The Effect Of Performance Appraisal As A Managerial Tool For Measuring The Employees Productivity In An Organization

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM

Chapter One


1.1 Background Of The Study

Performance appraisal is very essential to the organization. Human resources must be appraised if the objective of the organization must be attain effectively and efficiently. It is prevalent that a managers Job is to attain result through employees. In other words, a manager motivates his workers to work in such a way that will permit the achievement of predetermined result.

It is therefore pertinent that organization should have a proper co-ordination of employees performance appraisal so as to ascertain how far the employees are working, whether they are giving their best to the organization by bringing increase in productivity and human resources development. Result oriented approach which shows the boarders on the work done, productivity and ability to achieve set targets

According to Bankole (2011) he observed

“that it involved reviewing an individuals performance and progress in a Job and assessing his potential for future promotion”.

He further maintained that result of the assessments to improve the performance of such employees. It is very important to note that performance appraisal of human resources in an organization serves as a source that give information for promotion, transfer, pay increment, training and development and discharge of an employee.

According to Ubekji (1975), he observed

“That performance appraisal exercise requires co-operation and team effort on the part of the manager and employees under him”

According to Barlow (1934) State that,

“Appraisal has become a key features of an organization drive towards competitive advantage through continuous performance improvement”.

In many organization this has resulted in the development of integrated performance management system, usually based on a competency framework.

According to (Streble 1997)

“Appraisal therefore act as an information processing system providing vital data for rational objective and efficient decision making regarding improving performance identifying training needs managing careers and setting levels of reward”.

According to Flippo (1980) state that

“performance appraisal in it’s earlier use was to provide a base for issuing wage or salary increase”.

But now a days it has the function of telling the employees to know where he/she stand in the eye of the boss and provide basis for planning and employees training and development. Therefore, it is the task of manager to decide with the workers the objective of his development with framework of the co-operative objective of the department. Each of the worker will understand the part he/she has to play in the achievement of those objectives. Once the individual object has been agree, the employee has something to work towards. Despite the multiplicity and complete nature of any training and education programmes most development occur on the Job, but each development is recorded and will have less effective if employees performance is not systemically appraisal and the feedback information concerning the works quality of performance. All employees are therefore evaluated and appraised for their job performance in some manner or another.

According to Chinsman (1998), he is of the opinion that,

“Performance appraisal is reviews of employees performance based on the objective agreed”.

According to Anugwom (2002) state that,

The appraisal scheme should focus on the performance of employee on the job and not on the personality tracts of the employee”.

He further said that the appraisal approach should be directed towards strengthening the strong points of the employee with the view to improving his weak points.

According to Fajana (1995) state that,

“The continuity of the performance appraisal in an organization must not stop half way so that it will prevent employee from relenting their effort on the job”.

This is because the awareness that their performance is being subjected to a continuous periodic review will make them to be up and doing at any point in time.

Finally, the purpose of an organization as observed according to Peter Drucker (1997), state that, “It is to-enable common men to do uncommon thing”. it is a task of the management to organize motivate, equip and direct ordinary people to perform at their highest possible levels the manner in which individuals performance is managed is a key factor, but the wider context of what individuals are supposed to do even more important. management may influence the structure systems, resources and other organizational factors so as to expand or constrain the horizons of individual achieving greater result with the same amount of human effort. The focus however, is always on the output increase through the management of the available resources.

1.2 Statement Of The Problem

The following are the problem faced by the organization during performance appraisal.

Problems Of Biases:

It is the major problems that this organization faced during performance appraisal. it is an open secret that some manager are bias based in their assessment of their subordinate this prejudice could emanate from gender issue, religious difference, tribal differences and so on.

Problem Of Recency:

This is another important problem that this organization is also facing there is also the problem of using recent occurrence in the job environment to determine the rating of an employee. For example an employee who has been putting up brilliant performance from the beginning of the year probably due to ill health or psychological problem may end up getting a very low rating whereas a lay about worker who because of this awareness that there is going to be performance evaluation at the end of the year, put in extra efforts in the tail end of the year may eventually end up getting a better rating.

Problem Of Conducting Appraisal Secretly:

This is another major problems that this organization is facing. Manager here normally appraised employee secretly without the knowledge or input of the whole employees in the organization.

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