ABSTRACT
The study determined the “Effect of Performance Appraisal on Employee Productivity of Selected Banks in Port Harcourt”The specific objectives include to examine the impact of workload evaluation on employee growth,establish the effect of task-base evaluation on organizational effectiveness,establish the effect of self-evaluation organizational efficiency,examine the relationship between performance appraisal and employees’ productivityA structured survey research design was adopted. The study used questionnaire method and simple random sampling techniques.Pearson Moment Correlation using frequency distribution table, and percentages was adopted to analyze the data collected.The major findings of the study reveal that there exists a positive and significant relationship between workload evaluation and employee growth. This is evidenced by coefficient value of 0.685; there exists a positive and significant relationship between task-base evaluation and organizational effectiveness. The coefficient of workload evaluation is 0.544;there exists a positive and significant relationship between self-evaluation and organizational effectiveness. This is evidenced by coefficient value of 0.752;there exists also a positive and significant relationship between performance appraisal and organizational productivity. The coefficient of human resource planning is 0.614; The Sig. value of low quality product of 0.032 is lower than 0.05 acceptable significance level. From the findings and conclusions drawn, the study recommended that employers should conduct interim appraisals as yardstick in checking employee’s performance. Employers should use employee inputs appraisal as a criteria for promotion of workers. Employers should reward employees with high density of performance after conducting appraisals such that business organization continuously improve the effectiveness of their performance appraisal management in order to accelerate their overall performance. And lastly, Total quality management is advocated in the departments of organizations in order to reduce low quality of products and services which reduces customers’ patronage.
TABLE OF
CONTENTS
Title Page
i
Declaration ii
Certification
iii
Dedication
iv
Acknowledgements
v
Table of Contents
vi
List of Tables
ix
List of Figure x
Abstract
xi
CHAPTER 1
INTRODUCTION
1.1 Background
to the Study 1
1.2 Statement
of the Problem 2
1.3 Objectives
of the Study 3
1.4 Research Questions 3
1.5 Research
Hypotheses 3
1.6 Significance of the Study 4
1.7 Scope of the Study 4
1.8 Limitations
of the Study 4
1.9 Definition
of Operational Term 5
1.10 Brief
Profile of the Study Area 5
CHAPTER
2
REVIEW
OF RELATED LITERATURE
2.1
Conceptual Framework 6
2.1.1
Definition of performance appraisal 6
2.1.2 Purposes of performance appraisal 6
2.1.3 Modern performance appraisal methods 8
2.1.4 Benefits
of performance appraisal 9
2.1.5 Difference between performance management and performance
Appraisal 11
2.1.6
Defining objectives 12
2.1.7 Problems with performance
appraisal 13
2.1.8 Key
features of effective appraisal 16
2.2
Theoretical Framework 24
2.2.1
Based anchored rating scales (BARS) 24
2.2.2
Trait Scales 25
2.2.3 Management by objectives (MBO) 25
2.2.4 Expectancy Theory 26
2.3 Empirical Review 26
2.4 Gap in Literature 29
2.5 Summary of Empirical
Reviewed Literature 29
CHAPTER 3
METHODOLOGY
3.1 Research Design 31
3.2 Sources of data collection 31
3.3 Population of the Study 31
3.4 Sample
Size Determination 32
3.5 Sampling Technique 32
3.6 Description of the Research Instrument 33
3.7 Validity of the Instrument 33
3.8
Reliability of the Instrument 33
3.9
Method of data Analyses 33
CHAPTER
4
DATA
PRESENTATION, ANALYSIS AND DISCUSSION
4.1 Data Presentation and Analysis 34
4.2
Demographic characteristics of the
respondents. 35
4.3 Presentation and analysis of the research
questions 36
4.3 Hypothesis Testing 39
4.5 Discussion of Findings 41
CHAPTER
5
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1
Summary of Findings 43
5.2 Conclusion 43
5.3 Recommendations 44
REFERENCES 44
APPENDIX 47
LIST OF TABLES
4.1: Distributed
and Collected Questionnaires. 34
4.2 Summary of the Demographic characteristics of the respondents 35
4.3 What is the impact of workload evaluation
on employee growth? 36
4.4: To what extent does task-base evaluation
affects organizational effectiveness? 37
4.5: To what extent does self-evaluation
affects organizational efficiency? 37
4.6 What is the relationship between
workforce appraisal and organization
performance? 38
4.7 Model Summary 39
4.8 ANOVAa 39
4.9 Coefficientsa 39
4.10: There is no significant impact of workload
evaluation on employee growth 40
4.11: There is no significant effect of task-base
evaluation on
organizational effectiveness. 40
4.12: There is no significant effect of
self-evaluation on organizational efficiency 40
4.13: There is no significant relationship between
performance appraisal and
employees’ productivity 41
CHAPTER ONE
INTRODUCTION
1.1
Background to the Study
As
an organization struggle to remain sustainable and competitive, strategic
planners and human resources professionals need to collaborate more intensely
in designing strategies that are productive and humane. According to many
researchers, the most successful organizations in the 21st century will be
those to adopt a focused and integrated HR processes and systems. The art and
science of empowering people, organizations and communities to create maximum
