Performance Appraisal And Organizational Effectiveness

Project and Seminar Material for Business Administration and Management BAM

Abstract

The study investigated performance appraisal and organizational effectiveness with a view to assessing the impact of performance on firm’s productivity, employees’ satisfaction and adaptability. To actualize these objectives, the study adopted the survey research design, involving the design and administration of questionnaire to respondents drawn from Nigeria Bottling Company plc Benin City. The population size consists of 200 employees of the firm while the sample size used is 133. The research relied on the primary data i.e questionnaire. Upon presenting and analysis of data, it was discovered using Chi-square test that there is a significant relationship between quality performance appraisal, organizational effectiveness, employees’ initiative and organizational effectiveness amongst others.

Chapter One

Introduction

1.1 Background to the Study

Attainment of a high level performance through productivity and efficiency has always been an organizational goal of high priority.

Performance appraisal as a vital tool measures the framework set by any organization to it employees. It is utilized to track individual contribution and performance against organizational goals and to identify individual strengths and opportunities for future improvements and assessed whether organizational goals are achieved or serve as basis for the company’s future planning and development.

The success of any organization depends on the quality and characteristics of its employees. The employees are significant factors in any organization since they are the heart of the company. Organizations simply cannot achieve their goals and objectives without them. However, it is a fact that any employee for that matter needs something to induce he/her to look forward to, so that he/she is motivated to work at the best interest of the company. This indeed was indicative of the more strategic approach to Human Resource Management (HRM) policies which sought to connect the arms of the individual. The organizations key aims, goals and objectives became an embedded part of and communicated through the performance appraisal process Marchington and Wilkinson (2005).

Deblieux, (2003) performance appraisal is the systematic periodic and impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job. Performance appraisal is a review and discussion of an employee’s performance of assigned duties and responsibilities. The appraisal is based on result obtained by the employee in his/her job, not on the employee’s personality characteristics. The appraisal measure skills and uniformity. It provides a way to help identify area for performance enhancement and to help promote professional growth. The essence of this performance appraisal is to obtain information for promotion, emotion, transfer, pay increment, training lay-off termination decision and development.

Armstrong and Baron (2005) defined the performance appraisal as a more limited approach which involves manager making a top-down assessment and rating the performance of their subordinates at an annual performance appraisal meeting.

Armstrong (2006) describes performance appraisal as a tool for looking forward to what need to be done by people in the organization in order to achieve the purpose of the job to meet new challenges. Better use of technology skills and attributed.

Szilag and Wallace (1990) in addition will develop both organizational and individual capabilities and reach agreement on areas where performance needs on the effectiveness of its employee generating information which influences many of the organizations decision. Annual performance appraisals enable management gavages and monitor whether institutional standards expectations and objectives, and delegation of responsibilities and tasks are achieved. Staff performance appraisals also establish individual training needs and enables organization to identify training needs analysis and planning.

Normally, performance appraisal has been restricted to a feedback process between employees and supervisor. However with the increased focus on teamwork, employee development and customers service, the emphasis has shifted to employee feedback from the full circle of sources deputed in the milt-input approach to performance feedback is sometime called 360-degree assessment (Mclean, 1997). Organization usually have annual performance reviews with supervisor providing comments on employee performance. The leading Indian companies are adopting a very progressive approach to performance management by adopting a 360-degree approach or management by objectives (MBO) Wise (2005) also said that performance appraisal system helps an employee discover his strengths and weaknesses and would help him in decision making about his career choices. Performance appraisal is one element of the performance management process which involves different measurements throughout the organization but it is an element which is important if the organization is to take advantage of their most important assets employees and gain human capital advantage. There are other processes within the organizations such as technology and design but it is the human factor which most difficult to replicate and therefore the most valuable.

Dinstrong and Baron,(2005). Strategy implementation and delivery of the organizational strategic target is the best accomplished through high performance people Michitsch, (2000). It is the development of these people whose performance appraisal seek to advance. This is not the only identified purpose for performance appraisal.

Ideal performance appraisal approach effectively enable the employee to meet their own performance targets to the organization through motivated self learning, also that the organization meet and indeed exceed their strategic target by linking individual performance target to the overall strategic target of the organization.

