ABSTRACT
Employee
performance appraisal and motivation goes together in determining employee and
organizational performance as well as competitiveness. Many organizations have
tried to promote employee motivation and performance but most of them have not
followed the requirement that could promote them. This study provides effective
methods of using employee motivation and performance.
The
study analyses various methods and approaches to integrate them. Five
hypotheses were postulated to find out if there is significant relationship
between employee motivation and employee performance, employee performance
appraisal and organizational performance, managers' appraisal skill and
employee motivation, and employee performance appraisal and employee training.
Questionnaires
were formulated based on based on the hypotheses and 130 questionnaires were
distributed to six branches of Wema bank in Lagos and Ibadan which 92% (120) of
the distributed questionnaires were retrieved. The questionnaires were analyzed
based on inferential statistical method of chi-square at 0.05 level of significance.
Findings
revealed that there is significance between employee motivation and performance
appraisal, and employees and organizational performance. The study recommends
that managers and organizations should engage in effective use of performance
appraisal and motivate their employees for organizational performance.
Keywords:
employee performance appraisal, employee motivation, employee performance and
organizational performance.
TABLE OF CONTENT
CHAPTER
ONE: Introduction
1.0
Introduction
1.1 Background of WEMA Bank
1.2 Statement of the problem
1.3 Aim and objectives of the study
1.4 Research questions
1.5 statement of hypothesis
1.6 Significance of study
1.7 Scope of study
1.8 Definitions of terms
1.9 Organization of the study
CHAPTER
TWO: Literature Review
2.0 Introduction
2.1 The concept employee performance appraisal
2.2 Purpose of performance appraisal
2.3 Criteria for an effective appraisal technique
2.4 Period of performance appraisal
2.5 Who should appraise?
2.6 Methods of performance appraisal
2.7 Choosing an appropriate performance appraisal method
2.8 The concept of employee motivation
2.9 Employee motivation theories
2.10 The relevance of motivation theories to
performance appraisal system
2.11 Performance appraisal in WEMA Bank
CHAPTER THREE: Research
Methodology
3.0 Introduction
3.1 Research Design
3.2 Population of study
3.3 Sample and sample procedure
3.4 Data collection instrument
3.5 Procedure for data analysis
CHAPTER FOUR: Data Analysis and
Presentation
4.0 Data analysis and discussion
4.1 Demographic characteristics of respondents
4.2 Analysis of research hypothesis
CHAPTER FIVE: Summary, Conclusion
and Recommendation
5.0 Summary
5.1 Conclusion
5.2 Recommendation
References
CHAPTER
ONE
INTRODUCTION
1.0
BACKGROUND TO THE STUDY
The relationship between appraisal
and motivation is one of the main concerns of an organization's management. For
organizations to achieve their stated objectives and goals, employees must have
appraised based on the basis of present or past performance, relative to the
organization so as to motivate them through feedback and encourage them to
perform above par or put in more efforts.
A performance appraisal is the
process of assessing workers performance in comparison to certain predetermined
organizational standards. Performance appraisal is a formal system of
measuring, evaluating and influencing an employee's job-related attributes,
behaviours and outcomes.
In some organizations, appraisal
results may be used to determine relative rewards in the firm - who should get
merit pay increase, bonuses, or promotions. Similarly, appraisal results can be
used to identify the poorer performers who may require some form of counseling,
training, demotion, dismissal or decreases in pay of the poor performance.
Interestingly, performance
appraisal is a very controversial managerial issue. Some researchers have
expressed doubts about the validity and reliability of the process. On the
other hand, there are advocates of performance appraisal who claim that it may
well be the most critical of all Performance Appraisal and Motivation.
Motivational research conducted by
the theorists including Elton Mayo and Frederick Taylor, have recognized the
power of recognition as an incentive performance appraisals provide employees
with recognition for their work efforts. The appraisal system provides the
supervisor with an opportunity to indicate to employees that the organization
is interested in their performance and development. This recognition can have a
positive motivational influence on the individual's sense of worth, commitment
and belonging.
