THE IMPACT OF PERFORMANCE APPRAISAL ON EMPLOYEES PRODUCTIVITY: A STUDY OF SANTANA SECURITY AGENCY LIMITED,UYO – Complete Project Material


Abstract

 

The main
objective of this study is to determine the extent to which performance appraisal
can enhance employee performance and productivity.

To investigate
the problems of performance appraisal in Santana Security Agency Limited, uyo.
The researcher employed the descriptive surveys and the case study design. The simple
random sampling method was used to draw a sample of eighty (80) respondents
from Santana Security Services, Uyo branch Office. The researcher also made use
of self administered questionnaires for data collection. For the validity and
reliability of the research instruments, content validity and the test-re-test
method were employed. Similarly, in order to test the hypotheses and establish
the degree of dependence or independence of the variables under consideration,
the chi-square statistical technique was used. The study established among
others that, there is a positive relationship between performance appraisal and
employee performance and productivity. Also, the study reveals that there is a
correlation between effective performance appraisal, working environment,
satisfaction, morale, motivation and employee performance and productivity at
work. The study concludes that the Santana Security Agency Limited is faced
with performance appraisal problems which have affected its level of performance
and productivity. In the light of the findings, we recommend that there should
be a human capital audit, organizational and physical performance audit and
audit reports should be submitted to management periodically. The immediate
priority, therefore, is the need to re-examine the validity and reliability of
performance management and appraisal instruments in use in the Company.

Table
of Contents

Cover…………………………………………………………………………………………………………….
i

Title Page…………………………………………………………………………………………………….
ii

Dedication…………………………………………………………………………………………………..
iii

Certification……………………………………………………………………………………………….
iv

Acknowledgements……………………………………………………………………………………..
v

Abstract………………………………………………………………………………………………………
ix

Appendices……………………………………………………………………………………………………
x

List of Tables………………………………………………………………………………………………
xii

List of
Figures……………………………………………………………………………………………. xiii

Chapter One

Introduction

· Background
of the Study                                                           
 1

· Statement of
the Problem                                                           3

· Objectives
of the Study                                                            
 5

· Research
Questions                                                                     5

· Research
Hypotheses                                                                 
 6

· Significance
of the Study                                                            
6

· Scope of the
Study                                                                     
8

· Limitations
of Study                                                                    
8

· Operational
Definition of Terms                                                    9

