Impact Of Measuring Employee’s Performance On Organizational Growth
The broad objective of this study is to examine the impact of measuring employee performance on organizational growth using Nigerian Bottling Company Plc and Coca-cola Bottling Company Plc. Survey research design was employed for the study and with aid of convenient sampling, sixty (60) staff of Nigerian Bottling Company Plc and Coca-cola Bottling Company Plc was selected as the participant of the study. Data was analyzed in frequencies and tables using simple percentage, Mean and standard deviation. The hypothesis was tested using chi-square test statistical tool (SPSS v.2.3) and the result were similar to those of the responses drawn from the questionnaires. The study therefore concludes that for effective development and utilization of the human talent, performance appraisal policy plays a key role since it enables an organization to identify objectively the employee’s strengths and weaknesses. The organization will then be able to counsel the employees to improve on weak areas. This will help all the employees to contribute positively to the attainment of the organization objectives. The researcher therefore recommend that Human Resource Managers should always provide the employees with Feedback on performance as this will serve as means of behaviour modification and for performance improvement.
1.1 Background to the Study
Performance measurement in practical and theoretical areas has received increasing attention in recent years. Beyond the limits of management accounting literature, several areas have contributed to the development of current knowledge, namely, organizational theory, operations and production management, strategic management and finance. However, most of these areas have been studied in isolation, resulting in fragmented and disparate results.
Organizational effectiveness (OE) is one of the most studied problems since the development of organizational theory (Rojas 2000). Despite some consensus, there is still a significant lack of agreement on the definition and implementation of this concept (Cameron 1986). As a more recent area of research, management accounting relies on these unstable fundamentals to develop performance measurement models. The purpose of this article is to close the gap between the OE models developed in the field of organizational theory and the performance measurement models found in the management accounting literature.
Today, we are witnessing an impressive amount of research studies on descriptive and normative traditions, highlighting various characteristics of training programs, as well as their costs and benefits for professional organizations (Becker and Gerhart, 1996). ). At the same time, organizations have better understood the importance of training for their survival in knowledge-intensive markets and unstable markets of the time. They increasingly recognize the profitability of developing their human resources through various forms of training (Berge, 2001). ; Salas and Cannon-Bowers, 2001). The human resources capital of any organization plays an important role. Training and recycling help strengthen employees (Khan, Khan and Khan, 2011).
Despite the obvious importance of training, the enormous expansion of the content of training programs over time has been largely taken for granted. Some human resources departments rarely question the need and relevance of training a particular employee at any given time. Often, there are unrecognized reasons why employees are sent for training. Mourdoukoutas (2012) discovered that some of the organizations that neglect employee training do so due to the enormous cost of training and the fear of losing these employees after training them. To show the importance attached to employee training, Nigerian Bottling Company has a training school and Coca-Cola Bottling Company occasionally organizes on-the-job or off-site training. Despite this, the human resources departments of these organizations still face challenges in the selection of employees for training. In order to contribute to the possible improvement of employee training in non-alcoholic beverage bottling companies in particular and in manufacturing companies in general, research has been launched to study the effects of employee training on performance organizations in relation to employee training processes and challenges. The Human Resources Department faced the selection of employees to train, with reference to the employees of the Nigerian Bottling Company and Coca-Cola Bottling Company, 9th Mile Corner, Ngwo, Enugu.
1.2 Statement of the Problem
The perception of employees in training has a greater impact on the success of any organization. If employees are satisfied with the organization’s training policies, this will have a positive impact on the productivity of the organization. The perception or attitude of employees is transformed into a positive or negative behavior. How do employees view the training policies of the organization’s employees? How seriously does management take the training policy of your organization? Some see training and development as a waste of time and resources that would have been used in the production of goods and services that will generate profits for the organization. Sometimes, fear that an employee may leave the organization after training affects employee training and sometimes makes it unplanned and unsystematic.
The procedure and process generally adopted by some human resources departments in the identification of those employees who require training are worrisome. Employees sometimes go to training for personal reasons that include enriching themselves; preparing for other positions in other organizations; power / politics game; because he / she knows the person in charge of the training and not necessarily because there is a gap of identified skills that must be filled through the training. Many times, the Human Resources Department does not conduct training needs assessments. The criteria for selecting employee training should be systematic and without prejudice. You must follow an established procedure to ensure that the right candidates are sent to the training to achieve a positive effect on the performance of the organization.
