The Role Of Performance Appraisal In Human Resources Management

Project and Seminar Material for Industrial Relations and Personnel Management

Abstract

Due to the important role played by human resources in the achievement of organizational objectives and also the insufficiency and lack of effectiveness in achieving goals, the researcher interest prompted the need to investigate into the role of performance appraisal in human resources management in the united Bank for Africa. The study covers management staff, supervisor, clerks, messenger. The researcher also made use of various authors knowledge with those whose initiative relates to the problem under study which includes textbooks and journals for the literature review.

Questionnaires were provided with various questions which covered the two hypothesis that were provided in the research work, the percentage formula was used in analyzing the data obtained.

Chapter One

Introduction

1.1 Background of Study / Overview

In every organization effective use of human resources require a complete knowledge of employees capabilities and effective record system. To achieve this objective, it has become necessary to regularly take stock of the experience and exposure levels of employment. This could be done with the aid of performance appraisal. Performance appraisal could be defined as the process of measuring necessary level performance of organization members. It is one of the delicate issues in human resources management because an employee overall success in an organization depends largely on the outcome of performance appraisal. It is pertinent to state that some bosses take advantage of this to undermine the prospect of employees they line. Thus a proven performance appraisal system linking organization and employees goals is of paramount important because it can serve development tool to counsel and motivate employees.

Furthermore, it could as well assist employees to understand what is expected of them in a job and where they fit into an organization. The fact is that the scarcely few employees who would not like to know what exactly their manager thinks of their performance makes performance appraisal a controversial subject. In small organization with few employees, the level of interaction between the manger and the employees is close that employees generally know how their boss thinks of them.

However, in large organization such as “UNITED BANK FOR AFRICA”, the degree of interaction is remote. Many employees find it difficult to precisely know what their manager thinks of them. In contemporary atmosphere of world wide recession and especially in Nigeria, of down right economic growth characterize by massive unemployment and increasing number of employee redundancy, this organization (including united bank for Africa PLC) which are holding their own are likely to be much more interested in maximizing the effective use of existing personnel than having new staff. It follows therefore, that if performance appraisal is properly utilized. It could go a long in assisting in the management of the bank in human resource planning and development.

1.2 Statement of the Problem

Most organization are quite interested in determining the quality and level of performance of their employee in assessing the potentials they demonstrate for future development, and in identifying areas of weakness that may require assistance and training. The process of appraising the performance of employees is made difficult by the fact that criteria of effective and ineffective performance and frequently difficult to define, the areas of performance for which an individual is responsible is often unclear and evaluation tends to be base not in measurement of actual performance, but on the perception and judgment of immediate boss.

Some of these vague, ambiguous and judgment characteristics of performance appraisal in an organization are unavailable because of the complexity of managerial jobs and the difficulties inherit to clearly concrete criteria of effective performance. At the same time, vagueness ambiquity. Associated with the appraisal process can be attributed to inadequate attention being paid by organization to the design and functioning of its performance appraisal doubtful of the extent to which the employees UBA are usually satisfied after the appraisal exercise.

This is because instances abound where a staff has spent over nine (9) years or one past without promotion. One is tempted therefore to conclude that; performance appraisal is not so effective in assisting management in selecting the first people for advancement.

Further, it appears that general feeling among the UBA staff is that performance appraisal is not achieving the desired objective. This implies that all is not well with the way performance appraisal is being conducted in UBA. Beaming in mind that the instable nature of human beings and the fact that they constitute the most difficult variables for managers to predict and control, the researcher study will endeavor to examine the performance appraisal system of its pros and cons will assist the management to define effective and result oriented performance

1.3 Objective of the Study

Evaluate the strength of performance appraised in supply data that could help the UBA management to make an effective use of its human resources
Find out how effective the use of performance appraisal as a tool for determining promotion, salary increase and training.
Find out whether the employees of the bank are usually satisfied with the way they are being appraised by the supervisors.

1.4 Significance of the Study

The whole process of performance appraisal exercise is reviewing the past to enable proper project to be made of the future. The study therefore is as important as the objective and growth of any business organization. Business as we know cannot operate without employees, and in order for organization to make profits, both employees and employers must work in an understanding and satisfactory atmosphere so that one will not be seen as an obstacle to the other. The study therefore will therefore expose of reducing frication that many union as well as managers and subordinates following the outcome of every appraisal exercise in order to usher in a peaceful industrial harmony in the organization. The UBA will find the study particularly useful in human resources planning of the organization. The study will also serve as an insight for management on the proper use of performance evaluation on their subordinate

Finally, the study can motivate other interesting researchers in this subject there by giving them impetus to venture into a fresh field study.

1.5 Scope of the Study

The study covers the total performance of employees of the UBA from managers, clerks, security guards, cleaners etc. the study will develop into such sensitive areas of promotion, salary increase, training and regard for hardwork.

1.6 Research Hypothesis

The hypothesis to be tested in the study are:

HO; the suitability for promotion and salary increment does not fit significantly to the performance appraisal scheme of the organization.