Chapter Two

Literature
Review

2.1
Introduction                                                                           14

2.2 The
Concept of Performance Appraisal                                    14

2.2.2
Productivity Management and Measurement                          16

2.3 Objectives
of Performance Appraisal                                      19

2.4 Steps in
Performance Appraisal                                              20

2.5 Methods of
Performance Appraisal                                         23

2.5.1
Instruments of Performance Appraisal                                 25

2.6 Errors in
Performance Appraisal                                          26

2.6.1
Overcoming Errors in Performance Appraisal                     27

2.7 Legal
Aspect of Performance Appraisal                               28

2.8
Theoretical Framework                                                    
 28

2.9 Summary of
the Chapter                                                  
 29

Chapter Three

Research
Methodology

3.1
Introduction 31

3.2 Research
Design 31

3.3 Population
of Study 33

3.4 Sample
Size and Sampling Techniques 33

3.5 Data
Collection Instrument 34

3.6 Validity
of Data Collection Instruments 38

3.7
Reliability of Data Collection Instruments 38

3.8 Data
Analysis 39

Chapter Four

8

Data
Presentation, Analysis and Interpretation

4.1 Introduction
43

4.2
Respondents Characteristics and Classification 43

4.3
Presentation & Analysis of Data According to Research Questions 47

4.4
Presentation & Analysis of Data According to Test of Hypotheses 57

4.5 Discussion
of Findings 62

Chapter Five

Summary,
Conclusion and Recommendations

5.1
Introduction 66

5.2 Summary of
Findings 66

5.3 Conclusion
67

5.4
Recommendations 68

References 70

Appendix I: Specimen of
Letter of identification and Questionnaire 74

9

List of Tables

Table 1: Sex
Distribution of Respondents 44

Table 2: Age
Distribution of Respondents 44

Table 3:
Marital Status of Respondents 45

Table 4:
Respondents Length of Service 45

Table 5:
Official Status of Respondents 46

Table 6:
Educational Qualification of Respondents 46

Table 7: Grade
Levels of Respondents 47

Table 8:
Opinion on level of CBN Performance 48

Table 9: Views
on Utilization of Performance Appraisal System 48

Table 10:
Opinion on Conduct of Performance Appraisal 49

Table 11:
Opinion of Result Oriented Appraisal 49

Table 12: Opinion
on Performance rating Efficiency 50

Table 13:
Relationship between Appraisal and Productivity 50

Table 14:
Productivity dependent on Effective Appraisal 51

Table 15:
Opinion on Training and Development 51

Table 16:
Correlation between Appraisal and Attitude 52

Table 17:
Views on Internal Environment 52

Table 18:
Views on In-Service Training 53

Table 19:
Opinion on Factors Impeding Effective Appraisal 53

Table 20:
Opinion on Incentives for Hard work 54

Table 21:
Views on Labour-Management Relations 54

Table 22:
Opinion on Productivity and Employee Satisfaction 54

Table 23:
Opinion on Superiors Communication 55

Table 24:
Views on Awareness of Skill gaps 55

Table 25:
Opinion on Individual and Corporate Objectives 56

Table 26:
Opinion on Increased Motivation 56

10

List of
Figures

Table I:
Observed and Expected Frequency for Hypothesis One 58

Table II:
Observed and Expected Frequency for Hypothesis Two 59

Table III:
Observed and Expected Frequency for Hypothesis Three 61

11

 

CHAPTER ONE

 

INTRODUCTION

1.1 Background
of Study

In every
business organization, the performance of the employees is important in achieving
organizational goals. The success of every business organization can therefore
be attributed to performance appraisal. Performance appraisal is one of the
basic tools that make workers to be very effective and active at work. A
critical look out on this may bring about the need for motivation, allowances, development,
training and good human relationship in an organization.

The output of
every organization depends on how well and how much the performance of the
employee is appraised and evaluated. Productivity can therefore be defined as
“quality or volume of the major product or services that an organization
provides”. In short, productivity is what comes out of production.

Managers of
every business organization are charged with the responsibility to motivate
their employees to achieve organizational goals. The efficiency and effectiveness
of any work place whether the private or the public sector, largely depend on
the caliber of the workforce. The availability of competent and effective
labour force does not just happen by chance or accident but through an articulated
recruitment exercise (Peretomode and Peretomode, 2001) and performance
appraisal.

The whole
essence of the management activities of an organization culminates into the
system of performance appraisal adopted in that organization. This, in turn,
reflects the extent of the individual contributions and commitment of the employees
in different hierarchical levels toward the achievement of organizational
objectives. It goes without saying that an effective performance appraisal
system can lead an organization to take strides towards success and growth by
leaps and bounds. Conversely, an ineffective performance appraisal system can
seal the fate of an organization by creating chaos and confusion from top to
bottom in the administrative hierarchy. As a consequence the chances of success
and growth of that organization are doomed.

The Nigerian
economy has been plunged into a state of economic decline since the early
1980’s, following the introduction of Structural Adjustment Programme (SAP), by
Babangida’s Administration. Since then, productivity improvement has become a
major challenge facing all work and business organizations and the Nigerian
economy as whole. It has therefore become imperative for government and all
stakeholders to evolve adequate measures that would improve productivity in
Nigeria. It is on account of this, that most, if not all of the past leaders,
have tried in one way or the other to carry out at least one reform measure in
the public sector in order to enhance employee performance and productivity.

The nonchalant
attitudes of public sector workers towards their duties and responsibilities
have become a matter of great concern to the government at all levels and other
well meaning Nigerians. There has been a persistent public outcry in the mass
media indicting public sector employees for their negative attitude to work
which has lead to low productivity and declining revenue.

Igbokwe-Ibeto
(2011) observed that “people do not take their work seriously in many instances
because people do not like what they are doing”. This nonchalant attitude to
work is independent of geo-political zones, rural-urban residence, religious
affiliation, sex or age. This opinion if properly examined suggest that in many
cases, they see themselves as birds of passage, such notion and feeling is even
worsened by the fact that performance appraisal and productivity management is
not taken serious in most organizations.

A segment of
Nigerian scholars such as, Okoro (2003), Oko (2004) and Arhuidese

(2006) well
tutored in Nigerian history have traced the genesis of the negative attitude to
work prevalent among Nigerian to the event of colonial era. They argued that
during the struggle and fight against colonialism, many nationalist using
various approaches and strategies tended to give the impression that government
as an institution and its agencies should be impoverished and vandalized. The
public sector for example, was seen as a “white man’s job” and anything done to
frustrate its operations is well intended. The notion, they argued have spread
into all spheres of work in the present day Nigeria.