Motivation is defined as a
psychological process that gives behaviour purpose and direction. Motivation is
seen as a very important aspect of an organization as it contributes to how
well it performs. This ultimately has an effect on organizations' corporate
objective. This includes attainment of higher market share and profit
maximization as a result of the employee of Permernace.
1.1
BACKGROUND OF WEMA BANK
Wema Bank Plc was formally known as
Agbonmagbe Bank and was incorporated in 2nd May 1945 as a private limited
liability company. It commenced business operations as a commercial bank in the
same year. The Bank was converted to a public limited liability company in
April 1987 and was subsequently listed on the floor of the Nigerian Stock
Exchange in JANUARY 1990.
On February 5, 2001, the Central
Bank of Nigeria granted a Universal Banking License to the Bank, thus allowing
the Bank to undertake a wide range of financial services to its numerous
customers across the country.
The Bank has witnessed tremendous
growth and development in branch network, quality of service delivery and
overall financial performance in the last two decades. The bank embarked on a
process of corporate transformation that has resulted in the emergence of a
restructured Wema Bank PIc, strategically positioned to fully optimize
opportunities in the industry.
Wema Bank Plc is adequately
capitalized, her shareholders' funds is in excess of N25billion and her asset
base is N165 billion. Presently, Odu'a Investment Company Limited holds 10%
equity stake in the Bank, while private individual investors and staff of the
Bank own the remaining 90%.
The authorized share capital of the
Bank is N7,000,000,000.00 divided into 14,000,000,000 ordinary shares of SO
kobo each.
With banking operations spanning
sixty years, Wema Bank PIc is reputed to the longest surviving indigenous bank
in Nigeria. Wema Bank Plc is a customer-focused bank and takes delight in
learning the intricacies of her customers businesses and preferences, thus her
byline "Together to greater heights".
1.2 STATEMENT OF THE PROBLEM
Most organization does not usually
do employee performance appraisal and motivation and the few that does these do
not use appropriate method of employee performance appraisal and motivation.
The inappropriate methods used by such organizations do not allow both the
employees and the organization to benefit well from the employee performance
appraisal and motivation strategy used. This study tends to look at effective
methods to use in appraising and motivating employee performance so that the
employees can have an improved performance to cope with the changes in the banking
industry using Wema Bank Plc as a case study.
1.3 AIM AND OBJECTIVES OF THE STUDY
The aim of the study is to
determine the significance of employee performance appraisal and motivation on
employees in the banking industry.
The
objectives are:
1.
To determine the significance of
employee performance appraisal on employee performance.
2.
To find out the relationship between
motivation strategy and employee performance.
3.
To examine the significance of performance
appraisal on organizational performance.
4.
To investigate the relationship between
managerial appraisal skills and employee motivation.
5.
To examine the relationship between
employee training needs and performance appraisal.
6.
To determine the skills required for appraising
employee performance.
7.
To provide plausible recommendations on
how performance appraisal can be improved.
8.
To investigate how needs and need
satisfaction operate to influence such variable as performance.
9.
To examine the behaviors of employees
when the goals set before them are not realistic.
10.
To check how performance appraisal is
conducted in Wema Bank Plc.
1.4 RESEARCH QUESTIONS
This aspect answer salient
questions that will bring into focus issues that need and required adequate
answers to justify the objective of the study. They are:
1.
Does performance appraisal method have any effect on employee performance?
2.
Does motivation strategy have any effect on employee performance?
3.
Is there any significant effect of performance appraisal on organization
Performance?
4.
Can poor managerial skill on performance appraisal affect employee Motivation?
5.
Can employee training needs be detected through performance appraisal?
1.5
STATEMENT OF HYPOTHESES
Hypothesis
1
Ho:
There is no significant relationship
between the organizational performance appraisal method and employee
performance.
HI:
There is significant relationship
between the organizational performance appraisal method and employee
performance.
Hypothesis
1
Ho:
There is no significant relationship
between employee motivation and employee performance.
HI:
There is significant relationship
between employee motivation and employee performance
Hypothesis
3
Ho There is no significant relationship between
employee performance appraisal and organizational performance.
HI:
There is significant relationship
between employee performance appraisal and organizational performance.
Hypothesis
4
Ho:
There is no significant relationship
between managerial appraisal skills and employee motivation.
