Employee Performance Appraisal As A Strategy To Management

Project and Seminar Material for Human Resource Management (HRM)

Employee Performance Appraisal As A Strategy To Management


The issues of accuracy and fairness in performance appraisal are one of the key research interests in the field of human resource management. Performance appraisal may be used as a means of measuring performance. The purpose of measuring performance is not to indicate only where things are not going according to plan but also to identify why things are going well so that steps can be taken to build on success. Performance appraisal is an important human resources function, which provides management with a systematic basis for effectively recognizing and evaluating the present and potential capabilities of human resource.

Chapter One

1.0 Introduction

1.1 Background of the Study

It is of immense importance is any firm or organization to put the employees’ welfare first because no organization can exist on theories except if human beings carry out those theories and apply them to practical things. When a worker is employed in an organization, a guide, a rule and regulation are given to him or her to make sure that he effort and performance is directed towards one channel, which is objectives of the organization. As well management expects high performance and corporation from the employee who is given incentives by given remuneration but when the things expected by both management and employee is not far-fetched then there exists a phenomena, which raises the eye brow of the management to ask what is a miss. This research work deals with such phenomena, which such phenomena, which is “Employee performance appraisal as a strategies to management The first and only indigenous network provider in Nigeria called NITEL was originally known as post & telegraph communication. It was established during the coloninaiera. The Nigeria Telecommunications Limited (NITEL) is a federal Government owned company that provides public telecommunications services in Nigeria it started operations as a company in 1985 as an amalgam of the telecommunications Division of the default P & T Department and the Nigeria External Telecommunications limited (NIT) and now has staff strength of about 11,000.In 1992, NITEL was commercialized following a tripartite agreement between it, the government and the Technical Committee on Privatization & Commercialization (TCPC). In the same year, NITEL pioneered the mobile telecommunications services in Nigeria, which was later excised from the company to form M-Tel in 1996. M-Tel was however reemerged resulting conglomerate was constituted into three directorates which all reported to the corporate headquarters. The directorates were for long Distance communications, Domestic Communications.M-Tel was again excised from NITEL in April 2003. As a result of the excision, M-Tel became legally, administratively, operationally and financially autonomous but it remained fully owned by and as a full subsidiary of NITEL. The company operates a six zonal structure, the zones are:

  1. Lagos zone with headquarters in Lagos
  2. North West Zone with headquarters in Kaduna
  3. North East zone with headquarters in Bauchi
  4. South East zone with headquarters in Enugu
  5. South West zone with headquarter in Ibadan
  6. Central zone with headquarters in Abuja

Each state of the Federation and the Federal capital represents a territory. Lagos is however structured into their territories because of the volume of business in the city.

Fully commercialization policy of the federal government, NITEL Limited, more than ever, is committed to the provision of efficient, reliable and cost effective telecommunication services nationally and internationally. This set of objectives has remained the guiding principles which the company’s operations are based. NITEL has about 800,000 telephone lines and about 13000 telex lines in the network with the introduction of digital system into the network from 1990 and the commencement of GSM operations by M-Tel its subsidiary, the total installed capacity of telephone lines is expected to reach three million next year. About 450,000 lines, while 80% of transmissions digital.

In April 2003 the management of NITEL was contracted to messerspentascope. International following another tripartie agreement between the Bureau of Public Enterprises (on behalf of the National Government).NITEL and pentascope international. This contract is for a period of three years during which pentascope international will positively turn around the operational, technical, financial and administrative fortunes of NITEL for the betterment of the company’s customer’s shareholders and stakeholders.

In the last quarter of 003, a comprehensive business plan was approved for NITEL. The programme is a blue print too turns the company around. Components of this programme are already being implemented. Some of these are a new organogam for the company investment in various projects that would on completion, earn significant revenues for the company and an intra-industry policy of cooperation, mutual understanding and national cohesion.

NITEL limited has continued to live up to the expectations of the Federal Government by improving on its achievements in the efficient management of its operations and network. The company has consolidated its corporate existence and is firmly on path to providing adequate effective, modern and viable telecommunications services for t he nation development.

This motivation which is one of the functions of management is directed at stimulating workers and therefore, the personnel management department of any organization does appraisal to verify the extent to which they have stimulated workers or employees in an organization toward achieving the organizational main objective.
According to Abraham Mashow and Douglas McGregor who are known for motivational theories said that an employee comes to work to get both the intrinsic rewards such as recognition esteem and self-fulfillment and also the extrinsic rewards like promotion, improved condition of service and an adequate emuneration. It may seem realistic to say that only pay increase motivates subordinates but it is a blatant lie.

We want to use this study to explore the employees motivational strategies in NITEL Limited and then know what the employees in this company want from their jobs and how best their expectations can be met with a view to motivating them to a higher performance which leads to higher productivity.

1.2 Statement of the Problem

There is a question that always strikes ones mind whenever motivation is mentioned. That question is why is it that the self employed Nigerian is always highly motivated to produce more while the public sector employees are not usually responsive to the motivation giving to them. It is also observed that private company employees performances are very high compared to that of public company employees. All these question and observation revolves around the phenomenon of motivation.

The problem above creates greater economic depress in Nigeria economy and NITEL Ltd. In particular but after this research work remedy will be made. In answering the question above, some psychologist and some social scientist postulated various theories on motivation, which includes Abram Maslow’s theory of motivation, the popular theory of Herzberg. “motivation Hygiene factors”. Theory x and Y.

