The Effects Of Employees Performance Appraisal On Productivity Growth Of Public Enterprises (A Case Study Of PHCN Aba District)

Project and Seminar material for Public Administration

Project and Seminar material for Public Administration


Every organization has some set of objectives to achieve and achieving these entails the input of four basic resources including human, land, finance and material resources of these, the human resources is the most dedicate and critical. Like any other assets that depreciate and goes obsolete or technological it is this change that warrants employees’ performance appraisal to meet up with the objective and goals of the organization.

The research into the effect of employees’ performance appraisal on productivity and growth of public enterprises. A case study of PHCN Aba, district was undertaken to find out the usage and relevance at performance appraisal in public enterprises in Nigeria as it is related to the productivity of the employee and the overall growth of the enterprises.

The method the researcher use to gather data for the analysis in questionnaire and interviews. Hypotheses were formulated and chi-square statement test was used to test the hypothesis. The research made the following recommendations in the case study and the reason for employee performance appraisal in PHCN.

Table Of Content

Preliminary Page(s)

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

1.0 Introduction

  • 1.1 Background of the study
  • 1.2 Profile of the company of case study
  • 1.3 Statement of the Problem
  • 1.4 Objectives of the study
  • 1.5 Research questions
  • 1.6 Significance of the study
  • 1.7 Scope and limitations of the study
  • 1.8 Definition terms
  • 1.9 Brief history of the case study

Chapter Two

2.0 Review of Related Literature

  • 2.1 Introduction
  • 2.2 Concept of employee performance appraisal
  • 2.3 The use of performance appraisal
  • 2.4 Rating errors
  • 2.5 Types of performance appraisal
  • 2.6 Who is responsible for formal performance appraisal?
  • 2.7 Performance appraisal
  • 2.8 The relevance and important of employees
  • 2.9 Summary of the reviews of related literature.

Chapter Three

3.0 Methodology

  • 3.1 The design of the study
  • 3.2 The area of the study
  • 3.3 The population of the study
  • 3.4 Sample and sampling techniques
  • 3.5 Method of data collection
  • 3.6 Method of data analysis

Chapter Four

4.0 Presentation and Analysis of Data

  • 4.1 Analysis of the research question
  • 4.2 Discussion of finding

Chapter Five

5.0 Summary, Conclusion and Recommendation

  • 5.1 Re-statement of the problem
  • 5.2 Summary of findings
  • 5.3 Conclusion
  • 5.4 Recommendation
  • 5.5 Suggestions for further study
  • Bibliography
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

The effect of employee performance on productivity and growth of public enterprises in Nigeria is likening when our economy is having an economic meltdown turnover due to a very low productivity of our public enterprises.

1.1 Background Of The Study

To manage an organization efficiently and effectively, there should exist a proper hierarchical structure to clarify organizational lines of responsibility. This structuring is necessary for the purpose of knowing the following principal managerial functions thus:

  1. Where to fix an employee
  2. When his capability have out lined such position.
  3. When a training and development of new skills for other positions are needed.
  4. What to pay the employees as salary
  5. What can we do help our employees do better for us and for themselves.
  6. The way of achieving this structure.

Different organizations have many strategies among them are:

Performance Of An Employee:

If the performance of an employee is of such important, then there must be a method of re-assuring it which should be scientific and empirical so that attitude of personalization, favourism, traditions and tribalism would not influence it.

Employees Performance Rating:

Through this means, the organization can grade the capacity strength of its employees to whether the employees requires training programme in order to improve for better performance.


This is one among the strategies organization use to improve the performance of its employees once an employee is praised or recognized to increase his moral in order for him or her to put more efforts on the job which will automatically increase production.


This theory has made us to believe that an employee must have a reason (motivator) to act or behave in the manner in which he does. Organization expects its workforce to perform at an acceptable level and for this aspiration to be realized it have to motivate its workface so as to perform very well.

1.2 Profile Of The Company Of A Case Study

Power Holding Company of Nigeria was first established in Nigeria in 1886 when two 30-kilowatts generating unit were installed to serve the city of Lagos. P.H.C.N generates electricity from nine power stations six of which are thermal and three hydro. The thermal and Afan, includes Delta, Egbin and Ijora. Power station which runs on gas, sapele power stations run on gas and stream as of then while oji River power runs on coal. Kainji jebba and shiroro. Hydro power stations and distribution are inter-linked by a transmission network known as the Nation and with the National center at Oshogbo. As a simple and public utility whose presence is felt in all nooks and crannies of the federation?

Power Holding Company of Nigeria has numerous distribution stations throughout the country and the strategic position which PHCN occupies in the solid economic development of Nigeria means that the machinery of PHCN should be efficient hence the need for performance appraisal on productivity and growth of public enterprises in Nigeria are to meet with the modern technology requirement.

1.3 Statement Of The Problem

The raise and fall in productivity with an enterprise depends on the general performance of the employee. One of the factors that help to improve performance is the problems associated with it in a public enterprise which can be summarized as follows:

The Human Limitation Of The Appraiser:.

