The Effects Of Performance Management On Productivity, Using Plasto-Crown Nigeria Limited

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 management could be best discussed as an aspect of Human Resources Management. According to Story (1995) the later is a distinctive approach to employment management that seeks to obtain competitive advantage through the strategic development of highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

From the definition, it will be deduced that for an organization to remain competitive in its industry, it has to be strategic in its dealings with its workforce with the aim of relatively positive effect on production. Human Resource management is connected with concepts, theories, policies, plans, programmes, strategies procedures, rules and regulations that must be employed in acquisition and utilization of men towards the achievement of organization goal (Fajada, 2010). Thus, for the survival, of an organization, the capability and commitment of its workforce cannot be overemphasized. In other words, workers are key resources that managers use to achieve their objective as well as gain competitive advantage for their companies.

Performance is the extent to which an individual, a unit or department is carrying out assignment or task. Performance appraisal focuses on the extent to which an individual is carrying out assign duties (Fajana 2002). But, then, there is a newer term, it involve historical review of employee’s performance, distributing rewards and offers grace to under-performers by determining their training/ development needs. It is called performance management. It brings the worker closer and tries to strike a balance between control quality and accountability as it relate to productivity. It is less formal assessment and raring of individuals but a more comprehensive and more natural process of management that clarifies mutual expectations, emphasized the support role of managers who are expected to act as coaches rather than judges, and focus on the future (Armstrong, 2006).

It is worthy notes that, may organized (especially in developing nations) are yet to start practicing performance management. Many still practice the performance appraisal system. Even Plasto-Crown Nigeria limited move over to performance management just four years ago.

In short, performance management has many advantages as will be seen and deduced later in the project.

It is more or less the fulfillment of prophecy. Sumantra Ghostal (1948-2004), the humanist management writer and academic, who believed that management should be above all else,” A very different philosophy of management is arising. We are moving beyond strategy to purpose, beyond structure to process; are beyond system to people… “

Finally it has emerged. Perform management process has come to replace the performance appraisal system. It emphasized development and the initiation of self managed learning plans as well as the integration of individual and corporate objectives. It can, in range of human resources management processes which are effectiveness (Armstrong,, 2006). Here is the point, survival and success of an organization it must depend on its human resources management. Therefore, the human resource department of every organization must ensure its own effectiveness and efficiency by applying the best approach to managing employee’s quality of output –performance management.

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