Abstract
This research
study tends to examine the assessment of appraisal techniques of
organizations in Nigeria with special reference to the Nigerian Custom Service. Many
organizations are experiencing low productivity due to lukewarm attitudes of
their management to performance appraisal system. This study outlines the benefits that can be
derived from the use of the performance appraisal system if it is properly
administered to staff.
Data used in this research were sourced through primary
means with the aid of a well-structured questionnaire. A sample of fifty (50)
respondents were drawn from the population with the aid of simple random
sampling technique to eliminate biasness in the selection.
For the purpose of this research, four (4) hypotheses were
formulated and tested with the aid of Chi-square analysis. Data gathered were
also presented on table using a simple percentage.
The
analysis shows that reward has significant influence on the commitment of
comptrollers of the Nigerian Customs Service and training influences employees’
innovation and motivation, also, promotion has effect on the productivity of
comptrollers of the Nigerian Customs Service.
Conclusion was
drawn that performance appraisal has the potential of improving staff
performance if it is organized well thereby contributing to organizations
productivity and growth. Recommendations were proffered to the Nigerian Customs
Service, some of which include; needs to takes a second look at its performance
appraisal system so as to make it more effective to achieve the purpose for
which it was instituted. In this regard, the researcher has recommended the
following which Management of Nigerian Customs Service; Management of Nigerian
Customs Service should put all the necessary structures in place to make
performance appraisal more effective; all the stakeholders such as appraisers
and appraises and consultants should be involved in the process of performance
appraisal. It is highly recommended that
feedback should be given to all appraises since it is an important component of
performance appraisal.
TABLE OF CONTENTS
Pages
Front Page
i
Certification
ii
Dedication
iii
Acknowledgment
iv
Abstract
v
Table of Contents vi
CHAPTER
ONE
INTRODUCTION
1.1 Background
to the Study 1
1.2 Statement
of the Problem 3
1.3
Objectives of the Study 4
1.4 Research
Questions 4
1.5 Research
hypotheses 5
1.6 Scope
and Limitations of Study 5
1.7 Significance
of the Study 6
1.8 Definition
of Key Terms 6
References 8
CHAPTER
TWO
LITERATURE
REVIEW
2.1 Introduction 10
2.2 The Conceptual Framework 10
2.2.1 Performance
Appraisal and Related Variables 13
2.2.2 Performance
Appraisal and Employees performance 16
2.2.3 Performance
Appraisal and Feedback 16
2.2.4 Problems in
Performance Appraisal 17
2.2.5 Conceptual Model 18
2.3 Theoretical
Framework 19
2.3.1 Equity Theory 19
2.3.2 Goal-setting Theory 20
2.3.3 Expectancy Theory 20
2.3.4 Motivational Theory 20
2.4 Empirical
Framework 21
2.5 Approaches
/ Techniques of Performance Management
24
2.5.1 Traditional Approach 24
2.5.2 Modern Approach 25
2.6 Brief
History of Nigeria Customs Service 27
References
32
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Area of Study
36
3.2 Research Design 36
3.3 Population of Study 36
3.4 Sample Size and Sampling Technique 36
3.5 Re-Statement of Research Hypotheses 36
3.6 Sources of Data Collection 37
3.7 Instrument of Data Collection 37
3.8 Validity and Reliability Test 38
3.9 Methods of Data Analysis 38
3.10 Limitations
of the Research 39
3.11 Perceived Conclusion 39
CHAPTER FOUR
DATA ANALYSIS FINDINGS AND DISCUSSIONION
4.1
Introduction 40
4.2
Personal
Characteristics of the Respondents 40
4.3
Response
of Respondents to the Problem Areas. 43
4.4 Testing and
Interpretation of the Hypotheses 50
4.4.1 Analysis
of Hypothesis One 50
4.4.2 Analysis
of Hypothesis Two 52
4.4.3 Analysis
of Hypothesis Three 54
4.4.4 Analysis
of Hypothesis Four 56
4.5 Discussion of the Findings 57
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary
of the Findings 59
5.2 Conclusion 60
5.3 Recommendations 60
5.4 Proposal for Further Studies 62
References 63
Appendix:
Questionnaire 67
CHAPTER
ONE
INTRODUCTION
1.1 Background to the Study
Performance
appraisal is one of Human Resource Management Practices (HRMP) that has been
well researched in both developed and developing countries and it has equally
been identified as a strong motivator. Performance appraisal is considered as
important human resource function because performance appraisal results are
used for managerial decision making and for variety of other purposes including
administrative decisions, employee development and personnel research (Muhammad
& Surayya, 2013). According to Fletcher (2001), performance appraisal has
increasingly become part of a more strategic approach to integrating human
resources activities and business policies which can be seen as a generic term
covering a variety of activities through which organizations seek to assess
employees and develop their competence, enhance performance and distribute
rewards. In the same vein, Anso (2014) attests that performance appraisal has
emerged as a tool for enhancing organisational growth and professional
development. Performance appraisal is a continuous process through which
performance of employees is identified, measured and improved in the
organization. This process includes various practices like identification of
employees’ strengths and weaknesses, providing them regular feedback and
offering career development (Aguinis, 2007).
