ABSTRACT
The main problem of this
study is to survey performance appraisal in private sector manufacturing
companies so as to find out to what extent this sector adopts the open
reporting system of appraisal.
Performance appraisal is
now widely practiced in private sector but it’s purpose in mis-constructed as
the whole exercise is geared towards salary administration. One main
objective of performance appraisal should be to review the subordinate’s
performance with him in order to identify his main strength and weakness, and
where weaknesses are identified to find ways and means of removing such
difficulties through training. Performance appraisal systems in private
sectors have been characterized with non-disclosure of appraisal result to the
employees. This apparent secrecy over performance appraisal results have
to be in the mind of the supervisors and managers a potentials tool for
cracking down at immediate subordinate with impunity.
Apart from safeguarding
against irrational and biased evaluation, the feedback of the performance
rating results to the employees through the open appraisal system has a
motivational impact. Without the feedback system, the formal appraisal
technique might not be able to effectively enhance improvement in individual
performance.
The subject of the study
is the staff of Hardis & Dromedas and Juhel Nigeria Limited. The
researcher used survey method for data gathering and stratified method for data
processing. The instruments used for collecting data consist of questionnaire
and personal interview.
Three hypotheses were
formulated. These were tested and analyzed by the use of decision rule
method to either retain or reject the validity the hypothesis formulated.
The findings in this
research revealed that majority of the employees under study did not view
performance appraisal as a developmental tool but rather view it as a promotion
and increase in remunerations. It was also discovered that what is
fundamentally wrong with most organizations especially private sector is that
job description which should form the basic for which employees performance can
be measured is not usually provided on employment.
Employees are also
discouraged when appraisal results are not implemented or when there is a
discrepancy between the perceived performance and the actual result.
Based on these findings,
it was therefore recommended that employees should be given feedback of the
appraisal so as to improve their performance and develop them generally.
The system should also be free of prejudice to increase staff morale.
Also the system should provide necessary and adequate training as at when due
after appraisal while consistency in rating should be maintained and strictly
adhered to on a regular basis.
TABLE OF CONTENTS
CHAPTER
ONE:
INTRODUCTION
1.1 Background
of the study
1.2 Statement
of the study
1.3 Purpose
of the study
1.4 Scope
of the study
1.5 Limitation
of the study
1.6 Research
questions/ hypothesis
1.7 Hypothesis
research
1.8 Need
for the study
1.9 Definition
of terms
CHAPTER
TWO:
LITERATURE REVIEW
2.1
objective of the study
2.2 Concept
of performance appraisal
2.3 Advantage
and disadvantage of confidential and open reporting system
2.4 Performance
appraisal technique
2.5 General
errors in rating
2.6 The
evaluation process
2.7 Factors
affecting performance appraisal
2.8 Performance
appraisal in the selected companies
References
CHAPTER
THREE:
RESEARCH DESIGN AND
METHODOLOGY
3.1
Research design
3.2
Area of the study
3.3
Population of the study
3.4
Sample and sampling technique
3.5 Method
of data collections
3.6 Validation
of the instrument
3.7 Reliability
of the instrument
3.8 Instrument
of data collection
3.9
Method of data analysis
CHAPTER FOUR:
PRESENTATION, ANALYSIS AND
INTERPRETATION OF DATA
4.1 Presentation,
analysis and interpretation
4.2 Testing
of hypothesis
CHAPTER
FIVE:
SUMMARY OF FINDINGS,
RECOMMENDATION AND CONCLUSION
5.1 Summary
of findings
5.2 Conclusion
5.3 Recommendations
Bibliography
Reference
Appendix
- Sample of
Questionnaires used in the study
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Appraising performance
is very important and necessary in all aspects of life. For any type of
endeavour that one ventures into, one tries to appraise one’s activities in one
way or the other. In fact, it is imperative for progress to be
accessed. Take for instance a businessman, the amount of profit he takes
is the measurement of performance. The church on the hand, appraise
itself by the rise and fall in the number of its congregation. For the
farmer, how well he had done is measured by the yield of his crops. Also,
in schools, student’s performances are evaluated through their tests or
examination scares. Even the government as a body assesses it performance
through the budget. During any budget speech, the president recalls on
the precious year’s activities in terms of successes and failures. For
civil servants also, performance rating is carried out from time to time.
