THE IMPACT OF PERFORMANCE APPRAISAL ON EMPLOYEE PERFORMANCE
Abstract
This work was set out to find the relationship between employee appraisal and employee performance. In doing so, other objectives were to ascertain the impact of performance standard appraisal scale, actual work performance appraisal (rating), and the influence of feedback on employee performance. These concepts aforementioned were described in detail with respect to their relationships with each other. The survey research design was employed in this study using questionnaire as a mean of collecting data. Descriptive statistics such as frequency tables, percentages analysis, mean, standard deviation, and standard error mean, and inferential statistics such as multiple regression and correlation served as the techniques for analyzing data. This concludes that performance appraisal that facilitates feedback on job performance appear to offer employee’s sense of personal responsibility and knowledge on their level of performance which is critical factors for eliminating deficiency. Performance appraisal helps to uncovered employees strength, weakness and required training to overcome such weakness to mobilize the best possible efforts and increase managerial effectiveness.  
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
      Background to the Study    -
1.2       Statement of Research Problem    -    -    
1.3     Research Questions    -    -    -
1.4       Objectives of the Study    -    -
1.5    Research Hypotheses    -    -    
1.6    Significance of the Study    -    
1.7     Scope of the Study    -    
CHAPTER TWO: LITERATURE REVIEW
2.1     Introduction    -
2.2    Employee Performance    --    
2.3    Dimensions of job performance    -    -
2.4     Factors Affecting employee performance    -    -
2.5    performance Appraisal    -    -    
2.6    Importance of Performance Appraisal    
2.7    Techniques for performance Appraisal Assessment    -
2.8    Procedure for Evaluation Performance Appraisal
2.9    Common Problems in Performance Appraisal
2.10     Strategies to Improve the Effectiveness of Performance Appraisal    30
 2.11 Empirical Studies on Relationship between Performance
Appraisal and Employee Performance    
2.12 Theoretical Framework    -    -    
2.13 Conceptual model for the study    -    -
CHAPTER THREE: METHODOLOGY
3.1 Introduction    -    -    -    -
3.2 Research Design    -    -    
3.3 Population    -    -    -
3.4 Method of Data Collection
3.5 Sources of Date    -    -
3.6 Method of Date Analysis    -
3.7 Model Specification    
3.8 Limitation of the Study    -
CHAPTER FOUR: DATA PRESENTATION, ANALYSES AND INTERPRETATION
4.1     Introduction    -    
4.2     Demographic Data on the Respondents
4.3     Employee Performance    
4.4     Dimensions of Performance Appraisal    
4.5    Correlation Analysis Result    -
4.6     Model Estimation and Interpretation    -
4.7     Hypotheses Testing    -
4.8     Discussion of Findings    
CHAPTER FIVE: SUMMARYOF FINDINGS, CONCLUSION AND RECOMMENDATIONS
    Introduction    -    -
    Summary of Findings    -    
5.3     Contributions to Knowledge    -
5.4      Conclusion    
     Practical Recommendations    -
5.6     Suggestions for Further Research    
REFERENCES    -
APPENDIX A    -
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Performance appraisal has been increasingly been employed to create strong business results by organisations in Nigeria. One factor that has spurs the unprecedented used of performance appraisal in most organizations in Nigeria is the intense competition occasioned by globalization (Ojokuku, 2014). According to Ojokuku 2014), globalization has brought in fast pace of change in business environments including struggle for resources and markets which require organizations to constantly evolves ways to compete favorably and survive in the fast pace of change through setting target for employees and appraising their performance.
Performance appraisal entailsformal assessment and rating of individuals’ performance by their superiors usually during an annual or semi-annual review meeting with a view to providing feedback on how performance needs to be improved and needed changes that are required in employees behaviour, attitudes and job knowledge as well as reward employees based on their performance through pay increase, promotion and other financial and non financial incentives (Asamu, 2013).  
However, it has been documented that most performance appraisal systems are characterized with errors and the rater or assessor of employee job performance subjectively engage in halo effect, leniency, undue favoritism and nepotism when appraising subordinates especially in the Nigeria organizations (Bekele, Shigutu and  Tensay, 2014).Obisi (2011) opined that performance appraisal in most Nigerians’ organization are conducted solely in terms of its evaluative aspect only, is done to hunt employees, hence characterized with naturally bias based on ethnicity, halo effect, leniency, intentional manipulations, gender, religion, undue favoritism and nepotism. Many organizations in Nigeria that appraise their employee place more emphasis on interpersonal relationship and ‘‘godfathers’’ rather than the actual work done. Ojokuku (2014) also lamented employees appraised sometimes do not receive timely and satisfactory feedback and reward based on job done. These views made Akpanim (2013) to note that the real challenge of performance appraisal in the Nigeria organizations does not lie in appreciating the value of concept but in turning the concept into a practical reality. He further posit that when the standard of performance assessment is fair and accurately design and the rated is free of bias, objective and open minded when using it to assess actual job performance and effectively provide feedback on the job performance, the organizations is likely to ripe the benefits of appraising employees in terms of higher performance.
From the forgoing, it appears that satisfaction with performance appraisal engender employee performance. Satisfied employees tend to be more committed, creative, and more productive to their organizations (Bebenroth& Ismail, 2014). Organization that increases its employee’s satisfaction with performance appraisal and also increase it performance.