Grubb (2007) also sees performance appraisal as a process of assessment
individual employee’s performance and how it can be improved to contribute to
overall organization’s performance.
Human resource is
the most valuable asset having the greatest potential in determining the
statuesque of an organization in today’s competitive business world (Belete,
Tariku & Assefa, 2014). In order to survive and wax stronger in this global
competition, employees have to be motivated through performance appraisal
system (Kumbhar, 2011). In line with
this assertion, Grote (2011) observes that an organization without a suitable
and consistent performance appraisal will experience failure and poor
performance of its employees. Chemeda (2012) also opines that to continue enjoying efficiency and effectiveness of members
of staff, each organization has to carry out employee performance appraisal
from time to time so as to keep them in check and replace, motivate, retain or
take any other appropriate action.
The importance of
performance appraisal in contemporary business organizations cannot be
overemphasized. Some view it as potentially "the most crucial aspect of
organizational life” (Lawrie, 1990). Performance appraisal has increasingly
become an integral part of the human resource function of any profit - making
organization.
Performance
appraisal when practised effectively, to a larger extent can contribute to
growth of an organization. According to Macmillan English Dictionary for
Advanced Learners (2002), "growth is an increase in the success of a
business or a country's economy or in the amount of money invested in
them". Any profit-making organization will seek to achieve growth in terms
of sales, profit or expansion through performance.
Growth has been
ingrained in Americans as "the path of success". Organizational
growth cannot be a reality if the performance of its workers is not appraised
for an improvement or reinforcement of performance. According to Donegan
(2002), "success will to a larger extent depend on the organization's
ability to evaluate progress and also hold accountable those charged with
executing certain tasks". This is exactly what performance appraisal seeks
to do. It aims at evaluating the performance of the worker against standard set
thereby taking corrective actions if necessary.
In many
organizations performance appraisal is used for the purpose of administering
wages and salaries after feedback had been given to the worker. The appraisal
also helps management to identify individual employee's strength and weakness.
The latter will lead to training and other measures to correct
inefficiencies.
Performance
appraisal may be viewed as an overall measure of organizational effectiveness.
Organizational objectives are met through the efforts of individual employees.
Teaching employees how to do their jobs and evaluating their performances are
strategic human resource function and for that matter should not be relegated
to the background.
"Maximizing
performance is a priority for most organization today", Mathis et a1
(2004). It is then obvious that performance appraisal as a management tool is
cardinal to contributing to organizational success. If employee performance is
improved, the organization raises it performance in terms of meeting it
objectives. On the other hand, if employee performance is not improved it
adversely affects performance hence organizational productivity.
Performance
appraisal cannot exist independently. It needs to be closely linked to set
standards by managers and supervisors. This will in the end have direct effect
on the main goal of the organization. There is the need therefore to have a
well-defined appraisal system in organizations to enable management know how
well individual workers are performing on their job and if there is the need to
improve performance or reward performance.
It is a well known
fact that the growth and success of an organization to a very large extent
depends on the performance of its employees which could be measured by
performance appraisal. It could therefore be said that performance appraisal is
a key elements in today's competitive era of business.
Just as any other
industry, it is important to note that the Nigerian Customs aim at efficiency
and as a result of the role performance appraisal plays in organizations, the
researcher attempted to find out how management uses performance appraisal as a
management tool to assess and improve the performance of its officers thereby
contributing to the productivity, growth and success of the Nigerian Customs.
1.2 Statement
of the Problem
Many
organizations experience low productivity despite their acclaimed effective
performance appraisal system (Armstrong, 2006).
In Nigeria, many organizations are experiencing low productivity and
performance due to ineffective appraisal system. Performance
appraisal is viewed and conducted solely in terms of its evaluative aspect
thereby overlooking its use for facilitating growth and development in workers
through training, coaching, counselling and feedback of appraisal information
(Asamu, 2013). The inability of many organizations to install an effective
performance appraisal strategy has hindered them from achieving competitive
advantage (Obisi, 2011).