Recently, management of
organizations are placing increased emphasis upon the need to develop and put
into greater use of the knowledge skills and expertise of their workers at all
levels. As a result of this, the accountability for improving both the
current performance and career potential of subordinates is assuming greater
significance in the practice of management if the organization are to function
well with formally defined roles and replaceable personnel, information must be
available about the performance abilities and weakness of it measures.
In this turbulent
working environment of ours therefore, the need for an understanding of
performance appraisal sounds very obvious and unquestionable.
The forgoing observation
is predicated upon the fact that some individuals perceive performance
appraisal as an annual ritual having less meaning to them and the organization
hence little or no importance is attached to the program. Yet appraisals
are certainly no joking matter to the managers and superiors who receive them
if its importance is anything to go by.
Performance appraisal is
the analysis of the employees past successes and failure and the assessment of
their suitability for promotion or further training. Appraisal of
individual performance is also a fundamental human act. Before the
emergence of the great bureaucracies, which is predominant today, men watch one
another, appraising each other’s behaviour in accordance with the
interpretation of what they saw.
The performance
appraisal process is provides an opportunity to fix the employees attention on
the things that really matter. If employees are informed of the
organization’s goals and how their jobs fit these objectives, they have the
ability to determine for themselves what is important and to set priorities
among tasks of differing value to the overall organizational effort.
By appraising
individual’s performance areas of relative strengths can be identified and
reinforced, while areas of shortcomings can be communicated to be reappraised
and be encouraged to redirect their work habits in a manner that is conducive
to better performance growth. The aspect of any performance appraisal
system involves its use as a basic for promoting or rewarding higher
performance or far weeding out marginal or low performers.
In many organizations,
performance approach is viewed and conducted solely in terms of evaluative
aspect thereby overlooking its use for facilitating growth and development in
employees though training, coaching, and counseling and feedback of appraisal
information. In others, it is even accorded a lesser role.
Performance appraisal
system in some organizations has be characterized with non disclosure of
appraisal results to the employees. This apparent secrecy over
performance appraisal result has to be in mind of supervisors and managers and
potential tool for cracking town at immediate subordinate with impunity.
Consequently, the proponents of the open reporting systems of appraisal have
argued that the open appraisal system is desirable in order to protect the
subordinate against the prejudices of their superiors that cannot be supported
by facts.
Apart from the safe
guarding against irrational and biased evaluation, the feedback of the
performance rating results to the employees through open appraisal system has a
motivational impact. Without the feedback system, the formal appraisal
technique might not be able to effectively enhance improvement in individual
performance.
So performance appraisal
in unavoidable for progress to be measured correctly and rewards appropriated
rightfully. The appraisal of workers in private sector is also very
essential.
1.2 STATEMENT
OF THE PROBLEM
Since appraisal or
evaluation is necessary for assessment, it is assumed that the private sector
companies must be evaluating their employees.
A critical look at most
organizations revealed that the most despised and avoided of all management
tasks is that of performance appraisal. In most organizations,
performance appraisal is an animal ritual in which the manager evaluates the
subordinates performance and the evaluation is used to determine how much of
merit increase the subordinate will receive. The manage is concerned that
subsequent interaction de-motivating and that subsequent interaction with the
subordinate will be difficult. The subordinate knows that valued
organizational rewards are riding on the outcome of the appraisal and trends to
focus on the bottom line rather than the reason behind the bottom line.
This ritual has little to do with a manager’s primary responsibility to coach
the counsel subordinate with a view to develop both their present and future
potentials.
All organizations
carryout some form of appraisal. Those without formal schemes carry out
informal ad hoc evaluations of their employees’ performance. Every time
there is a promotion or a need to redeploy someone, managers have to make
judgments about how well people have performed. The problem with this
informal assessment is that they are usually secretive, based on insufficient
information, open to bias and can be inaccurate. Most importance of all
is the fact that the employee is not a part of the process. Informal
assessment any objective criteria or guidelines on which to judge, performance
will not be far.
