Impact Of Performance Appraisal On Staff Productivity
This project work is on the impact of performance appraisal on staff productivity. The Aim of the study is at analyzing the impact of performance appraisal as a tool for higher efficiency in the performance of staff of the Agency, which is geared towards the objectives of How?, what are urgency and need for performance appraisal, examining the reaction of staff toward the appraisal and finally making suggestion on how to improve the performance of the staff. However, the data for the study were generated from both primary and secondary sources which includes; observation, interview, journals, questionnaire etc. the instruments employed for the analysis of the data collected were quantitatively, qualitatively using simple Percentage. It was realized after the analysis of the data that performance appraisal has a strong impact on the efficiency and higher productivity of staff in GT Bank. However, it was recommended that the bank should ensure that performance appraisal assessing be carried out with due process so as the future training and development programmes will be done with care and diligence, selection process for training should be based on merit and related to the problem on ground and there should be a level of consistency in the rate of determining the yardstick for performance appraisal this is all to ensure higher productivity and efficiency.
Table Of Content
- Title Page
- Table Of Content
- 1.1 Background Of The Study
- 1.2 Statement Of The Problem
- 1.3 Objectives Of The Study
- 1.4 Statement Of Hypothesis
- 1.5 Significance Of The Study
- 1.6 Scope And Limitation Of The Study
2.0 Literature Review
- 2.1 Concept Of Performance Appraisal
- 2.2 Elements Of Performance Appraisal
- 2.3 Role Of Performance Appraisal
- 2.4 Stages Of Performance Appraisal
- 2.5 Method Of Performance Appraisal
- 2.6 Purpose Of Performance Appraisal
3.0 Research Methodology
- 3.1 Research Design
- 3.2 Sample Size And Sampling Techniques.
- 3.3 Method Of Gathering Data
- 3.4 Method Of Data Analysis
4.0 Data Presentation And Analysis
5.0 Conclusion And Recommendation
- 5.1 Conclusion
- 5.2 Recommendations
1.1 Background Of The Study
One of the universals of organizations is objectives or goals. Every organization is characterized with the following features: people and structure and all this are geared towards the attainment of its stated goals. Chis Argyris defines an organization as “Intricate human strategies designed to achieve certain objectives” also, Blake and Mouton identified seven (7) characteristics of an organization. These are purpose, structure, financial resources, know-how, human interaction organizational culture and result.
However, the wheel of the organization is therefore steered towards achieving certain goals that is every worker is involved and mobilized in the process of goals attainment. ‘Human resources’ this constitute the ultimate dignity of an organization, after all, it is the interactions of people with natural resources that institute the development process, the people according to Gant “are the human resources for the supply of physical labour, technical and professional skills, which are germane to effective and efficient planning and implementation of developmental policies, programme, projects and daily activities.
The various definitions however, concur on one basic thing, and that is, the need for human resources and its development for the development of personnel in any enterprises, whether public or private, is one of the essential functions of the human resources manager. This is because, of all resources available to the organization the human resources are perhaps, the most vital in its usage, so that without them, all the other form of innovation such as technological innovation computers would just lie there unattended to, due to the unavailability of skills man power to manipulate them. This required managerial functions such as planning, organizing, staffing, directing, coordinating, reporting or reviewing, and budgeting (POSDCORB).
In large and complex organization, the managerial functions become very cumbersome and difficult. This is so because; the manager finds it almost impossible to have direct contact with every individual worker let alone knowing what the worker does. To achieve this fact, the manager, who performs the functions of planning, organizing, controlling, directing, etc, as identified by Knootz and O. Dinnel, must make use of tools that would aid him in sanitizing and appraising the human resources in that organization, that tool has been identified as “Performance Appraisal”.
Performance Appraisal, According to Ngu (1994) “is usually referred to as integrated approach to management for more productivity or efficiency in organization”. Through this technique, activities of individual, unit, section, division, department or a workers are monitored, measured and possibly with the aim of according reward or some form of motivation. This very tool of management is a form of communication, that is, it transfers information, ideas and values from one person to another; employer and vice-versa.