Management of
organization tends to view performance appraisal as a punitive measure. This
makes it lose its objective sand 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 and jettisons all hindrance that tends to hinder productivity. But it
is being used as a tool for subordination oppression, victimization and
exploitation. Despite the veritable 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.
1.3 Objectives of the Study
The general objective of this study is to assess the performance
appraisal techniques of organisations in the Nigerian Customs Service. Other
specific objectives include;
i
To investigate the performance appraisal
techniques adopted in the Nigerian Customs Service.
ii
To examine if reward significantly
influence the commitment of officers
iii
To determine the influence of training on
employees’ innovation and motivation
iv
To assess the effect of promotion on the
productivity of workers in Nigerian Customs Service.
v
To examine the influence of managerial
decision on the productivity of officers in the Nigerian Customs Service.
1.4 Research
Questions
In
order to achieve the purpose of this research study, the study will attempt to
provide answers to the following research questions in order to arrive at a logical conclusion
i
In what ways has reward significantly
influence the commitment of officers of Nigerian Customs Service?
ii
What is the influence of training on officers’
innovation and motivation?
iii
How has promotion affected the
productivity of Officers of the Nigerian Customs Service?
iv
To what extent has the role of feedback
improve the organizations competitive positioning?
vi
To what extent has managerial decision
influenced the productivity of officers in the Nigerian Customs Service?
1.5 Research hypotheses
To
provide answer to the research questions arising from this study, the following
hypotheses are postulated:
Hypothesis
One
H0: Reward does not have any significant
influence on the commitment of officers of Nigerian Customs Service
H1: Reward has significant influence on the
commitment of officers of Nigerian Customs Service.
Hypothesis
Two
H0: Training does not have influence on
employees’ innovation and motivation
H1: Training influences employees’ innovation
and motivation.
Hypothesis
Three
H0: Promotion has no effect on the
productivity of Officers of the Nigerian Customs Service
H1: Promotion has effect on the productivity
of Officers of the Nigerian Customs Service
Hypothesis
Four
H0: Managerial decision does not have
influence on the productivity of officers in the Nigerian Customs Service
H1: Managerial decision has influence on the
productivity of officers in the Nigerian Customs Service
1.6 Scope and Limitations of Study
The
premise on which this study is based is to assess the appraisal techniques of
organisations in Nigeria with special reference to the Nigerian Customs
Service. Due to the large scope of the Nigerian Customs, the study covers one
area command ‘Apapa Area Command’ of Zone ‘A’ Lagos state.
Limitations
In
the course of conducting this research work it is envisaged that the following
will constitute impediments to the effective conduct of the study
a) Time
constraint within which the study must be completed.
b) Financial
constraint
c) Inaccessible
and inadequate data
d) Also,
combining project work with several other activities is another stressful task
that may not allow me to cover research materials extensively.
Nevertheless,
I believe the above limitations will in no way affect the reliability and
validity of the research study.
1.7
Significance of the Study
According to
Mullins (2002), "The underlying objective of performance appraisal is to
improve performance of individuals leading to improvement in the performance of
the organization as a whole". An effective appraisal scheme therefore
offers a number of potential benefits to both the individual and the
organization. It is important therefore that, for the desired benefits of
performance appraisal to be achieved, the challenges that it poses during the
process need to be identified and addressed.
The role of Nigerian
Customs Service on the economic growth and development of the nation cannot be
a mere exaggeration. It is in this regard that the researcher attempted to
undertake a study to assess how management of
Nigerian Customs Service evaluate the performance of its workers thereby
contributing to its productivity and growth and also essentially, providing
revenue to the country. The study also offered some suggestions and
recommendations to the Authority. This will help management to take good
decisions and identify strategies that will help improve worker performance to
enhance growth.
1.8 Definition of Key Terms
Performance
Appraisal: Refers to the process by which employees are
evaluated on the task assigned them after a given time in order to find out
their strengths and weaknesses.
Under-Performing
Employees: Refer to those employees who perform below average or
those employees who normally do not meet targets set for them.
Growth:
This refers to the general improvement of performance of the organization.
Appraisers:
They are managers, superiors, or supervisors who have employees working
directly under them.
Appraises:
They are employees or subordinates who are appraised.
Measurement: assessing performance
according to agreed objectives and assessing employee behaviors and attitudes
to their values;
Feedback: informing the employees on their achieved
levels of performance, while mentioning the issues which should be enhanced;
Positive reinforcement: giving constructive criticism on what
should be improved;
Exchange of views: providing a discussion on work results and
how employees should be supported by managers to achieve their aspirations in
relation to their future career;
Agreement: achieving a common agreement between
managers and employees on what needs to be done to improve and sustain
performance
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