The Effect Of Performance Appraisal On Productivity

Project and Seminar Material for Industrial Relations and Personnel Management

The Effect Of Performance Appraisal On Productivity


Chapter One


1.0 The Introduction

1.1 Background Of The Study

The origin of performance appraisal could be traced to the Armed Forces since world war. It and I gained more importance after the World War II, which was then tailored only toward salary and promotion, which is based more on personality traits other than the results, which the individual produces for the organization.

Since industry or organization has now grown into more complex entity there is need to relate performance appraisal to productivity usher in behaviourally anchored rating scales to be used to appraise employees such as co-operative initiative and reliability, but due to subjective descriptive approach of this method, its functionality does conform to the present day needs of most organizations.

It is no longer a gain saying that any business organization, be it small scale, or public corporation needs an annual performance appraisal in order to determine the input and efficiency of the workers and use the result for both developmental and administrative purposes. Appraisal it is concerned with the assessment of the value of activity and nature of the personnel thereof, performance appraisal would a great extent help the form to determine the working capacity capability of the workers which in return have effect on productivity.

Recently, organization now adopts a new technique termed, “performance appraisal system” which is aimed at improving the ability of the subordinate and identifying obstacles that distort productivity.

Before decision can be made within an organization concerning the efficiency of the personnel and how to enhance a better job performance there must be performance appraisal, which would seek to evaluate the workers; workers generally have a need to know how well they are performing in relation to what was expected of them. Performance provides both the information mechanics for letting people know how well they are doing and what this means to their future productivity.

Conclusively, it is however the aim of this research work to really look at the effect of performance in the organization used as a case study.


1.2 Statement Of Problem

Performance appraisal has been the focus of debate among managers and management scholars for many years. One of the attendance which deserve to be solved includes the problems of improper job appraisal design, poor communication flow between supervisors and employees and inadequate employee follow up.

Also in many organizations, employees have not been provided with the necessary wherewithal, the enabling resources in term of materials, tools, equipment and money labour they require for effective productivity. This has given rise to criticism of performance appraisal in that there can be no realistic appraisal for such workers.


1.3 Objectives Of The Study

The main objective of the research work includes:

  1. To determine the attitude of workers to their job after performance appraisal
  2. To analyze and evaluate the effect of performance appraisal on productivity.
  3. To analyze the role of performance appraisal on organization effectiveness
  4. To make appropriate recommendations

1.4 Relevant Research Questions

For the purpose of this study, the fundamental research questions raised are:

  1. Does performance appraisal have any relationship with productivity?
  2. Do workers rate the performance appraisal techniques as an objective procedure for tracing and rewarding performance?
  3. Does the result of performance appraisal influence the individual’s reward and compensation?

1.5 Research Hypothesis

  1. H0; The result of performance appraisal does not have significant effort on worker’s performance.
    H1; Performance appraisal does not have significant effect on the effective management of an organization.
  2. H0; There is no positive aftermath effect of performance appraisal on the attitudes and behaviours of workers.
    H1; There is positive aftermath effect of performance appraisal on the attitudes and behaviours of workers.

1.6 Methodology Of The Study

The data that will be used ion the course of this study shall come from both primary and secondary sources of the data collection. The primary sources of data compromise the data generated with the aid of questionnaire that will be administered in the course of this study. The questionnaire shall comprise of open -ended statements and this questionnaire shall be distributed to the Staff of Wema Bank Plc., Marina.

The secondary source of information comprises of information and facts extracted from textbooks, journals, and reports of Wema Bank Plc., magazines both local and international and other relevant lecture notes and seminar papers on the topic at hand.

The procedures for analyzing the data collection shall be through the use of simple tables and simple percentages while chi square analysis will be employed to analysis, explain and test the hypothesis on the impacts of performance appraisals on productivity.


1.7 Scope And Delimitation Of The Study

This study will unveil the effect and importance of performance appraisal of productivity in Wema Bank PIc. The case study is restricted to Marina branch of the bank as a selected sample size for this research work.

More so, this shall be based on the methods of performance appraisal used in the bank along with the problem envisaged on the performance appraisal, our research work will be limited to the rating to performance appraisal used by the bank.


1.8 Significance Of Study

This research work will serve as a basis for helping organizations in general and Wema Bank Plc. In particular to improve on the ways and methods of how employees could be adequately appraised in enhance productivity. This study will also go along way in improving employees could be adequately appraised in enhance productivity. This study will also go along way in improving employee’s development as regards their job performance.

Liability Commercial Banking Company with an Authorized share capital of 15,000 fully paid jointly owned by Chief M.A. Okupe and Mr. A.A. Alade. The bank was floated with the objective of provision of efficient and modern banking services to Nigerian businessmen, traders and craftsmen at a reasonable price among others.

In order to withstand the test of time, the bank increase its authorized share capital to 2,500 aid the Western Nigeria Government come to the rescue of the bank by making a deposit of N100,000 of which N80,000, was capitalized.

However, in 1968 when the Federal Military Government promulgated a Decree, which increases the minimum share capital of an indigenous Commercial Bank to N300,000 and this resulted in a marked difference in the ownership and control structure of the bank.

Owing to the ability of minority itself to single – handedly raise the new share capital and this action by then saved the bank from being closed down.

The name of the bank has to be changed from Agbonmagbe Bank Ltd. To Wema Bank Ltd. to restore the much-needed public confidence necessary for continuous customer’s patronage.

With the creation of Oyo, 0gun and Ondo States in 1975 out of Western State, Oodua Investment Company Ltd. was formed by the governments of these states to oversee their interests al the companies jointly owned by them of which Wema Bank is one.

The share capital of the companies later stood at N40m with the public holding 60% of the equity while Oodua Investment Company Ltd. Hold the balance of 4o%. The bank was listed in the stock exchange in January 199 1. To achieve the bank’s objectives, it embarked in 1989 on a policy of branch establishment all over the country. Presently, the bank has close to 100 branches located in almost all the states of the federation.


1.10 Definition Of Relevant Terms

Administration

This is the management techniques that deal with the management of resources from achievement of goals/objectives.

Appraisal

This is a management technique designed to evaluate performance of workers relating to a given task.

Efficiency

This refers to the ability to achieve a maximum desired result using minimum resources.

Input

This is defined as material needed to be able to operate in an organization which includes materials human efforts and equipment.

Job

This relates to a given task that must be performed for the achievements of designed objectives.

Productivity

The rate of efficiency of work; the end result of this application of efforts.

Performance

This connotes one’s achievement that need to be attained in the course of performing a given task.

Performance Appraisal

This is a process of reviewing an employee’s performance and progress in a job and assessing his/her potentials for the future promotion.

Workers / Personnel

This means any person who has entered into or works under a contract with an employer, whether the contract is for manual labour or clerical work is expressed or implied oral written and whether is a contract of service or a contract personally to execute any work or labour or a, contract of apprenticeship.


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