IMPACT OF EFFECTIVE PERFORMANCE APPRAISAL ON EMPLOYEE PRODUCTIVITY
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IMPACT OF EFFECTIVE PERFORMANCE APPRAISAL ON EMPLOYEE PRODUCTIVITY
Chapter one
INTRODUCTION
1.1 Background of the Study
Aside from producing goods and services and earning a profit in the environment in which they operate, any organization’s goal is to have an efficient and successful human resource base. It is a well-developed, efficient, and effective workforce that will assist in attaining its goals.
Most organisations’ existence is dependent on their ability to assess its workforce in terms of current performance, likes and dislikes, strengths and weaknesses, expectations of each individual or employee, and potential for growth.
According to Obisi (1996), in today’s ever-changing competitive economy marked by risk-taking, organisations must survive, and the key to such survival is revitalised human resources. Neither billions of Naira nor cutting-edge technology and machinery can perform miracles if human resources are neglected and forgotten.
Employees with the necessary skills, talents, capabilities, experience, qualification, and a true work culture, as well as problem solvers, are in short supply, he stated. Organisations must nurture, nourish, and grow their people resources through performance appraisal, counselling, potential appraisal, and performance reviews.
According to Koontz et al. (1982), knowing how well an employee performs is the only way to assure that people in managerial positions manage properly. For an organisation to achieve its goals effectively and efficiently, methods of management performance must be identified and implemented.
As a result, they believe that organisations should use the best way for making preference decisions regarding people in order to get the most out of their utilisation and, ultimately, achieve their goals.
Furthermore, Pigors and Myers (1982) recommended that a systematic performance appraisal be implemented to assist managers in evaluating the work of each employee. They believed that appraisals should be used primarily to choose applicants for job promotions and to make “merit” salary increases.
They also believe that appraisals are useful in assessing the effectiveness of recruiting, selection, placement, and training methods, as well as overall employee productivity.
Thus, the current researcher intends to investigate the influence of performance appraisal on total staff productivity, with a focus on MTN Nigeria Communications PIc.
1.2 Statement of Problem
The performance appraisal system has been in use in the organisation for many years and is an essential component of management. It is, of course, crucial for management development since if an employee’s strengths and limitations are unknown, it is only by chance that development efforts are focused in the proper direction.
Thus, the key issues that this research study will attempt to resolve take the following forms.
For starters, in recent years, the majority of highly rated employees have been discovered to perform poorly in terms of employee appraisal, casting doubt on the basis of measuring and evaluating.
Second, as a result of the foregoing, there have been reports of halo-effect assessments, in which managers evaluate employees based on their feelings for or against them. This does not bode well for the corporation, as it realises to its dismay the poor impact on staff productivity.
Finally, employees’ performance has been found to be evaluated incorrectly or against inapplicable, insufficient, or subjective criteria.
1.3 GOALS OF THE STUDY
The objectives are as follows.
a. Examine the performance appraisal mechanism used by MTN Nigeria Plc.
b. Determine whether accurate measurement or assessment grounds are employed in employee appraisals.
b. Investigate the effects of performance appraisal on staff productivity.
d. Investigate the impact of employee performance appraisals on organisational profitability.
a. Investigate whether effective performance appraisals are typically linked to the reward system.
1.4 RESEARCH QUESTIONS.
The following research issues will be addressed during the course of the study:
a. Is there a genuine performance appraisal system in the company?
b. Will an effective performance appraisal affect the employee’s job attitude, skill, and knowledge?
b. Are the company’s performance appraisals typically related to a reward system?
d. Will an efficient performance appraisal increase staff productivity?
b. Will performance appraisals promote employee and organisational development?
f. Do most employees’ promotions or demotions depend on the results of their performance appraisals?
1.5 PURPOSE OF STUDY
The study aims to investigate the effects of effective preference appraisal on staff productivity.
1.6 Significance of the Study
This research study will look at and highlight the following:
a. Demonstrate the benefits of effective preference appraisal on staff productivity.
b. Display the many bases on which employee performance is measured and evaluated.
c. Identify the numerous barriers or handicaps to successful performance appraisal.
d. Help the organisation determine whether the current methods or styles of performance appraisal systems are worthwhile.
1.7 Statement of Hypothesis
The following hypotheses will be examined during the course of the study to see whether they are valid or not in terms of performance appraisal.
1. Performance appraisals will increase the employee’s productivity.
2. Employee appraisal will improve organisational profitability.
1.8 Scope of the Study
The performance appraisal system is used in practically every corporate organisation. Furthermore, the corporation in question has branches all over the country. However, this investigation will only cover the company’s headquarters in Lagos State.
As a result, the findings are expected to be applicable to other MTN Nigeria Communications PIc organisations and branches across the country.
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