IMPACT OF PERFORMANCE MANAGEMENT ON INFORMATION TECHNOLOGY PRODUCTIVITY IN ORGANIZATION (A CASE STUDY OF IKEJA COMPUTER VILLAGE)

ABSTRACT

The study was aimed at investigating the impact of performance management on information technology productivity in an organization, a case study of Ikeja computer Village, Lagos state. The survey research was used in this study to sample the opinion of respondents. This method involved random selection of respondent who were administered with questionnaires. The target population of the study comprised managers of selected organizations in Ikeja Computer Village, Lagos state. The questionnaire administered was one hundred and ten (110) copies and one hundred copies retrieved which constitute the sample size. The descriptive and analytical approach was adopted using Chi-square to test and analyze the hypotheses earlier stated. The findings revealed that there is a significant impact of performance management on information technology productivity in an organization and that there is a significant relationship between performance management and information technology productivity in an organization. It was therefore concluded from the findings that use of IT is definitely a boon in the field of performance management because of huge support in maintaining data, but it cannot replace the emotion, feelings and sentiment of appraiser in judging somebody’s performance. It was recommended that organizations should embrace IT tools and services so as to have competitive edge and improve service delivery to customers, have more self-service enabled services, automate all critical processes to achieve higher efficiency, reliability and control in the organization.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY 

In recent years the use of performance management practice has increased in many organizations. Performance Management Systems are implemented in organizations worldwide (Palethorpe, 2011). The major setback of evaluating the work performance of organizations around the world has been to determine the performance criteria in relation to the objective set by their organizations (Parker et al, 2013). Performance management systems cause strategic evolution and ensure goal congruence (Chan, 2014). Performance Management is associated with creating a shared vision of the aims and purpose of the organization, helping each individual employee to understand and recognize their part in contributing to the organizational goals which help to manage and enhance employee and organizational performance (Williams, 2012). Performance management cycle begins and ends with formulating clear objectives for the organisation (McDavid & Hawthorn, 2015). Performance Management (PM) has been one of the most positive and crucial developments in the field of management. PM comprises all activities that guarantee that organizational objectives are constantly being attained in an efficient and effective manner

The application of Information technology has a great stance among basic industries since it plays an important role in different industries such as productivity, social services and job opportunity improvement. Therefore technology can be taken as one of the strategic factors which can help improve business productivity (yang et al, 2017). Information technology began in 18th century along with industrial revolution and continued to the present which is still being used in different organizations (Harris & Nelson, 2013). Productivity improvement, service quality improvement, Cost reduction, Individuals’ satisfaction and long-term profitability is among the expectations of those researchers dealing with Information Communication Technology (Law and Jogaratnam, 2015). They have also realized the controversial and useless results of productivity as a result of its investment in many industries. However, many studies validate the effect of information technology on productivity, service quality improvement and long-term profitability (Karadag& Dumanogl, 2019). Researchers’ studies on productivity (2015) indicate that information technology investment has positively affected productivity from 1995 to 2013.

The scientific revaluation in the communication and information make a comprehensive change in the life and business, which affect the ways that the governments provided its services to populations. Which also affect the future of the nations? The new technology helps to reduce managerial cost and human cost and make the work more accurate and faster; which make the organizations go to the electronics. Form this point the role of information technology is to manage the data, organizing, retrieving of the information which help the organization to provide services faster, and market more accurate and easier, which affect also the level of performance. From this point the importance of this study the effect of MIS on the performance of governmental organizations comes.Using an advanced performance management system, employee and agency goals have a better chance of success; best practices can be implemented successfully; and they allow the entire process to be managed more efficiently. On top of that, an effective performance management system should:

• Provide meaningful performance results
• Aid in the growth of training and career development programs
• Help set expectations
• Monitor performance
• Assist in rewarding top performers

Beyond those critical gains, performance management systems eliminate some of the uncertainties of the past: agencies can ensure accurate performance appraisal datacrucial to the effectiveness of performance appraisals. With access to their evaluations and goals for the coming year, these systems also drive more feedback from employees and encourage positive attitudes toward performance reviews.The digitization of performance management not only provides more precise data but also positively influences management processes and strategic development. Technology-enabled performance management tools simplify the manager’s evaluation process and turn employees into active participants in their review sessions.Furthermore, with increased transparency and automated strategic human resources functions, these tools can give employees a sense of alignment with the agency’s objectives and provide managers with the information they need for compliance and regulatory purposes.

1.2 STATEMENT OF THE PROBLEM

Despite the fact that many organizations use performance management practice as a means to evaluate and monitor performance of their employees against the objectives of the organization, some organizations including private organizations are still struggling to implement effective performance management systems that can help them to yield good performance results and the reason could be that the available performance management systems lack the focus on how to achieve the set objectives. Both employees and managers in many organizations have reported on the ineffectiveness of performance management systems (Pulakos, 2014).

In order for the information and communication technologies companies to successfully achieve their objectives and goals, there is the urgent need to focus on performance management systems, consistent absenteeism at work, lack of motivation and poor and unconducive working standards had been the other factors triggering poor performance by employees in the information and communication technologies organisations. Hence, it was the study’s intention to investigate the impact of performance management systems on the productivity of employees for information and communication technologies companies in Ikeja computer Village.

1.3 AIM OF THE STUDY

The aim of this study is to determine the impact of performance management on information technology productivity in an organization. The specific aims are;

1. To assess the extent to which performance management influences information technology productivity in an organization.
2. To examine the level of the information systems that is used in organizations in Ikeja computer Village
3. To examine the impact of performance management on information technology productivity in an organization.
4. To determine the impact of performance appraisal feedback on the productivity of employees.
5. To examine the relationship between performance management and information technology productivity in an organization
6. To make recommendations for appropriate performance management systems for the organisations in the information and communications technology industry.

1.4 RESEARCH QUESTIONS

1. What is the extent to which performance management influences information technology productivity in an organization?
2. What is the level of the information systems that is used in organizations in Ikeja computer Village?
3. What is the impact of performance management on information technology productivity in an organization?
4. What is the impact of performance appraisal feedback on the productivity of employees?
5. What is the relationship between performance management and information technology productivity in an organization?
6. What are the recommendations for appropriate performance management systems for the organisations in the information and communications technology industry?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant impact of performance management on information technology productivity in an organization

H1: There is a significant impact of performance management on information technology productivity in an organization

Hypothesis 2

H0: There is no significant relationship between performance management and information technology productivity in an organization

H1: There is a significant relationship between performance management and information technology productivity in an organization

1.6 SIGNIFICANCE OF THE STUDY

This study will help to figure out strategies for identifying, encouraging, measuring, evaluating, improving and rewarding employees‘performance at work. The study findings will also be helpful to the different organizations in Ikeja Computer Village when setting policies on their specific performance management system in order to adopt Performance Management practices that are consistent with the requirements of these policies and that best fit the nature of the work performed and the mission of the organization. The study recommendations would also be significant to the human resource managers and supervisors in information technology sectors in ensuring employees focus on their work in ways that contribute to achieving the organization’s mission and vision. The study contributed to existing academic body of knowledge.

1.7 SCOPE OF THE STUDY

The study is based on investigating the impact of performance management on information technology productivity in an organization, a case study of Ikeja computer Village, Lagos state.

1.8 LIMITATION OF THE STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 OPERATIONAL DEFINITION OF TERMS

Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization.

Productivity is commonly defined as a ratio between the output volume and the volume of inputs. In other words, it measures how efficiently production inputs, such as labour and capital, are being used in an economy to produce a given level of output.

Performance Appraisal: Performance appraisal is where a superior evaluates and judges the work performance of subordinates