HI:
There is significant relationship
between managerial appraisal skills and employee motivation
Hypothesis
5
Ho: There is no significant relationship between
employee performance appraisal and employee training.
HI:
There is significant relationship
between employee performance appraisal and employee training.
Where Ho is the full
hypothesis and HI is the alternative hypothesis.
1.6
SIGNIFICANCE OF THE STUDY
Performance appraisals and
motivation are seen as a very vital aspect of the organization between they
have psychological effect on employee performance which definitely contributes
to the organization performance. This ultimately has an effect on the organization's
corporate objectives which include the attainment of higher market shares and
profit maximization as a result of individual performance.
Motivation is worth analyzing
because it seems to be a very complex and confusing concept because people have
different attitude and goal. Therefore, appropriate motivation should be given
to individual employees.
Frequently, performance appraisals
are not objectively conducted. This often leads to bad result, employee
dissatisfaction, lack of employee motivation, unhealthy organization,
inter-alia.
The result of appraisal will
provide the management the information needed whether to train, develop,
praise, motivate through competence (promotion), or recognize the appraisee's
effort.
Hence, performance appraisal will
allow managers to make good judgements that will be helpful to both the
organization and the employees.
1.7
SCOPE OF STUDY
The research topic is restricted to
the financial industry. The case study as discussed in the company background
is Wema Bank and six of its branches in Lagos and Ibadan will be used for
gathering responses from her employees. The participants are limited to white
collar employees in the branches selected.
1.9 DEFINITION OF TERMS
The terms in this study may be
stated in technical terms and therefore needs to be defined:
Ø Appraisal
- Appraisal means evaluating an employee's current or past performance relative
to the person's performance standards. It is a formalized system and systematic
assessment of an individual's potential and identification of training needs.
Ø Appraiser/Evaluator
- Is a person who examines how well an employee is doing or has performed in
his or her job.
Ø Appraisee/Evaluatee
- Is an employee whose performance is being Examined .
Ø Employee
- Is a person who has entered into an agreement or works under a contract with
an employer whether the contract is for manual labor or clerical work or is
expressed or implied or oral or written in a contract of service to execute any
work or task.
Employer - An employer is a person
who enters into a contract of employment to employ a person as a worker either
for himself or for another person.
Ø Management
- Is a body that runs the activities of an organization
Ø Organization
- This is a unit where a person can put in his performance to get satisfaction
in any area and to seek the accomplishment of stated goals and objectives. It
is the coming together of people to achieve positive result or reward.
Ø Motivation
- It is a driving force that stimulate an individual i.e a worker into an
action he or she would not have exhibited in other to achieve organizational
objectives.
Ø Performance
- This is the action that people put into their jobs. It is an effort an
employee put into whatever he or she might be doing and the efforts are
determined by his or her abilities which later bring about a positive or
negative reward.
Ø Productivity
- Is reaching the highest level of performance with the least expenditure of
resources. It is the output resulting from a given resources input at a given
time.
Ø Employee Training
- Employee training is an organizational effort aimed at helping an employee to
acquire basic skills required for the efficient execution of the function for
which he is hired.
Ø Employee Development
- It deals with the activities undertaken to expose an employee to perform
additional duties and assume positions of importance in the organizational
hierarchy.
Ø Reward
- It is the compensation given to an employee in exchange for
Ø Promotion
- Is a movement to a higher or more important ranks or position.
1.9 ORGANISATION OF THE STUDY
The
study contains five chapters:
Chapter 1: Includes the
introduction, brief, history of the bank, statement of the problem, objective s
of the study, research questions, statement of hypo theses, scope of the study,
significance of the study, definition of terms and the organization of the study.
Chapter 2: Contains the review of
relevant literatures and relevance of the theories.
Chapter 3, Comprises the
restatement of research questions and hypotheses, research design, population
of study, sample and sampling procedures, data collection instrument, data
collection procedure for data analysis and limitation of the methodology.
Chapter 4: Contains the
respondents' characteristics and clarification presentation and analysis of
data according to research questions presentation and analysis of data according
to test of hypotheses and the discussion of findings.
Chapter 5: Includes the summary of
findings, conclusion and recommendations.
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