It was found that previous researchers have focused on the importance and benefits of training and no study has been conducted on the challenges faced by human resources departments of soft drink bottling companies in the selection of employees for training. To fill this gap, the researcher is forced to conduct a study on the effect of employee training on organizational performance, with a focus on processes and procedures to identify skill gaps, training design and style of delivery and the perception of employees towards training in soft drink bottling companies in the state of Enugu.
1.3 Objectives of the Study
The main objective of the study is to investigate the impact of measuring employee’s performance on organizational growth.
However, specific objectives of the study are as follows:
- To ascertain the extent to which selection procedure of employee for training affects organizational productivity.
- To determine the extent of effect of training design on employee productivity.
- To ascertain the extent to which training delivery style affects employee productivity.
- To find out the relationship between employee perceptions of training and organizational productivity.
- To determine the extent to which employee training affects organizational performance.
1.4 Research Questions
The research questions were drawn in line with the objectives as follows:
- To what extent does selection procedure of employee for training affect organizational productivity?
- To what extent does training design affect organizational performance?
- To what extent does training delivery style affect organizational performance?
- What is the relationship between employee perception of training and organizational productivity?
- To what extent does employee training affects organizational performance?
To achieve the objectives of this study, the following five hypotheses were formulated for testing.
Ho1 Selection procedure of employee for training does not have a high effect on organizational productivity.
Ho2 The extent to which training design affects organizational productivity is not significant.
Ho3 The extent to which training delivery style affects organizational productivity is not significant.
Ho4 There is no substantial relationship between employee perception of training and organizational productivity.
Ho5 The extent to which employee training affects organizational productivity is not significant.
1.6 Significance of the Study
The significance of this study cannot be over-emphasized and can be viewed from the following perspectives.
- The study will help the top management in taking strategic decision that affect training and development for the overall growth of the industry;
- Members of Staff of the two manufacturing industries to be used as case study will have adequate knowledge as to the importance of training and why it is necessary that they are trained from time to time;
- The study will help the Human Resource Department in proper planning and execution of training and development programmes;
- Future researchers will also find this work very useful as reference materials for further studies;
- The study will be useful to the researcher as it will help her in actualizing her dream and lead her to the completion of M.Sc. program in Management.
1.7 Scope of the Study
The study focused on the impact of measuring employee’s performance on organizational growth. The study was delimited to training and development programmes, employee training design and delivery style, post-training performance evaluation of training on organizational performance.
The geographical scope of the work is Enugu State in the South-east of Nigeria. The only two soft drinks manufacturing companies located in Enugu State were chosen for the study. They are: Nigerian Bottling Company Plc and Coca-cola Bottling Company Plc.
The field work for this research was conducted between August and September, 2018.
1.8 Limitations of the Study
The following constraints were encountered in the course of this work.
1. Lack of reliable data:
The Respondents’ unwillingness to give out available and reliable data was major constrain in the course of the study.
2. Dearth of Research materials:
The researcher was constrained in the search of research materials. Most current books and journals on the related area are not free, and so the researchers was limited to those materials she could afford.
3. Measure used to collect data:
Secondary data would have been more appropriate for the post-evaluation analysis, but because it was difficult to separate and link percentage (%) increase in turnover to employee training, primary data was used.
4. Self-reported data:
Self reported data was a major limitation of the study, because it rarely can be independently verified. The researcher had to take what the respondents said at face value.
Nonetheless, with available data and judicious use of the limited resources, reasonable analysis was carried out to ensure that research findings add up to the body of knowledge.
1.9 Organization of Study
The study is divided into five chapters. Chapter one deals with the study’s introduction and gives a background to the study. Chapter two reviews related and relevant literature. The chapter three gives the research methodology while the chapter four gives the study’s analysis and interpretation of data. The study concludes with chapter five which deals on the summary, conclusion and recommendation.
Summary, Conclusion and Recommendation
The broad objective of this study is to examine the impact of measuring employee performance on organizational growth using Nigerian Bottling Company Plc and Coca-cola Bottling Company Plc. The study examined ways through which organization measure employee performance. It determined if there is a significant impact of employee performance on employee productivity. It ascertained the importance of employee appraisal to organization growth.
Survey research design was employed for the study and with aid of convenient sampling, sixty (60) staff of Nigerian Bottling Company Plc and Coca-cola Bottling Company Plcwas selected as the participant of the study. The sources of data collection was both primary and secondary with the application of questionnaires as an instrument to gather the necessary data. The questionnaires were properly completed after being administered and this was a basis by which the primary data were collected. Data was analyzed in frequencies and tables using simple percentage, Mean and standard deviation. The hypothesis was tested using chi-square test statistical tool (SPSS v.2.3)and the result were similar to those of the responses drawn from the questionnaires.