productivity, quality, opportunity and fulfillment has never encountered so
many challenges and opportunities (Grote, 2013). The enormous transformation processes that take
place in the social, political and economic areas drive the need for
organizations to become more responsive to the rapid development of the global
strategies and the local operational levels. Human Resource Management focuses
on personnel related areas such as job design, resource planning, performance
management system, recruitment, selection, compensations and employee
relations. Out of these one function plays a critical role for the global
success of the organization and this is performance evaluation. It is more
significant than other processes because its outcomes indicate the success of the
realization of the other areas in the field of Human Resources (recruitment,
selection, placement, adaptation, training of the employees and other personnel
activities). Building block for enhancing performance is creating a performance
culture and implementing the performance management process. Assumptions of
corporate management are that this culture makes people be truly engaged in the
business of the organization (Carrol & Schneir, 2012).
Performance
appraisal is one of the basic tools that make workers to be very effective and
active at work. A critical look out on this may bring about the need for
motivation, allowances, development, training and good human relationship in an
organization. Performance appraisal is defined as “a structural formal
interview between subordinate and supervisor, that usually takes the form of
periodic interview (annually or semi-annually), in which the work performance
of the subordinate is examined and discussed, with the view of identifying the
weaknesses as strengths as well as opportunities for improvement and
development”( Grote, 2013).
The
essence of performance for most organizations is delivering products and
services that meet or exceed customer expectations, thereby creating a
competitive advantage so that customers are retained and market share is
increased (Hucelid, 2015).
Another view is that a performing business is one that maximizes shareholder
value, thus maximizing the difference between input costs and revenue.
1.2 Statement of the Problem
Low
productivity is usually the negative effect of lack of performance appraisal,
absence of performance appraisal brings about staff low job performance. Labour
union always get into the matters of employees well-being at work and also in
their personal lives so that they can give their full at work. But some time it
has a negative impact on performance appraisal and the management to give
promotion or rise in the salary on the bases of seniority. The basic aim of
every business organization is to achieve its objectives, goals or targets
successfully. Goals set by organization will only be in vain if much attention
is not paid to employees’ effort or performance for successful accomplishment.
In other to achieve set goals and objectives successfully, there is the need to
focus on performance appraisal. Performance Appraisal should be linked to
attractive incentive to employees, enabling workers to demonstrate higher
productivity.
Most
organizations in the competitive market fail since their workers perform below
standard for they are not encouraged to work harder. Managers and employees are
the life blood of every business organization. If management does not invest
much into the welfare of their workers, problems are bound to rise leading to
industrial strike actions, low commitment to work, low morale and low productivity
of goods and services. Attractive appraisal systems are established by some
business organizations to help motivate their employees to strike hard to be
recognized and rewarded. Once employees are motivated, their performance
reflects on productivity. Employees strive hard by pooling together skills,
knowledge and efforts to achieve maximum output. Hence the essence of this
study is to assess the effect of Performance Appraisal on Employee Productivity
1.3 Objectives of the Study
The
main objective of this work is to determine the effect of
performance appraisal on employee productivity.
The
specific objectives of this study sought to;
1.
examine the impact of workload
evaluation on employee growth.
2.
establish the effect of
task-base evaluation on organizational effectiveness.
3.
establish the effect of
self-evaluation organizational efficiency.
4.
examine the relationship
between performance appraisal and employees’ productivity
1.4 Research
Questions
The
following research questions have been formulated for the study;
1.
what is the impact of workload
evaluation on employee growth?
2.
to what extent does task-base
evaluation affects organizational effectiveness?
3.
to what extent does
self-evaluation affects organizational efficiency?
4.
what is the relationship
between performance appraisal and employees’ productivity?
1.5 Research Hypotheses
The
following research hypothesis will guide the study;
H01: There is no significant impact of workload
evaluation on employee growth.
H02: There
is no significant effect of task-base evaluation on organizational
effectiveness.
H03: There
is no significant effect of self-evaluation on organizational efficiency.
H04: There
is no significant relationship between performance appraisal and employees’
productivity.