Experience have also
shown that a lot of managers do not see the need to assess and evaluate
regularly and accurately the performance of their employees in order to make
them strive for poor pay, redundancy, unemployment, high labour turn-over and
ineffectiveness of employees in discharging the duties.
Appraisal exercise is
still a difficult approach to be put into a successful practice by various
organizations while many organizations give lip service to this approach, a few
of them have taken the advantage of the systematic/appropriate approach.
A systematic performance
appraisal will enhance development provided the individual being evaluated is
informed about how he is progressing and the areas where improvement could be
made.
So, the problem of this study
is to find out to what extent Juhel. Nigeria limited and Hades &
Dromedas companies appraise their employees and the method they adopt.
Also the study is carried out to ascertain how far the companies have adopted
the new reporting system.
1.3 PURPOSE
OF THE STUDY
The objectives of this study are:-
(a)
To investigate to what extent Juhel, Hardes & Dromedas companies appraise
their employees.
(b)
To discover the types of reporting system being used by these companies.
(c)
To determine how efficient the method they are using is.
(d)
To find out the objective assessment of employees performance and equity in
recording employees.
1.4 SCOPE
OF THE STUDY
In carrying out this
research, two firms were selected for study. Juhel and Hardes and
Dromedas Nigeria Ltd. The two firms are located in Enugu.
1.5 RESEARCH
QUESTIONS/HYPOTHESIS
(a) To
what extent is the method being used by private sector companies an efficient
method of appraisal?
(b)
Based on the determination of such, what problems are passed by time particular
method?
(c)
How is the private sector coping with these problems?
(d)
Does the performance appraisal system in private sector in any way contribute
to the employee’s development?
(e)
Does performance appraisal system have any direct relationship in boosting
employee’s morale and career development?
1.6 RESEARCH
HYPOTHESIS
Following the research
question and research objectives, the formulated are as follows:
H0: Juhel, Hadis
& Dromedas companies do not pay attention to performance appraisal.
Hi: Juhel,
Hadis & Dromedas companies pay attention to performance appraisal.
H0: Employees in
the Juhel/Hadis companies do not pay attention to open reporting system compare
to confidential reporting system.
Hi:
Employees in the Juhel/Hadis companies pay more attention to open reporting
system.
H0: Juhel/Hadis
companies that adopt the confidential reporting system do not make it
completely confidential.
Hi:
Juhel/Hadis companies that adopt the confidential reporting system make it
completely confidential.
1.7 NEED
FOR THE STUDY
The need for this study
lies in the fact that the type of appraisal used by private sector companies
will be discovered. Also companies that do not appraise their employees
at all will be exposed to such an idea.
Moreover, since it is a
known fact that most private sector companies performance better than the
public companies, how far the appraisal method used relate to their performance
will be known by the general public.
The study besides
serving as an interest to private sector companies on what the private sector
companies to in achieving their goals especially profit wise. Also to
student that wants to carry out further research.
1.8 DEFINITION
OF TERMS
Appraisal
- This is the
quantity and quality of work
accomplished by an individual, group or
organization.
Appraisal
- This refers to the
superior officer who appraises
the subordinate during
the performance evaluation exercise.
Appraisal
- This is the
employee being evaluated.
Performance
- This refers to
the execution of action and
fulfillment of aims which is measurable by a
standard the productivity and the organizational maintenance of goals or status
quo, the extent to which the workers role contribute to the achievement of
organization goal.
Attitude
- This is
individual responses evolved by particular
stimuli, tend to fall into relatively stable and
consistent patterns, which may conveniently be described as attitudes.
Feedback
- A controllable
system may be regulated (i.e it
output may be brought to any desired value) by
the provision of an adjustment to the input.
Subordinate
- This shall refers
to an employee who is lower in
rank or position to an superior in an
organization. In other works he is a junior employee to his senior.
Motivation
- This refers to
the way urges, aspirations, drives
and needs of human being direct or control or
explain their behaviour. It may be keeners for a particular pattern of
behaviour.
Private
enterprise
- These are
business units that are owned and
managed by private individuals. These
forms of business cannot said to belong to private sector.
Department | Business Administration and Management |
Project ID Code | BAM0133 |
Chapters | 5 Chapters |
No of Pages | 102 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
|
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Contact Us On | +2347043069458 |