This information system (Performance Appraisal) aids management to see the loop-holes or gaps in the employees’ performance and this give them the enlightenment on how to introduce training of this man power to aid the development process. Therefore the training and development of these categories of people should be undertaken on a continuous basis in order to provide new skills in the dynamic sector.
1.2 Statement Of The Problem
Staff training and development is very necessary to any organization be it private or public, such training has benefited most organization in achieving their goal, which is the aim of the study. More so, it is supposed to make the organization more efficient especially on how to motivate their personnel to increase their performance.
Though the organization is among the oldest steel exploration industry in the steel sector, most of their customers observed that their mode of operation is slow. For example, to drill a borehole it takes the organization more time frame compare to their counterpart in the drilling industry. It was observed also that most of their workers are not really expose to new technique or modern operating system that will enhance efficient and effective modern training of staff to give new technological development. The organisation does not really have the flair of employing young and capable staff with sound knowledge that could help it to improve its operation.
Dickerman (1974) noted that to improved personal performance, the individual himself had to be motivated. He must see that the caring management attitudes are there, that he can contribute his experiences, that the environment suits him and that the results encourage, but involvement through the devolution of responsibility is the major force. Training must be based on the specific needs of both the organization and in individual.
This situation made it pertinent to raise the following statement of problems:
- There were no measures put in place to evaluate trained staff
- Inefficient control mechanism, policies and procedure of Performance Appraisal
- There are no any strong effects of training and development on staff of GT Bank’s performance?
- There are no strong measures to identify deficiencies and practice within the organization which adversely affect the personal performance of individual or the successful operation of departments.
- No room for individual to develop and implement their own solutions to problems and deal with constrains which restrict their personal contribution.
Despite these inherent problems, organizations have done their best to see that training and development remains a vital policy and also takes its course because the important of training and development cannot be over emphasize as to motivate staff to perform effectively to achieve the organizational goals and objectives. But the management finds it almost impossible to have direct contact with every individual worker in every department and the terms of their specific tasks and activities. To achieve this fact, the management, who performs the functions of planning, organizing, controlling, directing, etc, as identified by Knootz and O. dinnel, must make use of tools that would aid him in sanitizing and appraising the human resources in that organization, that tool has been identified as “Performance Appraisal”.
1.3 Objectives Of The Study
This study aims at analyzing the impact of performance appraisal on staff productivity. The research work would therefore be geared towards the achievement of the following:
- How performance appraisal affects the attainment of organizational goal.
- Making GT Bank, Abuja to see the urgency and need for performance appraisal in the development of their human resources.
- The various obstacles hindering the effective and efficient application of performance appraisal in Gt Bank, Abuja
- Also, to examine the reaction of the staff towards performance appraisal.
- Finally making suggestion on how to improve the performance of the staff of GT Bank, Abuja.
1.4 Statement Of Hypothesis
The hypothesis which this study seeks to test is as follows:
- Ho – Performance appraisal does not enhance the attainment of higher efficiency and productivity in GT Bank, Abuja.
- Hi – Performance appraisal enhances the attainment of higher efficiency and productivity in GT Bank, Abuja.
1.5 Significance Of The Study
This study will be of benefit to the banking sector, that the urgency and need for performance appraisal will be appreciated in the area of development of their human resources. And also, just as communication is bedrock in the achievement of organizational goals, the study will served as another major tool (a guide) in aiding management in its functions of planning, organizing, staffing, directing, coordinating, reporting or reviewing, and budgeting (POSDCORB) in order to achieve the organizational goals.
More so, the study will be of benefit to the staff of GT Bank, Abuja as a motivational factor. Because the staff will be rest assured that they can only be promoted, placed, paid, commended etc. in accordance with their work done, target achieved, due process etc.
