ABSTRACT
This study investigated the Impact of
Effective Performance Appraisal on Employee Productivity as practiced in MTN
Nigeria PIc. and to examine whether accurate bases of instrument are used in
the process of appraising employees with aim to discover whether effective performance
appraisal is tied or has positive relationship with productivity.
Descriptive research design survey used to
carry out the conduct of the research, sample random technique was used to
select the respondents for the interview, with the sample size of (80) eighty
respondents. Simple percentages and Chi-square was employed to analysis the
collected day from the respondents.
The researcher was able to find out that:
§ Performance
appraisal do exist in the company under study
§ Closed
system of yearly performance appraisal
§ Performance
appraisal positively affect the attitude of employee toward work but may not
necessarily increase productivity
§ That
employee performance appraisal does not necessarily lead to organizational
productivity.
TABLE OF CONTENT
Title page
Certificate
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER
ONE
1.1
Introduction
1.2
Statement of study
1.3
Objectives of study
1.4
Research questions
1.5
Purpose of the study
1.6
Significant of the study
1.7
Statement of hypothesis
1.8
Scope of the study
1.9
Historical background of MTN
1.10
Research methodology
1.11
Definition of terms
1.12
Limitation of the study
CHAPTER
TWO
2.0 Introduction
2.1 Meaning of performance appraisal
2.2 Phases of performance appraisal
2.3 Purposes and objectives of performance appraisal
3.4 Objectives of performance appraisal
2.5 Types of appraisal
2.6 Methods of performance appraisal
2.7 Who should evaluate
2.8 Problems in performance appraisal
2.9 Benefit of performance appraisal
2.10 Implications of performance appraisal for management
CHAPTER
THREE
3.1 Introduction
3.2 Sample and sampling procedure
3.3 Population of the study
3.4 Procedure for data collection
CHAPTER
FOUR
4.0 Introduction
4.1 Data Presentation
4.2 Data Analysis
4.3 Hypothesis testing
4.4 Summary of the analysis
CHAPTER
FIVE
5.0 Introduction
5.1 Summary of findings
5.2 Conclusion
5.3 Recommendation
5.4 Recommendation for furthers studies/research
References
Appendix
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The objective of every organization apart
from providing goods and services and making profit within the environment that
they operate is to also have an efficient and effective manpower or human
resources. It is a well developed, efficient and effective manpower that will
help in achieving its objectives. The survival of most organization depends on
its ability to take stock of its manpower with regards to its present
performance, likes, dislikes, strength, failure, expectations of every
individual or employee and also his her potential for growth.
According to Obisi (1996), in today's ever
competitive economy characterized by risk-taking, organizations, must survive,
and the key to such survival is a revitalized human resources. Neither billions
of Naira nor the state of the art technology and machines can do the miracle if
human resource is neglected and forgotten. Employees who have what it takes, he
continued: skills, talents, capabilities, experience, qualification, and genuine
work culture, who are problem solvers, are not readily available. It is
necessary, that organizations nurture, nourish, and develop its human resources
through performance appraisal, performance counseling, potential appraisal and
performance review.
According to Koontz et al (1982), knowing
how well an employee performs is really the only way to ensure that those
occupying the managerial positions are actually managing effectively. For, if
an organization is to reach its goals effectively and efficiently, ways of
management performance must be found and implanted. Thus, they opined that
organizations need to adopt the best method of preference decisions about
employees so as to get the maximum benefit from their use that will eventually
lead to their achieving their objectives.
Furthermore, Pigors and Myers (1982)
advised that systematic performance appraisal should be adopted as a means of
helping supervisors to, evaluate the work of each employee. The appraisals,
they opined, should be most frequently used as a basis for selecting candidates
for promotion to jobs and for making "merit" increases in salaries.
They also believe that appraisals are useful as a check on the success of
recruitment, selection, placement, and training procedures and generally for
employee productivity.
Thus, it is this influence of performance
appraisal on the overall employee productivity with emphasis on MTN Nigeria
Communications PIc that the present researcher wishes to undertake.
1.2 STATEMENT OF PROBLEM
The performance appraisal system has long
been practiced in the company, and has been used as an integral part of
managing. It is of course, important to management development because if an
employee's strengths and weaknesses are not known, it is only accidental if
development efforts were aimed in the right direction.
Thus, the major problems which this
research study will seek to resolve are in the following forms.
Firstly, in the recent past most of the
employees highly rated have been found to practically perform even
disillusionment with respect to employee appraisal, and this has raised doubt
on the bases of measuring and evaluation.
Secondly, arising from the above are
reported incidences of halo-effect appraisals as supervisors tend to appraise
employees on the basis of love or hate. This has not augured well for the
company as it discovers to its chagrin the negative impact of this on employee
productivity.
Lastly, employees' performances have been
found to be evaluated inaccurately or against standards that are inapplicable,
inadequate or subjective.
1.3 OBJECTIVES OF THE STUDY
The
objectives are follows:
a.
Examine the performance appraisal system as
practiced in MTN Nigeria Plc.
b.
Examine whether accurate bases of measurement
or evaluations are used in the appraisal of employees.
c.
Examine the impact of performance appraisal on
employee productivity.
d.
