The Impact Of Performance Evaluation On Workers Productivity In Nigeria

Project and Seminar Material for Human Resource Management (HRM)

The Impact Of Performance Evaluation On Workers Productivity In Nigeria


Many organizations are experiencing low productivity due to lukewarm attitudes of their management to performance evaluation system. Organizational training needs can only be identified from performance evaluation outcomes. Performance evaluation system has been identified as an alternative paradigm to high productivity and performance. The study, therefore examined the impact of performance evaluation system on employee’s performance in Telecommunication sector. Simple random sampling technique was employed to select two hundred and sixty (260) respondents from the total population of one thousand three hundred (1,300) employees of MTN, Nigeria. Data were sourced through a structured questionnaire and personal interview. Analysis of data was performed with the aid of Mean, Standard Deviation and Linear Regression. Results revealed that the level of performance evaluation awareness is high among the staff of MTN, Nigeria. Results also established that performance evaluation system has significant impact on employee’s performance. Results also revealed that inability to provide on time feedback is a challenge to performance evaluation system in MTN, Nigeria. Subsequently, the study recommended that management should be objective during appraisal exercise, provide regular feedback and offer career development in order to help an organization wins the desired competitive advantage.

Chapter One


1.1 Background to the study

Performance evaluation is one of Human Resource Management Practices (HRMP) that has been well researched in both developed and developing countries and it has equally been identified as a strong motivator. Performance evaluation is considered as important human resource function because performance evaluation results are used for managerial decision making and for variety of other purposes including administrative decisions, employee development and personnel research (Muhammad &Surayya, 2013). According to Fletcher (2001), performance evaluation has increasingly become part of a more strategic approach to integrating human resources activities and business policies which can be seen as a generic term covering a variety of activities through which organizations seek to assess employees and develop their competence, enhance performance and distribute rewards. In the same vein, Anso (2014) attests that performance evaluation has emerged as a tool for enhancing organisational growth and professional development. Performance evaluation is a continuous process through which performance of employees is identified, measured and improved in the organization. This process includes various practices like identification of employees’ strengths and weaknesses, providing them regular feedback and offering career development (Aguinis, 2007). Grubb (2007) also sees performance evaluation as a process of assessment individual employee’s performance and how it can be improved to contribute to overall organization’s performance.

In the world of globalization, there are a lot of cut – throat competitions in the market, especially in the Telecommunication industry. The advent of deregulation of Telecommunication sector in Nigeria has brought competition to the industry. MTN, Nigeria is one of Global Systems Mobile Communication (GSM) operators that has the largest coverage and known for a large number of subscribers and effective service delivery. The company maintains a leading position in Nigeria as an infrastructure provider to other telecom operators and corporate customers of the country ( However, the increasing number of subscribers on daily basis can make the job stressful for employees due to pressure from management. The success of the MTN, Nigeria in term of quality of network services, dependable and consistent in solving customers’ complaints and ability to provide variety of value added services depends on the calibre of its employees.

Human resource is the most valuable asset having the greatest potential in determining the statuesque of an organization in today’s competitive business world (Belete, Tariku &Assefa, 2014). In order to survive and wax stronger in this global competition, employees have to be motivated through performance evaluation system (Kumbhar, 2011). In line with this assertion, Grote (2011) observes that an organization without a suitable and consistent performance evaluation will experience failure and poor performance of its employees. Chemeda (2012) also opines that to continue enjoying efficiency and effectiveness of members of staff, each organization has to carry out employee performance evaluation from time to time so as to keep them in check and replace, motivate, retain or take any other appropriate action.

1.1.1 Brief History of MTN, Nigeria

MTN Nigeria Communication Limited is a Subsidiary of a South African owned Multinational telecommunication group by name MTN Group. The birth of MTNN (MTN Nigeria) was necessitated by the dare need of Nigerian government to ensure that communication is made available to every citizen, as a result of which the Nigerian Telecommunication regulatory body (Nigerian Communication Commission) carried out a GSM auction in the year 2001. MTNN obtained the first operational license on February 9, 2001, at the sum of US$285 million for a period of 15 years to provide a 900 and 1800MHZ 2G network within Nigeria. The very first call on MTNN network was initiated on May 16, 2001, and in August 2001 business Operations kicked off in three major cities in the country namely Abuja, Lagos and Port Harcourt. Over the years MTNN has consistently evolved from just being a 2G Telecoms Company to 3G in March 2007 and soon to become a fullfledged LTE ICT provider by 2013. MTNN has remained the Nigeria number one since 2001 till date. It is also on record that MTNN has made tremendous impact on the lives of the Nigerian Citizens in terms of investments, career, products, services and engagements in corporate social responsibilities (

