EFFECT OF PERFORMANCE APPRAISAL STRATEGIES ON EMPLOYEE EFFECTIVENESS (A STUDY OF SELECTED TERTIARY INSTITUTIONS IN ABIA STATE)

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ABSTRACT

This study focused on the effect of performance appraisal strategies on employee effectiveness, a study of selected tertiary institutions in Abia State. The specific objectives were to; examine the effect of technological aided performance appraisal strategy on employee performance of the selected tertiary institutions in Abia State, ascertain the impact of employee self-assessment strategy on employee effectiveness of the selected tertiary institutions in Abia State, determine the effect of 360-Degree feedback on employee productivity of the selected tertiary institutions in Abia State and determine the challenges of performance appraisal in the selected tertiary institutions in Abia State. The study was guided by a descriptive survey design because it gives detailed information about issues, problems, events and describes events as they are. Both primary and secondary data were used. The population of the study was 9012 of teaching and non teaching employees and the sample size of 383 respondents was obtained using Taro Yamane technique. The researcher used questionnaire for data collection. The data gathered for the study were analyzed using descriptive analysis. Pearson correlation, independent sample test and Pearson Chi square was used to test hypotheses with the aid of statistical packages for social sciences (SPSS). The study showed that technological aided performance appraisal strategy had significant effect on employee performance. The findings also revealed that there was significant impact of employee self-assessment strategy on employee effectiveness. Thirdly, the study showed that 360-Degree feedback had significant effect on employee productivity. Finally, the result of the study discovered that ineffective performance appraisal system and incompetent leadership were among the challenges of performance appraisal in the selected tertiary institutions in Abia State. The researcher recommended that Nigeria tertiary institutions should improve on their technological aided performance appraisal strategy in order to boost their institutional survival.








TABLE OF CONTENTS

Title page                                                                                                                                i

Declaration                                                                                                                             ii

Certification                                                                                                                           iii

Dedication                                                                                                                              iv

Acknowledgements                                                                                                                v

Table of Contents                                                                                                                   vi

List of Tables                                                                                                                          ix

List of Figures                                                                                                                         x

Abstract                                                                                                                                  xi


CHAPTER 1

1.0       INTRODUCTION

1.1       Background of 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       Significance of the Study                                                                                           5

1.7       Scope of the Study                                                                                                      6

1.8       Limitations of the Study                                                                                             6

1.9       Operational Definition of Terms                                                                                7

1.10     Brief History of Organization under Study                                                                9


CHAPTER 2  

2.0       REVIEW OF RELATED LITERATURE     

2.1       Conceptual Framework                                                                                              10

2.1.1    Performance Appraisal                                                                                               12

2.1.2    Overview of Performance Appraisal                                                                          12

2.1.3    Purpose of Performance Appraisal                                                                             13

2.1.4    Types and Approaches to Performance Appraisal                                                     15

2.1.4.1 Appraisal Performance Target                                                                                   16       

2.1.5    Performance Appraisal Process                                                                                  17

2.1.6    The Design of Performance Appraisal System                                                          20

2.1.7    Effective Performance Appraisal System                                                                   22

2.1.8    Performance Appraisal Criteria and Measurement                                                    23

2.1.9    Performance Appraisal Feedback                                                                               25

2.1.10 Factors that Hampers Effectiveness of Performance Appraisal                                    26

2.1.11 Benefits and Importance of performance Appraisal                                                  28

2.1.12 Consequences of Performance Appraisal                                                                   28

2.1.13 Challenges of Performance Appraisal                                                                        33

2.1.14  Performance Appraisal in Nigeria                                                                              34

2.1.15 Performance Appraisal vis-a-vis Employees Productivity                                        36

2.1.16 Motivating Employees for Higher Productivity                                                         38

2.1.17 Building Employee Commitment                                                                               40

2.1.18  Performance Appraisal Strategies                                                                              42

2.1.19  Employee Effectiveness                                                                                             47

2.2       Theoretical Framework                                                                                              48

2.2.1    Expectancy Theory                                                                                                     48

2.2.3    Equity Theory:                                                                                                            49

2.3       Empirical Review                                                                                                       50

2.4       Summary of the Review Literature                                                                            53

2.5       Gap in Literature                                                                                                        54


CHAPTER 3  

METHODOLOGY    

3.1       Research Design                                                                                                         55

