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

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

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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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