Most appraisal system as practiced in public enterprises in Nigeria leaves the appraiser wholly to his judgments, this judgment is often afflicted by tribalism, favourism, insufficient knowledge – `of the appraisal


Follow up is suppose to be part of appraisal scheme are not done by the appraiser, rather it has turned out to be and which does not bear the reason for which appraisal was set-up.

The present procedures affects the moral of the appraises because managers did not take or follow-up action after the appraisal.

Lack Of Use Of Appraisal Made:

This file away attitude associated with the personnel department in most public enterprise in Nigeria is one of the problems militating against the use of performance appraisal.

Subjectivity Of The Part Of The Appraiser:

The appraiser sometimes exhibit an act of fear in carrying out their duties, for them not to be named wicked, so because of that, a let my people go attitude are attached to the appraisal process, and the appraises is assed below average whether or not he will quality for it. The appraiser does this only to answer a good name among the appraises.

1.4 Objectives Of The Study

The following are the objectives of the study

  1. To determine the effect of performance appraisal on productivity in public enterprises with particular reference to Power Holding Company of Nigeria PLC. Aba District
  2. To find out how performance appraisal are in use in public enterprises in Nigeria and the relevant that attach to it.
  3. To determine the extent to which performance appraisal can be used to improve an employee performance and hence productivity.
  4. To identify training needs its general reflects and the gap between the set performance standard for a job and the actual level of performance of the incumbent.
  5. To make recommendation based on the findings.

1.5 Research Questions

In the course of this research the following research question were made clear and it helps to direct the study

  1. How can the productive capacity of an employee be permanently increased?
  2. What factor is responsible for the inefficient and ineffective performance of workers in any relational work process?
  3. Does appraisal really contribute to the increase of productivity of the enterprise?
  4. Can lack of training and development of interest employees be responsible for low work morale absenteeism and lateness?
  5. What are the benefits of performance appraisal?
  6. What are the steps to effective and efficient performance appraisal?
  7. What are the factors that hinder effective and efficient performance appraisal?
  8. Is there any identification relationship between training development and labor turnover?

1.6 Significance Of The Study

The study is designed to aid public enterprises to clearly understood and appreciate the performance appraised in an organization for effective tools towards the organizational mission and vision statement.

The Significance Is As Follows:
  1. Knowing how to use performance appraisal report to make decision regarding to training and retraining the employees.
  2. Transfer dismissal and retirement of employees
  3. Hierarchical placement in an organization in large.
  4. Carrier planning and development programmes.
  5. Progression and channels of promotion
  6. Assessing and evaluating the performance of each employee in the organization.
  7. To aid future researcher and academic interest in this topic with valuable information.

1.7 Scope And Limitation Of The Study

This study focuses on the effects of employees’ performance appraisal on productivity and growth of public enterprises (P.H.C.N)


The management of power holding company of Nigeria (P.H.C.N) did not initiate research work, the financing of the work solely depends on the research which made the research work to be limited.


Despite the delay from the respondents there was no sufficient time to carryout the research project effectively.


Here most of the respondents were ignorant of what the research was recent for, because of that there was no willingness to give information freely. At the initial stage, despite the introductory letter attached respondent refuses to fill their personal answer to the questionnaire even when they were told by the researcher that no name is required.

1.8 Definition Of Terms

These are brief explanation of technical language used in write ups. They include:


The person who is responsible for measuring the report and performance of another


The person whose performance are being measured and reported upon.


A person (worker) who has been employed in the public organization or private sectors and is on regular payroll by his employer (management).


This is the skills and talents necessary for the production goods and services.

Performance Appraisal:

The process of measuring reporting employee behavior and accomplishment for a given period for the purpose of improving job performance.

Mallain Sdiq Of P.H.C.N Kaduna District Define: Performance appraisal as annual assessment of employees’ performance behavior and the result of their achievement in the enterprise.

Public Enterprise:

This is a public oriented venture usually owned by the government.

1.9 Brief History Of The Case Study

Power Holding Company of Nigeria (P.H.C.N) Aba district was established in Aba on April 1951, when then the electricity corporation of Nigeria came into being in that area and it was located along Saint Michael’s road Abayi Umungasi Aba since 1951 till date and has many branches thereafter.

A total of 16 cities and communities were receiving electricity supply from that district now.

Chapter Five

Summary, Conclusion, And Recommendation.

5.0 Introduction

The effect of employee performance appraisal on productivity and growth of public enterprises in Nigeria although helping others to improve their performance is one of the most important task most managers freely admit in performance accurately is not always easy often, it is even harder to convey judgment to the employee in a constructive and painless manner and to translate feedback on past performance into future improvement.

Performance appraisal and its effects on productivity and growth of public enterprises in Nigeria undertaken are taken when our economy are having economic meltdown or turnover due to a very low productivity.

Apparently, performance appraisal is properly carried out to show exactly on how an employee is performing in his competence and ability it can also be linked to productivity when we look at the motivation the appraises get from being.

