The Use Of Performance Appraisal And Reward System In Enhancing Employee Performance In An Organisation

Project and Seminar Material for Human Resource Management (HRM)

The Use Of Performance Appraisal And Reward System In Enhancing Employee Performance In An Organisation

Chapter One


1.1 Background Of The Study

The human resource department is one of the most important departments in every company and firm. Every company adopt the different departmental demarcations to suit their mission but in all of them, this department is always found almost as important, if not more important, than the public relation department. This is so as the background and welfare of the employees is as important as any other mission the company or establishment is poised towards.

The management of employees and the maintenance of their working spirit goes beyond the payment of salaries and the assignment of duties. The establishments rely on the employees for the attainment of whatever goal or target they have set for themselves which means that the maintaining of high performance and the spirit to meet the targets is also part of what is to be looked after by the employers; creating a conducive working environment and the incentive to go the extra mile beyond one’s job description.

1.2 Statement Of The Problem

Between creating an enabling environment for the employees and handing out incentives to them is the list of measures needed to boost the spirits of the employees. Without this extra nudge, the situation is usually one of apathy and the lack of the will to put extra effort past the agreed ones that are in their job description. However, often employers find that it is the extra efforts on the parts of the employees that make all the difference. So employers device systems known as reward systems which “addresses these four areas: compensation, benefits, recognition and appreciation” (Entrepreneur Media). This is the research problem we are grappling with in the present work: to study the use of appraisals and reward system in enhancing employee performance in an Organisation such as Nestlé Nigeria PLC.

1.3 Research Questions

  1. What are the kinds of reward systems employed by employers.
  2. What and what do these systems take into consideration.
  3. How effective are they in increasing employee performance in Nestlé Nigeria PLC.

1.4 Objectives Of The Study

This research work which studies the use of appraisals and reward system in enhancing employee performance in Nestlé Nigeria PLC aims at establishing the different reward systems especially the ones used in the above company and how they are adapted by the company to fit their targets and corporate missions and vision.

It also describes the processes of application of this system and how they are fitted for the best outcomes. Sometimes a reward system can end up making the employees lazy and complacent thereby defeating the aim of its establishment in the first place. It also measures, statistically, how much this system has gone into improving the employee performance of the company from the time of its adoption.

1.5 Significance Of The Study

The significance of this work goes beyond its immediate objective of studying and enumerating reward systems and performance appraisal. It sheds light on the human resources myths that have grown moribund and proffers feasible and viable methods of incentives. This work is also important in terms of understanding the minds of the average corporate and public employees and show the factors that affect them the most.

1.6 Research Hypothesis

The assumption in this case study of Nestlé Nigeria PLC is that performance appraisal and reward systems bear greatly upon employee performance in the company.

1.7 Scope Of The Study

The manifestations and influences of performance appraisal and reward systems discussed here only focuses on Nestlé Nigeria PLC and attention is given more on the systems they adopt and how they have come to boost employee performance over time.

1.8 Limitations Of The Study

Time and space have so far, in the course of this research work conspired to exacerbate and increase the research effort that was put into this work. The time frame allocated to a research of this kind proved insufficient in the face of the work load and literature to be reviewed for this study.

1.9 Definition Of Term

Reward System

This refers to the systems adopted by an organisation to reward good work input and diligence of its employee.

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