ABSTRACT
This study is
delved into the effect of performance appraisal on employees’ productivity in
the public sector using The Nigerian Custom Service as a case study.
Performance appraisal helps to ensure that organizational members possess the
knowledge and skills they need to perform their jobs effectively, take on new
responsibilities, and adapt to changing conditions. It is also believed those
performance appraisals identifies the weakness of employees and sport the areas
which development efforts are needed in the organization.
This study is
carried out with duly valued questionnaires which were used as instrument to
collect primary data from 120 respondents for statistical analysis. The result
of data were analyzed with simple percentage, bar chart and frequency
distribution while the stated hypotheses were tested using Pearson Moment
Correlation (PPMC) statistical tool to test the four (4) hypotheses formulated.
The result of the four hypotheses tested indicates that: there is high positive
relationship between performance appraisal and employees’ productivity in Nigeria
Custom Service, there is no problem that hampers the use of performance
appraisal in Nigerian Custom Service.
Based on the
findings of this research, it revealed that performance appraisal improves the
employees’ performance. Some vital recommendations were made which are put
forward based on the findings and conclusion of this research that performance
appraisal should be up- to-date with new process or technology and methods
because new studies and researches enhanced learning methods, identification of
performance appraisal needs to be done more professionally in conjunction with
line manager as well as individual involved together with the human resources
manager. Also a basic for motivating through equity and development rewards
should be provided as this will lead to commitment and improved performance. It
concluded that performance appraisal is a tool for identification of
deficiencies which point out the weaknesses of employees and spot the areas
where development efforts are needed in the organization.
TABLE OF CONTENT
Title
Page
Title
Page 1
Abstract 2
Table of Content 3
CHAPTER ONE: INTRODUCTION
1.1 Background
to the Study 5
1.2 Statement of the Problem 7
1.3 Objectives of the Study 9
1.4 Research Questions 9
1.5 Statement of Hypotheses 10
1.6 Scope and Limitations of the Study 11
1.7 Significance of the Study 11
1.8 Definition of Term 12
1.9 Organization of the Study 13
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 15
2.1 Historical Background 15
2.2 Review of the Most Current Literature 22
2.3 Theoretical Frame Work 57
2.4 Summary of the Chapter 59
CHAPTER THREE: RESEARCH METHOD
3.0 Introduction 62
3.1 Restatement of Research Questions and
Hypotheses 62
3.2 Research Design 63
3.3 Population of Study 64
3.4 Sample Size and Sample Techniques 64
3.5 Instrument for Data Collection 65
3.6 Administration of data collection 65
3.7 Data collection Procedure 65
3.8 Procedure for Data Collection 66
3.9 Limitation of Methodology 67
CHAPTER FOUR: ANALYSIS OF DATA AND INTERPRETATION OF
RESULT
4.0 Introduction 68
4.1 Respondents characteristic and classification 68
4.2 Presentation and analysis of data according 73
to research questions
4.3 Presentation and analysis of data according
to research 82
Hypothesis
4.4 Discussion of Findings 89
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.0 Introduction 91
5.1 Summary of Findings 91
5.2 Conclusion 92
5.3 Recommendations 94
References 97
Questionnaire 100
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Performance
appraisal is a tool for identification of deficiencies which point out the
weaknesses of employees and spot the areas where development efforts are needed
in the organization. Performance appraisal also plays a key role to measure the
employee’s performance and help the organization to check the progress towards
the desired goals and objectives (Ijbmr, 2012). Now organizations are using
performance appraisal as a strategic approach by coordinating the human
resource functions and business policies. They are focuses on it as it is a
broad term that covering number of activities like examines employees, improve
abilities, maintain performance and allocate rewards (Fakharyan, Jalilv and
Dini, 2012). Performance appraisal help aligns individual goals and objectives
with the organization goals. The system engages, motivates employees and
thereby directs them toward achieving the strategic ‘goals of the organization
(Verhulp, 2006).
The
fact remains that good organization performance refers to the employee’s
performance, satisfactory performance of employees does not happen
automatically. Managerial standards, Knowledge and Skill, Commitment and
Performance appraisals have effect on employee’s productivity. According to
Lillian and Sitati (2011) opined that the history of performance appraisal is
quite brief. Performances appraisal roots can be traced in the early 20th
century to Taylor’s pioneering time and motion studies. The performance
appraisal system start in practiced mainly in the 1940s and with the help of
this system, merit rating was used for the first time near the Second World War
as a method of justifying an employee’s wages. There are number of government
establishment in Nigeria using the performance management system for making their
employee’s productivity better because it leads to achieve organizational
performance. However performance appraisal is very important process but it
deemed to be the “weak point” of managing human force (Pulakios, 2009).