It is a pity that many Nigerian managers and employees of labour are not aware of this important factor called motivation and its effects on employees. The problem employees’ performance Appraisal encounter in an organization affects its productivity. Over the years business organizations has tried a lot to eradicate this problems that some times engulf managerial progress in Business organizations and NITEL Ltd. In particulars. These problems are:

  1. Favourtism
  2. Nigerian quota system
  3. Financial worries
  4. Domestics problem
  5. Ignorance of the effect of ones effort to the achievement of organizational goals

This problem also attaches itself with research question and will use the same opportunities to discuss research questions.

1.3 Research Questions:

  1. Why is employees’ performance appraisal needed in an organization?
  2. What impact can it create in progress of an organization?
  3. Does employee performance appraisal have any theoretical backup and background?
  4. Can we be really done without Employees Performance Appraisal?

On the reason why employee performance Appraisal is needed in an organization, both charitable and non-profit organization has failure because of inadequate employees Performance Appraisal. Employees’ Performance Appraisal is needed in an organization to either motivate workers or remind them. NITEL Ltd. Appraisal its staff yearly, after the exercise hard working staff will be promoted and some incentive will be give to them.

1.4 Research Hypotheses

To aid the successful completion of the study, the following research hypotheses were formulated by the researcher;

  1. H0: employee appraisal is not needed in an organization
    H1: employee appraisal is needed in an organization
  2. H02: employee appraisal does not have any significant impact on the growth and progress of the organization
    H2: employee appraisal does have a significant impact on the growth and progress of the organization

1.5 Significance of the Study

This research is intended to discuss the various ways and methods that NITEL LTD uses to make sure their workers are influenced, it also intends to reveal some the services that NITEL LTD uses to motivate workers. If there are opportunities for promotion and training which makes employee feel integrated into the organization which makes the employee to work harder for the corporate aim of the company.

We need to point out that human beings are not machines and so their performance depends greatly on their staff of body and soul being together. Therefore this study hopes also to reveal the prospects of the employees in the company under study and their contribution to the better performance of the organization. In any organization the personnel department handles a lot of jobs which includes employing workers, souring for workers, remuneration of workers, welfare, training lay-off and many others but in this research work we are concerned with the performance appraisal duty which in the actual sense uses all the other functions for its achievement. This research study deals with the management reasons for the use of employees performance Appraisal which is done timely to find out the workers and management loopholes and fill it to avoid liquidation and failure. This work is intend to explore the methods applied by NITEL LTD. Management to motivate the workers and stimulate them to perform very effectively and efficiently, and what they use to do so

1.6 Scope and Limitation of the Study

The scope of the study covers employee performance appraisal as a strategy to management, in view of the above the researcher encountered some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities

1.7 Definition of Important Terms.


An individual who performs work under the direction and control of an employer and is paid by that employer.


Is execution, carrying out, carrying into action (the act of performing; of doing something successfully, using knowledge as distinguished from merely possessing it, they criticized his performance as major” “experience generally improves performance”)


A way of judging the performance of a business as compared to others in the same line. Financial studies are conducted whereby comparative benchmarking is done for this purpose through these industry insights, the value of a business can also be assessed.


Is the direction and scope of an organization over the long-term; which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations.


The act of managing something, he was given overall management of the program” is the direction of the economy a function of government?”


Nigerian Telecommunications Limited.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five

Summary Conclusion and Recommendation

5.1 Introduction

It is pertinent to note that this study was aimed at evaluating the efficacy of employee appraisal as a strategy to management.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of employee appraisal by the management.

5.2 Summary

Appraising performance plays a vital role in the organization performance. From the findings, it was established that the appraisal of the supervised staff in the organization was done quite often that is semiannually, yearly, quarterly or even once in every 2years. The study established that organization utilized targets, accomplishments, organization goals, time management and efficiency for performance measure purposes. The study established that performance appraisal provides an opportunity to identify staff training needs therefore providing them the necessary training, helps employees meet performance targets in the organization, offers poor performers are chance to improve, helps employees on time management through planning and setting of deadlines, managers to make informed decisions about promotions and assignments based on applicable facts, improves employee’s synergies. The study further established that performance appraisal allows employee and administrator/supervisor to share Organizational goals during an appraisal, enables employee gains a greater sense of team belonging. The study established that graphic rating scale was used by the organization appraisal influencing the work performance largely.

5.3 Conclusion

The study concludes that, NITEL uses of performance appraisal as a strategic management tool. NITEL trains its staff and it uses training as a strategic management tool to a great extent. It also concludes that appraisals in NITEL are done frequently at least semiannually. Further, the study has concluded that, NITEL maintains a record system, and it maintains records as a strategic management tool to a moderate extent. Finally, on pay for performance, the study has concluded that, at NITEL, pay for performance is used as a strategic management tool and this is used to a great extent as it helps motivate and commit the employee.

5.4 Recommendations

The study recommends that organizations should continuously train their staff to continually equip them with the necessary skills to perform their duties. Further, it recommended that training needs to focus on the process of managing, motivating and evaluating employee performance. The study also recommended that after the necessary training, periodic refresher courses should be administered. The study has also recommended that in organizations reviews should be performed on a frequent; frequent appraisals give supervisors more opportunity to assure that progress is being made in developmental objectives. The study has also recommended that appraisals in organizations be on an ongoing basis; this allow for clarification and revision of objectives, leading to better informed employees who are better equipped to perform their job satisfactorily. The study recommends that organizations should pay their employees based on their performance. Pay for performance helps motivate and commit the employee and thus helps an organization increase revenue and maintain (or attain) profitability.

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