This research work examines the
effect of performance management on service quality at the Olorunda Local
Council Development Area. It explores related literatures which help to give
more insights and well rounded knowledge of the concept of performance management.
The establishment of an efficient performance management has a very significant
effect on employee’s attitude to work. Thus, the productivity and growth of the
organization is largely dependent on the standard of its performance
management. For the human resources to contribute efficiently to the
realization of corporate objectives, adequate performance management of staff
and the right caliber of employee must be ensured. Today more organizations are
relying on employees for success and competitiveness, and consequently to find
out better strategies for identifying, encouraging, measuring, evaluating,
improving and rewarding employees’ performance at work. In this respect,
performance management has come to play an indispensable role in helping organizations
to reach their goals of productivity. The survey research method was adopted
for data collection. Population of study comprises of the staff of Olorunda Local Council, the total population of study is
310. Questionnaires were administered to 98 respondents of which 63 were dully
filled and returned. It was discovered from the study conducted that ed. Boston: McGraw-Hill/Irwin,t.Nigeria Plc
as a case study.there is a significant relationship between performance
management and employees’ attitude to work.
Table of Contents 3
CHAPTER ONE INTRODUCTION
to the Study 5
of the Problem 7
of study 8
and Limitations of the Study 9
of the Study 10
of the study 10
of terms 11
CHAPTER TWO LITERATURE REVIEW
2.1 Introduction 13
and scope of performance management 14
concept of service quality 16
of performance measurement or service quality 19
benefit of performance management system
performance management system 22
Theory and Performance Management 33
CHAPTER THREE RESEARCH METHODOLOGY
3.1 Introduction 36
of study 37
and sampling techniques 37
collection instrument 38
collection procedure 39
and validity of the research instrument 39
CHAPTER FOUR DATA ANALYSIS AND
INTERPRETATION OF RESULT
4.1 Introduction 41
characteristics and classification 41
and analysis of data according to
and analysis of data according to
of hypotheses 56
of findings 65
CHAPTER FIVE SUMMARY, CONCLUSION AND
5.1 Introduction 67
of findings 67
5.3 Conclusion 69
5.4 Recommendation 69
BACKGROUND TO THE STUDY
Performance Management is a strategic
approach to management, which equips leaders, managers, employees and
stakeholders at different levels with a set of tools and techniques to
regularly plan, continuously monitor, periodically measure and review
performance of the organization in terms of indicators and targets for
efficiency, effectiveness and impact. This system ensures that all the leaders,
managers and individuals in the organization are held accountable for their
actions which should bring about improved quality service delivery and value
for money (Burden, 2010).
Volatile economic environment
characterized by phenomena such as globalization and deregulation of markets,
changing customer and investor demands and ever increasing product –market
competition has become the norm for most organizations. To compete and have a
sustainable business, organizations have to continually improve their
performance by reducing costs, innovating on products and processes and
furthermore improve on product or service quality, speed to market and
productivity (Pretorius, 2012).
To achieve positive performance
results in all the parameters mentioned above, organizations have increasingly
recognized that their employees play a very critical role in business and if
managed properly can be a source of competitive advantage (Pfeffer, 2008).
Creating competitive advantage through people requires careful attention to the
practices that best leverage these assets. The use of formal performance
measures based on explicit and objectively defined criteria and metrics is a
fundamental component of both public and private incentive systems. These
performance measurement systems must promote careful analysis of workers’ efforts,
tasks, work arrangements and output, establishing work procedures according to
a technical logic and setting standards and production controls to maximize
efficiency (Radin, 2012).
The basic assumption underlying
performance management models is that employees perform better when their
performance is more tightly linked to their effort or output (Rothstein, 2008).
Further to this, organizations are expected to perform well and achieve their
broad objectives on condition that their employees are motivated. It is
therefore paramount for organizations to use performance management systems
(PMS) that are fair and compensate employees accurately. However, reality with
PMS in most private and public sectors typically involve a lot of challenges
such as political and environmental influences and non standardized outputs
which makes the accurate measurement of performance and construction of
performance benchmarks difficult and costly at times (Dixit, 2012).
Against this background,
organizations still put lots of effort and commit a lot of resources to design
and implement performance management systems that suit their employee
expectations in order to motivate them. This is based on the belief that if
employees are motivated to work, it is more likely that the organization can
perform well too through proper service quality.
This research study therefore intends
to focus on evaluating the impact of Local Government Performance Management
System (PMS) on quality service, evaluate strengths and weaknesses of this
system and hence make recommendations on how to make improvements.