Therefore performance appraisal is important to manage employee’s work
effectively.
According
to Armstrong (2001) who found performance as behavior the way in which
organization’s teams and individuals get work done. (Mooney, 2009) suggested
that performance is not only related to results but it also relates with
activities and behaviors of employees that they adopted to achieve their given
goals. Performance appraisal is the systematic evacuation of employees
according to their job and potential development. (Pinar Güngör, 2011) says “Motivation
is the ability of person to modify his/her behavior”. Motivation is a driven
force that leads and directed a person toward some specific goals.
Performance
appraisal has been helping an employee knowing what is expected of him and
remain focused with the help of the supervisor, tells them how well they have
done that motivates the employees toward the good performance(Casio, 2003).
Performance management system is the process that strongly involves assurance
and participation of employees within the organization and that determine the
organizational results. The evaluation system identifies the gap of performance
(if any). The feedback system tells the employee about the quality of his or
her work performance (NCN report HR Department’, 2010). Performance appraisal
can enhance the benefits for the organization, but apparently it is not
delivering the benefits in many cases (John Mooney, 2009). Most of the
organizations usually include performance appraisal they cannot take the
benefits from that because there lay a huge difference between the
anticipations and experiences in the present system (Elverfeldt, 2005).
Importantly, most employees believe that the major outcome of performance
appraisal is promotion and its attendant increase in financial benefits plus
enhanced professional and social status (Tessema and Soeters, 2006; Shahzad,
Bashir and Ramay, 2008). Performance appraisal outcomes tend to have high
motivational impact and are a major determinant of employee performance. This
matrix of tasks makes the job of Nigerian Custom Services is highly demanding,
thereby requiring an effective performance evaluation system that will ginger
higher motivation for enhanced job performance (Aslam, 2011).
1.2 STATEMENT OF THE PROBLEMS
Performance
appraisal has been criticized by people because approach like bureaucratic and
top-down under the control of human resource managers. It was often backward
looking, concentrating on what had gone wrong, rather than looking forward to
future development needs. Performance appraisal schemes existed in isolation.
There was little or no link between them and the needs of the business. It has
been discovered that line managers have frequently rejected performance
appraisal schemes as being time consuming and irrelevant. Employees have
resented the superficial nature with which appraisals have been conducted by
managers who lack the skills required, tend to be biased and are simply going
through the motions. Additionally, situations may arise sometime whereby only
some selected job elements are evaluated or given preference or higher points
above other job elements in which the employee was equally engaged during the
review period. This gap is the problem that occurs when performance does not
meet the standards that are set by the organization. This calls to question the
fairness of the appraisal system and its ability to effectively produce the
desired outcomes. Performance appraisal believes to be a difficult and complex
activity which is often not performed well by many organizations. It is quite
understandable that the end result of this is that it produces exactly the
opposite or have adverse effect to those intended.
Furtherance
to the state of the problem, currently in Nigeria, it has seen in the public
sector that general atmosphere of discontent pervading the entire labour
panorama, which Nigeria Customs Service are not left out in the general state
of disappointment and aggravation. In Nigeria today, the general state of poverty
makes economic reward a very important reason why people go out to work,
thereby making money to rank highly as a critical motivator. This situation has
made it imperative for Nigerian workers to pay particular attention to human
resource practices which have direct bearing on their financial rewards and
social status. One of such human resource activities is performance appraisal,
which is the focus of this study.
1.3 OBJECTIVES
OF THE STUDY
The
main objective of the research is to examine the effect of performance
appraisal on employees’ productivity in the public sector. Other salient
objectives include;
i.
To assess the significant relationship
between performance appraisal and employees’ productivity in Nigeria Customs
Service
ii.
To evaluate the factor inhibiting the
use of performance appraisal of employees in Nigeria Customs Service.
iii.
To know whether the -favouritism is
responsible for ineffectiveness in the Nigeria Customs Service
iv.
To make appropriate suggestions on how
the use of performance appraisal system could enhance employees’ productivity
in the Public Sector.