5.1 Re-Statement Of Problem

The fall in productivity within an enterprise depends on the general performance of the employee though performance appraisal objectives can be set to improve current performance and an assessment of training and development needs are made the problem associated with performance appraisal in public enterprise can be summarized as:

The issue of validity been long interest to academic research and there are variety of theorical concepts about validity but basically it is concerned with question or relevance and the appropriateness or inferences made on the basis of some set of measurement. The validity of the inference made on the basis of some set of measurement. The type of validity of more concern to practioners than researchers is what Davis (1980) termed “Practical Validity” which does this procedure attempts to cope with a number of different purpose, some in conflict with each other, then practical validity may be different to achieve because it is now existing in some organization. A research carried out by 1pm information and adversary service of 306 organization in the uk as reported by long (1998) showed that majority of the 306 organization only 82 percent operated performance appraisal schemes that is a seeming evidence that no research has been carried out in Nigeria to show the percentage of enterprise that do not operate appraisal schemes.

Lack of use of appraisal made a file away attitude associated with the personal department in most public enterprises in Nigeria is one of the problems initiating against the use of performance appraisal. Follow up which is suppose to be part of the appraisal scheme are not done by the appraising it has turned out to be a “animal ritual” which does not bear the reason for which appraisal was set-up with the present procedure effects, the morale of appraisee some manager like no follow up action after the appraisal.

5.2 Summary Of Findings

Public organization for rating scale method trying to measure performance using recommendation from the annual performance evaluation report, which is the only basic for drawing the salary structure of the employee and salary increment.

The authority does not have a separate scheme for salary administration. The need for use of annual performance evaluation reports is prominent in public enterprise in Nigeria with a particular reference to PHCN plc.

Appraises participation in performance appraisal is an evidence in this organization, an open discussion with the appraiser from an integral part of the performance evaluation report both appraiser and appraisee are obliged to agree on job content and job target. Where there is disagreement, the report ensures that the appraiser should state such in clear terms.

There is openness in the performance appraisal system as practiced by the organization about 85% of employee’s interviewed said that the system is an effective means of creating and maintaining an informal and friendly atmosphere between the appraisal and his supervisor. The appraisal is given the opportunity to read through the complicated report and make comments.

5.3 Conclusion

The research into effect of employee performance appraisal o productivity and growth of public enterprises, a case study of Power Holding Company of Nigeria (PHCN) Aba District was undertaken by me Okoroafor Nkechinyere .R. with five objectives:

  1. To find if performance appraisal are in use in public enterprise in Nigeria.
  2. The relevance of appraisal have within public enterprise to determine the extent to which performance appraisal and commence productivity, growth and lastly to determine the most suitable performance appraisal method for use in public enterprise in Nigeria and the scheme is largely used for determining the performance of employees and salary increment.
  3. Also performance appraisal affects productivity and growth largely, the problems of bias, effects of unreliability.
  4. To determine the appraisal of employees and its effects on the level of workers performance at working in public enterprises.

5.4 Recommendations

Based on the findings I recommend the following:

Performance evaluation: Reports should be taken serious in public enterprise it should be given a proper place with the enterprise.

Knowing that the general performance of employees in an enterprise will affects the overall productivity; performance appraisal should be used to determine exactly how an employee is performing with a view of proper placement on the job that is posting him to where he is most suitable.

Performance appraisal should be used effectively as a means of enhancing productivity with an enterprises they keep changing due to transfer, retirement and inability etc, experience on how appraisal are conducted may not exist. It is therefore necessary for every public enterprise to be appraisal. The appraiser should be brought together in a workshop or seminar particular to be taught, the process and guideline for conducting appraisal irrespective of whether they had engaged in the scheme or not. It should be a yearly exercise to conduct performance appraisal.
It should clearly define on what should be appraised in an employee performance which includes personal character, attitude to work, discipline, manner of approach etc. evaluation should be constructive and emphasis should be placed on performance rather than personality.

The process of performance appraisal should also be clearly defined there should be openness in the system that will allow for good setting feedback and participation by both appraiser and appraisee. There is need to critically have a look into the flows of the present system of performance appraisal in Nigeria the result oriented approach should be critically examined and introduced into our public service especially the productivity sector like Power Holding Company of Nigeria (PHCN) Water Board, NNPC etc. it is well known that the result oriented techniques anchored on the MBO concept. There is the need for participation setting the goal to be achieved.

5.5 Suggestion For Further Study

The essence of employees’ performance appraisal is to find out how well an employee has performed to task given to him. He requires a feedback to know whether he did well or not, if his performance is poor to below average, he should be told on how to improve it to qualify him for promotion or salary increment. The appraisal must be well planned and enough time devoted to it on the other hand, if the appraisal is good the employee should be told hoe the organizational leader could be climbed.

In summary it should be noted that performance appraisal is a discussion between the employee and his immediate supervisor that focuses on the employee performance during the past appraisal period. However an effective and will conducted performance appraisal can be an existing and motivating experience for the employee and his supervisor.

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