STATEMENT OF THE PROBLEM
According to Agagu (2008), it has
been observed that over the past few years Nigeria has experienced an upsurge
in the number of protests. A number of reasons have been given for these
protests. However, the main reason appears to be linked to poor service
delivery of basic community services such as running water and sanitation,
electricity, roads, housing and schools. It must be stressed here that protests
are just symptoms of a real problem. The main problem in this case could be
poor performance of the Local Government structures due to numerous reasons.
One of the reasons can be poor Performance Management Systems, which do not
fairly recognize and remunerate productive employees leading to low morale at
the workplace and consequently poor quality service delivery or productivity.
process of managing the performance of employees in an organization is often
vague, the areas of performance for which an individual is responsible are
often unclear and evaluations are often not based on actual performance but on
the perceptions and judgment of an employee’s immediate boss.
an ill-conceived and ill-considered performance management system could create
tensions in the organization.
1.3 OBJECTIVES OF THE STUDY
objective of the study is to examine the effect of performance management on
service quality at the Olorunda Local Council Development Area. However, the
specific objectives shall include:
1. To examine the relationship between
performance management and service quality.
2. To examine the relationship between
performance management and employees’ attitude to work.
3. To examine the relationship between
performance management and organizational performance.
4. Lastly, the study shall provide
plausible recommendation and proffer necessary policies for possible
1.4 RESEARCH QUESTIONS
undertaking of this research project will beam a searchlight on the following
1. Is there a relationship between
performance management and service quality?
2. Is there a relationship between
performance management and employees’ attitude to work?
3. What is the relationship between
performance management and organizational performance?
4. What are the plausible recommendation
and necessary policies for possible implementation?
1.5 RESEARCH HYPOTHESES
researcher intends to test the following hypotheses;
is no significant relationship between performance management and service
is a significant relationship between performance management and service
is no significant relationship between performance management and employees’
attitude to work.
is a significant relationship between performance management and employees’
attitude to work.
is no significant relationship between performance management and
is a significant relationship between performance management and organizational
1.6 SCOPE AND LIMITATION OF THE STUDY
study will explore and explain the effect of performance management on service
quality at the Olorunda Local Council Development Area.
extension, the study shall also cover appraisal system and training pattern as
ways of improving workers performance in an organization.
study shall however be limited to Olorunda Local Council Development Area of
Badagry Local Government, Lagos State.
1.7 SIGNIFICANCE OF THE STUDY
whole essence of performance management is to get better result by
understanding and managing performance within an agreed framework of planned
goal and competent requirement. The study therefore is important as one of the
objectives of any business is to increase workers performance in order to
achieve outstanding growth and quality services.
study is relevant to managers who intend to understand and improve workers
performance through effective performance management. It will contribute to
identifying causes of resistance and stumbling blocks to the acceptance and
implementation of the proposed performance management system. Therefore the
study aims at providing a better understanding of employees’ cognitive thought-processes,
which could contribute to the tailoring of a suitable performance management
system that would positively affect all stakeholders
1.8 ORGANIZATION OF THE STUDY
The study is
segmented into five chapters. The chapter one contains the general
introduction, research problem; objectives of the study, scope of study,
concentrates on review of relevant literature on the concept of the effect of performance management on
service quality at the Olorunda Local Council Development Area.
shall explain the research method adopted for the study while chapter four will
focus on the analysis of hypotheses and chapter five contains the summary
of the study; conclusion drawn and recommendations.
1.9 DEFINITION OF TERMS
below are the operational definitions of terms used in this study:
An action, task, or operation, seen
in terms of how successfully it was performed Management: The process of
dealing with or controlling things or people in an organization.
Performance management includes activities to ensure that goals are
consistently being met in an effective and efficient manner. Performance
management can focus on performance of the organization, a department,
processes to build a product or service, employees, etc.
Organization: An organization is a social group
which distributes tasks for a collective goal.
Productivity: is a measure of output from a
production process, per unit of input. For example, labor productivity is
typically measured as a ratio of output per labor-hour, an input.
A method by which the job performance of an employee is evaluated (generally in
terms of quality, quantity, cost, and time) typically by the corresponding
manager or supervisor.
attitude refers to a persistent tendency to feel and behave in a particular way
towards some object. Attitude provides people with a basis for expressing their
values. Luthan (2010:205-206) opined that it has three components: emotional,
informational and behavioural. The Informational component involves the
person’s feeling, affect positive, neutral or negative about an object. The
informational components consist of the beliefs and information the individual
has about the object. The behavioural consist of a person’s tendencies to
behave in particular way towards an object.
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