3.2       Sources of Data                                                                                                          55

3.3       Population of the Study                                                                                              55

3.4       Sample Size Determination                                                                                        56

3.5       Sampling Technique                                                                                                   56

3.6       Description of the Instrument                                                                                     57

3.7       Validity of Research Instrument                                                                                57

3.8       Reliability of Research Instrument                                                                             57

3.9       Method of Data Analysis                                                                                            57


CHAPTER 4

DATA PRESENTATION, ANALYSES AND INTERPRETATION

4.1       Return Rate of Questionnaire                                                                                                 59

4.2       Data Presentation                                                                                                        62

4.3       Test of Hypotheses                                                                                                     67

4.4       Discussion of Results                                                                                                 71


CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Findings                                                                                                 73

5.2       Conclusion                                                                                                                  73

5.3       Recommendations                                                                                                      74

5.4       Area for Further Studies                                                                                             74

References

Appendix

 

 

 

 

 

 

LIST OF TABLES

Table 4.1:        Distributed and Return of the Questionnaire                                                  59

Table 4.2         Distribution of Respondents According to Gender                                        59

Table 4.3         Distribution of Respondents According to Age                                             60

Table 4.4:        Distribution of Respondents According To years of Working Experience   60

Table 4.5:        Distribution of Respondents According to Academic Qualification               61

Table 4.6:        The Effect of Technological Aided Performance Appraisal Strategy on                                          Organizational Survival                                                                                  62

Table 4.7:        The Impact of Employee Self-Assessment Strategy on Organizational                                                Effectiveness                                                                                                   63

Table 4.8:        The Effect of 360-Degree Feedback on Organizational Performance    64

Table 4.9:        The Challenges of Performance Appraisal in the Selected Tertiary Institutions in Abia State                                                                                                      65

 

 

 

 

 

 

 

 

 

LIST OF FIGURES

Fig 2.1 Performance Appraisal Process                                                                                 18

Fig. 2.2: 360 Degree Feedback or Assessment                                                                       44

 

 

 





CHAPTER ONE

 INTRODUCTION


1.1       Background of the Study

In every business organization, the performance appraisal of the employees is important in achieving organization goals. People differ in their abilities and altitudes; there is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance appraisal is necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employee in terms of their performance, one of the basic and major needs in any organization is to evaluate its employee’s performance continuously to find out whether they improve or not and know their situation in organization ( Kavanagh, 1997) .

Performance appraised is a vital element of the human resource management system. Aside from the distribution of rewards, developmental guidance given to the employees is based usually on the performance appraisal and employees can express their perceptions and stand point regarding their respective jobs, departments, managers and supervisors and of their organization in general (Erdogen, 2002).

According to Angelo and Pritchard (2006) ‘‘performance appraisal’’ is a formal, organizationally sanctioned event, usually not occurring more frequently than once or twice a year, which has clearly stated performance dimensions and /or criteria that are used in the evaluation process. Furthermore, it is an evaluation process, in that scores are often assigned based on the judged level of the employee’s job performance on the dimensions or criteria used, and the scores are shared with the employees being evaluated.

The ideal purpose of performance appraisal is to assess employee’s performance as objecting as possible. The results of the performance appraisal are used in setting the direction for the individual performance development by bringing out both performance strengths and weakness and subsequently developing action plan to facilitate the desired development (Blau, 1999). It provides a way to help identify area for performance enhancement and to help promote professional growth.

Also, the purpose of performance appraisal is to present employees with worthwhile feedback that the later can use to improve respective performance. This may involve encouragement to carry on with their good performance and positive behaviors and suggestions on what aspects need to be changed. (Walsh and Fisher, 2005).

However, at its core, the performance appraisal process allows an organization to measure and evaluate an individual’s employee’s behavior and accomplishment over a specific period of time. Performance appraisal system is ideally an organization’s designed programme involving both the organization and the personnel and communicating to an employee how he or she is performing the job and establishing a plan for improvement (Wiese and Buckley, 1998).

The role of performance appraisal has gone beyond a tool for assessing performance of the employee to one that is used to reinforce the desired behavior and competent performance of the employees. Performance appraisal is the single most powerful instrument for mobilizing employees in an organization in order to achieve strategic goal. It serves as a basic element of effective work of performance which is essential for the effective management and evaluation of staff.  Performance is necessary to increase the performance of the employees and the organization to check the progress towards desired goals (Singh, Kochar andYuksel, 2010). 

