Impact Of Performance Appraisal On Staff Productions

Project and Seminar Material for Industrial Relations and Personnel Management

Impact Of Performance Appraisal On Staff Productions

Chapter One


1.1 Background To The Study

Performance appraisal is a development process, since it seeks to identify the strength and weakness of the employee as a guide to his/her further development.

It is usually made in prescribed manners at specific intervals such as quarterly, biannually or assesses his on the job performance, and were necessary give his guidelines and advice for improving efficiency and effectiveness. An effective performance appraisal review system services these general purposes, in other words, the essence of performance appraisal is to give information for promotion purpose, pay increase, training and development and discharge of employee. Again, it provide employee with constructive feedback on how they are performing their jobs as viewed by their managers, thus, leading to released productivity. Fligo (1989-2004 identified the following three appraisal as follows.

  1. A casual and unsystematic approach
  2. The traditional and higher systematic measurement of employee characteristics.
  3. Employee contribution.

Mutual goal setting through a management by objective programme (MBO) that effective performance appraisal system have the potential to provide opportunities for managers and employees to communicate and agree upon what is expected of each and plan for performance based on the overall objectives of the organizations. Legal implications often dictate the need for job to be defined explicitly for objectives to be set and agreed upon any managers and employees, and performance to be based on critical that include more than just judgment of the managers to be able to individual as a possible.

1.4 Statement Of The Problem:

The primary aim of every establishment including ABC transport is the maximization of profit, which could easily be attained through staff productivity. ABC transport management does not have adequate appraisal system which leads to promotion, pay increase, training and development. This affect employee’s performance adversely leading to low morale and low productivity. Therefore, the above has necessitated the work.

1.5 Objective Of The Study

The main objective of this research is to examine the major impact of performance appraisal on staff productions. this study will among other things:

  1. Identify the various performance appraisal techniques used by the management of ABC transport in relation to productivity.
  2. Identify some common performance appraisal problems of the employees and how it could be solved.
  3. Evaluate it performance appraisal leads to training and promotion.

1.4 Research Questions

The following research questions will help in achieving the objective of the study.

  1. What is the relationship between performance appraisal and Employees productivity?
  2. What are the techniques in ensuring increased productivity.
  3. What are the problems of performance appraisal?

1.7 Statement Of The Hypotheses

The following hypothesis will form the basis for the study:

  1. HO; There is no significant relationship between performance appraisal and the staff productivity.
    HI; There is significant relationship between performance appraisal and the staff productivity.
  2. HO; Some performance appraisal does not affect employee moral.
    HI; Some performance appraisal affects employee morale.

1.10 Significance Of The Study

The significance of this research will be in two fold. The practical significance and the theoretical significance.

1.10.1 Practical Significance

It is the believe of the researcher that at the end of this study, by discovering the technique which could be used to appraise staff and encourage them towards achievement.

1.10.2 Theoretical Significance:

However, the product of this study stands as a reference source or guide to scholars and future researchers who may be interested in performance appraisal as a subject of interest to enhance the productivity test.

Above all, the study would be as well improve the researcher’s knowledge about enhancing the productivity of staff through adequate appraisal techniques as this would give her avenue to contribute to the problem understudy.

1.11 Scope Of The Study

This research work is only limited to ABC transport. This limitation is to enable the researcher deal with manageable respondents.

1.12 Limitation Of The Study

In an attempt to carryout a meaningful research, certain factors seems to affect the researcher’s efforts and among the factor are:

Time constraints:

This time given for this research work is too short to generate enough data that would help on testing the hypothesis.

Lack of funds:

These factors really affected the research work process as I couldn’t travel to other organizations to discover similar experiences and draw a conclusive analysis.

1.13 Definition Of Terms.

Performance Appraisal:

It can been as a systematic evaluation of an individual with respect to his performance on the bob and his potentials for development.


A person who undertake the activities of planning, organization, direction and controlling materials, machine and money in such a manner that leads to effective and efficient achievement of organization goals.


Productivity is the quality or volume of product or services an organization provides.


This is concerned with the degree to which actual output of system corresponded to its desire output in ensuring on getting the right things one in the right way for the purpose.


This is the ratio of actual output to input.


This is described as any detailed set of actions formulated in advance on how to achieve organizational goals.

Management By Objective:

This is the process whereby superior manager and subordinate managers of an organization jointly identify its common goals, define such individuals major or responsibility in terms of the results expected of him and use these measures as a guide for operating the unit and assessing the contributions of each of its member.


This is the group of workers who carry on a job of an organization.


This is an organized procedure by which people gain knowledge and/or skills for doing a particular job.


This is the process were a person actually makes. It may include conceptual or intellectual growth with practical performance.

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