EFFECT OF PERFORMANCE APPRAISAL ON EMPLOYEE PERFORMANCE IN AN ORGANIZATION

CHAPTER ONE

INTRODUCTION

1.1            Background To The Study

Organization has no opinion to whether to appraise its personnel and their performance or not just as training is a must after procurement, so is the personnel appraisal. Therefore, it is inevitable that the performance of the hire personnel will be evaluated by someone. It has been established that the manager job is to achieve the predetermined result through its people. This is an exercise that required cooperative and term effort on the part of the managers and employee under him.

The test of an organization success is its abilities to create value sufficient to compensate for the burden imposed upon resource contributors. There are two categories of appraisal; the formal appraisal is relation and unduly in nature and the other informal appraisal. It is an assessment of a planned way; the planned approaches can be divided into system through which supervisor can appraise on person comparative basic (ranking person list etc) and those in which there is joint superior subordinate establishment and appraisal to position goals accomplishment. The formal appraisal relies on some training supervisor to rate objective through amending errors such as leniency, harshness basis and central tendency.

The informal on the other hand is a continuous assessment of an individual performance by his manager in his normal course of work, it is of an adhoc nature and its mainly determined by inactive felling as a fact of evidence of result it is normally a native product of the day to day relationship of the manager ad subordinate.

1.2            Statement of the Problem

The effects of performance appraisal on employee the employee performance appraisal is an important career development tool for the manager and employee. The manager can help guide the employee on the path to corporate advancement, and the employee gets a clearer understanding on what is expected from him or her in his / her daily duties performance appraisal have a wide varieties of effects on employees that managers must identify and understanding such effects are:

1)    Motivation: An employee performance appraisal can act as motivation for an employee to improve his productivity. When an employee sees his goals clearly defined, his performance challenges identified and career development solutions in places to help advance his career, the effect is to motivate the employee to achieve those goals. Creating a comprehensive plan for employee for employee development and give an employee achievements to strive for will inspire a higher level of efficiency.

2)    Charity: Employee performance their duties to the best of their abilities throughout the year base on guidance from management part of a performance appraisal is when a manager and employee review the job description and compare the employee’s performance with expectations. This gives the employee a feelings of clarity and understanding will help him better perform his job duties.

Common errors in performance appraisal

1. Take responsibility: To prepare for the annual review, a manager should keep note of all of the employee’s accomplishments and challenges throughout the year. When these are presented to the employee during the appraisal, it gives the employee the opportunity to benefit from her accomplishments and accept responsibility for the performance challenges. By claiming ownership of performance issues, the employee makes the process of career development a more personal commitment.
2. Team work: During a performance appraisal, a manager needs to take time to show the employee how his performance affects productivity of the entire organization. When employee understands how their performance affects the ability of others to do their jobs, it helps put his own job duties into an overall company contest. It helps improve the motion of teamwork among the staff and can also encourage age cooperation to achieve corporate goals.

The Effects Of Performance Appraisal On Organization: Performance appraisal doesn’t benefit only employees. Organizations that use the result of performance appraisal to identify areas of strength and opportunity can benefit as well performance appraisal can provide an indication of area of training need as well as direction for leadership development, performance improvement and succession planning.

Identifying Areas of Strength: The result of performance appraisal can be assessed to identify areas of strong performance across all employees by departments or by demographics. Standardized performance assessment allows companies to aggregate, calculate, and analyze results to show where performance is strong. These areas of strength then can serve as benchmark and opportunities for searching of best practices for other areas of the organization.

Identifying Training Needs: Evaluating the result of performance appraisals can provide managers, human resources department and organizations with an indication of where additional training and development may be necessary, says Lin Grensing-Pophal, author of “human resources essential” for instance, result may indication. The employees collectivity are scoring low on items related to use of technology or customer services. These may become target area for the creation and implementation of training programs designed to boost employee competence and performance. Results also may be assessed at the individual department and division levels.

1.3            Research Questions

The following was the research question gotten from the project topic, they include:

1. Does performance appraisal improve employees productivity in an organization?
2. Does positive appraisal yield better result than negative appraisal?
3. Does views of performance assessment differently depends on a particular needs and wants?

1.4            Objective of the Study

A company is always set up to meet up some predetermined task, which are the objectives. Their objectives being what should be of paramount in the mind at all concerned. It is blended into the day to day activities of the employees of an organization by the management tool called management by objective (MBO). This is harmonization of individual objective with group of company objective for easy goal attainment. The objectives of the company are as follows:

1. To provide conflict and other processed areas for both internal and external
2. To reduce its operative cost so that their products can get the market at moderate price.
3. Attempts to meet the rated capacity of the plant which is one hundred and thirteen thousand cases of Nigeria Bottling company conflates per annum.
4. To provide employment for the people in the locality and to educate the country in general to reflect the geographical irrelativeness of Edo State
5. To produce these conceal that satisfy’s both national and international standard.

1.5            Statement of Hypotheses

The formulation of research hypothesis for this study are:

1.  Informing workers of their rating will not help to improve performance.
2.  Positive appraisal does not yield better result in performance appraisal
3.  Views of performance assessment differently depend does not on the employee’s particular needs and wants.

1.6            Scope of the Study

Emphasis will be on key words of performance appraisal, its steps, process and problem that are involved and also effects of performance appraisal on productivity and training for improved performance and to be analyzed. Also a study on how employee’s appraisal is carried out by every department but is the personnel department which is one of the main functions.

Moreover, since this research work is limit to Nigeria bottling company, it is actually designed to assess the need for employee to improve their productivity it will also attempt to identify an appraisal of management by objectives.

1.7            Significance of the Study

The study of performance appraisal plays a vital role in the management and stability of any organization. It is important therefore, to undertake such a study since this constitute the main objective which serves as a means of improving employees productivity, it should be noted that the survival of a business rest on the efficiency of implementing the performance appraisal.

Though, this piece of study was written by the researcher and was based on both primary and consultation of the secondary data, its significant can be under stated.

1.8            Limitation of the Study

There is great need on the part of the researcher to reveal certain problems encountered in the course of writing this project. There were some constrains which as limiting factors are worth mentioning first, the issues of time there was not enough time for the researcher to adequately carry on indent worth. This was due to the high schedule of the school political impasses in this study.

Secondly, it was certainly not easy for the researchers to get vital information from the company understudy as they were termed confidentially. Most of the workers too declined accepting questionnaire.

Finally, in spite of these difficulties, a justifiable and acceptable work has done to this research work.

1.9            Operational Definition Of Terms

Productivity: This is the rate at which products are produced, especially in relation to the time, money and workers needed to produce them.

Performance Appraisal: This is a business meeting between a worker and their managers in order to discuss how well they are doing in their work comment; the positive involvement of participant to an organizations goal is the same view, negative involvement is seen as alienation.

Developing Individual: By advice information and attempt as shopping their behaviours by praise or punishment.

Product Liability: It is the duty of a company that makes or sell a product to pay if their product causes damage or injury product placement. It is the use of a company in a firm or television show a way of advertising the product.

Checking: The effectiveness of personnel procedures and practices.

Motivational Staff: This brings about reaching the organization standard and objectives.