Some Nigerian
scholars such as, , Mustafa (2006), Nwachukwu (2008) and Fatile (2010),
emphasized the issue of poor performance appraisal and motivation at work as
the some of the causes of this national slide. They argued that poor performance
and low productivity is a direct consequence of inadequate motivation and
performance appraisal. In line with this proposition, Enyinta, (2001) noted
that, “there is general apathy on the side of the employers of labour to reward
a worker who is conscientious and dedicated to his duties”. Workers more often
than not go on strike resulting to loss of man-hours before they get their due
rights.

Afam (2003)
contributing to the above subject matter, believes that the Nigerian worker has
become a pawn in the hands of exploitative capitalist. He went further to
observe that workers are subjected to all kinds of ill treatments like
reduction in ranks, removal of fringe benefits, pay cuts, late payment of
salaries and wages and the prevalent retrenchment with or without benefits. He
concluded by saying that a situation where a worker is not adequately rewarded
for the cake he has painstakingly toiled to bake, is disheartening and left
much to be desired, as it amounts to killing the goose that lays the golden
egg.

1.2 Statement
of the Problem

For a research
work to get underway, some difficulties must be felt in a practical and
theoretical situation. In other words, there must be a felt difficulty
succeeded by efforts to find solutions to the problem. Efficiency and
effectiveness in the Nigerian public sector has been a subject of controversy
and debate by all and sundry. Inefficiency, ineffectiveness, red-tapism and low
productivity are all common features of public sector. It is in line with this
that Umo (2003), after examining the attitude to work of Nigerians concluded
that Nigeria’s ambition for rapid industrialization, economic prosperity,
social and political stability will singularly and collectively be frustrated
if the current poor work attitude of Nigerian public sector is not urgently and
positively improved”. The above opinion if properly analyzed, shows that
improved or positive attitude to work in the Nigerian is an antidote for
industrialization and economic stability and development in Nigeria.
Performance appraisal as an important human resource (HR) strategy for
achieving better employee performance and productivity is hardly taken serious
by many organizations’ and most especially the Nigerian public sector. In fact,
public sectors Managers see performance appraisal as a ritual and an academic
exercise.

This
prevailing anomaly in the public sector has provoked a series of studies

geared towards
ameliorating the ugly situation which scholars have attributed to the familiar
challenges of the Nigerian federation. These problems according to Mukoro
(2005) citing Fajemirokun, Briggs (2007) Igbokwe-Ibeto (2011), and Tonwe and
Oghator (2009) comprises ethnicity, religious strife, corruption, colonial
history, governance/leadership style, the military involvement in politics, dishonest
performance appraisal and federal character principles. A number of reasons
have been identified as being responsible for this ugly situation and a number
of solutions have also been suggested, but the problem remained endemic and
persistent in the Nigerian public sector. Their performances are still below expectation,
their productivity is far below average, efficiency and effectiveness is virtually
nil.

This study
therefore, aims to further interrogate this catalogue of problems by having a
look at performance appraisal in the Nigerian private sector so as to determine
its effectiveness or otherwise using the Santana Security Agency Limited, Uyo
branch as a case study.

1.3 Objectives
of Study

The main
objective of this study is to determine the extent to which performance appraisal
can enhance employee performance and productivity. Other specific objectives
include:

1. To examine
the extent to which public sector managers utilize performance appraisal
strategies to improve employees’ performance and productivity.

2. To examine
whether there is a relationship between performance appraisal and employees
productivity in the Nigerian private sector.

3. To
determine how individuals objectives and corporate objectives can be

integrated to
achieve better employee performance and productivity

enhancement in
Santana Security Agency Limited.

4. To
determine the extent to which organisational climate can influence

workers
behaviour towards better performance or otherwise.

5. To suggest on how to
overcome identified problems in the system, thereby proffering strategies for
performance appraisal to become more effective and efficient while embarking on
performance appraisal excise.

1.4 Research
Questions

To investigate
the problem of performance appraisal in Nigerian private sector, effort will be
made to beam our search light on the following research questions.

1. Do private sector
managers use performance appraisal in improving workers performance and
productivity?

2. Is there
any relationship between performance appraisal and employees’ performance and
productivity in Nigerian private sector?

3. Is there
any correlation between performance appraisal and attitude to work by employees
of Santana Security Agency Limited?

4. Can
organizational climate influence workers satisfaction, performance and productivity?


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