1.4 RESEARCH QUESTIONS
The
study intends to seek answers to the following questions;
i.
Is there any significant relationship
between performance appraisal and employees’ productivity in Nigeria Customs
Service?
ii.
Is the use of performance appraisal
system affect employees’ productivity in Nigeria Customs Service?
iii.
Will favouritism be responsible for
ineffectiveness in the Nigeria Customs Service?
iv.
Those performance appraisal enhance
employees productivity in Nigeria Custom Service.
1.5 STATEMENT OF HYPOTHESES
The
following research hypotheses were formulated for this study:
Hypothesis
one
Ho:
There is no significant relationship between performance appraisal and
employees’ productivity in Nigeria Customs Service
Hi:
There is significant relationship between performance appraisal and employees’
productivity in Nigeria Custom Service
Hypothesis Two
Ho:
There is no significant relationship between problem hamper the use of
performance appraisal system and employees productivity in Nigeria Customs
Service
Hi:
There is significant relationship that harripers the use of performance
appraisal system and employees productivity in Nigeria Custom Service
Hypothesis Three
Ho:
Favouritism is not responsible for ineffectiveness in the Nigeria Customs
Service.
H1:
Favouritism
is responsible for ineffectiveness in Nigeria Customs Service.
1.6 SCOPE AND LIMITATIONS OF THE
STUDY
The
scope of the study covers the effect of performance appraisal on employees’
productivity in Nigeria Customs Service as a case study. However, the study
focuses on how performance appraisal used in an organization to increase
employees’ productivity. However due to the nature and scope of the work, such
a wild scope is out of the question since a work of this nature can hardly
achieve a feat. This study is limited mainly on the appraisal system and
training pattern described as ways of improving workers performance in an
organization in Nigeria Customs Service (2007 —2013).
1.7 SIGNIFICANCE OF THE STUDY
In
the light of the foregoing, this study set out to investigate how performance
appraisal that is anchored mainly on one job component, that is, research
output, affects the motivation and overall performance of Nigeria Customs
Service. However, despite the fact that engagement in research will help to
update, sharpen, enlarge and enrich the Custom Officers’ knowledge base, which
is in turn transferred to the organization, citizens, importers and exporters
positively.
This
study will serve as assistance differentiates satisfactory performers from
unsatisfactory ones in Nigeria Customs Service. The performance appraisal will
help the management to perform functions relating to selection, development,
salary, promotion, penalties, lay-off and retrenchment. This study will geared
towards the improvement productivity in the public sector through a better
evaluation of employee’s performance, Therefore, this study will help in
bringing ways by which employee are appraised as well as how their needs are
being managed in Nigeria Customs Service. Finally, based on the abovementioned,
this study would be of significance to all military men, policy and decision
makers, management of organisation as well as students, scholars and upcoming
researchers who may conduct similar study in future.
This
widespread use can be attributed to human resource specialists, academics, and
consultants who proclaim that performance appraisal is a critically needed tool
for effective human resource management. This, in turn, is based on the belief
that an effectively designed, implemented, and administered performance
appraisal system can provide the organization, the manager, and the employee a
myriad of benefits.
1.8 DEFINITION OF TERMS
The
following are the operational definitions of terms used in this study
Performance:
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.
Appraisal:
The word appraisal is defined as the act of determining a value of something or
the report of that value.
Performance appraisal:
A means of determining the acceptability of an individual’s level of
performance at work over a given period of time.
Performance management:
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.
Performance evaluation:
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.
Employee Attitude:
Employee 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.
1.9 ORGANISATION OF THE STUDY
The
study is divided into five chapters in order to provide clarity and coherence
on the analysis of the effect of performance appraisal on employees’
productivity in Nigeria Customs Service.
The
first chapter is the background of the study, statement of the problem,
objectives of the study, research questions, research hypotheses, significance
of the study, scope and limitation of the study, organization of the study and
operational definition of terms.
The
second chapter is the literature review, conceptual and theoretical framework
is vividly looked at.
The
third chapter is the research method such as restatement of research design,
‘population of the study, sample techniques and administration of instrument.
The
fourth chapter is the data presentation and analysis where data analyzed based
on the respondents characteristics and statistical method.
The
last chapter is the summary, conclusion and recommendation or suggestion for
further reading is being made.
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