible is often unclear and evaluation tends to be base not in measurement of actual performance, but on the perception and judgment of immediate boss.
Some of these vague, ambiguous and judgment characteristics of performance appraisal in an organization are unavailable because of the complexity of managerial jobs and the difficulties inherit to clearly concrete criteria of effective performance. At the same time, vagueness ambiquity. Associated with the appraisal process can be attributed to inadequate attention being paid by organization to the design and functioning of its performance appraisal doubtful of the extent to which the employees UBA are usually satisfied after the appraisal exercise.
This is because instances abound where a staff has spent over nine (9) years or one past without promotion. One is tempted therefore to conclude that; performance appraisal is not so effective in assisting management in selecting the first people for advancement.
Further, it appears that general feeling among the UBA staff is that performance appraisal is not achieving the desired objective. This implies that all is not well with the way performance appraisal is being conducted in UBA. Beaming in mind that the instable nature of human beings and the fact that they constitute the most difficult variables for managers to predict and control, the researcher study will endeavor to examine the performance appraisal system of its pros and cons will assist the management to define effective and result oriented performance
1.3 OBJECTIVE OF THE STUDY
1) Evaluate the strength of performance appraised in supply data that could help the UBA management to make an effective use of its human resources
2) Find out how effective the use of performance appraisal as a tool for determining promotion, salary increase and training.
3) Find out whether the employees of the bank are usually satisfied with the way they are being appraised by the supervisors.
1.4 SIGNIFICANCE OF THE STUDY
The whole process of performance appraisal exercise is reviewing the past to enable proper project to be made of the future. The study therefore is as important as the objective and growth of any business organization. Business as we know cannot operate without employees, and in order for organization to make profits, both employees and employers must work in an understanding and satisfactory atmosphere so that one will not be seen as an obstacle to the other. The study therefore will therefore expose of reducing frication that many union as well as managers and subordinates following the outcome of every appraisal exercise in order to usher in a peaceful industrial harmony in the organization. The UBA will find the study particularly useful in human resources planning of the organization. The study will also serve as an insight for management on the proper use of performance evaluation on their subordinate
Finally, the study can motivate other interesting researchers in this subject there by giving them impetus to venture into a fresh field study.
1.5 SCOPE OF THE STUDY
The study covers the total performance of employees of the UBA from managers, clerks, security guards, cleaners etc. the study will develop into such sensitive areas of promotion, salary increase, training and regard for hardwork.
1.6 RESEARCH HYPOTHESIS
The hypothesis to be tested in the study are:
- 1. HO: the suitability for promotion and salary increment does not fit significantly to the performance appraisal scheme of the organization.
- 2. Hi: the suitability for promotion and salary increment fits significantly to the performance appraisal scheme of the organization
1.7 RESEARCH QUESTIONS
Recognizing the fact for the best and worst level of employee performance, a manager is ever inclined to make comments, the researcher is curious to ask some striking questions which is hoped would bring chant to some doubt on the validity of performance appraisal as a tool for measuring employees performance
THE QUESTIONS ARE
1) Should an employee be rewarded based on his or her scores in performance appraisal report?
2) In what areas has the banks performance appraisal scheme created an impact on employees?
3) Do bosses influence performance appraisal report?
4) Are the employees aware of the method of approach to the performance evaluation being used by management?
1.8 LIMITATION OF THE STUDY
The major limitation is the short period within to complete this project. Furthermore, to cover nearly 200 branches of the bank all over the country will be uphill task for the researcher. Also the fund needed to conduct and implement to the research study especially now that the cost for research material is very exorbitant.
1.9 DEFINITION OF TERMS
In other to achieve clearly and misconception and attempt will be made here to define some terminologies in this study.
MOTIVATION: - this refers to the process of limiting and directing behaviour. An individual produce and sustain behaviour who he/she finds it rewarding to do so, that is when the behavior accomplishes and objectives which satisfies a need
SUPERVISOR AND SUBORDINATES: - the term “supervisor’’ is used to demote the person doing the appraisal and the term “subordinate’’ is used to refer to the employee whose performance is being appraised.
VALIDITY: this refers to the degree to which the measuring instrument measures what is intended to be measured. A valid performance appraisal system must specify performance criteria that are job related and important as well as being easily determined through job analysis so that employees contribute to the degree to which perform those criteria and attain those result specified in the job analysis.
HUMAN RESOURCES MANAGEMENT: this refers to all activities that are undertaken by organization to influence individual employees and the abilities and motivation of employees with requirement and of the job.