A well designed performance appraisal system should develop criteria for successful performance, give performance feedback and enable a more equitable reward system. It consists of the desired outputs expected of employees. Performance criteria should be aligned with goals, relevant to given roles, specific and measurable, under employees control and understood and accepted by participants (Dattner, 2010).

Tertiary institutions in Abia State is organizations which is profit and non-profit oriented and has several employee working in various department. Performance appraisal is done to assess the employee’s contribution to the organization. The training given to the employee’s not very specific apart from some department and it is on the job training.  The effective use of performance appraisal report can result in improved productivity. In addition, the productivity of employees could estimate the extent of contribution from an employee.


1.2 Statement of the Problem

In several organizations, performance appraisal are compromised which causes resentment in many occasion. Some organizations though invest so much in other factors of production such as machinery, information technology, funds etc. but unfortunately place little value on manpower (employees). In this regard, little attention is directed to improving the human capital. Improving manpower requires that performance appraisal becomes an essential tool to assess the individual employees which should be based on consistent feedback such that an appropriate reward system could be done..

Most organization fails since their workers perform below standard for they are not encouraged to work harder. If management does not invest much into the welfare of their workers, problems are bound to arise leading to strike actions, low commitment to work, low morale and low productivity of goods and services. Attractive appraisal system is established by some business organizations to help motivate their employees to strive hard by pooling together skills, knowledge and efforts to achieve maximum output.

Inadequate performance appraisal system in an organization can make assessment of individual employee extremely difficult, the targets may not be achieved hence lack of direction and low productivity. In the light of this, a number of problems have been found in the performance appraisal processes and procedures being followed in the organization. To begin with, due to lack of accountability, most employees have lazy attitude towards their work. There is also the unavailability of job description for many employees.

More so, the lack of complete information on appraisal form, expertise and relevant training often affect the performance appraisal processes. Since they are not conducted on a regular basis. Other human resources decisions such as rewards, training or promotion are not directly linked to the results of the performance appraisal process. Performance appraisal can be conducted on employees who are due for one promotion or the other. This altitude has undermined the credibility of the appraisal system which in the normal circumstances ought to have been organized periodically on all employees to assess their respective performances and to improve where their job effectiveness where necessary.

As a result of this, employee performance has been greatly affected which has in turn affected productivity and efficiency of the service rendered. Again, there are lack of seriousness on the part of employees because they assume no measurement of performance is applied hence they work at their own route. All these scenario call for this study to investigate the effect of performance appraisal strategies on employee effectiveness


1.3 Objectives of the Study

The main objective of this study is to determine the effect of performance appraisal strategies on employee effectiveness, a study of selected teaching and non-teaching staff of the tertiary institutions in Abia State. The specific objectives were to;

      i.         examine the effect of technological aided performance appraisal strategy on employee performance of the selected tertiary institutions in Abia State.

     ii.         ascertain the impact of employee self-assessment strategy on employee effectiveness of the selected tertiary institutions in Abia State

   iii.         determine the effect of 360-Degree feedback strategy on employee productivity of the selected tertiary institutions in Abia State

   iv.         determine the challenges of performance appraisal in the selected tertiary institutions in Abia State


          b  1.4 Research Questions

      i.         What are the effect of technological aided performance appraisal strategy on employee performance of the selected tertiary institutions in Abia State?

     ii.         What are the impact of employee self-assessment strategy on employee effectiveness of the selected tertiary institutions in Abia State?

   iii.         What are the effect of 360-Degree feedback strategy on employee productivity of the selected tertiary institutions in Abia State?

   iv.         What are the challenges of performance appraisal in the selected tertiary institutions in Abia State?


             1.5 Research Hypotheses

H01:     Technological aided performance appraisal strategy has no significant effect on    employee performance of the selected tertiary institutions in Abia State

H02:     There is no significant impact of employee self-assessment strategy on employee  effectiveness of the selected tertiary institutions in Abia State

H03:     360-Degree feedback has no significant effect on employee productivity of the      selected tertiary institutions in Abia State

H04:     Ineffective performance appraisal system and incompetent leadership are not among the challenges of performance appraisal in the selected tertiary institutions in Abia State.