The institutions need to evaluate programs performance to achieve justice and quality among employees/personnel/staff. In order to raise the enthusiasm and competition among employees and to uncover the talent for the future Mohamed Ahmed, (2007). The process of measuring and evaluating the human resource management, through the measurement and evaluation enable the organization to judge the accuracy of the programs and policies adopted, whether policies to attract, select and appoint or programs and policies for training development and follow-up their human resources Mohamed, (2009). Many organizations have adopted the performance appraisal process as one of the main methods used for workers development, hence business performance improvement. A direct outcome of that massive adoption was the re-ignition and understanding of the dependency between accuracy, effectiveness, quality of the performance appraisal process, employee’s initiative, adaptability, job knowledge, reliability of the process and quality. Performance appraisal is very important within organization that will help to evaluate the staff according to their tasks in order to ensure they conduct their job at a required standard which will effect on the compensation. In addition its significance to identify their skills performance and to know their weakness and how to improve it within departmental target.

1.2 Statement of the Problem

Performance has played significant roles in organizational productivity. However, it is pathetic to note that most organizations have not been practicing a sustainable performance appraisal system to enhance efficiency. Some organizations though invest so much in other factors of production such as machinery, information technology, funds etc but unfortunately place little value on manpower. In this regard, little attention is directed to improving the human capital which is the anchor of every organizational success story. Improving manpower requires that performance appraisal becomes an essential tool to assess the individual employee and should be based on consistent feedback such that an appropriate reward system could be ascribed or measures for correction could be put in place. Lack of performance appraisal system in most organizations unfortunately makes assessment of individual employee extremely difficult and m that vain most organizational targets are not periodically achieved hence lack of direction and low productivity. In this regard therefore, it is imperative that a consensus effort is made by every organization to have a performance appraisal policy in order to’ evaluate the performance of individual employees in conformity with the overall objective of the organization.

1.3 Objective of the Study

The objectives of the study are;

To find out how the design and implementation of performance appraisal is done at Nigeria bottling company
To evaluate the importance of performance appraisal system at Nigeria bottling company
To identify the problems encountered when conducting performance appraisal at Nigeria bottling company
To determine whether there is a significant difference in the effectiveness of performance appraisal systems in public and private organizations

1.4 Research Hypotheses

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

H0: there is no importance of performance appraisal system at Nigeria bottling company.
H1: there is importance of performance appraisal system at Nigeria bottling company
H02: there is no significant difference in the effectiveness of performance appraisal systems in public and private organizations
H2: there is a significant difference in the effectiveness of performance appraisal systems in public and private organizations

1.5 Significance of the Study

This study will give clear insight on performance appraisal and organizational effectiveness. The study will be beneficial to Nigeria bottling company and private and public organization. It will also serve as a reference to other researchers that will embark on this topic

1.6 Scope and Limitation of the Study

The scope of the study covers performance appraisal and organizational effectiveness. The researcher encounters 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 Terms

Performance Appraisal:

A performance appraisal is a regular review of an employee’s job performance and overall contribution to a company. Also known as an “annual review,” “performance review or evaluation,” or “employee appraisal,” a performance appraisal evaluates an employee’s skills, achievements and growth, or lack thereof

Organizational Effectiveness:

Organizational effectiveness can be defined as the efficiency with which an association is able to meet its objectives. This means an organization that produces a desired effect or an organization that is productive without waste.

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), historical background, 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 important to ascertain that the objective of this study was to ascertain performance appraisal and organizational effectiveness

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 performance appraisal and organizational effectiveness

5.2 Summary

This study was on performance appraisal and organizational effectiveness. Four objectives were raised which included: To find out how the design and implementation of performance appraisal is done at Nigeria bottling company, to evaluate the importance of performance appraisal system at Nigeria bottling company, to identify the problems encountered when conducting performance appraisal at Nigeria bottling company, to determine whether there is a significant difference in the effectiveness of performance appraisal systems in public and private organizations. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Nigeria bottling company, Benin City in Edo state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up plant managers, trade managers, laboratory technicians and water processing technicians were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

5.3 Conclusion

Performance appraisal is practiced in many organizations. It has the potential of improving staff performance if it is organized well thereby contributing to organizations productivity and growth. The study revealed that performance appraisal is being practiced and it is done once a year. Again, in the design and implementation of performance appraisal, appraisers and appraises do not play any significant role and that it is the responsibility of Personnel Department. Also, not all the appraises are given appraisal feedback and even those that are given feedback it takes a longer time before they are given. Majority of both appraisers and appraises indicated that performance appraisal is very useful to Nigeria bottling company and are of the opinion that is contributing to the productivity and growth of Nigeria bottling company. However, it needs to be improved upon

5.4 Recommendation

First and foremost the researcher commends the Management of Nigeria bottling company for having a performance appraisal policy at the bottling company which aimed at improving employee performance and largely contributing to productivity and growth of Nigeria bottling company. Performance of every employee in an organization contributes to higher productivity and growth. It is therefore important that Management of Nigeria bottling company should put all the necessary structures in place to make it successful.

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