Employee performance refers to the behaviour individuals engage themselves in or produce that are in line with and contribute to an organization’s goal (Ikyanyon&Ucho, 2014). It is more of actions rather than feeling derive from job and thus encompasses the efficiency and effectiveness that employees demonstrate in carrying out task in workplace. Extant literatures opined that high performing organizations are more likely to survive and compete favorable in this ever changing and competitive business environment (Saari, & Judge, 2014). They are more likely to have higher customer satisfaction and market share. However, in achieving this, the organization needs to have effective performance appraisal methods. Organizations that create work environment that attract, motivate and retain hard-working individuals will be better positioned to succeed in a competitive national and global environment that demands quality and cost-efficiency. These many organizations in Nigeria undermine perhaps because of little empirical information and failure on the part of practitioners and employer of labor in the country to understand the significant role satisfaction with performance appraisal plays on employee’s behavior or outcomes particularly performance. Indeed, study indicated that few practices (and few organizations) have made appraisal methods a top priority in motivating employees to performance (Ohiwerei, Ohiole&Emeti, 2011) probably because of failure to understand the significant opportunity that lie in the application of equity theory of performance appraisal among human resource practitioners in Nigeria. Inability to ensure equity, fairness and justice in appraisal methods may not only lead deviant behavior such as stealing and bribery which are incongruent with the organizational philosophy but also underperformance.
Statement of Research Problem
It has been suggested that performance appraisal affect job satisfaction, employee commitment and other work outcomes (Ojokuku, 2014).  But most previous studies on performance appraisal were conducted outside Nigeria.  Even the few studies done on performance appraisal in Nigeria paid little attention on how it affects employee performance (Obisi, 2011). This study therefore fill these gaps by empirically investigated the effect of performance appraisal on employee performance.
In extant literatures, Bekele, Shigutu and Tensay, (2014) employed descriptive analysis to demonstrated that performance appraisal practice in banking industry positively impact on affective organizational commitment, work performance but negatively and significantly influence employees’ turnover intention. In addition, Kamencu (2013) conducted study on performance appraisal in public organization in Kenya and found positive relationship between the effectiveness of performance appraisal systems and organizational commitment. Fakharyan, Jalilvand, Dini and Dehafarin, (2012) also examined appraisal methods in banking industry and showed that  when employees discovered that their assessors rate performance ratings low, they engage in procedural justice evaluation, including perceptions of group value and perceptions of voice mechanism, to determine whether the way they were ratings are fair. If they think the low ratings are fair, they improved their performance, while if they consider the ratings unfair, their performance will decrease. Similarly, Vignaswaran (2005) conducted study on the relationship between performance appraisal satisfaction and employee outcomes in public organization and found that the level of employees’ satisfaction with performance appraisal is low; the level of affective organizational commitment is low. The study also shows that performance appraisal satisfaction is positive but weakly correlated with work performance, highly correlated with affective organizational commitment and negatively correlated with turnover intention.
A carefully examination of prior studies, appears that most of them focused on performance appraisal in banking industry and public organizations with little or no attention on brewery  sector. This study bridges these gaps by empirically examined the effect of performance appraisal and employees performance in brewery industry.  
1.3    Research Questions
Specifically, the study sought answers to the following research questions.
To what extent does standard of performance appraisal affect employee performance?
To what extent does actual work performance appraisal (rating) influence on employee performance?
To what extent does feedback on job performance influence employee performance?
To what extent do performance based reward influences on employee performance?
1.4    Objectives of the Study
Specifically, the study sought, to:
ascertain the influence of performance standard appraisal scale on employee performance;
investigate the effect of actual work performance appraisal (rating) on employee performance;
determine the influence of feedback on job performance on employee performance; and to
ascertain the influence of performance based reward on employee performance.
1.5    Research Hypotheses
These hypotheses include:
    The following hypotheses will be formulated for the study:
Ho:    There is no significant relationship between performance standard appraisal and employee performance
H1:    There is a significant relationship between performance standard appraisal scale and employee performance.     
Ho:    There is no significant relationship between actual work performance appraisal (rating) and employee performance
H1:    There is a significant relationship between actual work performance appraisal (rating) and employee performance.
Ho:    There is no significant relationship between job performance feedback and employee performance
H1:    There is a significant relationship between job performance feedback and employee performance
Ho:    There is no significant relationship between performance based reward and employee performance
H1:    There is a significant relationship between performance based reward and employee performance.
1.6    Significance of the Study
The study focuses on the impact of performance appraisal on employee performance, an area that hitherto received attention in the extant literature (Ojokuku, 2014). Therefore, this study is significant to human resource practitioners, academics and students in several ways.
First, the findings of the study will immensely contribute to the available sources that practitioners could rely on when embarking on drawing a comprehensive human resource programs or design and other organizational policies and plans that will aid higher organizational performance.
The study will also provide evidence that will serve as a guide to practitioners on key human resource issues relating performance appraisal (e.g. existing standard of measuring performance, nature of goals set for employees, type of feedback and training provided for them) that need improvement and ones been properly practice.
In addition, the study is significant as it hope to add to a body of knowledge that will serve as valuable resource for scholars in Nigeria and elsewhere who may be interested in embarking on further research work on this subject matter.
1.7 Scope of the Study
The scope of any research study is defined in terms of its geographical coverage, content and time (Cooper, & Schindler, 2003). In respect to geographical coverage, the study will be delimited to employees in Guinness Nigeria, Benin City. In terms of content, the study focuses on the impact of performance appraisal with specific reference performance standard assessment scale, actual work performance assessment (rating), feedback on job performance, performance based reward(pay and  promotion) on employee performance. Also in terms of time, a cross sectional time study will be done.