Full Project – Performance appraisal and employee’s productivity in an organization

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CHAPTER ONE

INTRODUCTION

1.1    Background to the Study

Organizations are established to perform certain tasks and use different cadre of staff to achieve their objectives. To maintain standards and anticipated outputs organizations have to keep abreast with both new knowledge and technological advances. This fast growing challenge requires that organizations engage or update their staff so that they can cope with the rate of generation of new changes in these areas. Some of the coping mechanisms applied by organizations are recruitment of trainable staff, reproofing of present staff, in service training in certain disciplines and on the job training including exchange programmes.

A performance appraisal system is a good instrument that can be used to improve the quality of an organization’s work force performance of which it is considered as an important aspect in human resources management and as part of the control process in administration (Kavussi Shal, 1999). In order for an organisation to achieve its objectives, planning of the appraisal process is an important subject who should be undertaken to enable it achieves the objectives like work force development, including improvements, promotions and assignments in managerial positions, persuasion and punishment, salary increase, personnel’s performance feedback and determining their educational needs.

Therefore, an appraisal can be considered as an important factor in identifying the people’s talents and capacities and its results can make them aware of advancements, plans and goals. An organization, itself, needs to detect the employees efficiency to improve the manpower’s status, for the purpose of increasing the volume of the production and services and making positive changes in its trend (Kavussi Shal, 1999).

Appraising performance is important because since it helps to ensure that the organization system will be easily understood by employees and effectively put into action by managers. Appraisal structures that are complex or impractical tend to result in confusion, frustration, and nonuse. Likewise, systems that are not specifically relevant to the job may result in wasted time and resources. Indeed, most successful appraisal programs identify and evaluate only the critical behaviors that contribute to job success. Systems that miss those behaviors are often invalid, inaccurate, and result in discrimination based on nonrelated factors.

Performance appraisal should be conducted periodically to evaluate an employee’s performance measured against the job’s stated or presumed requirements. It is important that members of the organization know exactly what is expected of them, and the yardsticks by which their performance and results will be measured. Laurie J. Mullins substantiated the necessity of an effective appraisal scheme by saying that it can identify an individual’s strengths and weaknesses and indicate how such strengths may best be utilized and weaknesses overcome.

The appraisal system should be formalized especially in supporting decisions on salary and wage increases, transfers, promotions and dismissals, as well as communicating information to appraise through a review of their progress. Results of performance appraisal are used to discuss performance and progress of personnel in relation to goals. Performance strengths are recognized and weaknesses identified so that individual action plans can be developed to make the necessary corrections. The performance appraisal method applied should be valid. There must be a clear link between the performance standard for a particular job and an organization’s goals and this should be measured accurately by the method. Appraisals should be thoroughly trained in purpose and utilization of the performance appraisal system. (Wolf, 2005).The performance appraisal method applied must be sensitive in distinguishing effective performers from ineffective performers/ the performance appraisal method should be reliable in that different raters using the same method will rate the same employee similarly. The performance appraisal method should be easily understood by both raters and the employees. (Fletcher, 2004).

1.2   Statement of the Research Problem

In Nigeria, most of the performance appraisal exercise /program are not well designed and focused. Management of organization tends to view it as a punitive measure. This makes it lose its objectives and focus,  performance appraisal no longer seek to actualize its objective of correcting deviations, hence, increasing productivity and jettison all hindrance that tends to hinder productivity. But it is being used as a tool for subordination, oppression, victimization and exploitation. Despite the veritables return at performance appraisal to many organizations, the societal value system has subdued it objectivity and its attendant’s outcomes. This makes most of our performance more subjective than objective. Many managers are often unwilling to use the extreme ratings and therefore, settle with what is known as the central tendency. This tendency is caused by lack of adequate knowledge of the employees.

• Objectives of the Study

The main objective of this study is the assess the effect of performance appraisal on employee’s productivity in Dangote Cement Company, Obajana. Specific objectives include:

1. To examine whether performance appraisal has positive impact on employee productivity in Dangote Cement Company, Obajana.
2. To determine if there is significant relationship between performance appraisal and Employee productivity in Dangote Cement Company, Obajana.
3. To assess the effectiveness of performance appraisal of Dangote Cement Company, Obajana.
   • Research Hypothesis

Hypothesis I

Ho: Performance appraisal has no positive impact on employee productivity in Dangote Cement Company.

Hi: Performance appraisal has positive impact on employee productivity in Dangote Cement Company.

Hypothesis II

Ho: There is no significant relationship between performance appraisal and employee productivity in Dangote Cement Company.

Hi: There is significant relationship between performance appraisal and employee productivity in Dangote Cement Company.

Hypothesis III

Ho: That the method of employee appraisal in Dangote Cement Company is not effective to enhance their productivity.

Hi:  That the method of employee appraisal in Dangote Cement Company is effective to enhance their productivity.

15     Significance of the Study

This research study will be of immense benefit to the Dangote Cement Company and individual employees.  It is expected that the study will help the company to know the training need of employee in order to enhance their productivity. When performance appraisal is appropriately carried out it will lead to increase in productivity and better service delivery in the organization. With this customer and clients will be better served.

The research work will serve as a frame work of reference to student in Business and Management profession and other related disciplines who might conduct inquire or research into similar field.

1.6    Scope of the Study

The study covers Performance Appraisal and Employee’s Productivity in an Organization with particular references to Dangote Cement Company, Obajana,  Kogi State.

1.7    Limitation and Constraints of the Study

This research work has certain limitations, which may likely delay or act as a hindrance to this research work. These include;

1. Time Constraints:- This is as a result  of allotted time frame  for the students to start and submit the complete project work done to other academic and extracurricular activities is not sufficient. Financial Constraints: There is no adequate fund for the researchers to carry out the research effectively and so have used limited resources at their disposal.
2. The investigation is therefore exposed to all irrelevant weakness of questionnaires such as, the respondent who may falsely or wrongly filled the questionnaire.
3. Problem of insufficient data

1.8    Definition of Key Terms

1. Appraisal:  A valuation by an authorized person(Yusuf, 2017)
2. Appraisal Assessment: The classification of someone or something with respect to its worth (Rjo, 2018).
3. Decision Making: Akinbowale (2018)  see it as a result arrived at by the judges even there is no clear winner at the end of the contest.
4. Employee productivity: Employee productivity (sometimes referred to as workforce productivity) is an assessment of the efficiency  of a worker or a group of workers (Benson, 2014).
5. Evaluation: Is an assessment such as an annual personnel performance review for a salary increase or bonus at a particular situation (Oberg, 2019).
6. Method:  Mackanizie (2017)  is the qualities of being well planned and organized, a particular way of doing something.
7. Organization: Adepoju et.al  (2018) defined as the process of identifying and grouping the work to be performed, defining and delegating  responsibility and authority and establishing relationships for the purpose of enabling people to work most  effectively together in accomplishing objectives.
8. Performance Appraisal:  Can be defined as the official assessment and score of individuals by their managers at, usually, an annual   review meeting ( Femoh, 2017).
9. Productivity:  Benson (2014) define productivity as a measure in relating the quality and quantity of output against the input provided by individuals to produce said output.
10. Techniques:  A particular way of doing something especially one in which you have to learn special skills. (Rjo, 2018).

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Full Project – Performance appraisal and employee’s productivity in an organization