Examine the effect of employee performance
appraisal on organizations profitability
e.
Investigate whether effective performance
appraisals are usually tied into the reward system.
1.4 RESEARCH QUESTIONS
The following research questions will be
answered in the course of the study:
a.
Does performance appraisal system actually
exist in the company
b.
Will effective performance appraisal change the
work attitude, skill, and knowledge of the employee?
c.
Are performance appraisals of the company
usually tied to reward system?
d.
Will effective performance appraisal improve
employee productivity?
e.
Will performance appraisal lead to employee and
organizational development?
f.
Does the
promotion or demotion of most employees depend on performance appraisal
administered?
1.5 PURPOSE OF THE STUDY
The purpose of the study is to examine the
impact of effective preference appraisal on employee productivity.
1.6 SIGNIFICANT OF THE STUDY
This research study will examine and
highlight the following:
a.
Show the impact of effective preference appraisal
on employee productivity.
b.
Show the various bases upon which employee
performances are measured and evaluated
c.
Reveal the various hindrances or handicaps
towards effective performance appraisal
d.
Assist the company in assessing whether the
current practices or styles is performance appraisal systems are worthwhile.
1.7 STATEMENT OF HYPOTHESIS
The following hypothesis will be tested in
the course of the study in order to prove their validity or otherwise as
regards Performance Appraisal.
1.
Performance Appraisal will improve the productivity of the employee.
2. Employee Appraisal will lead to organizational
profitability.
1.8 SCOPE OF THE STUDY
The performance appraisal system IS
practiced in almost all corporate organizations. Furthermore, the company under
study, has its branches nationwide. However, this study will limit itself to
the head office of the company in the Lagos State.
It is, therefore, expected that whatever
results that are obtained will be relevant to other organizations and branches
of MTN Nigeria Communications PIc nationwide.
1.9 HISTORICAL BACKGROUND OF MTN
MTN Nigeria is part of the MTN Group,
Africa's leading cellular Telecommunications Company. On May 16, 2001, MTN
became the first GSM network to make a call following the globally lauded
Nigeria GSM auction conducted by the Nigerian Communications Commission earlier
in the year. Thereafter the company launched full commercial operation
beginning with Lagos, Abuja and Port Harcourt.
MTN paid $285m for one of four GSM
licenses in Nigeria in January 2001. To date, in excess of US$1.8 billion has
been invested building mobile telecommunications infrastructure in Nigeria.
Since the launch in August 2001, MTN has steadily deployed its services across
Nigeria. It now provides services in 223 cities and towns, more than 10,000
villages and communities and a growing number of highways across the country,
spanning the 36 states of Nigeria and the Federal Capital Territory, Abuja.
Many of these villages and communities are being connected to the world of
telecommunications for the first time ever.
The company's digital microwave
transmission backbone, the 3,400 kilometer Y'ello Bahn was commissioned by
President Olusegun Obasanjo in January 2003 and is reputed to be the most
extensive digital microwave transmission infrastructure in all of Africa the Y'ello
Bahn has significantly helped to enhance all quality on MTN network. The
company subsists on the core brand values of leadership, relationship,
integrity, innovation and "can-do". It prides itself on its ability
to make the impossible possible, connecting people with friends, family and
opportunities.
MTN Nigeria also recently expanded its
network capacity to include a new numbering range with the prefix' 080-6,
making MTN the first and only GSM network in Nigeria to have adopted an
additional numbering system, having exhausted its initial subscriber number
range 080-3.
In its resolve to enhance quality customer
service, MTN Nigeria has also introduced a self-help toll-free 181 customer
care line through which subscribers can resolve their frequently asked
questions free of charge.
MTN's overriding mission is to be a
catalyst for Nigeria's economic growth and development, helping to unleash
Nigeria's strong developmental potential not only through the provision of
world class communications but also through innovative and sustainable
corporate social responsibility initiatives.
1.10 RESEARCH METHODOLOGY
The research is concerned with the Impact
of Personnel Appraisal and Employee Productivity with specific focus on MTN
Nigeria the largest mobile telecommunication company in Nigeria. For the
purpose of this study primary and secondary data collection method would be
used. The primary data will be collected with the aid of questionnaires with
some senior management, Assistant Management level and ordinary management
level to enhance the quality of response to the questionnaire. The secondary
data will be collected from literature other documents and also relevant text
would be analyzed using statistical tools. In all eighty (80) questionnaires
would be administered using the simple random sampling technique. The results
were analyzed using Descriptive Statistics and the hypothesis was chi square
method.
1.11 DEFINITION OF TERMS
Performance
Appraisal: This is the undiluted procedure whereby every
organization takes stock of its human resources (manpower) with regard to its
present performance, the likes and dipsticks of each individuals, his/her
strengths and weaknesses and his/her potential growth.
Halo-Effect: This
is a situation when an employee has been appraised based on love or hate.
Incentives this is used to express the
encouragement that entices or motivates the employee's effort and performance.
1.12 LIMITATION OF THE STUDY
This study is limited by some factors such as
time, duration and money. Academic material and responses of the Respondents
were short of supply. Human error and environmental distraction cannot be
excluded. In all it is a worthy exercise and the experience will be long
lasting.
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