1.6 Significance of the Study

This study will create an awareness of the importance of performance appraisal and to make them to appreciate the need to maximize its benefit while minimizing its pitfalls to justify the use of performance appraisal as a yard stick for determining employees’ performance and reward in tertiary institutions in Abia State. The findings of the study will not only be beneficial to the personnel manager and human resource department of the tertiary institutions in Abia State, but also to the employees. It will also;

Help the management of tertiary institutions in Abia State in setting goals and targets for employees to achieve through supervisory control by line managers. It will also aid in identifying and improving the training and development needs of employees. The outcome of the study will assist in motivating employees to contribute effectively to the attainment of organizational goals and objectives. It will also help directors to know how to appraise the performance of employees. The study will help employees to know the reasons for conducting appraisal on them and the need to be productive so as to have a positive performance appraisal results or reports.

However, the outcome of this study stands as a reference source or guide to scholars and            future researchers who may be interested in performance appraisal as a result of the subject of interest to enhance the productivity of employees. Above all, the study would as well improve the researcher’s knowledge about enhancing the productivity of the employees through adequate appraisal techniques.


1.7 Scope of the Study

The study focuses on the effect of performance appraisal strategies on employee effectiveness, a study of selected teaching and non-teaching staff of the tertiary institutions in Abia State.

Unit Scope: The study is restricted to Abia State University Uturu, Michael Okpara University of Agriculture, Umudike and Abia State Polytechnic Aba.  It means that all the employees ‘of the study area would be involved in the study as they would constitute the population.

Conceptual Scope: The conceptual scope of this study was to examine the effect of technological aided performance appraisal strategy on organizational survival of the selected tertiary institutions in Abia State, ascertain the impact of employee self-assessment strategy on organizational effectiveness of the selected tertiary institutions in Abia State, determine the effect of 360-Degree feedback on organizational performance of the selected tertiary institutions in Abia State and determine the challenges of performance appraisal in the selected tertiary institutions in Abia State. Descriptive survey design was used in the study.

Geographical Scope: Questionnaire was distributed to the staff of Abia State University Uturu, Michael Okpara University of Agriculture, Umudike and Abia State Polytechnic Aba and was retrieved. The data was analysed with Statistical Packages for Social Sciences (SPSS) version 21.

Time Scope: The time scope of the study covered a period of 15 years (2003 – 2018).


1.8 Limitations of the Study

In an attempt to carryout meaningful research, certain factors seem to affect the researcher’s efforts and among these factors are:

Inadequate orientation about the study: They employees of the selected tertiary institutions in Abia State were not adequately oriented and most of them have little or no knowledge about performance appraisal.

Time constraints: The time given for this research work is short to generate enough data, as the researcher combines both the research and other of her academic activities.

Lack of fund: These factors really affected the research processes, as there was little or no fund to support the study or research.

Inadequate Information: Respondents were reluctant to give out all the need information with the fear of being punished by their Supervisors.

Methodological constraints: The methodological constraints posit that several work or researches have adopted panel study and parametric measures to achieve their result but this study is limited to adaptable methods accountable to the researcher.


1.9       Brief History of organization under Study

Michael Okpara University of Agriculture, Umudike

Michael Okpara University of Agriculture Umudike, formerly Federal University of Agriculture, Umudike, was established as a specialized University by the Federal Government of Nigeria via Decree No 48 of 2nd November 1992.  It began formal activities on May 1993 with the appointment of the first Council and Vice-Chancellor, Professor Placid C. Njoku on 27th May, 1993, while other key officials of the University were appointed later.  Prof. Francis Ogbonnaya Otunta, a distinguished Professor of Mathematics is the 5th and present Vice-Chancellor of the University. He assumed office on Tuesday, March 1, 2016.

The Institution is located in the well-known Agricultural Training and Research town of Umudike, about 9 kilometers from Umuahia town, the capital of Abia State. The major link road to the University is the Umuahia – Ikot Ekpene Federal Road, a direct route to the State capitals of Abia, Akwa - Ibom and Cross River. Being close to Umuahia, the University is linked through a major North- South Express Road to most parts of the country. It commenced its activities at the premises of the former Federal College of Agriculture, Umudike (At present the  Federal College of Agriculture has been moved to  Ishiagu, Ebonyi state). Michael Okpara University of Agriculture Umudike, is envisioned to be a University par excellence and hopes to help the peoples of Nigeria and beyond through the provision of practical knowledge for agricultural transformation in order to achieve sustainable food production.