The continued success and growth of an organization depends on its ability and capacity to select, develop, assess, and retain the number and quality of employees it needs to meet its strategic objectives. An effective performance appraisal system is one of the measures that an organization employs to attain goals. The use of performance appraisal has become increasingly necessary because it is not easy, if not impossible, to give or assess the quality of an individual employee without proper evaluation.
Findings from the study reveals that Informing workers of their rating will help to improve performance. More so, positive appraisal can yield to better result in performance appraisal. Additionally the result of the study revealed that views of performance assessment differently depend on the employee’s particular needs and wants.
The study therefore concludes that for effective development and utilization of the human talent, performance appraisal policy plays a key role since it enables an organization to identify objectively the employee’s strengths and weaknesses. The organization will then be able to counsel the employees to improve on weak areas. This will help all the employees to contribute positively to the attainment of the organization objectives. Performance appraisal therefore, is an important management activity and technique for managerial effectiveness.
Base on the result of the study, the following recommendations were made:
- Because of the importance of performance appraisal in organizations it has to carefully, review the employee’s strengths and weaknesses against the requirements of envisaged future higher level responsibilities and make recommendations to management for decision-making.
- It is essential that the appraiser must comment on the evaluation made and also the appraisee should be allowed to verify, and agree or disagree, with the appraisal as a measure of checking the problems of subjective appraisal.
- Regulatory agencies for private and public organizations should step up oversight functions over issues of performance appraisal in privately-owned enterprises and Public liability Companies.
- Feedback on performance should always be provided to employees both as a means of behaviour modification and for performance improvement.
- When standards of performance are set, employees should be allowed to use their initiative to realize them. This encourages self-control that fascinates employees of today.
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Frequently Asked Questions
What is the most critical aspect in improving organizational performance?
… Training and development of employees is another critical aspect in improving organizational performance. Employee development is a process where the employee is trained by the organization to learn, acquire and update knowledge and skills (Kenny, 2019).
Why is measuring employee performance so important?
Measuring employee performance is vital to an organization’s success. Companies that can look deep inside their organization and discover the inefficiencies that exist, as well as the elements that work, position themselves for great success.
Why is performance management important in the workplace?
That, in turn, achieves improved results and drives profits. Measuring and managing employee performance is the core of performance management, and it is key to growing your business. Measuring employee job performance to continually improve skills and outcomes is a fundamental part of the performance management review process.
What factors affect employee performance?
The results of the hypothesis test analysis show the conclusion that work complexity, career development, and organizational communication affect employee performance.
What is the most critical factor in an organization’s overall performance?
In fact, how well these human resources are managed is probably the most critical factor in an organization’s overall performance. Internal factors are connected, that they all tend to affect or interact with each other.
How to improve organizational performance?
To improve organizational performance, there is a tendency to ‘reorganize’ or ‘restructure’ the reporting relationships between internal functional departments as shown on an organization chart and the associated coordination and linking mechanisms that facilitate the flow of information/resources between and among the business units.
How can an organization excel in performance management?
Ppt By Mandar Abhyankar An organization can excel only when it has performance delivering teams. The various departments working in an organization should be dedicated and their work should well-organized.
What is organisational performance?
Organizational performance means the actual output or results of an organization as measured against its intended outputs (or goals and objectives). According to Richard, the organizational performance includes three specific areas of firm outcomes:
What are the benefits of performance measures?
They should provide information for analysis on where improvement needs to be made, and should help manage organizational risk. Effective performance measures communicate what is important to the organization.
How can performance management help your business?
Performance Management Helps to Boost Employee Engagement and Productivity Engaged employees stay longer, actively involve themselves in the workplace and produce better results. Improving levels of employee engagement is key to boosting productivity and maximising ROI.
Is it hard to measure employee performance?
Although measuring employee performance is very, very hard you had better figure out a way to do it that works. You will never build a high performance business if you can’t distinguish between good workers and average workers. Great workers stand out. They are easy to see. Good workers are much more difficult to identify.
How do performance measures support the organizational strategy?
Performance measures need to support the organizational strategy. They should provide information for analysis on where improvement needs to be made, and should help manage organizational risk. Effective performance measures communicate what is important to the organization.
What is the importance of performance management?
Values-driven performance management will become even more important – forcing time-poor managers to pause and consider the drivers behind behaviours vs just the behaviour itself. This isn’t an easy thing to do and requires not only a clear values …