CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Performance Appraisal is a major subject of controversy in management circles. While business leaders see the need for appraisal systems, they are frequently disappointed in them. One of the responsibilities of management is to ensure that an organization functions effectively and efficiently. In order to achieve these goals, managers must be able to determine and assess performance levels of both an organization and its individual employees (Kurt 2004).

Modern businesses depend upon measurement and analysis of performance. Measurements must derive from the company’s strategy and provide critical data and information about key processes, outputs and results. Data and analysis support a variety of company purposes, such as planning, reviewing company performance, improving operations, and comparing company performance with competitors’ or with ‘best practices’ benchmarks (Averson, 1998).

1.2 Statement of the problem

Performance appraisal provides a good opportunity to formally recognize employees’ achievements and contributions to the organization, and to ensure that a clear link is established and maintained between performance and reward. Employees of First Bank Plc in recent times have been accused of high level of inefficiencies in the discharge of their duties by the general public. However, it was recently that research had revealed the deplorable working conditions under which financial professionals’ work. Poor infrastructure, inadequate logistics and equipment, poor remuneration and inadequate reward system have always led to the low level of public confidence and respect in the financial institutions.

The situation had further resulted in ripple effects of poor performance, low morale and lack of discipline in the service vis-a-vis the theories on performance appraisal. Given the challenges earlier enumerated to be facing employees in First Bank Plc, particularly employees of Uyo Branch in Nigeria.

pg. 13

1.4 Objectives of the Study

An effective performance appraisal programme would assist an organization to achieve its goals and goals. It would lead to enhanced communication, employees professional development, improved employee morale and help identify training needs of the employees. A well-developed staff are more likely to be proactive, productive and resourceful, all of which help give the organization a competitive edge from improved customer relations to increased profits.

1.4.0                The main objective of the study was to assess the effectiveness of the Performance Appraisal (SPA) system in First Bank Plc at Uyo Branch.

1.4.1                Specific goals for the study were to find out:

1.   To measure employees’ understanding of the goals of the appraisal system, its processes and procedures at First bank.

2.   To find out whether the appraisal system at First bank is achieving the goals.

3.   To measure employees perception of the appraisal system at First bank.

4.   To find out how the performance appraisal system has been able to identify employees’ strengths and weaknesses and programmes put in place to address weaknesses and reward performance.

pg. 14

1.5 Research questions

The following research questions formed the basis upon which the study was

conducted:

1.   What is the level of employees’ understanding of the goals of the appraisal system, its processes and procedures at First bank?

2.   How is the appraisal system at First bank achieving the goals?

3.   What is the perception of employees of the appraisal system at First bank?

4.   Is the performance appraisal system able to identify employees’ strengths and weaknesses?

1.6 Significance of the study

This study would bring to light employees understanding and appreciation of the performance appraisal system and the relevance of an goal, systematic and effective performance appraisal. Also, it would contribute to knowledge and literature because it would focus on how performance appraisal can be more effective which would enable management to develop a broader understanding of human resource management process. Further, it would provide information for human resource practitioners on how rules and regulations regarding performance appraisal work in banks and develop the necessary programmes to address weaknesses and reward performance.

pg. 15