1.6 Significance
of the Study
The
results of this study will be useful to the following group of people:
Management
To
management of manufacturing companies the study will help them to understand
the factors which influence performance appraisal. This will help the company
to adopt better appraisal methods.
Employees
The
results of the study will be useful to the labour movements and unions as they
negotiate with management. Their understanding of the factors that affect
employee appraisal will increase their negotiation and effectiveness of wage
bargaining.
Researchers
The
research will provide theoretical and empirical input to the body of knowledge
in the factors which affect performance appraisal. Further researchers who will
wish to extend studies on this would find the report useful as a reference
point.
1.7 Scope of the Study
The study focused on the banking sector.
The scope of the study covers only selected banks in Port Harcourt Rivers
State. Thus, the focus of the study is on effect of performance appraisal on
the performance of employees in Nigeria. However, to facilitate a sound grasp
of the subject matter within the thought framework of the objectives of the
study, the scope of the study covered such issues as the concept of perception
of managers, employee training, and human resource planning.
1.8 Limitations of the Study
The major
limitation encountered during the study was the level of heterogeneous result
from past studies in terms of uniformity.
Also data needed for the study were mainly secondary data, the
researcher not minding the resource constraint ensured that data used was from
direct sources.
Other
limitations include combining the research with other socio-political
activities in other to balance the researchers’ relationship with loved ones
and also ensuring not to deter the quality of the research.
1.9 Definition
of Operational Term
Organization: A social unit of people that is
structured and managed to meet a need or to pursue collective goals.
Management: Management is made up
of top and middle level management. Top management includes: shareholders,
board of Directors managing, Director or the chief Executive/General manager
(i.e. management above departmental level) middle management includes heads of
Department, managers, Deputy and Assistant managers.
Appraisal: Joint consultation in evaluating
the performance and output of members of the workforce.
Performance: The accomplishment of a given task
measured against preset known standards of accuracy, completeness, cost, and
speed. In a contract, performance is deemed to be the fulfillment of an
obligation, in a manner that releases the performer from all liabilities under
the contract.
Productivity: The state of being productive,
fertile or efficient. It can also be defined as the rate at which goods and
services are produced by a standard population of workers.
1.10 Brief
Profile of the Study Area
The organizations under
study are First Bank and Access Bank Plc both in Port Harcourt Rivers State.
FIRST
BANK PLC
The
organization has total staff strength of 84 employees of selected branches in
Port Harcourt. The main activity of the organizations is to accept deposit, make
payment and perform other baking and financial intermediation roles. First Bank
Plc is a commercial bank that performs various financial services like
FirstOnline(E-banking), FirstMonie(Mobile banking), First Savings Plus, Xplore
First, MeFirst, KidsFirst, Diaspora Banking, Domiciliary Banking, Fixed
Deposits Account, Automobile Loan, Agricultural Development Trust Fund Credit
and so much more
Hence,
the organization operates in the banking sector of Nigeria. First bank as Nigeria's leading bank
is a quoted company whose shares are traded in the Nigerian Stock Exchange.
ACCESS BANK PLC
The total number of the employees from the
selected branches in Port Harcourt is 92. Access Bank accepts deposit, makes
payment and performs other baking and financial services. Access
Bank Plc. is a leading full-service commercial Bank operating through a network
of more than 600 branches and service outlets, spanning three continents, 12
countries and 31 million customers. The Bank employs 28,000 people in its
operations in Nigeria and has subsidiaries in Sub-Saharan Africa and the United
Kingdom (with a branch in Dubai, UAE) and representative offices in China,
Lebanon and India.
Listed
on the Nigerian Stock Exchange since 1998, Access Bank is a diversified
financial institution which combines a strong retail customer franchise and
digital platform with deep corporate banking expertise and proven risk
management and capital management capabilities. The Bank serves its various
markets through four business segments: Retail, Business, Commercial and
Corporate. The Bank has over 900,000 shareholders (including several Nigerian
and International Institutional Investors) and has enjoyed what is arguably
Africa's most successful banking growth trajectory in the last twelve years.
Following its merger with Diamond Bank in March 2019, Access Bank became one of
Africa’s largest retail banks by retail customer base.
As part of its continued
growth strategy, Access Bank is focused on mainstreaming sustainable business
practices into its operations. The Bank strives to deliver sustainable economic
growth that is profitable, environmentally responsible and socially relevant,
helping customers to access more and achieve their dreams.
In honour of its
defining roles across the African continent, Access Bank has been accorded
recognition by reputable domestic and global organisations. Most Sustainable
Company in Africa”, 2019 CEO Awards Forum “Gender Leader of the Year” just to
mention a few.
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