Hi; the suitability for promotion and salary increment fits significantly to the performance appraisal scheme of the organization

1.7 Research Questions

Recognizing the fact for the best and worst level of employee performance, a manager is ever inclined to make comments, the researcher is curious to ask some striking questions which is hoped would bring chant to some doubt on the validity of performance appraisal as a tool for measuring employees performance

The Questions Are

Should an employee be rewarded based on his or her scores in performance appraisal report?
In what areas has the banks performance appraisal scheme created an impact on employees?
Do bosses influence performance appraisal report?
Are the employees aware of the method of approach to the performance evaluation being used by management?

1.8 Limitation of the Study

The major limitation is the short period within to complete this project. Furthermore, to cover nearly 200 branches of the bank all over the country will be uphill task for the researcher. Also the fund needed to conduct and implement to the research study especially now that the cost for research material is very exorbitant.

1.9 Definition of Terms

In other to achieve clearly and misconception and attempt will be made here to define some terminologies in this study.

Motivation:

this refers to the process of limiting and directing behaviour. An individual produce and sustain behaviour who he/she finds it rewarding to do so, that is when the behavior accomplishes and objectives which satisfies a need

Supervisor And Subordinates:

the term “supervisor’’ is used to demote the person doing the appraisal and the term “subordinate’’ is used to refer to the employee whose performance is being appraised.

Validity:

this refers to the degree to which the measuring instrument measures what is intended to be measured. A valid performance appraisal system must specify performance criteria that are job related and important as well as being easily determined through job analysis so that employees contribute to the degree to which perform those criteria and attain those result specified in the job analysis.

Human Resources Management:

This refers to all activities that are undertaken by organization to influence individual employees and the abilities and motivation of employees with requirement and of the job.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

In this chapter, attempt will be made to summarize subject of the important findings that have been on the subject matter of this research work. The primary aim of the whole exercise was to find out how performance appraisal can minimize, unutilized in order to assist the management of the bank in its human resources planning and development.

As indicated in chapter 4, performance appraisal system has many purposes. However, these many purpose are often condensed into two general tools. An effective appraisal system should identify employees with potential whoare putting in their best services for the organization and encourage could be in the form of salary increment or promotion to a position of higher responsibilities.

In the same vein, those employee found to be performing below expectation are action could be taken on them.
As a development tool, an effective performance appraisal system is used to identify employee training and development needs. These needs could be in form of improvement course. However, the findings of this study attest in the fact that there are defect in the UBA appraisal system in table 4.2, 14 respondents feel that the present appraisal scheme is not appropriate for evaluating suitability for promotion and salary increment while 26 is of the opinion that her present scheme is appropriate.

In view of the above revelation, it is obvious that the employees of UBA have doubt as to the adequate of the bank’s performance appraisal scheme in satisfying their needs and aspirations. For instance, work consists good for up to 8 10 years while others are promoted within 5years and below. Like wise, these staff without attending a single training and development course. Hence intable 4.2 while 65% took an extreme view the performance appraisal should be scraped , 35% undecided felt the need for the scheme to be promote.

Table 4.5 serve as an eye opener to the seriousness of the problem at hand as 28 of all respondents are of the opinion that the bank appraisal reports are not usually a true reflection of employees relative strengths and weakness. Thus, in table 4.7, 31 believe that the appraisal reports are often influence by their bosses.

Generally the research study has clearly pointed to the fact that there is nothing wrong with performance appraisal in itself but the problem is with actors (implanters).

5.2 Conclusion

The purpose of the above summary of findings was to assist n drawing valid conclusions to this research work.
These conclusion rewards for employees should not be totally dependent on high score in performance appraisal as a measuring instrument. Performance appraisal reports should know the only yard stick for determining suitability for promotion, salary increment as well as training and development of employees. This conclusion is reached based on respondent view that performance appraised reports are sometimes influenced by bosses who must ensure that a few employees who are favorably disposed to them are promoted.

The UBA performance appraisal scheme lies a considerable but diverse impact on the employees of the bank. However, the areas of motivation to work should be given serious attention by management.

Finally majority of the bank’s employees have no confidence in yearly appraisal exercise, because of it’s inadequacies to satisfy the needs and aspirations.

5.3 Recommendation

In other to revamp the scheme for a positive result the following recommendation based on the above conclusion are proposed.

Firstly, management should organize course for managers on how to carry out a successful evaluation of subordinates. This could be accomplished with “Behaviour modeling training”, which is a method of training where by individuals learns new interpersonal skills.

Secondly, it is recommended that management should embark on enlighten campaign in order to put employees in greater awareness that the purpose of the bank performance appraisal exercise is not only for determining employees promotion and salary increment but also for the overall interest of all employees.

It is also recommended that management should urgently constitute a panel to assess the feeling and behaviour of members of staff towards the appraisal scheme.

Thirdly, the management is advised to set up a committee to carryout the modification to the present appraisal scheme. In setting up such a committee, management should ensure that all categories of staff are fully represented.

Finally, it is suggested that the modification committee should not be dissolved after the exercise but should be made function on a continues basis as performance appraisal monitoring include employees development planning and advancement.

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