Finally, it is a contribution to the achievement and development of knowledge, as a secondary source of data and a reference material to other organizations, researches etc.
1.6 Scope And Limitation Of The Study
The scope of the study covers GT Bank, Abuja as the primary source of data for the topic, while the secondary data are materials from textbooks, journals, periodicals, internet materials, prospects etc. It is to be noted that this study is greatly faced with shortcomings by the poor management of information on performance appraisal activity in GT Bank, Abuja. However, other inability factors to the research work include:
1. Time constraint:
The time provide for the work execution of the study is rather too short for a thorough and detailed research on the topic. This is because GT Bank, Abuja has Seventeen (17) branches.
2. Lack of maximum cooperation by respondent:
Some of the respondents who are in position to give maximum relevant information refused doing so. While some did not give full information believing that such information is secret to them and should not be disclosed.
3. Late return of questionnaire:
Some of the respondents did not return the questionnaire given to them and some returned theirs very late.
It was difficult for me to cover all the organization’s branches due to financial constraints.
5.0 Conclusion And Recommendation
To conclude, Human Resource Management (HRM) has overtime emerged to be the most important part of management, through multifaceted in approach, Employee Performance appraisal and has seemingly been adopted as one of the major tools for motivating people in work situation. It is also important here to note that training and development of staff is an important process for any organization to survive and succeed. In fact, no matter how careful and accurate an organization is, it does not eliminate the need for training and development. Moreover, due to competition of new steel industries and other modern way of activities require that members of staffs be properly trained and developed in order to face future challenges and to meet up with any new technological trend as well it can only be evaluated by the used of performance appraisal.
Furthermore, the finding of this research project revealed that the Agency has all categories of manpower. Moreover, from the observed sample questionnaire i.e. those at their productive age supersede other according to age variation and greater number of the staff have serve for a long period in the Agency. It also revealed that in the Agency adequate performance appraisal and training of staff has been responsible for its increased performance for the past seven years. This is because they usually go for training and development programme when they are recruited and if a new method is introduced. Due to this programme which they attended has exposed them to new ideas and make them to stand among their counterpart and they know they will be evaluated after that, therefore, they encouraged with the appraisal policy. The research also revealed that a good number of staff have undergone such training and retraining as the case may be in centers like NITT, NIPSS, NIM, ASCON with overseas courses for top management staff of the Agency. The research revealed that for increased in performance of the Agency’s staff, they should be sent on training as at when due.
The research also shows that with aid of performance appraisal and the with coming on board the new Chief Executive Officer in the last few years shows a progressive move towards the check of influence, as against merit with a good number of staff due for training over the last ten (10) years had been short listed for training in different institutions in the year 2006, 2007 and 2008.
Conclusively, the impact of performance appraisal as tool for assessing employee’s development within the framework of an organization cannot be over emphasized. It thus goes performance appraisal is a useful tool in the hands of management to direct the work-related behavior of employees to an expected or stated target. The fostering of which create a platform for utmost and discretionary discharge of duties by all and sundry in an organization.
The researcher makes the following recommendations based on the above findings:
- The organization as a matter of reality ensure that the performance appraisal assessing be carried out to bring out possible lapses in training and development, so as that future training and development programmes will be done with care and diligence.
- There should be a level of consistency in the rate of determining between management and employees, the goal to be attained so that, the yardstick for appraisal will be known to all.
- The result of performance appraisal should not be as a means of victimization but as a means of developing the employees, further and building them with the right knowledge, skill abilities in the organization.
- The Agency should encourage staff to go for further studies after a maximum of three years in the service in the Agency. This should be done in conjunction with higher institutions of learning, corporate organizations and specialized private organizations for collaboration in the training of members of staff.
- Since the effect of recruitment and selection can be determine through performance appraisal, the organization should ensure that such exercise are carried out with the intention to employ the best competent employees. i.e. possession of relevant qualification and experience which will invariably boost the level of productivity in the Agency as a whole.
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