MTN, Nigeria existing in a rapid changing environment due to extreme competition, government policies, challenging cost demands and poor infrastructure in Nigeria, has been able to maintain the leading position in the Nigeria telecommunication space for the past 10 years. MTN, Nigeria has the largest market share, the most profitable company and highest company paying tax in Nigeria. Remarkably MTN have achieved this feat, through strict compliance to its business core values and mission. Having achieved all the mile stones as mentioned, there is still room for improvement with regards to network quality and coverage, and overall customer service and satisfaction. MTN, Nigeria being the “Nigeria number one” has successfully built an expansive network covering 88.8% of Nigerian Land Mass and thus provides network access to 86.2% of the population, these spans across 2840 cities, towns and villages in the whole 36 states of the federation including the federal capital territory (FCT). MTN also provides interconnection services to other telecoms networks (

1.2 Statement of the Problem

Many organizations experience low productivity despite their acclaimed effective performance evaluation system (Armstrong, 2006). In Nigeria, many organizations are experiencing low productivity and performance due to ineffective appraisal system. Performance evaluation is viewed and conducted solely in terms of its evaluative aspect thereby overlooking its use for facilitating growth and development in workers through training, coaching, counselling and feedback of appraisal information (Asamu, 2013). The inability of many organizations to install an effective performance evaluation strategy has hindered them from achieving competitive advantage (Obisi, 2011). Some of the questions bothering the mind of the researcher are; what is the level of awareness of existence of performance evaluation in MTN, Nigeria?; What impact does the performance evaluation system have on employee performance? And what are the problems that hinder effectiveness of performance evaluation in MTN, Nigeria?
This study justified the need for a detailed explanation in this area if the Nigerian Telecommunication industry is to achieve its vision of taken a leading position in the global Telecommunication space.

1.3 Objectives of the Study

The general objective of this study is to evaluate the impact of performance evaluation on employee performance in MTN, Nigeria.

Other specific objectives include;

  1. To determine the level of awareness of existence of performance evaluation in MTN Nigeria.
  2. To assess the impact of performance evaluation on employees performance.
  3. To identify the problems to effective performance evaluation system in MTN Nigeria.

1.4 Research Questions

  1. What is the level of awareness of existence of performance evaluation in MTN Nigeria.
  2. What is the impact of performance evaluation on employees performance.
  3. What are the problems to effective performance evaluation system in MTN Nigeria.

1.5 Research Hypothesis

  • Ho1: Performance evaluation has no significant impact on employee’s performance.
  • HI: Performance evaluation has significant impact on employee’s performance.

1.6 Significance of study

The significance of the study is to encourage dedicated employee whose effort are high, higher aspiration leads to higher performance evaluation also determine to what extent the organization could achieve the organization goal congruency.

The research work is also assist future researcher, students and personnel specialist to have a wide perception of stress and how to cope with such a stress.

1.7 Scope of the Study

The scope of this research is to examine the impact of performance evaluation on employee’s productivity. It would also look at the general overview of appraisal as applicable in MTN Nig plc.

The management and employees of MTN NGwill be used in carry out these researches.

1.8 Limitation of the Study

Many factors have led to the limitations of the project include many transportation affairs (that is the person in charge of Board of Director).

These are the shortcomings which arise as a result of problems encountered by the researcher in the course of this work.

However, problem of finance, which has become nationwide issue that tremendously affect the collection of relevant information and publishing the result of research effectively.

These problems among many other are:

Some of the respondents were biased in filling the questionnaire because they expressed their fear of revealing the company’s actual policies and strategies some refuse to return the questionnaire given to them, thereby making the information received on them to be inadequate.

There were financial constraints on the researcher which almost paralysis the limitation

There was limited journal by the researcher due to operational problem faced by the researcher.

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.

Chapter Five

Conclusion and Recommendation

5.1 Conclusion

The study concludes that the level of performance evaluation awareness is high among the staff and the performance evaluation system plays a very vital role in contributing to high performance of employees in MTN, Nigeria. However, study reveals that inability to provide on time feedback, lack of objectivity during appraisal, favouritism and bias of the supervisors, non-rewarding of hard work or overtime, not strict with the appraisal outcome, and lack of continuous documentation are major short comings of performance evaluation system in MTN, Nigeria.

5.2 Recommendations

Based on the findings and conclusion, the study recommends that:

  1. Management of MTN, Nigeria should provide regular feedback and offer career development. This will enable its staff to identify areas of their strengths and weaknesses.
  2. Management of MTN, Nigeria should be objective during appraisal exercise. The employees should be sent on training, seminars, workshops and programs based on their job roles and performance irrespective of their cadres or status.
  3. Management of MTN, Nigeria should continue to evaluate and audits the performance of its employees in order to help the organization wins the desired competitive advantage.
  4. Performers should be rewarded accordingly so as install confidence in the appraisal system.

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