The first set of students were admitted into the institution during the 1993/94 academic year with a student population of 82. It is the intention of the University to gradually increase the number of students matching her intake with her available  resources. One of the responsibilities of a University is to impart understanding of the processes that govern human experience. Therefore the Michael Okpara University of Agriculture, Umudike as a specialized tertiary institution, will impart understanding of the processes that relate to the biophysical, biochemical and socioeconomic components of the environment, and how these processes can be harnessed for the production of food and fibre to meet human needs without the degradation of the natural environment. It is the plan of the University to serve the people of Nigeria and the world through education, manpower development and quality research aimed at the development of technologies that will overcome major constraints to agricultural production. This, the University does through a range of activities carried out in its undergraduate and postgraduate programmes.


Abia State University, Uturu.

As a foremost state University in Nigeria founded in 1981, Abia State University has maintained its leadership within and beyond the Eastern heartlands of Nigeria. It has remained resilient in the acquisition and dissemination of ICT-driven skills, comparable to graduates anywhere in Africa. Located in the Igbo heartland where skill acquisition and entrepreneurship constitute the culture of the people, the University’s academic plan is structured to act as the backbone in the realization of the entrepreneurship drive of the people; hence, the University runs a comprehensive entrepreneurship / skill acquisition programme as to actualize the University’s slogan of One Graduate-Two Skills.

The University is located in Uturu at Longitude 5o42’N and Latitude 6o48’E on an average elevation of 450m. It is accessible to three International airports: The Port Harcourt International Airport with a driving time of about two and half hours, Akanu Ibiam International Airport, Enugu with about two hours driving time, and Dr. Sam Mbakwe International Airport, Owerri with about two hours driving time. The University accepts partnership with institutions, governments, and private sector in broad areas of science and technology (including the Geographic Information Systems), Law, Education, Social science and the Humanities. The serene university environment with surrounding knolls and irresistible flora presents a micro-climatic condition that allows serious academic work.


Abia State Polytechnic

Abia State Polytechnic Aba, is owned by the Abia State Government. The edict establishing Abia State Polyechnic Aba, stated in section 8 of the 1994 edict that Abia State Polytechnic should be established in Aba to provide studies, training, research and development of techniques in the applied arts and sciences, technology, management, commerce and other fields of learning to students. Abia State Polytechnic is located in the heart of Aba, in what used to be Girls Technical College (GTC) along Aba-Owerri road, Aba. It is composed of different Schools or Faculties such as the School of Science and Industrial Technology, School of Engineering Technology, School of Environmental Technology, School of Business and Management Technology etc. The colours of the institution are yellow and dark red.

Abia State Polytechnic is located in the heart of Abia State, Aba, Nigeria. It is composed of different schools, such as the School of Science & Engineering and the School of Business Administration. Dr. L. C. Odinuko was the founding Rector while Mr. E. S. Edeh was the first Registrar of the institution. The National Diploma Programme started in 1994/1995 academic year and the Higher National Diploma was introduced in 1999/2000 Session.

Abia State Polytechnic environment gives the perfect ambience to research scholars willing to share their practical knowledge with the world in particular those in the academic field. There are also positions for non-academic staff who are willing to bridge the gap between academic jargons of the classroom and the administration of a scholarly environment. Annually, students on industrial attachments are engaged within the school to apply their knowledge on real life scenarios and learn up to speed working ethics.


1.10     Operational Definition of Terms    

Performance Appraisal: It refers to the process by which employees are evaluated on the task assigned to them after a given time in order to find out their strengths and weaknesses.

Employees Productivity: it refers to the ability of an employees to produce excellent standards of performance and even beyond the expectations.

Employee Performance: Employee performance refers to how workers behave in the workplace and how well they perform the job duties they were obligated to them.

Employee Productivity: Employee productivity (sometimes referred to as workforce productivity) is an assessment of the efficiency of a worker or group of workers. Productivity may be evaluated in terms of the output of an employee in a specific period of time.

Training: it is a planned program designed to improve the performance of the individuals or employees.

Development: It is a state in which employees improving.

Appraisers: They are managers or supervisors who have employees working directing under them.

Appraises: They are employees or subordinates who are appraised.

Under-Performing Employees: It refers to those employees who perform below standard or average.

Performance Management: It refers to the management of employees’ performance in an organization.



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